Nothing To Do With Stop-At-Two

No, our population woes have nothing to do with the stop-at-two policy. 

The stop-at-two policy was introduced to encourage people in the lower income groups to have only two children so as to give these children better opportunities in life. 

When it was introduced in 1972, TFR (total fertility rate) was 3.05. 

In less than 10 years, total fertility rate had dropped to less than replacement level at 1.74 in 1980.

People were not stopping at two. They were stopping at less than 2. 

Singapore's economic transformation in such a short time is an economic miracle. 

And there is a correlation between economic development and birth rate.Countries throughout the developed world have very low birth rates. Countries with high birth rates are the less developed countries. And countries with the highest birth rates? The least developed countries. 

As a country advances its birth rate will start to fall. In Singapore the economic advancement has been rapid. Correspondingly the fall in TFR has also been rapid. 

Why does TFR fall with economic development? 

Economic advancement means job opportunities for women as well. When more women join the workforce, fertility rate falls. 

In Singapore, women have equal opportunity for education. They receive the same education as men. They are highly educated with many career options open to them. They can earn salaries that are on par with those of men. 

Unlike in the past, women are no longer financially dependent on a husband for support. They no longer see their role as solely that of a wife and mother. There are lifestyle options available to them. They can choose to be single or married. They can choose to have children or not to have children. 

Their ability to be high-income earners have altered social behaviour and led to marriages later in life. They may also put off having children to advance their career first. When they put off having children until their mid-30s,they also have fewer children. 

Confounding the problem of low TFR is the higher proportion of people who remain single.
In 2013, 45.4% of males between 30 - 34 years of age are single, and 33.3% of women in that age group are single. 

The median age of mothers at first birth is 30.2. 

All the highly developed economies in Asia - Japan, Hong Kong, Korea and Taiwan - have very low TFR and they didn't have a stop-at-two policy. 

What contributes to an ageing population?

When a country has (1) very low TFR and
(2) life expectancy is long, 

it will become a SHRINKING and AGEING population.

Permanent Observer's Status on the Arctic Council.

In 2013, Singapore was granted Permanent Observer Status on the Arctic Council, no mean feat for a small country that sits on the Equator, as far as it is possible from the poles.

The Government made the application in 2012.

As a permanent observer Singapore has the right not only to attend meetings of the Arctic Council but also to propose and finance policies.

This is one achievement of the PAP Government that will have a big impact on Singapore's future.

Singapore is able to punch above its weight only because it is a successful country. It is a successful country because it has a good, strong and credible government.

How The PAP Government Handled The Sars Crisis

SARS first reached Singapore in late February 2003. Singapore was removed from the World Health Organization's list of SARS-affected areas on 31 May.

Impact on the economy:

Visitor arrivals and hotel occupancy rates plunged.
Revenues at retail shops and restaurants dived.
Taxi drivers reported fewer passengers, stock prices fell, more people lost their jobs.
During the April-June quarter, when the full impact was felt, the economy contracted sharply by 4.2% year-on-year.

Key responses: 

1. Prevention and control within community

Early detection and isolation of suspected and probable cases:
Educating the public on symptoms and how Sars spread.
Urging people to seek early treatment.
Thermometers distributed to more than 1 million households. Temperature checks at schools and workplaces.
GPs, polyclinics and hospitals given all the necessary information to help them identify cases.
Suspected/probable cases quickly isolated in TTSH or CDC (Communicable Disease Centre).
Contract tracing to quarantine all individuals in contact with identified cases.
A dedicated private ambulance service commissioned to transport suspected and probable cases to TTSH in order to prevent spread through taxis and other public transport system.

2. Prevention and Control Within Hospitals

TTSH and CDC designated as facilities for isolating and treating suspected and probable SARS cases.
Temperature check of all visitors and their personal details taken down to facilitate contact tracing.
Number of visitors restricted, even barring them completely at one stage.

3. Prevention of Imported Cases

All airlines operating flights to Singapore were required to screen passengers at their check-in counters.
Those who appeared unwell would need to obtain a doctor's certification in order to board the flight to Singapore.
Incoming travellers were required to complete a health declaration card and subjected to temperature checks upon arrival.
In addition to visual checks by on-site nurses, thermal imaging scanners were deployed at air, sea and land checkpoints to help pick out those with a high temperature.
Passengers arriving from SARS-affected areas were also handed health advisory cards providing information on SARS symptoms and how to seek help if they become ill with such symptoms.

How The PAP Government Handled The Global Financial Crisis

The global financial crisis of 2008 was the worst since the Great Depression. It was headlined by the collapse of Lehman Brothers, a sprawling global bank, that almost brought down the world's financial system.

Because Singapore is one of the most open economies on the planet, relying heavily on exports and financial markets, it was one of the first East Asian countries to officially enter into a recession by the third quarter of 2008.

The Singapore Government announced a massive $20.5 billion Resilience Package in Budget 2009. It represented 6% of GDP and on a per capita basis, it was the most aggressive stimulus plans on the planet.  

The Government aimed to keep employment levels as high as possible and to minimize business failures.

The Global Financial Crisis was the first time the government had to dip into the past reserves. 

To shore up confidence in Singapore's financial institutions in the midst of a deepening credit crisis that was world wide, the government announced in October 2008 that they would guarantee all bank deposits from October 2008 till the end of 2010.

The guarantee covered all Singapore dollar and foreign currency deposits of individuals and non-bank customers in banks, finance companies and merchant banks licensed by the Monetary Authority of Singapore (MAS).

The government backed this guarantee with $150 billion from our financial reserves.

This move by the government was not an actual draw on the reserves. The funds would be used only if a depository financial institution failed. Fortunately that did not happen.

Government sought President's approval to use past reserves in view of deepening crisis

Then in January 2009, because of a fast deteriorating global economic environment and facing the prospect of a deep and prolonged recession, the government sought the President's approval to take out S$4.9 billion from past reserves to fund two bold one-off measures to boost the economy, namely, the Jobs Credit scheme and the Special Risk-Sharing Initiative (SRI).

Jobs Credit Scheme and Special Risk-Sharing Initiative

The Jobs Credit scheme was designed to encourage employers to retain their workers by giving them a cash grant for every local employee on their payroll and the bulk of the S$4.5 billion went into this. 

The remainder was for the SRI, which was aimed at encouraging banks to lend to companies by bearing a larger share of the risks. 

These measures were aimed at preserving and enhancing business competitiveness and promoting job retention. As a result unemployment did not rise very high.

With the scheme, there was no need to cut the CPF contribution rates which meant there was no reduction in domestic demand or adverse effect on mortgage finance. 

August 2009: Worst is over

The Singapore economy weathered the financial storm better than feared and Prime Minister Lee Hsien Loong announced in August 2009 that 'the worst is over for the Singapore economy' and that 'the eye of the storm has passed'.

In November 2009, the Ministry of Trade and Industry declared the recession over.

Reserves put back

By 2011, the Government had put back into the reserves the amounts drawn down to fund the extraordinary measures taken during the economic crisis.

Good government and strong reserves make the difference

The Singapore Government was in a position to take aggressive actions because of our strong reserves. Our reserves are our one and only strategic resource in times of crisis.

That is why we need the ELECTED PRESIDENT to hold the second key to our reserves to ensure that they are not spent in a free-spending spree by a rogue government.

In addition, we need to scrutinize the person we elect as President before entrusting him with the second key.




Read more related posts here: http://papinreview.blogspot.sg/

Ref:  https://www.cscollege.gov.sg/Knowledge/Pages/The-Global-Financial-Crisis-and-Policy-Responses.aspx

How the PAP Government Handled the Asian Financial Crisis

The Asian Financial Crisis of 1997 was a shocker that began in Thailand and soon spread to Malaysia, Indonesia and Philippines. The contagion extended its reach to South Korea, Hong Kong and China and in1998, the crisis had spread to Russia and Brazil as their economies saw a free-fall.

As a small open economy Singapore is extremely vulnerable to external developments. The large and adverse economic shocks of the Asian financial crisis could potentially have had a devastating effect on the Singapore economy.

Singapore, however, withstood the financial storm lashing the region and even managed to maintain a relatively favourable economic performance.

How did the Singapore government do it?

It's strong reserves position, strong macroeconomic fundamentals, sound economic policies and a willingness to take timely and effective policy measures to counter the adverse effects of the crisis, measures which include the exchange rate and wage instruments.

At the start the Singapore Government allowed the Singapore dollar to quickly depreciate in response to the lost of competitiveness that arose from the collapse of the regional currencies.

As the crisis dragged on in 1998, the Government decided not to tinker with the exchange rate but to use direct cost-cutting measures such as wage and operating cost reductions to maintain its competitiveness.

Despite the crisis, the Singapore Government pressed ahead with financial reforms including liberalising the Singapore dollar,
to ensure the long-term competitiveness of its economy.

We are not immune to external developments. One never knows when the next crisis will hit. Vote wisely for a strong and capable government with integrity that is able to steer us through crisis and take care of us. Don't vote for the Wrong Party. This is not a game of cards. This is your life and mine.

Here is a timeline of the crisis:
http://www.pbs.org/wgbh/pages/frontline/shows/crash/etc/cron.html

Source: Coping with the Asian Financial Crisis: The Singapore Experience
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.475.8642&rep=rep1&type=pdf

How did Singpore succeed in building a world class education system from scratch in such a short time? (Part 1)

So, what are some of the reasons that Singapore is so successful in building a world-class education system from scratch in so short a time, and not just a world class education system, indeed a world class Singapore as well? 

1. The PAP government select the most capable people to serve in government. Mr Lee Kuan Yew started with a team of a few very talented men and he used them to build the great institutions that we have today. 

2. The PAP government makes sure that government policy would be informed by intensive global benchmarking before policy is made. This is to ensure that their policy would reflect the most effective policies and practices in the world. 

3. The PAP government also makes sure that in addition to the development of sound policies, equal attention is also paid to the careful and deliberate execution of these policies. In other words, the government follows through the implementation of policies. 

4. There was continuity of government for 50 years which enabled the government not only to plan far ahead for the long term interests of Singaporeans and to carry out those plans step by step systemically. 


 .

Ref:  http://bit.ly/1fAUNKD
http://bit.ly/1EQriLv

Making Healthcare Affordable

As long as you are a Singaporean (regardless of income) you enjoy at least 50% subsidies in public hospitals and national centres for B2 and C class wards. Subsidies start at 50% in B2 class or 62% for C class and goes up to 80% for C class wards.

More than half a million Singaporeans also hold the Chas card where they receive subsidies for acute and chronic ailments at participating clinics island-wide. A 4-person household with a monthly income of $7200 qualifies for Chas. 

All Singaporeans regardless of income also enjoy at least 50% subsidy in specialist outpatient clinics. Those with Chas card or senior citizens with their Pioneer Generation Card enjoy higher subsidies. 

Samples of medical bills

ELDERLY WILL ALWAYS HAVE A PLACE IN SINGAPORE

"We made the Pioneer Generation Package (PGP) to express our gratitude to the pioneers who contributed so much to building today’s Singapore." - PM Lee

In addition to the Pioneer Generation Package which takes care of the medical needs of our pioneers, there is also the Pioneer Generation Disability Assistance Scheme (PioneerDAS) which provides $100 every month for their care needs.

The Silver Support Scheme which will be implemented in the first quarter of 2016 will provide seniors with little in their CPF financial support. Silver Support will be paid out quarterly, and payouts will be between $300 and $750. Those living in smaller flats will receive more.

The Committee on Ageing Issues was set up in December 2004 to prepare for an ageing population.

The strategic directions are:

1. Housing for seniors: elder-friendly housing
2. Accessibility for seniors: barrier-free society
3.Caring for seniors: Holistic affordable healthcare and eldercare
4. Opportunities for seniors: Active lifestyles and well-being.
5. Employability of seniors: This recognises that the baby boomers are better educated who posses a wealth of knowledge and experience that is a valuable resource to society.

Since 2006, the government has been gradually implementing various measures to meet the diverse needs of the elderly in the population. 



Photo: Mr Othman Wok, one of three three surviving Ministers (along with Mr Ong Pang Boon and Mr Jek Yeun Thong) who signed the Separation Agreement in 1965.

Ref: https://app.msf.gov.sg/Portals/0/Summary/research/CAI_report.pdf

Educational Pathways For Students With Special Needs

LEAVE NO CHILD BEHIND

Educational Pathways For Students With Special Needs

1. Sensory impairment

Students with sensory-impairment who are able to access mainstream curriculum can continue their education in designated mainstream secondary schools after PSLE.

These secondary schools have additional support including resource teachers to help the hearing-impaired and visually-impaired students cope with the curriculum. MOE provides assistive devices, e.g. FM equipment, Braille Notebook Computers and talking calculators for these students.

2. Intellectual Disability

Students with intellectual disability, who meet the eligibility criteria, will undergo a vocational education programme resulting in national vocational certification such as ITE Skills Certificate (ISC) and WDA Workforce Skills Qualifications (WSQ).

Students who are unable to go to mainstream secondary or post-secondary education, or find open employment upon leaving school, will proceed to one of the training centres or workshops run by Volunteer Welfare Organisations (VWOs).

Such training equips them with the necessary skills for employment. Those who are able are placed in open employment whilst those who require more supervision attend production sheltered workshops or work activity centres.

Ref: http://www.moe.gov.sg/education/special-education/path/

 

Transforming vocational and technical education: From zero class to world class

LEAVE NO CHILD BEHIND

Overhaul of vocational and technical education with carefully planned and comprehensive five-year strategic road maps to take care of the 25% of less academically-inclined students in each cohort by providing them with opportunities.

The PAP government embarked on this in 1995.

The journey began with the first road map to establish ITE as a post-secondary technical education institute that is a student's CHOICE OF SCHOOL.

Next it was to turn it into a world-class technical institute where students are knowledge-applicators, then it was to establish it as a global player whose students can hold their own against their counterparts anywhere in the world and then to be a global leader in innovations.

The first challenge for the government was to overcome the negative image and societal bias (both of parents and students) of a vocational and technical education.

To this end there was much creative rebranding and transformation of the hardware (the physical environment), software (the courses) and heartware (the people).

Today, more than 80 per cent of Normal (Technical) students who have completed their secondary schooling join the ITE. The number says it all. ITE is now a popular choice among secondary school leavers.

Empower people, and enable them to earn their own success.

Doing more for people in such a way that that gives everyone the pride of contributing in their own way - by empowering people and enabling them to earn their own success. 

 

Excerpt:

No government can have a hands-off strategy, where people are left to fend for themselves.

Neither should we have handouts all along the way, because that just takes the dignity out of people.

Let's instead keep providing hand-ups, especially for those who start with less, helping them develop their strengths and have a real chance of doing well.

Empower people, and enable them to earn their own success.

We've got to make sure too that this doesn't end up the way it has in many other advanced societies, where it becomes a contract between me and the government - "I pay these taxes, I want this much back in benefits".

Civic society is far weaker today in almost every advanced country compared to a few decades ago. We've got to keep a culture of responsibility across our society: individual responsibility, government responsibility, but also a civic culture where we all feel involved and take the initiatives as individuals, voluntary bodies and as businesses.

And we should never lose our Singapore culture, of thinking about our children and grandchildren. As the Chinese saying puts it: the ancestors plant the trees, the next generation enjoys the shade.

But it's not just for one generation. We've got to keep planting trees for the next generation, and know too that each generation will enjoy the shade as they grow old.

Let's keep that culture in Singapore. Not making the short-term political calculation as to what's best, but always looking out for the opportunities beyond today. That's how we got to where we are, a society that has transformed itself for the better, for all its citizens, and that's the way we go forward.

The Economic Society of Singapore SG50 Distinguished Lecture by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam

Moving Singapore Away From A Position Of Dependence On Johor For Water To Supplying Johor With Potable Water During The Dry Spell

   
PUB has agreed to Johor authorities’ request for Singapore to supply more potable water to the state in light of the dry weather afflicting the state’s water supply, it said in a statement today (Aug 20).

It added: “This will not affect the water supply in Singapore. There has been some rain in Singapore, and PUB has increased its production of NEWater and desalinated water to meet local demand, allowing water levels in local reservoirs to remain healthy.”

Environment and Water Resources Vivian Balakrishnan visited the Linggiu Reservoir in Johor earlier this month, after water levels there had dipped to historic lows because of the dry weather.

Water-rationing was implemented in parts of the city starting last Sunday and lasting till Sept 15, after the dry weather severely.

Tempering work inequalities

 But we have also put Workfare to work. We piloted it in 2006, made it a permanent scheme in 2007, and have enhanced it twice since. 

Low-income Singaporean workers now get up to 30 per cent more in their wages through Government top-ups.

Our cleaners had been stuck with very low pay levels for some years. 

 Besides helping them with Workfare, we are helping them see higher pay through the Progressive Wage Model (PWM). 

Already, the median pay of a resident cleaner has risen from $820 to $1,000. Security guards will be on their own PWM in future.

We must also make sure Singaporean PMEs get a fair deal. 

The tripartite Fair Consideration Framework is being enhanced to ensure that Singaporeans have a full and fair chance in the job market. They have to be at the core in every sector, and have opportunities for development so that they are part of the best global teams.

Excerpt from:
The Economic Society of Singapore SG50 Distinguished Lecture by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam
14 August 2015

Leave no Singaporean behind

ENSURING BIRTH IS NOT DESTINY: Building an inclusive society. Intervening earlier and doing more.

Meritocracy is fair, but it will not on its own ensure we keep up social mobility.

We therefore have to find every way to help kids who start with less, so that birth is never destiny.
 
Since 2006, we've been enhancing support for those with a weaker start. More specialists, smaller classes, more activities outside class to build confidence and perseverance.

We now spend 50 per cent more on the kids who have a weak start in learning than the average student in our primary schools.

We are also intervening earlier. We've made preschools more affordable, and are introducing many more, near the home. We are improving the quality of the preschool experience, which helps especially for those who come from lower-income homes. And as we go forward, we have to pay more attention to the initial years of life, before preschool.

In higher education, we've expanded subsidised places and have introduced a diversity of pathways. They cater to different interests, and open up strong, skills-based routes to advancement, including applied university programmes. This diversity makes for both an innovative and inclusive Singapore.

Excerpt from:
The Economic Society of Singapore SG50 Distinguished Lecture by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam

INNOVATIVE SOCIETY: Earning our place in the world

 

Excerpt:
We must be an innovative society to keep earning our place in the world and to raise standards of living for all Singaporeans. We have to move from value-adding in global markets to value-creation - through our own firms, with more brands of their own, as well as with multinationals based here, creating value in Singapore, in every field - developing new, cost-effective medical treatments, creating new products or apps, or finding new ways to reach customers.

An innovative society starts from young, of course. But we must resist the thought that we have to add something more in education to develop the innovative spirit. It is more a matter of taking things out of education than putting things in.

It's also not just about the first 18 or 22 years of education, but learning through life. That's why SkillsFuture is a major social and economic investment in our future. 

We will invest in every Singaporean, so we all keep improving through life, keep learning something about ourselves we didn't know, a strength, an interest. And keep expanding our potential together. 

We are going to provide the resources, all around the island, to make this happen.

Ref:
The Economic Society of Singapore SG50 Distinguished Lecture by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam
14 August 2015

Social Mobility: A relatively fluid society

 

Thus far:

14% of people born to parents in the lower 20% of incomes reached the top 20% of income after they have finished their education and are well into their working lives around their early 30s. 

This is higher than that in Denmark and almost twice that in the United. 

Exercpt from:
The Economic Society of Singapore SG50 Distinguished Lecture by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam
14 August 2015

KEEPING THE TAX BURDEN ON SINGAPOREANS LOW WHILE MITIGATING INCOME INEQUALITY

There are some countries that, in fact, achieve a very large reduction in their Gini coefficients, through taxes and transfers. 

The classic cases are the Scandinavian economies, and to some extent several other European economies. 

But we must recognise that the reduction in their Gini coefficients goes hand in hand with a very heavy burden of taxation on their populations. 

Denmark collects about 49% of GDP in taxes, Finland about 44%. In our case it’s about 16%. We get some investment income from our reserves, but our tax revenues total just about 16% of GDP.

It's not just about taxing the rich, it's the broad middle class in these societies that pay very high consumption and income taxes, to generate the tax revenues which the state uses for redistribution.

The average worker in Denmark pays an income tax of about 36%, consumption taxes about 25%. 

In Finland somewhat similar consumption tax, about 24%. Even if we look at their discounted VAT tiers – for instance in Finland it’s about 14% for food – the average worker pays a lot of taxes.

So that’s the basic trade-off. 

Our approach in Singapore is to keep the overall tax burden low, certainly low by international standards, but within the tax revenues that we have, we ensure that we use it in a fair and progressive way by targeting support for the low and middle-income group where it helps them most.

Excerpt:
The Economic Society of Singapore SG50 Distinguished Lecture by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam
14 August 2015

Creating the unique success Story of Singapore through economic and social strategies going hand in hand, raising income and standard of living across the board

The unique Singapore story in the last 50 years has been that of broad-based social upliftment: jobs for all, rising incomes for all, homes for all, quality schools and public healthcare for all, and neighbourhoods and parks shared by all.

It's impossible for our economy to have succeeded without effective social strategies - enabling people to develop their potential through education, housing policies that provided a sense of equity, or if everyone was just doing something for themselves and we did not have a sense that we were moving up together.

But it's also impossible for us to have had the very substantial and broad-based improvement in social well-being and life satisfaction without a vibrant economy - and real incomes going up across the whole span of the workforce.

For both low-income and middle-income Singaporeans, real incomes have increased by five to six times since 1965.

Economic and social strategies have gone hand in hand, and that's what created the Singapore story.

Excerpt from:
The Economic Society of Singapore SG50 Distinguished Lecture by Deputy Prime Minister and Minister for Finance Tharman Shanmugaratnam