STRENGTHENING THE CULTURE OF GIVING

During the Ministry of Social and Family Development Committee Of Supply Debate 2023, I raised the point that whilst Singapore has seen a steady growth in philanthropy, we cannot just depend on tax deductibility rate of 250% to strengthen the culture of giving here. I pointed out that, in fact, donations that are eligible for tax deductibility remained more or less stable at $1 billion over the past 5 years from FY 2016 to FY 2021. I therefore advocated that we need to do something more fundamental that will allow the haves to be more invested in the lives of the have-nots. My speech is reproduced below.

— — — — — — — — — — — — — — — — — — — — — — — — — — — —

Sir, over the years, Singapore has seen a steady growth in philanthropy.

Over the past 5 years between FY 2016 and FY 2020, the average annual donations collected amounted to $2.95 billion.

These are respectable numbers and a testimony to the generosity of grantmakers, corporations and individuals in Singapore. Through them, the lives of thousands of people in need are made more comfortable.

The question arises as to what should we do to strengthen the culture of giving here. The hon DPM has extended the tax deduction rate of 250% for another 3 years until end of 2026 with a view to foster and sustain a spirit of giving. Whilst this is welcome in some quarters, I am uncertain as to whether this would move the needle by much. I say this because over the past 5 years, the amounts of tax deductible donations remain more or less stable at about $1 billion.

It seems to me that we need to do something much more fundamental. Successful organisations and people must feel more invested in the lives of the less fortunate. They must know that we are bound together in one common destiny and therefore they should donate more to the common good.

I seek the hon Minister’s views on this important topic that, in my view, will have an impact on how we keep together as one society.