Generosity begets generosity. When the state is generous to the people, some will feel grateful and repay the generosity in deed or kind. Of course there will be free-loaders everywhere, but most people have an innate dignity & pride that will not allow them to leech off others.
There's no welfare in Singapore, so this will never happen here. CPF is our money, our savings, not state welfare. To the govt, you die your own business. That's why PAP rule has produced 2 generations of self-centred and apathetic Sinkies.