‘Far-reaching reforms’ needed to tackle economic pessimism before fertility falls further: Leon Perera
Sharon See
WORKERS’ Party (WP) Member of Parliament Leon Perera on Tuesday (Apr 18) called for “far-reaching reforms” in areas such as wages and housing, to address “economic pessimism” that could lower Singapore’s total fertility rate.
Speaking on the second day of debate on President Halimah Yacob’s address, Perera cited the 2023 Edelman Trust Barometer survey, in which only 36 per cent of respondents in Singapore feel that their families will be better off economically in five years – the lowest since the survey began 23 years ago.
“When we have discussions like this, it is often pointed out that real wages are still growing,” he said. But such data may “mask the fact that certain demographic groups may feel the pain of inflation more than others”, he added.
He noted that studies have shown a causal link in Singapore between high home prices and a low total fertility rate. The rate fell to a record low of 1.05 last year. If left to fester, economic pessimism could also lead to a brain drain as people leave for more livable countries.
“We need to address this economic pessimism fundamentally, not only through ad hoc measures such as an additional grant here or an additional rebate there, helpful as that is,” Perera said. “More far-reaching reforms are needed to make everyone believe that the society has their back.”
He reiterated five proposals by the WP: a national minimum wage; a redundancy insurance scheme; “seriously tackling” the issue of poverty; lowering the prices of public flats; and overhauling trades and vocational jobs for higher productivity, pay and conditions.
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In a reference to Deputy Prime Minister Lawrence Wong’s comments on Monday that the opposition should be upfront about trade-offs, Perera said: “Lest anyone says the trade-offs have not been explained, these ideas taken together will slow the rate of growth of reserves but will not draw down reserves.”
But slowing down the growth of reserves “is wholly justified” at this point, he argued, given Singapore’s needs with an ageing population in a turbulent world, and the much larger size of reserves to gross domestic product.
He asked for politicians to treat other views fairly, “rather than being too quick to label the other side as disingenuous”. Such labels can affect the tone of discourse in the wider society, if “alternative ideas become demonised or labelled uncharitably”, he added.
“Rather than chip away at trust in the Opposition with such labels, the government should focus on explaining why it disagrees with the Opposition,” he said.
Perera also revived his idea of Singapore leading a flagship renewable energy project in the region, previously raised in 2018.
He noted that the United Arab Emirates, which plays a similar role as a business gateway in the Middle East, has a “very outsized investment” in renewables.
One of its sovereign wealth funds has targeted 100 GW of renewables at home and abroad by 2030. In comparison, Temasek-linked Sembcorp’s 2025 target is 10 GW, and Keppel’s is 7 GW.
“Leading and catalysing such a regional flagship project will help bolster Singapore’s economy but also Singapore’s soft power in the Asean region,” he said.
Separately, in a speech about ageism against both old and young, fellow MP for Aljunied GRC Sylvia Lim repeated the WP’s call for Singapore’s voting age to be lowered to 18 years from 21 now, and warned against “pigeonholing” youth issues into only a handful of areas.
While the government has signalled its interest in engaging the youth, media reports instead show young people expressing cynicism about existing forms of engagement, she noted.
Progress Singapore Party Non-Constituency MP Leong Mun Wai echoed the call for the voting age to be lowered, and similarly advocated for a minimum wage.
The latter was among several ideas to help Singapore workers, with another proposal being tighter rules – such as levies and diversity quotas – for Employment Passes.
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