Co-organized by the Economic Society of Singapore and Singapore University of Social Sciences, and in support of ‘ForwardSG,’ the Singapore Economic Policy Forum 2022 centered on the theme of social good. I spoke on what ordinary people need to lead flourishing lives, the unequal wage work and care conditions people face as they try to meet needs, and the culture of individual hustle these conditions generate. The edited text of my speech is published at AcademiaSG.
Seeing/reading and thinking about other people’s work is often generative and inspiring.
In recent weeks:
I got around to watching Bong Joon-ho’s award-winning film Parasite. Many people had told me I had to see it. The film is indeed, as everyone promised, amazing. Thanks to an invitation from Arts Equator, I had the opportunity to reflect on the film in this review. This is one of those films that stays under your skin for a while. If you haven’t already seen it, do.
One of my ongoing research projects is the study of basic needs through the Minimum Income Standards (MIS) approach. Recently, a two-part series by Channel News Asia, and a 2018 report by the SMU Lien Centre for Social Innovation, put food insecurity in Singapore under the spotlight. It got the MIS team thinking about our findings about food–how our participants thought about and discussed a baseline, how ‘basic’ in the context of food means more than filling the stomach, but also involves needs for choice, autonomy, and social participation. We are reminded once again of the importance and urgency of figuring out, through empirical study, where to draw a baseline of standards of living below which no one should fall.
Finally, I had the good fortune to preview Cherian George’s Air-Conditioned Nation Revisited (2020). It is the 20th anniversary of his groundbreaking book, Air-Conditioned Nation (2000), and this forthcoming book of essays draws from that as well as his more recent Singapore, Incomplete (2017) and a number of new essays. These are my thoughts on the forthcoming Air-Conditioned Nation Revisited:
Cherian George is one of Singapore’s most astute political observers and social commentators. This collection of essays, drawing on events that traverse the last few decades, takes us through intriguing encounters and noteworthy moments in Singapore’s recent past. From political dissidents to governing elites, newspaper editors to bloggers, the presidential election to Hong Lim Park, Professor George reminds us of incidents and people too quickly forgotten or under-interpreted. Each matters because they clear up some puzzle as to how we got here. Even better, they invite us to reconsider: where is ‘here?’ Infused with Cherian’s wit, humor, audacity, and above all with his steadfast idealism and generosity, this is that rare book on politics that encourages clear-headedness and yet holds cynicism at bay. Read it, share it, read it again: this book will spark feelings, stir thoughts, create conversations, engage our muscles for debate and disagreement—all things we deserve as humans living in society.
The book ships on March 13, and you can pre-order a copy here.
When the lowest income households have higher expenditure than income, what does this imply about inequality and unmet needs? How do we put trends of mobile phone and aircon ownership in perspective? Ng Kok Hoe and Teo You Yenn offer insight into the latest household income and expenditure data.
New data on household income and expenditure in 2017/18 has sparked much discussion, with two points drawing particular attention. First, the lowest income quintile group was the only group whose expenditure exceeded income during this period. Second, there appears to be increasingly widespread ownership of certain consumer items, such as mobile telephones and air-conditioning, across all income groups.
What do these observations imply about whether everyone in Singapore can meet their basic needs? What do they tell us about inequality?
Are needs going unmet?
The most significant issue to confront is whether people in the lowest income quintile group have sufficient income to meet their basic needs, as this has long-term consequences for their well-being.
In ongoing research, one of us has found a strong social norm–present in families of all income levels–to spend “within means,” and a strong desire to save. This helps to explain why most households have lower expenditure than income. This norm is shared by those who earn among the lowest 20%; indeed earlier research (Teo You Yenn) has found that people with low incomes are careful about spending. They already forego spending on certain things that higher-income people take for granted as basic needs, with negative long-term consequences—buying cheaper, less nutritious food; delaying seeing doctors; cheaper and less tuition for kids.
While attention is sometimes drawn to items like the mobile phone, they do not necessarily make a huge difference to expenditure. In 2017/18, spending on mobile phone services made up just 3% of the monthly expenditure of households in the lowest income quintile group. Instead, necessities like food and transport continue to be the largest items. Compared to the previous Household Expenditure Survey in 2012/13, it is healthcare spending that has increased the most for these low-income households, from 7% to 10% of total expenditure.
The proportion of actual monthly spending for social and recreational purposes generally falls below what–according to elderly participants in our research on minimum income standards–is necessary to allow a sense of belonging, social participation, and engagement in cultural practices. The lowest-income households spend the least in this area, which raises concerns about their inclusion as members of society.
Unequal capacities to save
Expenditure outpacing income also implies insufficient capacity to save and plan for the future, with long-term negative consequences for meeting needs during old age. If there are inequalities in the capacity to save and plan, a social welfare system which ties outcomes to this capacity will tend to reproduce inequality in other areas. In Singapore, for instance, access to retirement security is underpinned by individual savings, access to housing by individual wealth accumulation, and quality of children’s education by individual investment. In other words, inequalities in income translates to unequal access to certain public goods.
An incapacity to save also means that families which are otherwise generally stable can be easily thrown into crisis by unforeseen occurrences such as an illness, accident, job loss, or the arrival of a child who has special needs. This also raises the question of whether our policies can adequately buffer lower income families against these ordinary and yet unpredictable risks.
What counts as needs?
Another major issue raised by the expenditure data is the definition of basic needs. It is important for us to understand what are considered basic needs by members of society at a particular point in time, and the extent to which these needs are being met, especially among lower-income groups. The income and expenditure data should be compared with Minimum Income Standards (MIS) or other similar benchmarks of what people need for a basic standard of living in Singapore today. While we have carried out MIS research in relation to older households, we intend to replicate this research across other household types.
Expenditure data alone may give us insights into what is most commonly owned or purchased, but it may fail to account for needs which people currently forego. What people need must not be conflated with what people can afford. Moreover, unlike qualitative research using the MIS method, expenditure data alone cannot reflect and take into account the rationales and social norms that explain why something is a need.
Needs evolve with society
What constitutes ‘needs’ are context specific, and can and do change over time.
We must recognise that as a society’s living standards and lifestyles change, so too do the requirements for belonging and participating in society. Something which was not a basic need before may have become a basic need now because not having that item would make it difficult for someone to participate in society.
In our research into basic needs for older households, for example, our respondents reminded us that they did not consider mobile phones and internet access to be basic ten years ago. But in Singapore today, one would struggle to function in society without them. Many day-to-day transactions and interactions presume that people have internet access. On the other hand, newspaper subscriptions are no longer considered needs. Items that used to be part of belonging and participation in society may cease to be necessary as society changes. To keep pace with these changes, it is important that research into the definition of needs is updated on a regular basis.
It is clear that income is a key means of meeting needs and thus a central determinant of well-being in Singapore today. To ensure everyone has sufficient income to meet basic needs, as a society, we need to review wages and redistribution–taxing and spending. To peg such policies to clear standards of adequate well-being, we also need a well-defined and regularly updated baseline of basic needs.
Welcome to my new website. I have set this page up as a place to share links and information about my books, op-eds, and research.
May also saw the launch of “What older people need in Singapore: A households budgets study”, a Minimum Income Standard research project I undertook with collaborators, Ng Kok Hoe, Neo Yu Wei, and Ad Maulod. Please watch and share this short explainer video:
Finally, I have been involved with Academia.sg, a new initiative which several scholars have launched to promote Singapore studies and to encourage critical debate about the state of intellectual life in Singapore.
You can find out more about my other books and publications at this page, which I will update from time to time. I will also post links to my op-eds on this blog. Thank you for reading.