ESM Goh Chok Tong at the Marine Parade National Day Dinner yesterday (11 Aug) told the audience that Singapore is currently trapped in a mid-life crisis.
He said, “I say this because according to some surveys, Singaporeans are amongst the world’s wealthiest but are also the most pessimistic.”
“We are now at an inflexion point of our development as a society. I dare say that Prime Minister Lee Hsien Loong and his Cabinet are having a tougher time governing Singapore than Mr Lee Kuan Yew and I had. And it is not going to get easier.”
Mr Goh said that this is because today’s external environment is more complex, competitive, and uncertain than in the past. Singapore now has to compete harder against the whole world for jobs, investments and markets.
However, he highlighted that Singapore’s domestic challenges are even greater. They include:
- rising costs of living;
- slower economic growth;
- aging population;
- not having enough babies;
- a shrinking Singaporean population from 2030;
- continued high reliance on foreign workers and new immigrants;
- a more diverse and less cohesive population; and
- a better educated younger generation with higher expectations of life
“How should we as a government and people respond to these challenges and avert a mid-life crisis?” he asked.
He said that some policies and programmes that had served Singapore well in the past need updating, or maybe even an overhaul, to ensure that they continue to serve their intended purposes.
“A new social compact between the people and the government will also have to be forged. Otherwise, I fear that Singapore will begin to go downhill,” he added.
He also mentioned that the Lee Hsien Loong government has already begun reviewing and improving policies on issues that cause the most anxiety to Singaporeans:
1. Jobs
Mr Goh acknowledged that this is most crucial for Singaporeans. He said that the government is trying to ensure that growth is inclusive, and the workplace progressive; this means ensuring that Singaporeans have access to good jobs. To help low-wage workers, the government has widened the coverage of Workfare this year. The government has also promised to find ways to help affected workers, including PMETs, as well as the SMEs. There is a need to try to raise the wages of the lower income workers.
2. Making HDB flats affordable
Mr Goh said he considers this as a very big commitment of the government. It will go a long way to help young Singaporeans plan for the future and start a family.
3. Affordability of healthcare
He said that the government is trying to lessen Singaporeans’ anxiety over medical costs. Medical costs are a burden for both the old and their children. He said that while the future old will have more Medisave and insurance to help pay for their medical needs, the current old – the pioneer generation that built the country – are less able to cope. He said that the Ministry of Health is conducting a comprehensive review of the healthcare financing and delivery framework.
He remarked that these were issues raised in the Our Singapore Conversation (OSC) process.
“I am sure that PM will provide an update and lay out plans for these and other areas next week, during his National Day Rally. I hope that Singaporeans will deliberate on the changes to be implemented, and support the government’s agenda to chart a new and exciting course for the country,” Mr Goh said.
Mr Goh acknowledged that politics is more pluralistic in Singapore today. People want more freedom to choose their lifestyles, and to have a say on policies and influence decisions in their favour. He said, “The question is: how do we align our common interests while having different opinions; how do we express our differences without impairing the progress of home-building; how do we stay united as a family in the same home while retaining our individualism?”
He also acknowledged that the government is changing its approach in governance. To solve problems in a practical, ruthlessly efficient bureaucratic way is not enough anymore, he said.
“The government must also win the hearts of the people. It has to look at problems from the people’s perspective, and help them in a fair and realistic way, even while it keeps an eye on the big picture and continues to govern in the collective interest,” he added.
“Citizens are entitled, and indeed, encouraged to give their views and suggest improvements where the government can do better. But we must not pile unrealistic demands on the government. It is not in the country’s long-term interests if the government does not have the time and political space to plan and think strategically and long term for Singapore.”
“Singapore had managed to do well in the first few decades of our independence primarily because of our ability to think ahead, and put in place long-term policies that benefited the country, even when it meant some short-term pain. We must not lose this edge, especially at a time when the world around us is changing rapidly. We will all be worse off if the government of the day is chased from pillar to post, forced to apply band-aid solutions to complex problems or to flip-flop policies to stave off populist pressures.”
Of course, Mr Goh did not mention in his speech that it was actually under his tenure as Prime Minister that he introduced the “Asset Enhancement” and “Foreign Talent” policies which eventually went haywire. It resulted in asset inflation with high priced housings and large debts incurred by Singaporeans. It also resulted in job competitions from foreigners and depression of salaries in Singapore, affecting Singaporean PMETs and low-wage workers.
TR Emeritus
*Article first appeared on www.TREmeritus.com