It’s ok to start again: improving Singapore’s low-income divorced women’s economic well-being
Women have achieved great things in Singapore. UNHDR ranked 11th out of 162 countries for gender equality in 2019, beating the US, Canada and Spain. However, despite these great strides, in 2018, Singapore ranked among the bottom 10 countries in the world for its efforts to reduce inequality, 149 of 157 countries, below Bangladesh and above Laos [1]. To manage inequality, the Singapore government relies more on targeted support for the lower-income group [2], of which low-income divorced women are often at the brunt of it. Most divorced women from low-income households experience a substantial fall in their income and often rely heavily on social welfare schemes [3]. On one hand, we celebrate great progress for women, on the other hand, is it also women who are left out in this narrative and are most disadvantaged.
What policies should we revisit to help these women start again? And what should we be careful of to not push these women into poverty?
Although the current legal framework in Singapore seems egalitarian in terms of division of assets and custody of a child, women from low-income households may still struggle to re-start their lives post-divorce. For instance, the division of assets considers the contribution of each partner and if the woman was not working, she wouldn’t have been able to contribute equally financially which has implications for division of assets. And that’s just the tip of the iceberg.
Relative to other countries, housing in Singapore may underserve “unconventional” family structures.
Currently, there is a 30-month time-bar for public rental housing for divorced couples. Single mothers, particularly divorced mothers, face very real problems such as impoverishment and homelessness and need immediate access to rental housing, not just eventual access to housing ownership. Often low-income women who exceed the ceiling for monthly income for rental flats (S$800 for one-room, S$1,500 for two-room) will not qualify for rental housing, leaving them to rent on the open market, which they either could not afford or would eventually deplete their assets and savings. Unstable housing arrangements (squatting at friends or relatives houses) for long periods creates anxiety and instability especially during this difficult time. It is plausible that by the end of the 30-month debarment period, divorced mothers who were not financially struggling have indeed become financially disadvantaged.
Child-care is a whole other issue.
Although divorce throws numerous economic, social and health challenges for both men and women, divorced mothers from low-income families are disproportionately affected by poverty. One reason is because child custody tends to fall on mothers. In Singapore, child support comes in the form of tax relief for married women. However, it should be noted that under the present tax structure, half of Singapore’s working population does not pay income taxes[4], of which lower income women are a part of. Also, women earnings are less than men, this support is constrained to higher-income women.
Besides that, children of low-income women do not benefit as much from the Baby Bonus relative to children of higher-income women. Under the Baby Bonus, the government deposits matching funds into the deposits that a parent has made into a child’s saving’s account. This would benefit children of higher-income parents as lower-income parents do not have as much disposable income to save in the first place.
Related to the aforementioned, it is more difficult for low-income women to sustain a stable job because they tow children with them.
Being a single mother with little to no childcare support will hinder them from finding employment. Fathers are largely absent [5] or are facing their own troubles, which is the reason for the divorce in the first place. It is common that many low-income divorced women have left the workforce for many years and lost confidence or lack relevant skills to re-enter the workforce [6]. Studies found that a vast majority of women did not work at the point of separation and only began working once divorced [7]. In Singapore, as many as 273,300 women drop out of the workforce compared to just 12,200 men. Women often cite “family responsibilities’’ during marriage or after childbirth as the main reason for leaving the workforce[8]. Once divorced, women become financially vulnerable, but are left without any savings or CPF, they also cannot access an equitable share of their working spouse’s CPF.
Divorce in itself is an emotionally painful process, economics should not add on more burden to this already difficult experience.
For example, the issue of rental housing would be most pressing for low-income divorcees. Although efforts have been made by the government to remove the three-year time bar for divorced couples to purchase HDB housing, efforts should be focused towards rental housing which is critical for low-income women who do not have the financial means to purchase flats or rent on the open market. Singapore’s housing system should ensure that children regardless of family structures are not vulnerable to unhealthy or unconducive environments caused by a lack of housing stability especially during this stressful time of transition, to gain some sense of security.
Childcare benefits should be extended to mothers enrolled in schooling or upskilling. Due to the reinforcing nature of poverty, which low-income mothers find themselves in, welfare mothers are being forced to work low undervalued work that leaves them in relative poverty no matter how hard they work[9]. However, these women need assistance while they are gaining education. Thus, bursaries and scholarships for schooling or upskilling while extending formal childcare services and subsidies throughout this period while getting back on their two feet.
Again, it should be noted that divorcees can buy or own a subsidised flat immediately upon ending their marriage, without having to wait three years under previous rules. This is a step in the right decision, however prompt access to rental housing is also important for many recently divorced single parents for the aforementioned reasons.
Policies should indicate to all groups of society that it is ok to start again, everyone can and should be a part of the Singapore success story. To do so, we need to dig deeper, ask the hard questions especially when it comes to efforts to reduce inequality of which these women are a part of.
References
[1] Mokhtar, F. (2018). Singapore ranked among bottom 10 countries for efforts to reduce inequality: Oxfam report. [online] TODAYonline. Available at: https://www.todayonline.com/singapore/singapore-ranked-among-bottom-10-countries-efforts-reduce-inequality-oxfam-report.
[2] Seow, J. (2018). Parliament: Gini coefficient here higher than countries which impose greater overall taxes. [online] The Straits Times. Available at: https://www.straitstimes.com/singapore/parliament-gini-coefficient-here-higher-than-countries-which-impose-greater-overall-taxes.
[3] Maike, V.D; Uunk, W. (2009). Female-supportive policies and women’s employment after divorce
[4] Jun Sen, N. (2018). Parliament: Singapore will move in opposite direction if it raises income taxes, says Heng Swee Keat. [online] The Straits Times. Available at: https://www.straitstimes.com/politics/parliament-singapore-will-move-in-opposite-direction-if-it-raises-wealth-taxes-says-heng.
[5] Glendinning, E., Smith, C.J., Kadir, M. and Md, M., 2015. Single-parent families in Singapore: Understanding the challenges of finances, housing and time poverty.
[6] Tan, C. (2019). Questions to Founder of Daughter of Tomorrow (DOT).
[7] Glendinning, E., Smith, C.J., Kadir, M. and Md, M., 2015. Single-parent families in Singapore: Understanding the challenges of finances, housing and time poverty.
[8] Wee, V. (2018). #asinglelove — The limitations of Fresh Start. [online] Asinglelove.sg. Available at: http://asinglelove.sg/the-limitations-of-fresh-start/.
[9] Hooton, A. (2002). From welfare recipient to childcare worker: Balancing work and family under tanf. Texas Journal of Women & the Law, 12(1), 121.
