Low cost of living

I watched a TV program. It featured a worker earning $2 a day in a poor country. The worker said, that the $2 was additional income to the family, who depended on farming as their primary livelihood. Although they are poor, they do not have any financial stress, as they have low cost of living.

I recall the conditions of Singapore in the 1960s and 1970s. HDB flats were sold for $15,000 to $35,000, representing about two years of average earnings. Most people could find jobs that paid sufficient wages to pay their flats, accumulate savings in the CPF and live comfortably as long as they are willing to work. They have better financial security.

The financial condition worsened after 1980 when public housing was allowed to appreciate under the "asset enhancement" policy. It is now a financial burden to buy a modest HDB flat which has to be paid with a high proportion of the earnings when jobs are no longer secure. This has caused a lot of financial stress.

I believe that it is possible to rebuild a new economic structure that gives more financial security and less financial stress.

Tan Kin Lian