Measuring economic performance: Looking beyond GDP

While GDP is a broad measure of a country’s economic performance, it falls way short as a comprehensive measure of the economic health of a nation in more ways than one.

It is the highlight of every National Day Message from the Prime Minister[1]. No National Day Rally speech gets delivered without its mention. Economic statistics dished out by the government never fail to mention it. It is used as  the main measure of how well our nation is doing economically. Indeed, it is such an important statistic that the bonuses of all the Cabinet ministers and 60,000 civil servants are pegged to it.

I am talking, of course, about Singapore’s Gross Domestic Product (GDP).

The GDP is the market value of all final goods and services produced in a country in a year. Specifically, it is the sum of consumption, investment, government spending and exports, minus imports, in one year. Economists usually talk about GDP in terms of its year-on-year growth, measured as a percentage increase (or decrease) from the previous year. Also frequently quoted is the GDP per capita, which is the GDP divided by the total number of residents in the country.

GDP a poor measure of performance

While GDP is a broad measure of a country’s economic performance, it falls way short as a comprehensive measure of the economic health of a nation in more ways than one.

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Balancing an emerging dragon

I think Lee Kuan Yew’s speech to the US-ASEAN Business Council in Washington on October 27th is an important read for any Singaporean who is going to live to see the next 30 to 40 years in this country.

He was basically appealing to American leaders to get more involved in East Asia than they have been in the recent past. He warned them against ignoring this region, because doing so would risk allowing China to replace them as the pre-eminent power in the region.

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Chinese leaders afraid of losing control: LKY

I would encourage my fellow citizens who have a heart for people and a passion to bring change for the better to Singapore, to count the costs, and then step out and be counted. If more of us step out and live out our passions in life, it is really the ruling party which has to fear losing the control they have over Singaporeans.

Minister Mentor Lee Kuan Yew gave an interview with Charlie Rose, which was broadcast on Bloomberg Television on October 22nd. The interview covered mainly the rise of China and India, and their relationship with the US.

While the discussion hardly touched on domestic Singapore politics, Mr Lee did reveal some of his thinking which has undoubtedly shaped the actions of the Singapore government.

Charlie Rose had asked how communications, technology and the flow of information will impact China. Mr Lee said that the Chinese leaders were “watching the Internet very carefully” and paying attention to what people think.

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Straits Times questions Ministry’s stand on LUP

Straits Times article was reflective of the overwhelming sense of indignation felt by Singaporeans that the PAP’s antics in those two wards had crossed the line of common decency.

Straits Times political desk journalist Sue-Ann Chia expressed in today’s papers what any rational-minded Singaporean knew to be right: That the elected opposition MPs should be the ones managing the Lift Upgrading Programme (LUP) in their ward, not the PAP candidates who lost in the last election.

In her article headlined “‘Adviser over MP’ raises many questions”, Ms Chia questioned the flawed reasoning of the press secretary to the National Development minister, who said last week that town councils should not be considered a local government. She deftly pointed out that over the past 12 years, Mr Lee Kuan Yew, Mr Goh Chok Tong and Mr Lee Hsien Loong had all stated in one way or another that the town council were designed for voters to choose their local representative, not just MPs to the national Parliament.

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In support of humanitarian missions

As the most developed country in Southeast Asia, with the most technologically advanced and best trained military, I see it as our responsibility to make these contributions to our neighbours in times of need.

I congratulate and honour the teams from the Singapore Armed Forces (SAF), Singapore Civil Defence Force (SCDF), Mercy Relief and SingHealth institutions who undertook missions to West Sumatra to assist with relief work following the devastating earthquakes there.

There were 80 personnel from the SAF, 42 from the SCDF and seven from Mercy Relief and SingHealth sent in separate missions over the past few weeks.

I strongly support humanitarian missions undertaken by our military and civil defence forces. They not only provide essential logistics, medical and organisational assistance to the victims on the ground, but also serve to cultivate better relations with the Indonesian military, which could prove to be invaluable in future. In addition, they also provide our men and women in green with some much needed operational experience.

Given the fact that we live in a disaster-prone neighbourhood, I hope to see the SAF and SCDF continue to build up their capabilities and readiness to take on more such missions in future. As the most developed country in Southeast Asia, with the most technologically advanced and best trained military, I see it as our responsibility to make these contributions to our neighbours in times of need.

Reducing cost of public housing: Some policy suggestions

The drastic increase in the cost of public housing over the past 30 years has caused a financial squeeze for many Singaporeans, particularly young couples who desire to own their own homes, and families forced to downgrade because of financial difficulties.

The drastic increase in the cost of public housing over the past 30 years has caused a financial squeeze for many Singaporeans, particularly young couples who desire to own their own homes, and families forced to downgrade because of financial difficulties.

A three-room resale flat in the prime area of Tiong Bahru used to cost just $6,000 back in 1975. Now three room flats in that area are selling for as much as $322,000! This 5,266% price increase is simply mind-boggling! It has far outpaced inflation and increases in salaries over the past 30 years.

The cash over valuation (COV) that buyers are now having to pay is also shooting through the roof, and threatens to get even higher when the casino resorts open next year.

National development minister Mah Bow Tan claimed that one third of resale flats are “transacted at or below” COV. This claim is almost laughable if you ask any home buyer or real estate agent.

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Let’s return to the Malaysia Cup

The S-League has proven to be quite a failure, to the point where the only people who watch it are those who have placed bets on the matches. It’s no point continuing to pour money into a losing venture. A little bit of compromise and humble-pie eating will be in order to get our teams back into the Malaysia Cup.

I like Aymeric Lim’s letter to the Straits Times Forum on Saturday 17 October. Like many Singaporeans, he called for Singapore to return to the Malaysia Cup football league.

He offered a new suggestion which I hadn’t heard before: Instead of returning as the Singapore national team, our current clubs in S-League could go in separately on their own. There could also be stricter caps on the number of foreign players allowed on each team. This could dispel the Malaysians’ fear that our over-funded national team will overwhelm their state teams and malu them again. I think the Malaysian teams and fans will welcome the competition. I’m sure sponsors on both sides will  definitely support it.

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Govt concedes argument with WP and Singaporeans

The opposition MPs in Hougang and Potong Pasir, who have been serving their residents for 18 years and 25 years respectively, have a far more distinguished track record of “concrete actions” serving their residents than the Johnny-come-lately PAP challengers, who are very good at plastering their faces all over the ward and claiming credit for things they never did.

Since the ill-advised announcement by the so-called PAP “grassroots advisers” of Hougang and Potong Pasir about the Lift Upgrading Programme (LUP) in the two opposition-held wards, the Minister for National Development has had to answer three letters to the Straits Times to justify their stand on the issue. Two of those letters were in response to Workers’ Party leaders Low Thia Khiang and Sylvia Lim, and one was to a public-spirited Singaporean, Muhammad Yusuf Osman.

In his latest letter (copied below), the spokesman of National Development Minister Mah Bow Tan wrote: “We do not expect the Workers’ Party to accept these basic facts, and we will agree to disagree.”

In saying this, the Minister is basically conceding that his argument holds no water, and he has no more points to add that could better justify the PAP’s politically-motivated stand.

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WP rebuts Minister on lift upgrading

This shows the respect the government has for the people’s choice of Member of Parliament, who is vested with the Constitutional mandate to represent the constituency.

The Workers’ Party’s rebuttal published in the Straits Times today.

————–

I refer to the reply from the Minister for National Development’s Press Secretary on Tuesday entitled: “Ministry: MP Low wrong on lift upgrading”. I am responding to it as Mr Low Thia Khiang is currently out of town.

MND states that HDB’s letter published last Friday “should be read in conjunction with” the Minister’s earlier explanations to the media. This impliedly acknowledges that the reason given by HDB to Mr Muhd Yusuf Osman, who had pointedly asked why protocol seemed to be ignored when HDB worked with the unelected candidates in opposition wards to announce LUP plans rather than with the elected MPs, does not stand up to scrutiny.
It is not disputed that the LUP is a government programme. After all, it is to rectify a design flaw in public housing which does not cater for an ageing society. Given this imperative, the public interest should trump politics.

Mr Low’s letter was not about wanting credit for the programme. He has stated that he is prepared to work with the government’s appointees for the benefit of his constituents, and indeed has met the grassroots advisor several times over many months to give input on the LUP plans for Hougang.

It was HDB’s unjustifiable answer to Mr Yusuf – that the grassroots advisor was more appropriate than the MP to announce the LUP plans because he was able to gather residents’ input and marshal support for the plans – which compelled Mr Low’s response. HDB should have just given the real reason in its letter and not beat around the bush.

MND’s letter goes further to state that the LUP is funded from budget surpluses which Opposition MPs are not responsible for generating. However, the budget surpluses are hardly the effort of the government alone, as they include significant contributions from the public through taxes, levies and stamp fees, which the government simply reaps.

Finally, MND also appears to interpret the General Elections as an event where the only outcome which matters is who forms the government. This shows the respect the government has for the people’s choice of Member of Parliament, who is vested with the Constitutional mandate to represent the constituency.

SYLVIA LIM (Ms)
CHAIRMAN,
WORKERS’ PARTY

New Information Minister disappoints

I am disappointed to learn that Acting Minister for Information Lui Tuck Yew has upheld his predecessor’s ban on Martyn See’s film, Zahari’s 17 Years.

Said ZahariWhen RAdm(NS) Lui Tuck Yew was appointed Acting Minister for Information, Communications and the Arts in April this year, News Radio 938 interviewed me to ask for my views on his appointment. I recall telling the journalist that I hoped Mr Lui would have the boldness to do things differently from his predecessor, Dr Lee Boon Yang, particularly in the area of political expression.

I am therefore very disappointed to learn that Mr Lui, who is also an MP for Tanjong Pagar together with MM Lee Kuan Yew, has upheld his uptight predecessor’s ban on Martyn See‘s film, Zahari’s 17 Years. The film is a documentary interview with former journalist Said Zahari, who was accused by the government of then-Prime Minister Lee Kuan Yew of being a communist, a violent revolutionary and a foreign agent, and detained without trial under the Internal Security Act for 17 years.

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