RISE OF SINGAPORE: From WWII ashes to a great Phoenix BMIR Program, Thammasat University: PO371 SOUTHEAST ASIAN AFFAIRS Index: 1.Politics 2.Reliance on human resource 3.Education 4.Healthcare service 5.Economic development 6.Sustain economic development 7.Provision of housing 8.Singapore foreign relations

1. Group: 28
RISEWWII ashes to a great Phoenix
OF SINGAPORE
From
NOV 22, 2012
PO371 SOUTHEAST ASIAN AFFAIRS
1

2. Keynote Agenda
•
•
•
•
•
•
•
•
Politics
Reliance on human resource
Education
Healthcare service
Economic development
Sustain economic development
Provision of housing
Singapore foreign relations
2

3. The
Politics
3

4. Political Background
• Received independence in 1965
• Democratic system – similar to United
Kingdom
• Parliamentary republic, also know as unitary
multiparty parliamentary republic
– 99 members of the parliament
• Executive power relies on Cabinet, President,
and led by prime minister
4

5. Political Background(2)
• 7 presidents(6 years a term)
– Incumbent Tony Wan Keng Yam
• 3 prime ministers(5 years a term)
– Lee Guan yew(1959-1990)
– Goh Chok Tong(1990-2004)
– Lee Hsien Loong(2004-present)
• People's Action Party has ruling for 50 years as a
single-wining election
• 4 vulnerable opposition party
5

6. From Third World to First World
•
•
•
•
•
On foreign policy
On economic policy
On social policy
On education policy
Single-ruling administration
6

7. Criticism on Lee Kuan yew regime
•
•
•
•
Deceitful democracy
Single-party system
Repressive regime
A deficiency in Checks and Balances
7

8. Reliance on
Human
Resource
8

9. Facing the future threats of
ageing population
• Singapore population growth 1950 – 2000
– Confident of a better tomorrow, people were
encouraged to carry on the Asian tradition of having
large families.
• Problems
– The resources available at that time were inadequate
to provide the large population with a reasonable
standard of living.
– Unemployment, shortage of houses, inadequate
healthcare and education services.
9

10. Facing the future threats of
ageing population (cont.)
• Policies to reduce population growth
– 1966 Singapore Family Planning and Population Board
•
Sources: Poster on family planning, Family Planning / Sterilization information service, The National
Health Education Department, Ministry of Health.
10

11. Facing the future threats of
ageing population (cont.)
• Slow population growth
Number of babies
born in Singapore,
1960 – 2000
Source: yearbook of statistics Singapore
2001, Singapore department of Statistics.
Average age at first
marriage was 30.7 for
grooms & 27.6 for
brides
Source: The population in Singapore by Saw
Swee Hock 1999, Institute of Southeast
Asian Studies, and Department of Statistics.
11

12. Facing the future threats of
ageing population (cont.)
•
•
•
•
•
•
•
•
Problems of population growth
Shortage of man power  fewer of young worker.
Poor development.
Policies to increase population growth (1987)
Promoting larger families  to have more children's.
Attracting foreign talent.
Create more job and increase productivity.
More MNCs come to invest in Singapore.
Year
Total
population
(million)
Resident
population
(million)
Total*
population
growth (%)
Resident
population (%)
1980
2.41
2.28
1.5
1.3
1990
3.05
2.74
2.4
1.8
2000
4.02
3.26
2.8
1.8
* Average annual growth rate
Singapore population
size and growth,
1980 – 2000.
Sources: yearbook of Statistics Singapore
2001, Singapore Department of Statistics.
12

13. Singapore’s ageing population
• Quick fact
– In 2000, only one in 14 Singaporeans was aged 65 and
above. By 2030, one in five will be aged 65 and above.
– By 2030, these Singaporeans will be among those aged 65
years and above.
– The proportion of young people is shrinking in 1970, this
resulted in a relative increase in the proportion of senior
citizens.
– Singaporeans are living longer than before.
• Why the population is ageing?
– Good healthcare and service and protection for its people.
– High standard of living.
13

14. Singapore’s ageing population (cont.)
• Impact of an ageing population
– Demand for healthcare and social services  more
community based services.
– Strain on working people.
– According to the Prime Minister Goh Chok Tong: “It would
be a disaster if companies and young workers have to be
taxed heavily to support the large number of senior
citizens in Singapore.”
• Preparing for an ageing population
–
–
–
–
–
Many helping hands approach.
Individual responsibility.
Family care.
Community help.
Government support.
14

15. The
Education
15

16. Education in Singapore
• Human resource as the most important
resource
• Value education as development of the
resource
• Challenge for 1960s to 1970s – availability of
infrastructure / fostering social cohesion
• Problem of language barrier – mother tongue
• Solution? Transition to English as medium of
instruction
16

17. Education in Singapore (2)
• Common Examination (PSLE) – centralization
of syllabus first
• 1960 “Integrated school” – different races in
the same school
• Promote interaction
• Secretly, what is the true intention of the
government????
Let’s get Realist
17

18. Education in Singapore (3)
• See the movement here……in 1966, bilingualism
was compulsory
• Reduced role of Mother tongue languages
• Positively – development without forgetting its
root
• Singapore “Asian value” – obedience
• Exhibited in “Caning”
• Syllabus to suit the country’s demand – use as
people as tools?
18

19. Education in Singapore (4)
• School dropout problems – ‘wastage’
• Adjusting to the learning needs – 1980
Streaming in primary 4
• Hierarchy even in education?
• Seen to be premature/ limit capabilities’
development
• Useful and Useless students Questions
19

20. Education in Singapore (5)
• 1993: change the streaming to be conducted
at secondary 1
• Cultivating nationalism – preventing
emigration
• Community Involvement Program (CIP) –
social responsibility
• Stress! Stress! Stress!
• Do you want to study there????
20

21. Education in Singapore (6)
• Improvements
• Integrated Program (IP) – can move on to sit
for GCE ‘A’ level without taking ‘O’ level before
began in 2004, now considered under
experimental stage’
• Quality Assurance Framework, especially
towards independent schools
21

22. 22

23. Healthcare
Service
23

24. 24

25. Health care service
• Initial stage – 1960s “Keep Singapore Clean”
campaign
• Instability of autonomy under the British
• 1970s – specialization – replacing traditional
dispensaries
• Say “No” to being Welfare state
• “Horror” of British welfare state – “Why
Work attitude” and “National Burden”
25

26. Health care service
• The government will help, but not entirely provide
medical care.
• Three schemes
Medisave (compulsory)
- 6-8% from salary = forced saving
Medishield (voluntary)
- insurance plan
• Can secure votes without taking away
people’s incentive to work
26

27. Economic
Development
27

28. Quest for development strategy
• Geographical factor: located on international marine time trade (Malacca
strait) give the competitive advantage for logistic of goods and services.
• Poor fundamental factors in term of
– small land resource and too low quantity of resource mean
• limitation of development for agriculture sector and heavy industry sector.
– small number of population = limited domestic market (small market).
• Policy for export-oriented (for economic of scale) and investment
incentive:
– Government subscribed to policies which promote:
• macroeconomic stability (sound fiscal, low inflation rate, positive real
interest rate)
• low intervention in price of goods and service (liberalized foreign trade
policies and exchange rate policy which avoid adjustment for irrational
value that would easily cause damage).
– Another essential element for increasing investment incentive included
educated human capital (high capacity human resource) and tax incentive
policies.
28

29. Tax Policy
•
•
•
Surplus budget (except 1986, 1987 and 2009) and High RPE (relative political extraction)
Ratio of total tax revenue to total revenue continue to decline from 72% (1960) to 58%
(2011)
CPF (Central Provident Fund) saving & reduce of social security spending.
The Selective Economic Indicator of Government Sector: Singapore
1960, 1970, 1980, 1990, 2001, 2008-2011
1960
1970
1980
1990
2001
2008
2009
2010
2011
Deficit (-)
or Surplus
(million S$)
67.90
199.20
320.70
3167.60
7442.70
24100.10
-4357.60
15433.60
26624.80
Total
Government
Expenditure
(million S$)
243.40
1019.90
5170.70
13257.10
51065.40
89434.40
47094.20
79522.20
105705.60
Source: Singapore Year Book of Statistic, Singapore Department of Statistics
Total
Government
Total
Revenue
Tax Revenue
(million S$)
(million S$)
311.30
224.30
1219.10
857.10
5491.40
4087.00
16424.70
10354.00
43622.70
25108.90
65334.30
37518.60
51451.80
35272.40
64088.60
40662.20
79080.80
46171.80
Total Tax
Revenue /
Total Revenue
%
72.05
70.31
74.43
63.04
57.56
57.43
68.55
63.45
58.39
29

30. Tax Policy (con.)
• Tax reform and tax incentive program
– lower the rate for corporate tax & Customs/excise
• Changes in revenue from total tax revenue
– Lower customs / excise: 45% (1960) to 4% (2011)
– Higher income tax (but stagnant): 33% (1960) to 45% (2011)
– Rapidly Higher GST (Goods & Service Tax) or VAT: 0% (1960) to 18% (2011)
The percentage of taxes in total tax: Singapore 1960, 1970, 1980, 1990, 2001, 2008-2011
Income
Tax
Asset
Taxes
Motor Vehicle
Taxes
Customs/
excise
Stamp
Duties
Other
duties
GST
Betting Tax
1960
33.90
4.30
2.90
45.90
1.60
11.30
-
-
1970
29.30
13.70
7.00
33.30
2.70
14.00
-
-
1980
46.40
13.60
11.90
16.40
4.00
7.60
-
-
1990
47.40
10.70
12.90
12.60
6.30
11.70
-
-
2001
53.62
6.75
9.85
7.33
3.33
4.84
8.02
6.27
2008
49.47
7.71
5.34
5.55
4.90
4.63
17.68
4.74
2009
47.87
5.68
5.07
5.90
5.64
6.15
18.80
4.89
2010
44.95
6.39
4.65
5.14
7.62
7.10
18.93
5.21
2011
45.43
8.26
4.05
4.56
7.06
6.26
19.31
5.07
Source: Singapore Year Book of Statistic, Singapore Department of Statistics
30

31. Tax Policy (con.2)
• Tax option for government as GST allow
government to gain more revenue from tax and
also able to avoid the side effect of taxation
toward private sector investment, purchase of
technology and export oriented industry.
• Thus, consumption for investment in productive
capacity of producer side would be except from
GST. By having GST also widen the taxation
payer’s base and avoid the potentials of tax
escaping.
31

32. Fiscal Policy
• There’re 2 types of macro-economic policy:
– Short run policy as stabilization tool (to respond toward
aberration from desire rate of growth)
• Limited role due to real balance effect
– large amount of wealth was stagnated in CPF (Central Provident Fund) =
government spending owned narrow scope of effect.
– Increasing bond & surplus budgetary = shortage of money supply
• Effective role in area of stable currency
– Large amount of foreign reserve
– Long run policy as economic growth stimulus tool (to stimulus
the growth of output)
• ‘Saving aspect’: Fiscal policy has been focus on building domestic
revenue while restrict expenditure.
• Spending on capital project: focus on future return of capital gains
and revenue from investment.
32

33. Sustain
Economic
Development
in
21
st
cen.
33

34. 8 Economics strategies
1. Diversify the economy.
2. Shifting from technology base towards a knowledge
based economy.
3. Promoting manufacturing and service as dual engines
of growth.
4. Building an IT infrastructure.
5. Moving toward regional and global.
6. Developing local talents: entrepreneurship and
technopreneurship.
7. Promoting research and development (R&D)
8. Attracting foreign talents
34

35. Provision of
Housing
35

36. Housing Program and role of state
• Housing is considered as the basic need for
people. Proper housing for population can also
be considered as essential element in the role of
state.
• It’s government that functions as land allocator
for proper use of land for citizen welfare and
efficiency allocation.
• Public housing program would be an important
tool to maintain the social harmony and stability
of country.
36

37. Destitute physical condition of
Singapore Island
• Population: 5.3 million people
• Area of 697 sq. km (with land of 687 sq. km).
• Population density: 7792.56 persons per
square km.
• With this high of population density, land
resource becomes rare.
37

38. HDB and Public housing program
• After PAP (People’s Action Party) won the election of
1959 with campaign on new public housing policy.
• The Housing & Development Board (HDB) was found in
1960.
• HDB is the government body that takes care of housing
and improving the living conditions for the population.
• High-rise flats: enable most efficient use of land.
• "new town“: composes of most separate facilities that
can provide you from education to job (industrial
estates).
38

39. Home ownership and financial security
• Home ownership as a must for economic
development: ownership of house becomes essential
factor for each individual financial security.
• From rental purpose only toward Home Ownership
Scheme: allowed and encouraged Singaporean citizen
to gain their ownership of their HDB flat unit by giving
the incentive for poor citizen with discount price (from
CPF and government subsidies).
• Nowadays, the successful of HDB was highlighted by
the highest-ownership at 92%. (WDR 2009)
39

40. Singapore
Foreign
Policy
40

41. Singapore Foreign Policy
• Diplomatic relations with 175 countries
• Member of United Nation(117th), the Common
Wealth(22nd) Non-aligned movement, ASEAN,
WTO, APEC, etc.
• International cooperation with countries in
several sorts of relation in shapes and forms such
as military, trade, and etc.
• Most importantly, ensuring that its actions do
not exacerbate its neighbors' insecurities.
• Aim at maintaining friendly relations with all
countries
41

42. Foreign Relations on individual state
and international organizations
• Toward UN
• Toward neighboring countries
– Indonesia
– Malaysia
– others
• Toward China
• Toward United States
42

43. The role of Singapore on ASEAN
• A co-founder of ASEAN in 1967
• has played an active and constructive roles in
ways, shapes, and forms such as supporting of
ASEAN free trade agreement, solving the
conflict by peaceful settlement, and so forth
• Former prime minister Goh Chok Tong
proposed the idea of founding of ASEAN
economic community(AEC) in 2007
• Is the strongest supporter of AEC formation.
43

44. ‘
There is no law of nature
which provides that life will
get better for Singapore
next year. We have to work
to make it better.
PM Lee Kuan Yew
May Day Message, 1986
’
44

46. Q&A
46

47. RISEWWII ashes to a great Phoenix
OF SINGAPORE
From
NOV 15, 2012
PO371 SOUTHEAST ASIAN AFFAIRS
47