Mohd Arif, 32, works as a technician and takes home $2200. He hardly saves and needs to support his three children at home. His wife, a production operator helps out but brings home only $900 a month. Below the median family income of about $5400, life is harsh. Things could easily get more depressing if you find out that after July 2007, your consumption will be taxed 2% higher.
The year 2007 will be remembered by the blogosphere as the one in which Singapore ministers declared a 32.5% salary increase for themselves from about $1.2 million to about $1.6 million. It is also a year where the good and services tax will be raised from 5% to 7%. Clearly, declaring a tax increase and granting senior government servants a large pay increase in the same year has ruffled the feathers of many citizens, the most vocal being the bloggers in the Internet. The political capital expended in these initiatives is clearly a heavy one and only time will tell if this decision will impact the people’s support for the government in the years to come. Read the rest of this entry »