Thursday, May 31, 2012

Second-class citizens?

‘ let justice run down like waters and righteousness as a mighty and ever-flowing stream.’ (Amos 5:24) 

Recently I read two articles which commented on the state of affairs in this country. One was published in the Washington Post, the other first appeared in The Star, Malaysia. Both observed that there is the widening in income inequality, making worse by the massive influx of low-wage foreign workers, especially during the last ten years (population increased from 4 to 5 mil). It has reached a critical point that one respected senior statesman labels it as “socially unconscionable”. In fact, we have of the widest income gap amongst the developed countries. Then, there is those frequent train breakdowns, flooding, not to mention the soaring housing prices and cost of living. 

The middle income group formed 70% of the population, and we have the most educated middle-class in the world. The influx of mid-level foreign workers has apparently competed some of the jobs in areas unheard of a decade ago. They edged out the locals based on pay packages, not on qualifications. The group that fares the worst are the middle-aged and the retirees who find themselves very difficult to re-enter the workforce. This middle-income group is fearful of deterioration in their living standards, the threat of unemployment, or their salary dropping. All these can happen against the back drop of the country experiencing high growth and rise in wages. 


The problem is that the wealth effect concentrates in the hands of rich people. The friction between foreigners and locals is real, and escalating. This is shown by the recent outcry over the fatal car accident involving a rich PRC young investor who drove his limited edition Ferrari recklessly (his wife said it was a driving error), causing the death of two others besides himself. It has stirred strong anti-foreigner sentiment so much so that the Chinese embassy here has to remind its people to obey local laws and regulations, act responsibly. 

The danger of not dealing with these issues satisfactory is that it can erode the trust of the public towards the policy makers. I am of the opinion that some of these policies do seem to produce only short-term economic gains but not sustainable or endurable benefits for its people. Economic growth policy without addressing income inequality is disastrous in the long run. It is no good that people feel being treated as second-class citizens. How can a strong sense of nationhood developed with this kind of perception amongst its people?

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