Singaporeans pay much less in taxes compared to citizens elsewhere: Lawrence Wong

“Currently, when the state sells land, the financial proceeds go into past reserves and they are invested to generate a stream of income to our Budget through the NIRC (Net Investment Returns Contribution),” Mr Wong added. 

This means that Singapore can spend more than 1 per cent of the proceeds each year, because the reserves are “prudently” invested and generate long-term returns. Half of this can be spent as revenue, said the Deputy Prime Minister. 

“We believe this is a more sustainable way of deriving value from the land we own, through the NIRC, that benefits us now and in the future.” 

“SINGAPOREANS NEED TO CHIP IN TOO”

In a speech on Wednesday to open the debates, WP chief and Leader of the Opposition Pritam Singh had warned of “two Singapores” emerging in the absence of more action against inequality. 

In this scenario, one Singapore is connected to the world as a hub economy, where high salaries and opportunities abound.

The other is where the majority of Singaporeans live, where there are perceptions of slowing social mobility, connected to the reality of high housing prices, said Mr Singh.

“These two Singapores could easily become a reality that causes friction in society,” he added. “Such views can easily take root and manifest themselves in cruel ways.”

In his closing speech on Friday, Mr Wong addressed the call for more to be done to tackle inequality. 

“The Government will do our part, but we will not be able to narrow wage gaps on our own … To ensure sustainable growth in real wages for our lower-wage workers, Singaporeans need to chip in too,” he said. 

“As consumers, all of us must be prepared to pay more for services delivered by our fellow Singaporeans.” 

And beyond dealing with inequality, Singapore must ensure that social mobility remains “alive and well”, said Mr Wong.