SINGAPORE – The cost of living, affordability of public housing, immigration and integration policies as well as re-employment of older workers – these are the burning issues on the ground, as activists from the People’s Action Party saw it.

And with the middle class and middle-aged Singaporeans being strong voters of the party, said an activist in an SMS question to the PAP leadership, how can the support of this group who see themselves as “sandwiches”, be maintained?

The middle-class squeeze, noted PAP secretary-general Lee Hsien Loong, “is a legitimate question”.

“They not only see themselves as the sandwich, they see themselves as the middle of the sandwich, which is the problem,” said Mr Lee, who added that the middle class saw things in two ways: They were either the “rich-poor type” – those who are not very well-off, but who see poorer Singaporeans getting Government assistance – or those with children and elderly parents to support.

Many families are in the latter situation, and the Prime Minister said the government will remember their concerns when formulating healthcare, eldercare and childcare policies.

For the “rich-poor type (of) sandwich”, he said “the most important thing” is to keep income tax and the Goods and Services Tax low, while providing assistance through Government off-set packages.

“I know the burdens are still there, but we’re doing what we can. Where it’s possible, we’ll do more,” he added.

Party cadre Simon Koh remarked, though, that “many Singaporeans today sing the same song: Most of the things are very expensive today”.

The solution, replied Mr Lee, is to get the economy going again so that people have jobs and income to buy things. While home prices have risen, he said electricity and transport prices have not, compared to a year ago.

But expectations have gone up. For example, three in four homes here, including half of the bottom 20 per cent of the population, now have air-conditioners.

“So although incomes have risen, spending has also increased,” Mr Lee said.

Another activist suggested the government buys a 20-per-cent share in HDB flats, so that younger couples could afford one. If a couple has a baby within two years, the flat could be fully transferred to them.

Mr Lee reiterated that the Government would continue to make flats affordable and, in some cases, already subsidises more than 20 per cent of the price through various housing grants.

Another cadre sought the PAP leadership’s advice on how to convince constituents, such as taxi drivers, about immigration and integration policies, saying, “this is a real issue we see at MPS (Meet-the-People Sessions)”.

Mr Lee provided three arguments: First, foreigners are not allowed to drive taxis, and foreign workers build factories and HDB flats; second, foreigners working as chief executives help to grow local companies and create more jobs; and third, they help to boost Singapore’s population replacement rates.

“These are good reasons, but emotionally, it’s difficult to accept,” acknowledged Mr Lee.