By: H.E. Sasenarine Singh, Ambassador to the Kingdom of Belgium and Netherlands and Permanent Representative to the European Union

SINGAPORE transformed from a newly industrialised “Asian Tiger” into one of the wealthiest nations on earth. Yet its most remarkable achievement is not wealth alone but building a system that ensured that those at the bottom of the economic ladder are not left behind. Between 1992 and today, GDP per capita surged from roughly US$16,000 to over US$90,000, while policy measures pushed citizens to upskill, boost productivity, and create new income opportunities that they did not have a decade prior.
A state-run savings system (the Central Provident Fund, similar to Guyana’s NIS) also delivered targeted, asset-based transfers focused on homeownership. Today, 91% of Singaporean citizens own their own homes; their own personal space. And we’re not talking about a plot of land with a promise. We’re talking actual keys, actual walls, actual privacy.
Upgrading from Labour to Knowledge
Singapore learnt very early that for lower-wage workers to benefit, there must first be jobs worth having. Its path was clear: move up the value chain so that growth could serve the workers as well as the investors. Throughout the 1990s and 2000s, Singapore relentlessly pushed its economy from labour-intensive manufacturing to capital-intensive industries, and eventually to a knowledge and innovation-driven economy.
In the early 1990s, as neighbouring countries with cheaper labour began catching up, the government forced a decisive shift. Wages were raised substantially across three consecutive years, compelling companies either to automate or leave. Government provided grants to companies to assist with automation. The message was clear: Singapore would no longer compete on low costs, instead, it pursued high-tech industries (automation equipment, pharmaceuticals, medical devices) and offered foreign investors generous tax holidays to set up advanced operations.
By the mid-1990s, Singapore transitioned toward a knowledge economy, attracting overseas professionals and granting them permanent residency and comfortable housing. This created a “headquarters economy” where multinational companies set up their Asian bases. Today, more than 7,000 multinational companies have offices in Singapore, with 4,200 establishing regional headquarters there; the highest concentration of any Asian city.
The 2008 global financial crisis prompted further intervention: bridging loans for local enterprises, employment subsidies, and large-scale infrastructure investment. By 2010, Singapore had rebounded strongly, focusing on high-tech talent and innovation. GDP per capita doubled from US$46,237 in 2010 to over US$90,000 by 2024.

The Social Compact: Six Pillars of Support
Economic growth alone does not guarantee that benefits reach the poorest. Singapore’s approach rests on an “asset-based social security system.” Rather than handing out cash payments, the government helps lower-income citizens build assets, primarily through homeownership, healthcare access, education, retirement savings, employment support, and community assistance. This op-ed highlights two pillars:
1. Education was recognised early as the primary enabler of social mobility. In 1992, the Edusave scheme ensured no child was denied opportunities due to family background. In 2016, the KidStart programme targeted low-income families to give children a stronger start in life. The school system tracked every child who missed a day in school and was at the bottom half of the class with regards to academic and inter-personal skillsets (yes the mental health of the child was monitored). The strategy was to ensure that no one was left behind; it was not a public relations gimmick. The welfare system was resourced to place at-risk children into special programmes offering financial support, psychological help, homework assistance, and after-school learning.
2. Housing occupies a uniquely important role. The CPF Housing Grant (1994) subsidised home purchases directly. Guyana’s President H.E. Dr Irfaan Ali has laid out a superior policy to ensure every family secures a house lot which can easily benefit from low-cost financing to complete their home. His strategy puts Guyana on par with the best housing systems in the world.

The Workfare Breakthrough
Perhaps the single most significant pro-poor policy introduced since 1992 is the Workfare Income Supplement (WIS) scheme, launched in 2007. WIS supplements the incomes and pays CPF (social security – NIS) contributions for lower-wage Singaporeans directly from government revenue. The author suggests it would be a great idea if Guyana’s NIS payments for all 10 day workers could be similarly settled by the Treasury, granting low-income workers a guaranteed monthly pension upon retirement.
Crucially, Workfare is not just a handout. It is conditional on employment and includes the Workfare Training Support scheme to help low-waged workers upgrade their skills (e.g., from school sweepers to excavator operators), where income can multiply more than five fold after training. This reinforces the philosophy: help people to help themselves, but ensure those who cannot keep up are not abandoned.

Results: Rising Incomes and Narrowing Inequality
The policies have worked. Real income growth for the bottom 20th percentile of workers, which was negative at -1.4% per annum between 2001 and 2006, turned sharply positive at +6.1% per annum between 2006 and 2011, coinciding with the introduction of Workfare and expanded social support. Singapore’s Gini coefficient, a measure of income inequality, has also improved. While still relatively high by international standards, the trend has been toward greater inclusivity.

Conclusion: A Model of Asset Based Inclusion
From 1992 to the present, Singapore has demonstrated that a small, resource-poor nation can generate spectacular wealth while ensuring that those at the bottom share in the gains. The formula has four key components:
1. Relentless economic upgrading.
2. Asset-based social security.
3. Targeted income supplementation.
4. A robust safety net.
The result is a model where the state acts as an enabler, an investor, and, where necessary, a direct supporter, always with the goal of helping citizens stand on their own feet. For other developing nations, Singapore’s experience offers a distinctive and instructive path.