Good Practices and Innovations in Public Governance 2003-2011
Good Practices and Innovations in Public Governance 2003-2011 Good Practices and Innovations in Public Governance 2003-2011
Good Practices and InnovATIONS in Public Governance Asia and the Pacific Singapore 2007 Category 1 Winner Progress Package, Ministry of Finance, Ministry of Manpower and Central Provident Fund Board, Singapore Description Providing more resources and social benefits to the disadvantaged by integrating social security services through a Progress Package. Summary The Progress Package and Workfare Bonus Scheme is the first ever consolidated surplus sharing scheme for Singaporeans. The package represents a paradigm shift in policy objectives, structure and delivery to citizens by distributing budget surpluses to all Singaporeans, especially the elderly and underprivileged Singaporeans. The Problem In the last 40 years, Singapore has enjoyed prosperity and economic growth. This has enabled its citizens to earn good wages and achieve a high standard of living. However, like for many other nations the pressures of globalization and the challenges of an ageing population have resulted in a widening income gap. In particular, older, less educated and blue collar, low wage earners face the risk of wage deflation and structural unemployment. The government objective was to continue to foster economic growth in a small and highly open economy, while finding creative ways to promote equity and help low wage and vulnerable Singaporeans progress along with the rest of society. A key strategy was to share budget surpluses with citizens in a way that tilts the balance towards the lower income strata of the society, but without undermining the factors that have contributed to Singapore’s competitiveness, particularly work ethics. Although the government has had some surplus sharing exercises in the past, these were usually made up of separate programmes with different policy objectives, allotment criteria and sign-up procedures. Citizens had to initiate separate transactions, remember different deadlines and provide duplicate sets of information to benefit from the schemes. A number of social security civil services were provided through different government agencies, making it difficult and time consuming for citizens to access and take advantage of social services. However, qualification for many of these programmes was contingent upon citizens making cash contributions to their individual pension accounts, i.e., the Central Prov- 294
2007 Category 1: Singapore ident Fund account. Many lower-income Singaporeans were not able to make contributions; thus to benefit from these programmes. Previous programmes were also less targeted in terms of their distribution of funds to Singaporeans. Allotments tended to depend on single-dimensional proxies of wealth, e.g., the rental value of one’s place of residence, leading to a rather crude assessment of one’s financial situation. Based on this feedback, the government decided that a more refined means-test system would benefit lower income Singaporeans. The Solution In view of the problems with the previous programmes, the government set out to fundamentally re-design the surplus sharing initiative in a way that would address and redefine the way monies are to be shared with citizens. The main priorities were to: (i) introduce a new concept of surplus sharing: one that rewards work, promotes equity and ensures that lower-income Singaporeans receive more from this exercise, (ii) transform the administration: simplify the sign-up process and find more efficient means of distributing monies to Singaporeans, (iii) promote social inclusion and equity: provide targeted help to underprivileged Singaporeans so that they would be able to sign-up for their benefits and (iv) promote accountability: provide appeal channels for Singaporeans. The Progress Package, which is a surplus sharing initiative that benefits all adult Singaporeans, with more for lower-income and older Singaporeans, was established to seamlessly deliver government services as one package despite having different programmes, each with a different agency in charge. It reaches out to Singaporeans, especially those in the lower income groups and the elderly, through a partnership between the government, unions, grassroots organisations, Voluntary Welfare Organisations (VWOs) and other volunteers. It is a demonstration of Singapore’s social compact at work and is made up of six different programmes: Growth Dividends; Workfare Bonus Programme; Utilities-Save, Service & Conservancy and Rental Rebates; Special/Retirement and Medisave Accounts; Opportunity Funds to MOE schools and self-help groups; and the 40th Anniversary National Service (NS) Bonus. Through consolidating the different programmes into a single package and providing a common government touch point (website, email address, phone services and letters), Singaporeans could easily access information on their benefits and sign up for their Progress Package. To reach out to elderly and low-income Singaporeans to help them sign up for their Progress Package and Workfare Bonus, the Ministry of Finance (MOF), the Ministry of Manpower (MOM) and the Central Provident Fund Board (CPFB) worked closely with the People’s Association, nursing homes, welfare homes, and the Singapore Prisons Service. The successful outreach resulted in 9% of all eligible Singaporeans 295
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2007 Category 1: S<strong>in</strong>gapore<br />
ident Fund account. Many lower-<strong>in</strong>come S<strong>in</strong>gaporeans were not able to make contributions;<br />
thus to benefit from these programmes. Previous programmes were also less<br />
targeted <strong>in</strong> terms of their distribution of funds to S<strong>in</strong>gaporeans. Allotments tended to<br />
depend on s<strong>in</strong>gle-dimensional proxies of wealth, e.g., the rental value of one’s place<br />
of residence, lead<strong>in</strong>g to a rather crude assessment of one’s f<strong>in</strong>ancial situation. Based<br />
on this feedback, the government decided that a more ref<strong>in</strong>ed means-test system<br />
would benefit lower <strong>in</strong>come S<strong>in</strong>gaporeans.<br />
The Solution<br />
In view of the problems with the previous programmes, the government set out to<br />
fundamentally re-design the surplus shar<strong>in</strong>g <strong>in</strong>itiative <strong>in</strong> a way that would address<br />
<strong>and</strong> redef<strong>in</strong>e the way monies are to be shared with citizens. The ma<strong>in</strong> priorities were<br />
to: (i) <strong>in</strong>troduce a new concept of surplus shar<strong>in</strong>g: one that rewards work, promotes<br />
equity <strong>and</strong> ensures that lower-<strong>in</strong>come S<strong>in</strong>gaporeans receive more from this exercise,<br />
(ii) transform the adm<strong>in</strong>istration: simplify the sign-up process <strong>and</strong> f<strong>in</strong>d more efficient<br />
means of distribut<strong>in</strong>g monies to S<strong>in</strong>gaporeans, (iii) promote social <strong>in</strong>clusion <strong>and</strong> equity:<br />
provide targeted help to underprivileged S<strong>in</strong>gaporeans so that they would be<br />
able to sign-up for their benefits <strong>and</strong> (iv) promote accountability: provide appeal<br />
channels for S<strong>in</strong>gaporeans.<br />
The Progress Package, which is a surplus shar<strong>in</strong>g <strong>in</strong>itiative that benefits all adult<br />
S<strong>in</strong>gaporeans, with more for lower-<strong>in</strong>come <strong>and</strong> older S<strong>in</strong>gaporeans, was established<br />
to seamlessly deliver government services as one package despite hav<strong>in</strong>g different<br />
programmes, each with a different agency <strong>in</strong> charge. It reaches out to S<strong>in</strong>gaporeans,<br />
especially those <strong>in</strong> the lower <strong>in</strong>come groups <strong>and</strong> the elderly, through a partnership<br />
between the government, unions, grassroots organisations, Voluntary Welfare Organisations<br />
(VWOs) <strong>and</strong> other volunteers. It is a demonstration of S<strong>in</strong>gapore’s social<br />
compact at work <strong>and</strong> is made up of six different programmes: Growth Dividends;<br />
Workfare Bonus Programme; Utilities-Save, Service & Conservancy <strong>and</strong> Rental Rebates;<br />
Special/Retirement <strong>and</strong> Medisave Accounts; Opportunity Funds to MOE<br />
schools <strong>and</strong> self-help groups; <strong>and</strong> the 40th Anniversary National Service (NS) Bonus.<br />
Through consolidat<strong>in</strong>g the different programmes <strong>in</strong>to a s<strong>in</strong>gle package <strong>and</strong> provid<strong>in</strong>g<br />
a common government touch po<strong>in</strong>t (website, email address, phone services<br />
<strong>and</strong> letters), S<strong>in</strong>gaporeans could easily access <strong>in</strong>formation on their benefits <strong>and</strong> sign<br />
up for their Progress Package.<br />
To reach out to elderly <strong>and</strong> low-<strong>in</strong>come S<strong>in</strong>gaporeans to help them sign up for their<br />
Progress Package <strong>and</strong> Workfare Bonus, the M<strong>in</strong>istry of F<strong>in</strong>ance (MOF), the M<strong>in</strong>istry<br />
of Manpower (MOM) <strong>and</strong> the Central Provident Fund Board (CPFB) worked closely<br />
with the People’s Association, nurs<strong>in</strong>g homes, welfare homes, <strong>and</strong> the S<strong>in</strong>gapore<br />
Prisons Service. The successful outreach resulted <strong>in</strong> 9% of all eligible S<strong>in</strong>gaporeans<br />
295