Covid-19 has increased impetus for stronger social safety nets: Lawrence Wong

THE impact of Covid-19 has increased the impetus for government support and intervention, with Singapore to make "a permanent shift towards the strengthening of social safety nets", said Education Minister and Second Minister for Finance Lawrence Wong on Monday.

The pandemic has already changed the world, and we must be prepared for more changes, he said, in his speech preceding a dialogue on the final day of the Institute of Policy Studies' Singapore Perspectives 2021 conference.

During this year and possibly a "good part of next year", Singapore must be prepared to remain in an acute situation, with measures such as mask wearing and safe distancing continuing to be part of everyday life.

The global roll-out of vaccines will allow international travel to restart progressively, but this will take time; and uncertainties remain over the duration of protection and effectiveness that vaccinations offer against new strains, he said. While no pandemic lasts forever, it may take four to five years before we see the end of this one and the start of a post-Covid normal.

Asked in the dialogue if the pandemic-driven rise in virtual working threatens Singapore's role as a hub, Mr Wong answered that some physical presence and face-to-face interactions would still be required in the future.

If Singapore can be positioned as a stronger candidate, "we can be more relevant as a hub, not less relevant", he said, adding that when companies think about having some presence in Asia, Singapore ought to be the first location that comes to mind.

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In his speech, Mr Wong said that in line with the theme of the conference - Reset - the crisis can be seen as "setting the stage for a software update" of society; a reboot after the damage inflicted by the virus.

He laid out three "resets" to be made. First, the reset of the social compact - with the pandemic having taken a greater toll on the lower income.

While Singapore has long understood the need for a combination of open markets and effective state intervention, the pandemic has increased the impetus for the latter, he said: "We aim to give Singaporeans more assurance and support in a more uncertain, volatile post-Covid world."

Singapore must also ensure that meritocracy does not "ossify into a hereditary system". To that end, the government is intervening early, even at the prenatal stage, to uplift children from the start.

The definition of merit must be broadened beyond academic and cognitive abilities, to include skills such as craft, creativity and the human touch, he added.

The pandemic has brought a deeper appreciation of the contributions of essential workers, said Mr Wong. As a society, Singapore must value such jobs more - according them dignity, respect and fair remuneration - and this will in turn result in a more equal spread of incomes across society.

The second "reset" is for a greener Singapore. Much is already underway, with moves such as investing in greener energy and aiming to phase out vehicles with internal combustion engines, noted Mr Wong.

Sustainability can also be a new source of competitive advantage for Singapore, as a carbon trading and services hub in Asia, and a leading centre for green finance in the region and globally, he said.

Finally, a silver lining in Covid-19 is the opportunity to strengthen a sense of social solidarity.

Even before the pandemic, there were powerful forces around the world chipping away at social cohesion, with some divides being exacerbated by Covid-19, said Mr Wong. He noted there are significant minorities globally who think the pandemic is a hoax, and the worrying phenomenon of the "downgrading of expertise".

But going through a crisis can also lead to greater cohesion, and Mr Wong said he was confident that this would be Singapore's path.

A renewed sense of solidarity is critical in Singapore's recovery, which is why the government is creating more opportunities for involvement in decision-making, with the Emerging Stronger Conversations series of dialogues, he added.