That’s only half the story.
The PAP government had played a major role in prospering Singapore. GDP has grown from USD974 million in 1965 to USD223 billion in 2010. This is no easy feat, and of course the PAP has trumpeted its achievement at every opportunity.
But behind the impressive GDP figures, hide an ugly truth. Not all Singaporeans have benefitted from the economic growth. The lower-income group did not benefit from it, and I suspect most from the middle-income group did not do so either. While GDP grew 86.7% from SGD163 billion in 2000 to SGD304 billion in 2010, the average income of a person from the lowest 10th percentile group grew from SGD293 to SGD354, a mere 20.8% increase over a decade. The group from 51st – 60th percentile fare better: from SGD 1243 to SGD1853, a 49.1% increase, but still nowhere near the 86.7% growth in GDP. You might expect that the income of the top 10th percentile to outpace the GDP growth. Wrong. The top 10th percentile earners’ income grew from SGD5375 to SGD9174, a 70.6% increase.
So who benefited from the impressive GDP growth? The top 1% earners? The ministers whose pay is pegged to the GDP growth?
It is common sense that carrots influence behavior; that people make choices based on the carrots dangled in front of them, ministers included. Gone were the days when respected ministers made personal sacrifices to serve the people. Today, with that kind of pay that politicians (excluding those in opposition camps) get, one cannot be sure taht their motivation is public service or kate spade bags.
