More social spending not 'a fiscal drain on economy'

[SINGAPORE] The government's clear message that its priorities lie in raising social spending need not be seen purely as a greater fiscal drain on the country's resources, say some analysts and observers.

Rather, they point out that the heavier investment in this regard - be it in the building of more hospitals and preschools or the opening of new social-service offices - would mean fresh growth areas for Singapore and better opportunities for the people.

OCBC economist Selena Ling said: "The increased social-sector spending should be a positive for the Singapore economy."

It is a signal that policymakers are responding to medium-term socioeconomic trends such as the ageing populatio…