Monday 30 January 2012

Singapore must find its own way: PM Lee Hsien Loong at Davos 2012

More political openness not enough, Singaporeans have part to play, he says
By Chua Lee Hoong, The Straits Times, 28 Jan 2012

SINGAPORE'S political landscape is in a new situation, but Prime Minister Lee Hsien Loong says more political openness should not be the only response.

Singaporeans themselves have a part to play by paying more attention to what is happening in their country and to themselves as citizens.

This is because effort is required on the part of both government and people to ensure that the country plots its direction correctly.

'We are in a new situation and we must govern in a new way, but we can't do it by just going with the tide,' Mr Lee said in an interview here on Thursday with CNN anchor Fareed Zakaria.

Singapore must find its own way, he stressed, adding that it is not so simple as saying that 'if we have more political parties, we will have more functioning government'.

Mr Zakaria had asked for his take on the results of the general election in May last year when, despite rising prosperity, the ruling People's Action Party obtained its worst electoral result since Independence, losing six seats and garnering just 60.1 per cent of the vote. That prompted talk of a 'new normal' in Singapore politics.



Referring to the election results, Mr Zakaria said: 'People say the system is too closed, you need more political openness.'

Mr Lee replied: 'If only it were so simple.'

He argued that changes in Singapore society in recent years had caused 'a certain unease and disquiet among certain segments of the population', exacerbated by social media and what he called the 'global mood of dissatisfaction with the status quo'.

Alluding to rising income inequality as a source of dissatisfaction, he said: 'Every society changes, new generations have new experiences. In an earlier stage, the economy grew very rapidly and very evenly, everyone could see their salaries going up... effortlessly almost. Now, it's slower and less even.

'In the last five years before the election, we went through a crisis, we came out better than most others, but nevertheless it was a bumpy ride... and the rapid changes in our society caused a certain unease and disquiet among certain segments of the population.'

On whether more political openness is needed, he said: 'You need more openness, you need more engagement, but at the same time you need people to pay more attention to what is happening in their lives and think about what is happening to their country and to us as Singaporeans.'

During the interview, he explained Singapore's approach to tackling inequality.

The first step is ensuring that everybody has a good education, so that those who are able have every chance of rising all the way, regardless of their background.

Second, through a public housing programme and public subsidies on health care and education, the Government makes sure that 'everybody starts with some chips in life'.

'If you're poor in Singapore, it's no fun, but I think you're less badly off than in any other country in the world, including in the US,' he said.

Third, a constant emphasis on upgrading and self-improvement, not just in school, but all through life.

'But along with this self-reliance message there also has to be a certain amount of social equality and redistribution, in ways that do not encourage people to become reliant on the state and give up trying,' said Mr Lee, and gave as an example the Workfare Income Supplement scheme for low-wage workers.

'If you work and your income is low, you get a top-up from the Government. Some in cash, some goes into your pension fund to pay for your future retirement needs. And so the more you work, the more you get. I think we need more schemes like this.'

He told Singapore reporters later that the Government might aim to help raise incomes through measures such as raising workers' productivity, to be introduced in the coming Budget.

Declining to give details, he said: 'It's only three weeks from now. The emphasis should be on sustaining our long-term competitiveness and how we can navigate the change of course from the quite-rapid expansion of the last 10 years to a much slower expansion and a more qualitative transformation in terms of skills, capabilities and productivity.'





Prime Minister Lee Hsien Loong was interviewed by CNN's Fareed Zakaria at the World Economic Forum on Thursday. These are edited extracts from the interview.

Do you think the Chinese economy is in for a hard landing?

A: I am an optimist on this. I can't say there are no bumps in the short term, but they will get through. They have built a lot of infrastructure - hospitals, schools - and they have many growth industries. The mantra that they must stimulate domestic demand is also quite pervasive, although I am not sure they have taken all the measures they need to do that, such as restructuring the social safety net so that people have confidence to spend, (and) tidying state-owned enterprises so that profits are more evenly distributed. Finding the right balance between investments, which they have done a lot of, and consumption - this will be work for the years to come.


What do you think of the new generation of Chinese leaders?

A: I think there will be continuity between the present generation and the next. They are from a similar mould, the next generation came of age during the Cultural Revolution, some of them belong to the first university intake after the Cultural Revolution ended. They are very capable people, very cautious, I think there will be collective leadership, rather than any dominant single personality.

They will need some time to find their feet but I hope they will address the problems, both economic and political, which have been put out in the last two years. During the 90th anniversary party celebrations last year, President Hu Jintao listed fundamental problems including moral lassitude, corruption, and disconnect from the people - which really goes to the heart of the right of the Communist Party to govern China.


Do you think the Communist Party can carry out political reforms without threatening its monopoly on power?

A: Their society is changing. It is not a monolithic society. The Internet is pervasive, I think there are 400 million Internet users. When there are public incidents, you get mobilisation rapidly. Angst and unhappiness is expressed even by people in the establishment; even the television news reader shows disapproval of what she is reading.


In the last three months there was a flurry of United States diplomatic activity in the Asia-Pacific. Do you think these moves are stabilising the Asia-Pacific region?

A: The US presence has generated peace, stability, predictability and enabled all countries to prosper, including China. It is good that the US continues to pay close interest in the region, not just on security but also on economics, cultural and other issues. But it cannot be for a few months at a time - it has to be sustained, over many administrations and decades.


Prospect of US troops in Singapore?

A: We already host facilities, which American ships and aircraft stop by from time to time to use. But no naval base. A naval base will be twice as big as Singapore.


You recently cut public sector salaries, including your own... why did you do that?

A: It became an issue during the election. Our reasons for paying people well... paying people properly... are well-established. You must pay commensurate with the quality of the person to do that job. The job is vital because if you make a wrong decision, there are implications for policy. You put a wrong man in, that's a disaster. For the man coming into politics, he must do calculations as to the implications for his family, his wife and children. But for the man in the street making a few thousand a month, a million dollars, two million dollars is an incomprehensible sum. He cannot wrap his mind around it, and so it became an issue in the election.

I appointed a committee after the election to look at it dispassionately. The principles were sound - you have to pay competitively - but they came up with a different benchmark and a different number and we can live with it. I don't think it will be the last word on the matter. It is a very difficult issue because it is important that we get the right quality of people into government.


What do you do about inequality in Singapore? Some are earning millions and others are facing competition from workers from China and India.

A: It is a problem, like it is in India and China and every other country. First of all, we make sure that everybody has a good education, so that no matter which school you go to, you get a first-class education. If you are able, you have every chance of rising all the way, never mind what your background was.

Secondly, through our public housing programme and public subsidies on health care and education, we make sure that everybody starts with some chips in life, you don't start with zero. If you're poor in Singapore, it's no fun, but I think you're less badly off than in any other country in the world, including in the US.

Thirdly, we have to encourage people to try their best not to be satisfied with what they have, but to upgrade, not just in school or while studying, but all through life. You may be 30, 40 years old, but unless you can keep current and do something new which others can't do, it may be difficult to sustain the standard of living you've grown up with.

But along with this self-reliance message there also has to be a certain amount of social equality and redistribution, in ways that do not encourage people to become reliant on the state and give up trying... One of the things we have done is what you in the US call the earned income tax credit... If you work and your income is low, you get a top-up from the government. Some in cash, some goes into your pension fund to pay for your future retirement needs. And so the more you work the more you get. I think we need more schemes like this.


You were the son of a prime minister and founder of your nation. What is it like to have that legacy, or shadow?

A: Well, I don't know, I've never not had it. It's tough enough but you get to live with it.


Was he a tough dad? Strict disciplinarian?

A: Well, he had expectations... but he left me to do my own thing. He didn't push me into this, and neither would it have worked had he done so. I had to make up my mind whether I wanted to go this way.


Will your children follow in your footsteps?

A: They have to decide for themselves. At this point in time, the odds are not on it. They have so many opportunities - internships, job offers, the world is their oyster. The same applies to many young Singaporeans studying overseas; it is a great challenge for Singapore to make sure that enough decide to come back to Singapore.


No comments:

Post a Comment