Dishing Out The Carrots

Finance Minister Tharman Shanmugaratnam began his budget 2009 speech with a bleak outlook of the global economy. Unsurprisingly with a ‘we therefore cannot say when this recession will end’ and ‘the key factor is the US economy’ disclaimers he gave a summary of Singapore’s economic performance for last year and projected severe challenges ahead.

Budget 2009 will deliver a package that totals a whopping $20.5 billion, where $5.1 billion goes into preserving jobs, $5.8 billion goes into invigorating loan markets, $2.6 billion goes into helping businesses, another $2.6 billion goes into helping households and $4.4 billion goes into infrastructural projects.

Titled ‘Resilience Package’, it is a rather focused budget. According to Minister Tharman, the most important thrust in the package is preserving jobs for Singaporeans. However we know that the devil always lies in the details and implementation phases.

For example: In Section C.6, a proposed Jobs Credit scheme will enable an employer to receive 12% of the first $2500 of the wages of each employee who is on the CPF payroll, to be paid out in four quarterly payouts. Supposedly, this will provide incentives for employers to retain local workers.

However in the light of Credit Suisse Group’s recent prediction that two out of three of 300,000 jobs lost would be held by foreigners and permanent residents. Having no exact breakdown of the foreigners and permanent residents’ figures, I can’t help but wonder if Singaporean workers will really be the main beneficiaries in this scheme?

Section C.14-18 covers re-skilling training for PEMTs (professionals, managers, executives and technicians). Ideologically, the PEMTs fall within the class category defined by the Workers’ Party (WP) as ‘The New Poor’, which encompass the lower-middle, middle-middle and higher-middle income groups, explaining the keenness of my particular attention.

Yes, re-skilling is indeed essential strategy to stay relevant. Yet under normal circumstances, employed PEMTs are unlikely to seek re-skilling unless the axe has already fallen.

A vital concern is: Can the distant-water of re-skilling save the nearby-fire of PEMT households’ immediate needs? Another concern is: What about those who are really senior and experienced in their profession, do they really want to be re-skilled? For example would a retrenched specialized senior engineer be keen to be re-skilled as a baker?

In section H.14, Minister Tharman revealed that the government has sufficient savings built up during the current term of government to fund the measures they are taking and the resulting budget deficit. Nevertheless, Minister Tharman claimed that the government decided instead to fund the two extraordinary measures within the package from our past reserves. If there are sufficient savings in the first place, there should be no reason for the government to dip into our sacred reserves.

The above raised questions on logic and transparency. So what is the status quo of our depleting savings then? Could it be so depleted by the massive losses sustained from Temasek’s investments’ exposures that reserves have to be dipped into?

Finally, on the budget call for the expanding and accelerating of infrastructure spending, Section 6 mentions about brought forward wide-ranging infrastructure projects that include HDB lift upgrading. I take this opportunity to strongly urge the PAP to bring forward the long overdue lift upgrading projects in both Potong Pasir and Hougang constituencies.

Budget 2009 has been termed as a bold and decisive measure to help fellow Singaporeans tide over this difficult time. Bold and decisive it could be, isn’t it after all using our hard earned money in the very first place?

WP Vice Chairman Mohammed Rahizan

Encik Rahizan (as WP members fondly call him) is a veteran opposition activist. He joined PKMS in 1984, in 1985 became its Supreme Council member and in 1988 was elected its Secretary General.

During GE2001, he stood as a candidate in his maiden contest in Jalan Besar GRC and his team secured 25.51% of the votes. In 2004, to pursue his political vision via a broader platform, Encik Rahizan left the PKMS and joined WP.

In GE2006, he was candidate in the hotly contested Aljunied GRC and his team, led by WP Chairman Sylvia Lim secured 43.91% of the votes.

Encik Rahizan passionately feels that Singapore politics is an excellent outfit for the young because the youths are the ones who will ‘inherit’ society and he hopes that he can play a part to help youths inherit a better Singapore.

A committed political activist, Encik Rahizan is an excellent role model to the youths in WP. I’m very honoured that I get to fight alongside Encik Rahizan in the blue side of this political struggle.

*Photo above: Sharing a light moment with Encik Rahizan this evening.

The New Poor Revisited

I refer to ‘The gap narrows’ & ‘Grim forecast of 300,000 job losses’ (TODAY, 21/01/2009). It is reported that for the first time in 10 years, the disparity between the top and bottom income earners narrowed, as incomes of the lowest earners grew faster than those of the top earners in 2008.

According to the Department of Statistics (DOS), the Gini coefficient (that measures income inequality) shrank from 0.489 to 0.481 (The ratio is between 0-1, where 0 means perfect income equality and 1 means perfect inequity) due a strong labor market, which witnessed more working persons in an average household.

The actual Gini coefficient shrank merely by 0.008, meaning a wide income inequality situation is vividly still in existence. Yet any statistical shrinkage to the Gini Coefficient is music to the ears to the PAP regime, which will attribute it to the effectiveness of its 2008’s surplus sharing package and other measures.

However it is highly unlikely for this income gap narrowing to be sustained. This is in view of a projected worsening recession in 2009. The key fear in many Singaporeans’ minds would be the other big ‘R’ (retrenchment). It is almost certain that if massive retrenchments are to be undertaken this year, all the process made in this front would be unmade.

Whist our government does not need an additional reminder of the grim challenges ahead, yet I just felt very disturbed when the Credit Suisse Group predicted that two out of three of the 300,000 jobs lost would be held by foreigners and permanent residents. (This means 100,000 Singaporeans’ jobs!) Just imagine the negative-multiplier impacts such massive job losses will have on our Singapore’s society.

Therefore it is only appropriate and the right thing for our government to take due considerations so that it can better manage the challenges and to take pre-emptive actions, ensuring that the fall-back mechanisms of our society are robust enough to withstand the fallout and to keep Singapore’s social fabric relatively unscathed.

In GE2001, when WP first raised the issue about the new poor phenomenon, the PAP regime outright denied of its existence. In 2009, the potential fallout of the new poor phenomenon is right at our doorsteps, in a magnitude far scarier than 2001. The incumbent regime must now take full responsibilities for its initial denials, act fast or face dire consequences.

Regardless of the above but more importantly, in such challenging times, every Singaporean must exhibit ingenuity, frugality and diligence. Each Singaporean must continue to hope, persevere and have faith in the higher order of things. Collectively, as a nation we will bite the ‘R’ bullets together and yes, we will prevail.


News Links:
The gap narrows (TODAY, 21/01/2009)
Grim forecast of 300,000 job losses (TODAY, 21/01/2009)

Lesser Mortals Than Thou?

I refer to the article ‘Ill-time article cooks up a storm’ (TODAY 20/01/2009).

Amidst the expressed disappointment & rebuttal by Defense Minister Teo Chee Hean about Mr Tan Yong Soon’s five-week family trip to Paris to learn cooking at the expensive Le Cordon Bleu culinary school. I was completely floored by the comments made by MP Charles Chong in response to the matter.

He said, ‘Maybe it made lesser mortals envious and they thought maybe he was a little bit boastful.’ The words ‘lesser mortals’ are absolutely uncalled for. Such a condescending remark by a Member of Parliament is in itself even much more insensitive in comparison to Mr Tan’s family’s extravagant trip.

Certainly MP Charles Chong owes fellow Singaporeans an apology.

News Link:
Ill-time article cooks up a storm (TODAY 20/01/2009)

Let's Keep It Real

In Conrad Raj’s ‘Why can’t they keep it real’ (TODAY, 19/01/2009), the editor-at-large in an excellent article pointed out the ironies of governmental agencies and stat board’s hikes being out-of-sync with economic realities.

Dichotomizing the functions-of-the-sate (i.e. governmental agencies & stat boards) and that of the government itself, is tantamount to hands and legs behaving incoherently to what the head dictates.

This is most unacceptable for a purportedly world-class government. The PAP regime cannot verbally say one thing but act differently by sending out mixed signals via its subsidiaries.

To acknowledge verbally that people and businesses both need help in the current economic downturn is a good step in the right direction, but this must also be in sync with its action of freezing, if not reversing hikes in the rents, taxes and charges.

Conrad was kind enough to suggest that it is probably due to the speed of the downturn resulting in the dichotomy between governmental words and deeds. Still he gave a first-rated rejoinder, ‘But aren’t our Government departments and agencies considered among the most efficient in the world and nimble enough to make quick U-turns?’

Particularly, I am very concerned with the point raised by Conrad why did our Civil Aviation Authority of Singapore (CAAS) decide to raise its airport taxes from this month — from $21 to $28 a passenger at the main terminals and from $13 to $15 at the Budget Terminal.

In 2002 the PSA Corporation (Port of Singapore Authority Corporation) lost two major shipping lines (Maersk & Evergreen) to the Port of Tanjung Pelepas (PTP) in Johor. This very same PSA Corporation initially brushed off the competition posed by PTP and bragged that PSA does not compete based on pricing alone, but based on quality and services. What happened next proved otherwise.

Let’s not allow history to repeat itself. CAAS must take solemn considerations of our nearby rivals and must not compare itself with airports far away from us. Singapore can ill-afford to erode our existing competitive advantages further to regional competitors, especially when the entire global is bracing for tougher times ahead.

Like fellow Singaporeans, I am looking forward to Thursday’s budget announcement to see whether the government will address these fundamental issues.

News Links:
Why can’t they keep it real (TODAY, 19/01/2009)

Which way, PSA? (TODAY, 31/01/2001)

More likely the rat has fled

Once upon a time there lived a cat that accidentally let a rat escaped from its custody. Almost a year after the rat escaped from its paws, the cat wonder where could the rat be.

After months of reflections, the cat narrowed it to either of two scenarios: one, the rat is nearby and hidden by sympathizers unknown to the cat, or two, the mouse has fled to somewhere far-far away.

When asked which was the more likely, the cat meowed, ‘It’s very hard to meow. Both scenarios are plausible. Maybe the second one is more plausible.’

The cat furthered meowed, ‘I can’t meow whether the rat is here, there or whatever. The moment a rat leave the clutches of our paws, the rat can find a place to go...’

Brilliant meows by the cat aren’t it so?!

WP Veteran Ng Ah Chwee

Prior to my house visits to residents in Toa Payoh this evening, I held strategic discussions with Mr Ng Ah Chwee over dinner.

Ah Chwee was my predecessor (WP’s Organizing Secretary 1992 – 2006). Currently he is an advisor to WP’s HGCC (Hougang Constituency Committee) and a key ground advisor to WP’s CAC (Central Area Committee).

It is always a great pleasure conversing with Ah Chwee, whose involvement in politics began with the Barisan Sosialis when he was a teenager.

In 1988, when the Barisan Sosialis merged with the Workers' Party, he joined the WP and in 1990 became a member of WP’s Central Executive Council (CEC).

In 1991, after Mr Low Thia Khiang was elected as the MP of Hougang SMC (Single Member Constituency), Ah Chwee was appointed the Treasurer of the HGCC until 2006.

In November 2007 at the WP's 50th anniversary dinner, Ah Chwee was conferred a special WP award for his many years of contributions.

WP’s 4th generation leaders are truly blessed to be able to glean valuable insights from Ah Chwee’s experiences.

Band of Brothers - 609 SIR

After my NS battalion 609 Singapore Infantry Regiment (SIR) Stand-Down Parade this morning, I received a Certificate of Appreciation (for National Service contributions), a National Service medal (alongside a collar pin version) and a SAF Hamilton watch.

Together with the majority of my fellow soldiers from 609 SIR and formerly from 2 SIR (during our active days), we have finally completely our NS training cycle and will be phased to MINDEF Reserve (MR). Having discharged our national services duties wholeheartedly over the last 10-odd years, it was naturally a highly emotive moment of pride and sadness for many in the battalion.

Pride in the sense that, despite the obvious ‘siong-ness’ (toughness) of an infantry regiment, the men of 609 SIR ‘never say die’ (never give up) and we fought the good fight. Collectively, 609 SIR secured a RECON 2A status during our 2006 ATEC assessment and we won the best (NS) infantry unit title consecutively for both 05/06 and 06/07. These are no mean feats!

Sadness in the sense that, this ‘band of brothers’ combination could never be replicated any more. Specifically, in direct reference to the men of Alpha Company and all combat medics of 609 SIR. A good decade-odd of camaraderie and friendship! Our special bonding can never be fully described with mere words …

The gallant men of 609 SIR were once the finest soldiers of Singapore Armed Forces and deep in our hearts, we will always be. Band-of-brothers of 609 SIR – BOXER! YEAH! (x3)

(Believing he can continue to serve his country, the author has volunteered for a re-deployment (recycle) instead of phasing into MR. His CO (Commanding Officer) has verbally approved his request.)

WP Veteran Lim Eng To

At this morning's Workers' Party’s Members’ Seminar, I had the opportunity to listen to some interesting oral history narration by long time party cadre Eng To chek (uncle). Eng To chek is 77 years of age and has been faithfully serving WP since 1972.

He is someone who had suffered two mild stoke attacks but has recovered substantially to participate in almost every single WP’s public outreach and most WP events.

Eng To chek has exhibited an unflinching spirit of authentic perseverance, tireless consistency and staunch commitment. He is such an inspiration to so many of us.

The WP certainly needs many more of such individuals. Do you believe that you have what it takes to sustain in this relatively thankless journey? Are you ready to take upon the challenges? WP welcomes you.

Of Hard Knocks & Door Knocks

One of my volunteers shared with me about someone who said that he is a graduate from the school of hard knocks. Tongue in cheek, I replied that, in contrast I am an undergraduate from the school of door knocks. This volunteer in a nonchalantly manner responded that, ‘Yeah, but at least you have progressed from the school of hand knocks into the school of pen knocks’.

The volunteer was referring to my trusty parker pen which I double-up as a door-knocker during my house-to-house visits. My pen has a solid acrylic black tip, which is useful to reach doors without door bells, particularly those behind netting-like, aluminum grilled gates. This $12.50 pen from Mustafa has been a great companion too, inking business agreements and signing cheques etc.

I reflected deeper into what this volunteer said and felt that there are at least three layers of profoundness in the simple statement. Reflecting at just one level, I recalled commencing house to house visits in certain parts of Singapore since 2002. My intention has always been the establishment of a direct communication line between constituents and the WP.

Yet, establishing this direct communication line (via door knocks) is actually the ‘easiest’ part. The much more difficult part is the convincing & winning over the people, ‘What can the WP do?’ Given the overwhelming odds stalked against the WP, be it monetarily, materially or manpower-wise, it is already ‘so difficult to get there and to do that much’.

Let alone matching and countering monetarily intensive programs such as MUP (Main Upgrading Program), LUP (Lift Upgrading Program) or covered walkways, which the incumbent regime has politicized greatly. Such programs that require additional state monetary resources as the common denominator should not be politically motivated in the first place, as all Singaporeans do pay taxes.

Also Singaporeans have to take a long term view of such things. Just a year back, who could have ever imagined the collapse of the century old Lehman Bros? Or who could have imagined AIG struggling to get itself out of her present situation? It is certainly crucial for Singaporeans to realize that for our country’s long term well being, we have to reject political hegemony and to entrench the establishment of a credible check and balance mechanism in Singapore’s Parliament.

Singaporeans MUST seriously consider and start accepting the knocks by the Workers’ Party. It is not just about the immediate material well being, but for an ideal and a credible safeguard of our future.

Regardless of hard knocks, hand knocks or pen knocks, behold the Workers’ Party stands at the door and knock, if any constituent hears our voice, and open the door, the Workers’ Party will stand together with this constituent’s family and together we will build a better Singapore.