Singapore The 2018 Aging Readiness & Competitiveness Report: Small Innovative Economies
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Singapore The 2018 Aging Readiness & Competitiveness Report: Small Innovative Economies ARC2018. AARPINTERNATIONAL .ORG
I Overview
Overview
II
Ecosystem for
Policy and
Social Innovation
III
Singapore, a sovereign city-state in
Community
Southeast Asia, is known as the 20th
Social
Infrastructure century’s most successful development
story, having transformed from a low-
IV
income country to holding the third highest
per capita income within 50 years.1
Productive
Opportunity
Today, the economy is at the outset of another transformation—
V this time demographic. Next year, Singapore will become an
aged society, having crossed the United Nations threshold of
14 percent of its population age 65 and older, having taken just
Technological 19 years to complete the transition from an aging society. Over
Engagement
the next decade, Singapore will become a super-aged society,
defined as people age 65 and older exceeding 21 percent of the
VI total population. And its older population will double by 2030
(Figure 1).2 This demographic shift is driven by the aging of its
baby-boom generation, along with declining fertility rates and
extended life expectancy. Singapore’s baby boomers, born
Health Care
and Wellness between 1947 and 1964, account for 30 percent of the total
population, and started to turn 65 years old in 2012. Singapore is
2 OVERVIEWFigure 1. People Age 65 and Older as Percentage of
Total Population
A city-state and island country in Southeast Asia, Singapore is one of the fastest aging high-income
societies.
Singapore Upper-middle-income-countries High-income-countries
35% 35%
28%
SUPER
21%
AGED
14% AGED
2017: 13.9%
7% AGING
0% 0%
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
Source: United Nations, Department of Economic
and Social Affairs, Population Division
ranked fourth in life expectancy, trailing only has been an issue on its policy agenda
Hong Kong, Japan, and Italy. It has among since the 1980s— long before the society
the world’s lowest fertility rates, with only became an aging society at the end of
1.16 average births per woman.3 the century when the share of people
age 65 and older in the total population
The same long-term, strategic approach exceeded seven percent. Conscious of
to planning that enabled the Singaporean the country’s geographic and natural
government to deliver rapid economic resource constraints, the government has
growth has informed the development emphasized self-reliance and responsibility
of the country’s approach to aging. This sharing among individuals, family,
SMALL INNOVATIVE ECONOMIES: Singapore 3community, and the state. This philosophy is manifest in every aspect of its social safety net related to aging, covering pensions, health care, and long-term care. Focused on its role of enabler, the government has made dramatic achievements in building accessible infrastructure, affordable housing, and a network of non-profit organizations. Already one of the world’s most efficient health care systems, Singapore is stepping up the effort to develop its long-term care system, with a focus on availability and affordability. Meanwhile, early efforts are being made by some startups and leading non-governmental organizations (NGOs) to develop innovative technology and models to improve the quality of care. The government has been keen to capitalize on the economic opportunity among the older population, with substantial progress made in tapping the productive potential among older workers. Its 2012 retirement reform enables older people to work longer today, while its top-down push for lifelong learning through the SkillsFuture initiative will have a far-reaching impact on the future older labor force. In comparison, although boasting among the world’s best information and communications technology (ICT) infrastructures, the country sees the need for more effort to improve digital inclusion among older adults and to develop digital technology and services that support independent and quality living. 4 OVERVIEW
I Ecosystem for
Overview
Policy and Social
II
Innovation
Ecosystem for
Policy and
Social Innovation
III
Community
Constrained by scarce natural resources,
Social
Infrastructure high population density, and small
landmass, Singapore is seeking innovative
IV
solutions to adapt to a rapidly aging
population.
Productive
Opportunity
Key enablers include effective governance combining leadership
V from state agencies with a robust consultative mechanism and
a culture fostered by the government to value self-reliance
and collective responsibility. Built on this enabling ecosystem,
Technological policy and social innovation in Singapore is heavily driven by
Engagement
the government and notable for its proactive action and holistic
solutions, with a growing push to promote cross-sectoral
VI collaboration.
Health Care
and Wellness
SMALL INNOVATIVE ECONOMIES: Singapore 5for public use and established a housing
financing institution in 1968.5 These policy
Key Enablers
efforts have led to a large public housing
sector. Today the state owns 90 percent
Singapore’s ability to adapt to demographic
of land in Singapore. Eighty percent of
change through innovation is attributed to
the population lives in HDB housing, with
a government that is highly interventionist,
the majority owning their houses.6 “The
effective, and meritocratic; established
large HDB housing sector has enabled the
institutions that shape the government’s
government to respond to the evolving
engagement with other stakeholders; and
needs of the rapid aging population,” said
values of self-reliance and responsibility
Debbie Loo, former Adjunct Lecturer
sharing.
at Singapore Polytechnic and an urban
planning expert.7
The central government, which has been
controlled since the 1960s by the People’s
Singapore’s government boasts among
Action Party, has delivered dramatic
the world’s most effective systems of
economic growth through a highly
governance, thanks to its emphasis on
interventionist approach to governance, a
meritocracy. According to the World
focus on long-term strategic planning, and
Bank’s Worldwide Governance Indicators,
effective governance. Political continuity
Singapore held the top place in terms
has facilitated the long-term orientation of
of “government effectiveness” and
policymaking. Dating back to the country’s
“regulatory quality” as of 2016.8 Since
separation from Malaysia in 1965— when the
gaining independence, Singapore has
country was in dire economic straits and
made meritocracy a key principle for public
grappling with a relative absence of private
administration, valuing the factors of
entrepreneurs— this active involvement
qualification and performance over family
of the government across socioeconomic
relationships in determining one’s success.9
sectors4 remains in place today, even as
As a result, technocracy— or expert rule—is
market mechanisms have been widely
deeply rooted in recruitment and talent
integrated into the economy.
management, with civil servants expected
to be technically minded, utilitarian, and
One example is in the public housing
long-term thinkers.10
sector. To address housing shortages in
the face of the influx of immigrants and
This mindset is manifest in policymakers’
the absence of private-sector capacity, the
openness to integrate best practices
government established the Housing and
from other countries into their own policy
Development Board (HDB) in 1960 to take
frameworks. For example, Singapore looked
the lead role across the housing value chain.
to the experience of western countries and
It followed with a 1966 law empowering
Japan in developing age-friendly housing in
the government to acquire land at low cost
6 ECOSYSTEM FOR POLICY AND SOCIAL INNOVATIONthe 1990s and has continued to introduce statutory retirement age. Additionally,
new schemes over time to accommodate the government has consulted with major
the diverse needs of older adults. Similarly, trade unions including the National Trades
after studying other developed countries’ Union Congress and the Singapore National
policies on extending older people’s time Employer Federation when developing
in the labor force, the government decided policies related to age-friendly workplaces.
that simply raising the retirement age would
not be sufficient, and opted to follow Japan’s Finally, while deeply engaged in the
example in passing legislation to facilitate provision of affordable housing, efficient
the re-employment of older workers. health care, and quality education— the
government has long strived to breed
The government also has established a culture of self-reliance, arguing that
mechanisms to engage with stakeholders, Singapore cannot afford generous social
born of a tradition of tripartism, which benefits with the scarcity of natural
facilitates consultation and negotiation of resources. While acknowledging the state’s
national policies among the government, responsibility in providing a safety net, it
labor unions, and employers’ associations. also stresses that the state should be the
Tripartism emerged just after the last resort. This philosophy is manifest in its
country gained independence, when social benefits policies for older adults and
Singapore was seeking to create jobs the Many Helping Hands (MHH) approach.
and achieve industrialization by attracting Individuals are expected to be responsible
foreign investment. Responding to the for planning and preparing for aging, while
government’s call, labor unions started the family and the community function
to shift away from the traditionally as the first and second lines of care and
confrontational labor-management relations support. To ensure the holistic well-being
and work together with the government and of older people, the government has
employers’ associations to meet a common adopted the MHH approach, emphasizing
national goal for development. Since the a partnership with individuals, family
establishment of the National Wage Council members, community organizations, and
in 1972— the first tripartite institute focused other stakeholders.12
on wage guidelines— tripartism has been
institutionalized as a mechanism in various Aligned with the MHH approach is the
aspects of public governance.11 government’s support for voluntary
welfare organizations (VWOs), non-profit
Today there is a Tripartite Committee on organizations typically set up as community
Employability of Older Workers, in which organizations or charities to provide social
representatives from the government, services that benefit the community.13 To
labor unions, and employers’ associations leverage the network of these organizations
have developed guidelines for employers in their communities, and to enhance their
to re-employ older workers beyond the capacities, Singapore has adopted a dollar-
SMALL INNOVATIVE ECONOMIES: Singapore 7Figure 2. Driving Forces of Innovation and Cross-Sector
Collaboration
Central Government
STRONG
Individuals Local Government
WEAK
Cross-Sector
Collaboration NGO/Community
Businesses
Org./Int’l Org.
High
Medium
Low
Academics
As a city-state, Singapore has only one level of government, so “Central Government” and “Local
Government” are considered together to represent the government’s overall performance
for-dollar matching scheme. Under the Without question, the government is the
scheme, the government matches every primary driving force for policy and social
dollar a VWO receives from donors.14 In innovation in Singapore, but engagement
doing so, the government aims to “help and collaboration with outside stakeholders
VWOs raise funds that can be used in their is critical to its success. However, as
capability development,” said Melissa Khoo, multiple experts point out, to an extent the
Group Director in the Ministry of Health government-driven model has contributed
Ageing Planning Office.15 Today, there are to the underrepresentation of bottom-up
more than 450 VWOs in Singapore, 148 initiatives, and cross-sectoral collaboration
of which specialize in aging and disability between non-governmental stakeholders
services.16 remains to be strengthened.
8 ECOSYSTEM FOR POLICY AND SOCIAL INNOVATIONAttributes in Aging-Related Innovation “Aging issues have long
been under the radar of the
Built on the government’s enabling
ecosystem, Singapore’s effort to cultivate Singaporean government,
a successfully aging society is shaped by who has been constantly
a top-down approach featuring proactive introducing pre-empting
work and holistic solutions. Although
programs.”
sharing of responsibility does not guarantee
cross-sectoral collaboration, some pilot – TAN ERN SER, Associate Professor of Sociology at
projects undertaken by the government and National University of Singapore
leading NGOs could serve as strong models,
provoking further efforts.
Singapore’s technocrat policymakers put since continued to develop action plans,
the issue of an aging population on the with the latest Action Plan on Successful
policy agenda well before the demographic Ageing announced in 2015. This covers
shift became a pressing issue. “Aging 10 areas ranging from employability and
issues have long been under the radar of lifelong learning, to social engagement and
the Singaporean government, who has inclusion, to housing and transport.19
been constantly introducing pre-empting
programs,” said Tan Ern Ser, Associate In line with its comprehensive action plans,
Professor of Sociology at National the government has applied this holistic
University of Singapore.17 approach to individual initiatives, evident in
its integration of support for aging-in-place
As early as 1982— 17 years before Singapore efforts in public housing developments. To
became an aging society— the government adapt to the diverse needs of older adults,
started to study the implications of an the HDB has provided small apartment
aging population. A national survey of models and offered affordable lease options
senior citizens, first conducted in 1983, has for those who live independently. And for
been carried out periodically to examine those living with children and grandchildren,
and monitor the characteristics and needs it offers 3-generation flats— apartments
of the older population. Built on these that enable mutual care and support
works, in 1999 the government released a within families and help to strengthen
comprehensive plan, establishing a vision intergenerational bonds. Additionally, its
of successful aging and defining guiding latest pilot project, Kampung Admiralty,
principles that uphold the MHH approach.18 is also aimed at building a self-contained
Recognizing the dynamics and complexity retirement community that meets the
of the aging issue, the government has specific needs of older adults.
SMALL INNOVATIVE ECONOMIES: Singapore 9With well-developed physical infrastructure and a statewide network of NGOs, increasing attention is focused on integrating existing resources and strengthening cross-sectoral collaboration. One government effort is the Community Network for Seniors, which aims to leverage social services facilities across the public housing system and mobilize community stakeholders to promote active aging and prevent isolation. First launched in three districts in 2016, the model will expand nationwide by 2020. Meanwhile, the Community for Successful Ageing, an initiative led by the Tsao Foundation, aims to create a community-based system that provides integrated health care, social care, and engagement services for older adults— another model built on collaboration across sectors. 10 ECOSYSTEM FOR POLICY AND SOCIAL INNOVATION
I Community Social
Overview
Infrastructure
II
Ecosystem for
Policy and
Social Innovation
III
Community
While emphasizing the responsibility of
Social
Infrastructure individuals and families in successful aging,
Singapore’s government has endeavored to
IV
cultivate a robust, age-friendly community
environment.
Productive
Opportunity
Having achieved high levels of accessibility in physical
V infrastructure and development of a community-level service
network, it is increasingly focused on integrating existing social
service facilities as well as incorporating support for aging into
Technological public housing programs. With the early success of several
Engagement
pilot models, including the Community Network for Seniors and
3-generation flats, the government is now working on scaling
VI these efforts.
Health Care
and Wellness
SMALL INNOVATIVE ECONOMIES: Singapore 11In response to this trend, the government
has emphasized filial obligation and stressed
Social Connection
that family remains the first line of support
and care for older adults. In 1995, Singapore
Singapore’s multiethnic society is
introduced a filial support law called the
predominantly Asian— comprising 74.3
Maintenance of Parents Act, which allows
percent Chinese, 13.4 percent Malaysian,
residents age 60 and older who are unable
and nine percent Indian — who share a
to maintain themselves adequately to
cultural value of strong family ties and
claim maintenance support from their
respect for older adults.20 According to the
children, in the form of either a lump-
latest National Survey of Senior Citizens in
sum payment or a monthly allowance.27
2011, 69 percent of respondents age 55 and
Although the law doesn’t specify the
over had daily contact with their children.21
penalty for non-compliance, it provides a
In the 2013 Housing and Development
mechanism where filial obligations promote
Board’s Sample Household Survey, 84.5
an increasing number of intergenerational
percent of respondents age 65 and older
family discussions on retirement planning
reported confidence in their children for
and asset transfers. According to the 2011
physical, emotional, and financial support.22
National Survey of Senior Citizens, 76.4
percent of those ages 65 to 74 and 80.2
Although older adults are in regular contact
percent of those age 75 and older reported
with family members, intergenerational
cash transfers from children as their main
households are declining. With 98 percent
source of income.28
of people age 65 and older living at home,23
the percentage of those who live alone
or with a spouse in the total number of
households headed by adults age 65 and
Social Engagement and Assistance
older has nearly tripled since 1990, reaching
49.9 percent as of 2017 (Figure 3).24 This
While stressing the important role of
shift is largely due to family structure
individuals and families in supporting
changes resulting from birth rate declines
comfortable and active aging, the
and urbanization. It has become common
government is keenly working to strengthen
that children move out after they get
community-level services that engage and
married rather than live together with their
assist older adults. Following the MHH
parents.25 As the baby-boom generation
philosophy, the government has focused on
continues to age, the number of older
empowering local stakeholders, including
adults who live independently is growing
developing VWOs through financial aid.
rapidly, having nearly doubled over the past
Today, about 30 percent of VWOs specialize
decade.26
in aging and disability services. With a
developed VWO network, the government
has increasingly focused on optimizing the
12 COMMUNITY SOCIAL INFRASTRUCTUREFigure 3. Living Arrangement, Percentage of Households Headed
by People Age 65 and Older
100%
80%
60% Living alone
Only with a spouse
40% With children
Other
20%
0%
1990 1995 2000 2005 2010 2015 2017
Source: Department of Statistics Singapore
utility of existing facilities and services, with businesses to provide tailored support for
major efforts including the pilot project older adults.30
Community Network for Seniors (CNS).
The services fall into the three ABC
Launched in 2016 in three districts, the domains—Active Aging, Befriending, and
CNS project is designed to efficiently Care and Support— targeting three different
serve diverse social and care needs of groups of older adults:
older adults by integrating existing social
services facilities and mobilizing community • The A domain services are focused
stakeholders across the public housing on keeping healthy older adults active
system, which currently accommodates 80 by organizing social activities such as
percent of the population.29 The Ministry of festival galas and weekend gatherings.
Health, which funds and oversees the CNS,
• The B domain services engage lonely
set up a team of full-time officers in each
older adults by providing emotional and
community that is responsible for identifying
psychological support.
local needs and available resources and
coordinating with stakeholders including • The C domain services are focused on
VWOs, health institutions, schools, and providing care services to older adults.31
SMALL INNOVATIVE ECONOMIES: Singapore 13To be a friend to those experiencing
loneliness, VWOs mobilize older volunteers
called befrienders to pay home visits to “The collaboration [across
vulnerable peers. Befrienders receive the multiple sectors] has been
training to be able to spot changes in mood, integral to the efficient
physical condition, or living environment,
and know to contact care providers at
implementation of widespread
health institutions when detecting potential improvement and intervention.
risks. This initiative achieves two purposes: This is certainly an innovative
one is to prevent social isolation among effort by the government
vulnerable older adults, and the other is to
help older volunteers stay socially active
to capitalize on existing
and have a sense of contribution.32 infrastructure for a land-scarce
but highly populated, city.”
The pilot project has demonstrated – DEBBIE LOO, former Adjunct Lecturer at Singapore
encouraging outcomes. As of February Polytechnic and expert on urban planning
2018, 70,000 older adults are engaged
in preventive health and active aging
activities in the CNS.33 The government
plans to promote the model nationwide by
2020. Collaboration across government
Housing
and community-based stakeholders is the
key element of this model, while the high
In addition to developing community-
concentration of the population residing
based services, the government has also
in the public housing system allows for
incorporated the strategy of supporting
extensive outreach to a majority of the
aging in place in its public housing scheme.
older population. “The collaboration [across
Learning from western countries and Japan,
multiple sectors] has been integral to the
Singapore first introduced the Studio
efficient implementation of widespread
Apartments program in 1998 to provide
improvement and intervention. This
small, 35- or 45-square-meter, affordable
is certainly an innovative effort by the
apartments with age-friendly features for
government to capitalize on existing
independently living older adults.35,36 Over
infrastructure for a land-scarce, but highly-
time, it has increasingly looked beyond the
populated, city,” said Debbie Loo, former
shelter function of housing and focused on
Adjunct Lecturer at Singapore Polytechnic
adapting housing and community designs
and an expert on urban planning.34
to facilitate intergenerational support, as
well as social participation and access to
services for older adults. “Housing goes
beyond the provision of shelter. It is closely
14 COMMUNITY SOCIAL INFRASTRUCTUREassociated with enabling social interaction
and community development,” said Belinda
Yuen, Research Director of Lee Kuan Yew “Housing goes beyond the
Centre for Innovative Cities at Singapore provision of shelter. It is closely
University of Technology and Design.37 associated with enabling social
interaction and community
In 2013, to promote living arrangements
that enable mutual care and support within development.”
families, the government started to provide – BELINDA YUEN, Research Director of Lee Kuan Yew
affordable housing options for multi- Centre for Innovative Cities at Singapore
University of Technology and Design
generational families, called 3-generation
flats (3Gen flats). “As many couples find it
difficult to go a long way to visit parents
with their busy work schedules, 3Gen flats
ever retirement community in an effort to
enable them to take care of their parents
support comfortable aging at home and in
while enjoying the personal space with
community. The project, known as Kampung
bigger room,” said Thang Leng Leng, Deputy
Admiralty (“Kampung” means village in
Director of the Centre for Family and
Malaysian and Admiralty is a neighborhood
Population Research at National University
in Northern Singapore), opened in 2015.
of Singapore.38
Kampung Admiralty is self-contained,
Each 3Gen flat has three bathrooms and
consisting of small apartments and
four bedrooms, and is 115 square meters.
comprehensive facilities that meet the
The 3Gen flats are relatively affordable
various needs of older adults. It includes
as well, and are offered at SGD 315,000
104 studios and flexi-flats of either 36 or 45
to SGD 500,000 (USD 229,000 to USD
square meters. All apartments are equipped
364,000).39 To qualify for purchasing such
with age-friendly features, such as grab
apartments, a family must consist of a
bars and vinyl floors to prevent slipping. 41
couple and the parents of either spouse. All
These small units are offered at affordable
of the 1,500 existing 3Gen flats are currently
prices— SDG 91,000 to SDG 115,000 (USD
occupied, with the government planning to
66,000 to USD 83,600) for a 30-year
build the next batch of 400 by the end of
lease. 42 Older residents have access to
2018. 40
various facilities in the community, including
a two-floor medical center and a food court,
The government has also taken the
that meet their daily living needs, as well
lead in building a retirement community
as rooftop vegetable farms and community
that provides affordable housing and
gardens that provide opportunity for daily
integrated services for older adults. As
activities. There is even a childcare center
baby boomers started to turn 65 in 2012,
that assists older adults in taking care of
the HDB began to build the country’s first-
SMALL INNOVATIVE ECONOMIES: Singapore 15grandchildren— in Singapore, it is common relatively accessible for older adults and
for older adults to look after grandchildren people with disabilities. The country topped
during weekdays when the children’s the ranking of transportation infrastructure
parents are at work. on the World Economic Forum’s Global
Competitiveness Index 2017-2018. 44 As of
The relative affordability and age-friendly 2017, all Mass Rapid Transit (MRT) trains
designs have made this community were wheelchair-accessible, and 80 percent
extremely popular among older adults, of train stations were equipped with at least
and the government is working to expand two barrier-free access routes. 45 More than
this model. All but one unit of Kampung 80 percent of the buses were wheelchair-
Admiralty were sold in the months accessible and 95 percent of bus stops
immediately following the apartments were barrier-free as well. 46
entering the market. Experts also speak
highly of this project. “[Kampung Admiralty] The high-level of accessibility in public
is a trailblazer as it allows for the integration transportation is the result of the
of different services to satisfy older adults’ government’s heavy investment to upgrade
needs within a community, not just for existing transportation infrastructure,
housing but also for health and social together with established and well-enforced
well-being,” said Professor Yuen. 43 Given mandates on new vehicles and facilities.
the positive feedback from residents who Since 2006, the Land Transportation
have moved into Kampung Admiralty, the Authority (LTA) has mandated that all
government is considering deploying the new public buses registered in Singapore
model in the country’s other regions. be wheelchair-accessible. 47 In 2018, LTA
replaced the entire MRT fleet, with all 57
new trains currently equipped with priority
seats for the use of older adults and people
Physical Infrastructure with disabilities. 48 The government has
also invested in existing facilities. Since
Singapore is a global leader in infrastructure 2008, LTA has set aside a fund of SDG 60
development, and the government has million (USD 44 million) under the Barrier
continuously worked to ensure safety and Free Accessibility program to retrofit public
accessibility in transportation and the transport facilities such as the MRT and bus
built environment for older adults. While stops. 49
mandates and subsidies have been the
primary tools to promote improvements, What really makes Singapore stand out
technology is also playing a growing role. is the integration of technology into its
transportation facilities to ensure the safety
Singapore has the world’s best of older adults. One innovative example is
transportation infrastructure, which is its Green Man Plus program. Pedestrians
16 COMMUNITY SOCIAL INFRASTRUCTUREage 60 and older accounted for 20 percent in Buildings was focused only on new
of road crash fatalities in 2016.50 To improve buildings,58 the 2007 code expanded the
safety for older pedestrians, LTA launched mandates into newly built public spaces,
Green Man Plus in 2009, utilizing technology such as the connecting spaces between
to allow extra time for older adults to cross buildings and those between buildings and
streets. Electronic card readers installed at parks. It also raised the minimum standards,
crossings identify older adults when they for example by increasing the mandated
swipe their transport concession cards, number of foldable grab bars in restrooms
then automatically extend the time of and adding new requirements for the
crossing lights.51 The extra times range from installation of emergency call buttons in
three to 13 seconds depending on the size of restrooms.59 Additionally, the code required
the crossing.52 By 2014, nearly 46,000 senior existing public housing and government
concession cards with the Green Man Plus buildings to comply with barrier-free
function had been issued each year, with standards.60
the frequency of usage reaching as high as
50 times each day at busy crossings.53 The In addition to the mandates on both
government is aiming to by the end of 2018 new and existing public buildings, the
double the number of crossings installed government has funded the upgrades
with Green Man Plus traffic lights to 1,000— of private buildings.61 In 2007 it set up
which will account for more than 20 percent an Accessibility Fund of SGD 40 million
of all traffic lights in the country.54 (USD 29 million), which grants subsidies to
cover up to 80 percent of the construction
Singapore has also witnessed significant costs incurred by private building owners
improvement in accessibility in the built when installing barrier-free features.62
environment. As of 2012, all public housing The financial incentives have successfully
buildings and government buildings were prompted retrofits of private buildings— as
barrier-free.55,56 More than 90 percent of of mid-2016, 135 projects were approved,
private buildings along Orchard Road, the receiving around SGD 14 million (USD 10.2
busiest commercial road in Singapore, were million) from the fund.63
barrier-free accessible in 2016, more than
double the 41 percent in 2006.57
The improvement is largely due to the
government’s continued efforts to regulate
accessibility of new buildings through
mandates and to promote retrofits of
existing buildings through subsidies. In
2007, Singapore legislated the Code of
Accessibility in the Built Environment. While
the 1990 Code on Barrier-Free Accessibility
SMALL INNOVATIVE ECONOMIES: Singapore 17I Productive
Overview
Opportunity
II
Ecosystem for
Policy and
Ecosystem
Social Innovation
III
Community
As the population aged and the traditionally
Social
Infrastructure defined working-age population dwindled,
the growth of Singapore’s labor force
IV
started to slow down in 2013 and further
shifted into the negative in 2017.
Productive
Opportunity
As today’s older adults are better educated, healthier, and living
V longer, the government is looking to this population as part of
the labor force solution. Singapore is focusing on removing
employer-side barriers to older adults remaining in the labor
Technological force by reforming the retirement system and fostering age-
Engagement
friendly workplaces. These efforts have helped older adults
stay productively active, but skill gaps and ageism remain major
VI challenges. While the government’s escalated effort to promote
later-life education can help address skill gaps, the elimination of
ageism requires more fundamental, legislative movement.
Health Care
and Wellness
18 PRODUCTIVE OPPORTUNITYFigure 4. Reasons for Working or Returning to Work, Age 55 and
Older, 2011
Need money for current expenses (55.1%)
Need money for future financial security (19.4%)
Want to lead active life (10.7%)
Need something to occupy time (6%)
Do not want to be dependent on others for money (5.8%)
No one to depend on for money (2.4%)
Own/family business (0.5%)
Source: Institute of Policy Studies 2011
security” was second with 19 percent; and
“want to lead an active life” was third with 11
Labor Force Participation
percent (Figure 4).66
Older adults in Singapore are relatively
The financial status of older adults in
active in the labor force. As of 2016, the
Singapore today is asset rich and cash
labor force participation rate of people
poor, primarily a result of the country’s
age 65 years and older was 26.5 percent,64
unique mandatory social security saving
nearly double the Organisation for
scheme, known as the Central Provident
Economic Co-operation and Development
Fund (CPF). The CPF consists of three
(OECD) average of 14.5 percent.65 Financial
accounts to finance home ownership,
necessity has been the primary reason for
retirement, and health care. Individuals,
older adults to remain productively active.
except those falling into certain personnel
categories such as civil servant and
According to the 2011 National Survey of
armed forces, rely exclusively on defined
Senior Citizens, the leading reason to work
contribution retirement funds accumulating
was “need money for current expenses,”
in the individual accounts of the CPF.67 The
cited by 55 percent of respondents age 55
CPF mandates contributions from both
and older; “need money for future financial
employees and employers68 and allows
SMALL INNOVATIVE ECONOMIES: Singapore 19individuals to withdraw from savings when Despite the desire to work, older adults are
they turn 55 years old as long as the savings facing a range of challenges in participating
balance meets the minimum amount.69 in the labor force, including ageism and
Through the dedicated sub-account a lack of relevant skills. According to the
under the CPF, most people can afford 2011 National Survey of Senior Citizens,
to purchase houses, with support from 76 percent of respondents age 55 years
government subsidies. As a result, older and older reported having encountered
adults in Singapore tend to be asset rich. As ageism in certain forms.74 Lack of relevant
of 2011, nearly 80 percent of people age 55 skills, particularly among those with low
and older were either owners or co-owners educational attainment, also disadvantages
of their residential property.70 older adults in the job market. As of 2016,
less than 40 percent of people age 60 and
However, older adults are relatively cash older had attained secondary education or
poor. An average CPF member after above, while the percentage of those ages
retirement is estimated to receive up to 50 to 59 and 35 to 49 were 65 percent and
70 percent of the pre-retirement income 88 percent, respectively.75
level from the CPF account.71 However, the
minimum balance requirement prevents
CPF members— particularly low-income
workers— from making withdrawals. As of Retirement System Reform
2011, this was the case for more than half
of those age 55 and older, forcing them to Because of the shrinking labor force supply,
rely on familial support and/or continuing the Singaporean government is seeking
to work.72 In addition, the government’s to capitalize on the untapped productive
policy to encourage employers to hire older opportunity among older workers, with a
adults also unintentionally weakens an focus on reforming the country’s retirement
individual’s ability to withdraw from the CPF. system. After studying efforts made by
Beginning in 2012, the government lowered other developed countries that enable
the CPF contribution rate for adults age people to work longer, it determined that
50 and older. The total contribution rates— merely raising the retirement age would not
shared by employers and employees— be the best approach, but rather, Japan’s
incrementally decreases by two percent to practice of legislating re-employment of
24.5 percent of wages until the employees older workers represented a more effective
reach age 65.73 The lower contribution rate solution.76 As such, in 2011 it introduced the
was intended to improve the employability Retirement and Re-employment Act (based
of older workers, but it further adds to on amendments to the previous Retirement
the challenge for individuals to meet the Age Act), which went into effect in 2012.
minimum savings balance.
20 PRODUCTIVE OPPORTUNITYPrior to the 2012 enactment of the
Retirement and Re-Employment Act, the
statutory minimum retirement age was age “TriCom creates opportunities
6277 while the contractual retirement age for the government to listen to
could be higher depending on the employer.
different perspectives, such
As a result, employers in practice often
dismissed older workers once they reached as cost concerns by employers
retirement age.78 To enable people who and payment fairness concerns
are older than retirement age to remain by employees [which] help it to
in the labor market, the 2012 law requires
make effective decisions.”
companies to re-employ workers beyond
the age of 62 and up to age 65, either at – WALTER THESEIRA, Associate Professor of Economics
at Singapore University of Social Science
the same or a different position.79 In July
2017 the age ceiling was further raised to
67. If employers cannot identify a suitable
job for older workers, they are required
to either transfer the re-employment associations, to better inform decision
obligation to another employer on the making. “TriCom creates opportunities
condition of consent of both the worker and for the government to listen to different
the new employer or provide the worker perspectives, such as cost concerns by
with a one-off payment equivalent to 3.5 employers and payment fairness concerns
months’ salary.80 Older employees can by employees [which] help it to make
choose to take the offer or leave. Specific effective decisions,” said Walter Theseira,
re-employment terms are decided based Associate Professor of Economics at
on negotiation and consensus between Singapore University of Social Science.81
employers and employees.
Following the government’s first
The collaborative model of tripartism has announcement intending to introduce re-
played an important role in promoting employment in 2007, TriCom released the
re-employment among employers Tripartite Advisory on the Re-employment
and preparing them for the legislation. of Older Workers in 2008. The document
Initiated by the government, the Tripartite encouraged employers to retain people
Committee on Employability of Older age 65 and older in the workforce and
Workers (TriCom) was established in provided recommendations on how to
2005, aiming to develop guidance to help negotiate contract arrangements with older
employers retain, retrain, and recruit older workers.82 Based on this feedback, TriCom
workers. TriCom consists of representatives later adapted and expanded the document
from the Ministry of Manpower, as well into the Tripartite Guidelines on the Re-
as with eight labor unions and employer Employment of Older Employees in 2011 to
prepare employers for the re-employment
SMALL INNOVATIVE ECONOMIES: Singapore 21legislation that came into force in 2012 and The WorkPro program is focused on three
was updated in 2017.83 areas and provides grants for each:86
The reform has yielded early success but • The Job Redesign Grant, under which an
needs greater effort. Since its launch, employer can apply for a grant up to SGD
more than 98 percent of private-sector 300,000 (USD 218,000) to be used to
local employees who wished to continue create physically easier and safer jobs for
working beyond the age of 62 have been workers age 50 and older
re-employed, either by the same or a
• The Age Management Grant, under
different company. As of 2016, the labor
which an employer can receive up to
force participation rate was 30 percent
SGD 20,000 (USD 14,500) to be used to
higher than the 2011 level.84 Although the
build competence in implementing age
Act has been effective at retaining older
management practices and support this
workers, “when re-employed, older workers
implementation
are usually put at a different job position,
which are oftentimes paid less, or require • The Work-Life Balance Grant, under
low skills, due to skill gaps and ageism,” which a company that offers flexible
said Amos Garcia, Research Associate work arrangements can receive up to
at Milken Institute Asia Center based in SGD 2,000 (USD 1,400) per year for
Singapore.85 Further progress in facilitating two consecutive years for every local
the productive engagement of older adults employee who regularly works under
will require greater effort to improve their such an arrangement, with the total grant
employability and eliminate ageism. capped at SGD 70,000 (USD 51,000)
The program has shown encouraging
results, particularly in terms of promoting
Age-Friendly Workplaces flexible work arrangements. By the end of
2014, 1,500 companies had received grants
Along with the promotion of re-employment, from the program equivalent to 27 percent
the government launched the WorkPro of the fund. As of 2016, 67 percent of
program, setting aside a fund of SGD employees in Singapore worked in firms that
170 million (USD 124 million) to enhance offer formal flexible work arrangements,
work–life balance and promote age-friendly up from 56 percent in 2011, and 82 percent
workplaces that facilitate older workers’ of employees worked in firms that offer ad
longer stay in the labor force. The program hoc flexible work arrangements, such as
was developed by the Ministry of Manpower unplanned time off or telecommuting, an
in consultation with Singapore’s two major increase from 70 percent in 2013.87
trade unions— the National Trades Union
Congress and the Singapore National
Employer Federation.
22 PRODUCTIVE OPPORTUNITYJob opportunities include managerial,
accounting, security, and business analysis.
Job Placement and Entrepreneur
Currently, 2,000 people age 40 and older
Assistance
are registered with Silver Spring. “Our focus
is to enable older workers to rediscover
While focusing on reforming the retirement
their value and find fulfilling re-career
system and creating age-friendly
options. I don’t call them job seekers, and
workplaces, the government has fallen
instead, I call them role seekers,” said Lim.92
short in support for older job seekers, with
an absence of job placement programs
The Silver Spring business model relies on
dedicated to older adults or assistance in
low overhead and service fees charged
older entrepreneurship. “Current policies
to employers when the job matching is
to promote older workers’ employment
successful. While Silver Spring is a pioneer
are skewed toward employers rather than
and among the few players to assist older
employees. With the tight market now, the
adults’ job placement, employment services
key problem is job placement— how to get
for this age group are drawing increasing
the right workers through a more efficient
attention. “I think there is still a lot to be
matching process,” said Christopher Gee,
done by intermediaries like us, and we have
Senior Research Fellow at the Institute
seen an emergence of efforts in this area
of Policy Studies at National University of
to encourage employers to create more
Singapore.88 Helen Lim, founding partner
diversified [job] opportunities and a more
and CEO of the social enterprise Silver
inclusive workplace,”93 said Lim.
Spring, agrees older workers still face
obstacles. “The government currently
doesn’t have the capacity to help older
entrepreneurs take off. They still need to
Lifelong Learning
know more about how to help older adults
build sustainable business model,”89 said
Relying on a knowledge-based development
Lim.
model due to limited natural resources,
Singapore has long been promoting lifelong
Silver Spring has emerged to fill that gap by
learning across its society, and is a world
focusing on matching older adults with job
leader in this area. Since the government’s
opportunities. Established by veteran human
introduction of Thinking Schools, Learning
resources practitioner, Helen Lim, in 2009,
Nation in 1997, Singapore has endeavored
Silver Spring matches retired professionals
to promote a national culture and social
with jobs, utilizing a model that combines
environment that values continuous
an online matching portal with offline
learning throughout life.94 To prepare for
career coaching.90 Professionals can access
demographic change, the government has
information about job openings for full-
enhanced its efforts to provide later-life
time, part-time, and contract positions.
education, stressing that the benefits of
SMALL INNOVATIVE ECONOMIES: Singapore 23learning will increase older people’s self-
esteem, confidence, and ability to cope with
stress and empower them to contribute “The SkillsFuture program is
to society. This includes the launch of a a game changer and creates
national lifelong learning initiative, known
as SkillsFuture, and a network that provides
a platform that facilitates
learning opportunities for older adults. engagement of various
stakeholders. As a result, the
The government launched SkillsFuture in whole society is thinking about
2015, driven by the recognition that in an era
when technology advancement constantly
lifelong learning right now.”
disrupts business models and job markets, – CHRISTOPHER GEE, Senior Research Fellow at the
Institute of Policy Studies at National University of
national competitiveness will require Singapore
upskilling the workforce and fostering a
lifelong learning culture. A major component
of the initiative is SkillsFuture Credit
program, under which the government age 50 years and older can use SkillsFuture
offers subsidies for individual learning Credit to offset the fees of these courses,
activities. As of 2016, all citizens age 25 with additional government subsidies
and older receive SGD 500 (USD 363) of covering up to 50 percent of the remaining
SkillsFuture Credit each year, which can be fees. Some 15,000 older adults have
used to offset the cost of courses provided benefited from NSA courses since its launch
by universities and VWOs. The credit does in 2015.
not expire and can be carried over into
the following year, enabling individuals to The SkillsFuture initiative has greatly
collect enough credits to pay for expensive increased public awareness and
courses. engagement in lifelong learning across
Singapore. “The SkillsFuture program is
The government has also focused on a game changer and creates a platform
creating education opportunities specifically that facilitates engagement of various
for older adults, in collaboration with stakeholders. As a result, the whole
post-secondary institutions. In 2015, it society is thinking about lifelong learning
established the National Silver Academy right now, which has the potential to
(NSA), a network offering affordable greatly improve the productive potential
short courses, exam-free modules, and of future generations of older adults,” said
ad hoc learning opportunities for older Christopher Gee, Senior Research Fellow
adults relevant to both the workplace (e.g., at the Institute of Policy Studies at National
information technology, business) and life University of Singapore.95
skills (e.g., health, wellness, arts). People
24 PRODUCTIVE OPPORTUNITYI Technological
Overview
Engagement
II
Ecosystem for
Policy and
Social Innovation
III
Community
Singapore has among the world’s best-
Social
Infrastructure developed ICT infrastructure and is ranked
first in the most recent World Economic
IV
Forum’s Global Networked Readiness
Index.96
Productive
Opportunity
The government seeks to use its ICT infrastructure to harness the
V power of technology and boost economic competitiveness while
improving the well-being of Singapore’s population. As such, the
government has been working to promote the development of
Technological aging-related technology through funding and partnership with
Engagement
various stakeholders. However, interest from the private sector
remains limited to health technology and startups.
VI
Health Care
and Wellness
SMALL INNOVATIVE ECONOMIES: Singapore 25Figure 5. Digital Technology Usage Age 60 Years and Older,
2013-2016
60%
50%
40%
30% Internet users
Smartphone users
20%
10%
0%
2012 2013 2014 2015 2016
Sources: Annual Surveys on Infocomm Usage in
Households and by Individuals 2014, 2015, and 2016
who were online was only half the level of
the general population (Figure 5).100
Digital Inclusion and Divide
Although the future older population is
The use of digital technology has increased
becoming increasingly digitally savvy,
significantly over the past few years among
“[today’s] older people in Singapore
older people in Singapore, but remains
overall have low education attainment,
considerably lower than that of the general
so it became harder for them to adopt
population. Internet users as a percentage
digital technology,” said Christopher Gee,
of people age 60 years and older nearly
Senior Research Fellow at the Institute
tripled from 16 percent in 201297 to 42
of Policy Studies at National University
percent in 2016,98 partly a result of the
of Singapore.101 As of 2016, fewer than 20
growing popularity of smartphones. Fifty-six
percent of people age 60 and older had
percent of people age 60 years and older
attained secondary education or more,
used a smartphone in 2016, quadrupled
compared with 65 percent and 88 percent
from 2012.99 However, older adults lag
of those ages 50 to 59 and 35 to 49,
behind the overall population— as of 2016,
respectively.102
the percentage of people age 60 and above
26 TECHNOLOGICAL ENGAGEMENTTo bridge the divide and promote digital
skills, the government has mobilized VWOs
Private-Sector Engagement
and tech-savvy older adults to provide
easily accessible training and technology
The silver economy in Singapore is growing
assistance for their peers, exemplifying the
rapidly, with the market size of products
government’s support for aging in place.
and services targeting people age 50
One innovation is the Silver Infocomm
and older projected to nearly triple from
Junctions (SIJ). Launched by the government
SGD 33 billion (USD 24 billion) in 2015 to
agency Infocomm and Media Development
SGD 91 billion (USD 66 billion) in 2025.105
Authority in 2007, SIJ’s goal is to establish
Beyond health technology, however, private-
a network of community-based digital
sector engagement remains relatively
learning hubs for people age 50 and older.
limited, primarily driven by startups, which
These hubs are operated by VWOs and
often face funding and commercialization
provide training tailored to older adults’
challenges.
digital literacy at the low cost of SGD 8 to 10
(USD 6 to 7.5) per hour.
Singapore is a host to both world-leading
multinationals and startups focused on
Training is available in both basic digital
health technology in the Asia-Pacific
skills such as how to use a computer, surf
region. Today, more than 60 multinational
the internet, and create an email or instant
health-tech companies have set up regional
messaging account, and more advanced
headquarters or undertaken manufacturing
skills such as making transactions online,
or research and development (R&D)
editing digital photos, and sharing large
activities in Singapore, including Siemens
files online. As of the end of 2015, close to
Medical Instruments, Baxter International,
80,000 training sessions had been carried
and Royal Philips.106 Meanwhile, Singapore
out through workshops conducted at these
is the third largest base for health-tech
SIJs.103 “By customizing the course to an
startups in Asia, accounting for 11 percent in
older adult’s context, we are able to ensure
2017, following India at 33 percent and China
they can apply what they’ve learned to
at 31 percent.107 Singapore’s attractiveness
their daily lives such as using government
is primarily due to its ease of doing business,
service apps, navigating transportation,
as the country ranked second on the World
and using messaging apps to connect with
Bank’s Doing Business Index in 2017, holding
their families,”104 said Meng Fong, Executive
sixth place in terms of ease of starting a
Director at RSVP Singapore, a VWO
business.108 In addition, Jean-Luc Butel,
participating in the SIJ.
President and Global Healthcare Advisor of
the health care consultancy firm K8 Global,
suggested that the city’s small market also
makes it a good place for model testing.109
SMALL INNOVATIVE ECONOMIES: Singapore 27Interest in the older market beyond health lives, enabled seamlessly by technology,
technology, however, is relatively limited offering exciting opportunities for all.”112
and mainly driven by startups. As Butel Started in 2014, the government has thus
commented, “while most of the projects far allocated SGD 4.8 billion (USD 3.5
[related to older-age tech] are done by billion) to fund national digital infrastructure,
startups, it’s hard to find the right risk data analytics and digital citizen systems,
capital to take these companies and scale and cyber security programs.113 The plan
them up commercially. I don’t see a lot highlights the importance of harnessing
of interest from private capital chasing the power of technology to support older
startups.”110 adults’ independent living and to improve
their life quality. As such, the government
“The awareness of big corporations towards has focused on providing support for
aging population might be lower than technology commercialization through the
you expected [in Singapore], compared SHINESeniors program.
with other advanced economies like
Japan,”111 said Wong Poh Kam, Director SHINESeniors, or Smart Homes and
of Entrepreneurship Centre at National Intelligent Neighbors to Enable Seniors, is an
University of Singapore. R&D project built on an industry–university
partnership with funding support from the
government. The partnership, known as
iCity Lab, is a joint initiative between an
Government Push for Older-Age Tech IT company, Tata Consultancy Services,
Development and Singapore Management University,
launched in 2011 to focus on IT solutions for
While the private sector has been slow a smart city.114 In 2014, iCity Lab introduced
to cater to the growing market of older the SHINESeniors project, aiming to develop
consumers, the government has been an integrated home system that enables
working keenly to promote the development aging in place, consisting of non-intrusive
of the older-age tech sector, incorporating it sensors that detect motions and monitor
into the economic competitiveness strategy. medical conditions, as well as function
Its primary efforts are in supporting buttons that facilitate communication with
technology commercialization and providing care providers.115
funding.
The government is supporting this project
To boost the country’s economic in multiple ways. In addition to funding, it
competitiveness in the digital era, the facilitates partnerships with care providers.
government launched the national digital It has also provided testing opportunities for
strategy known as Smart Nation Plan. As the the technology by installing it in 100 public
Plan states, it is aimed at building a country housing apartments free of charge as of
“where people live meaningful and fulfilled June 2018. According to Tan Pink Hwee,
28 TECHNOLOGICAL ENGAGEMENTYou can also read
