Speech By Yaw Shin Leong, at the National University of Singapore (NUS) Students' Political Association Policy Face-Off: Singapore's Economic Growth, At What Cost? 03 November 2010, 7:10 – 7:15 PM AT LT 16 NUS Business School1. Thirteen years ago (in 1997), as a NUS undergraduate, I was a member of the NUS’s Democratic Socialist Club, a club that actively promoted political awareness amongst NUS undergraduates through publications and forums similar to this.
2. I considered myself a full-time student activist, who skipped just a couple of lectures-too-many, all in the name of political idealism. However, I was an ‘okay’ student who was fortunate to have led a highly enriching undergraduate life. As such I thank the NUS Political Association for this invitation which triggers many fond memories of this place.
Engineering & Sustaining Economic Growth 3. Worldwide, governments face the challenge of generating and sustaining economic growth for their respective countries. Singapore is no exception. (
Over the past 5 decades Singapore has done relatively well economically. Not unexpectedly, the PAP government is always quick to credit itself for Singapore’s economic growth.)
4. Earlier this year, in July, I had the opportunity to visit several Chinese cities, including Hong Kong, Guangzhou, Shanghai & Suzhou. I saw for myself first hand, that competition for finite resources is no longer confined only to countries but cities within a country as well. As a small city state, if we do not ourselves keep ahead of competition, Singapore will be left behind in the value chain of economic development in this globalized world.
The Cost of Economic Growth Population Pressure On Public Infrastructure5. In the bid to stay ahead, over the last 10 years, the government has permitted Singapore’s total population to increase over 25%, from 4 million to 5 million people. [1] This has caused tremendous pressure to our transportation systems, roads and housing. It seems that improving infrastructure to keep pace with our population growth was just an afterthought.
6. For instance, SMRT ridership jumped almost 27% from 2005 to 2009 [2], but the length of rail from 2005 to 2009 increased only by 9.5km, a mere 6.9% increment. [3] Trains are jam packed during the peak hours, and worse, waiting time in between trains is still too long [4]. Below is a comment in STOMP by a MRT Commuter: "I have noticed that the MRT service in Taipei has a 2-minute interval, regardless of it being a peak, or off-peak hour. Even their trains at 3pm and 9.30pm arrive every 2 minutes." [5]
Depressed Wages of Bottom 20 Percentile7. The crux of the issue is, we have allowed in, too many unskilled foreign workers over the last 10 years. This has potentially depressed the wages of our lower-skilled Singaporeans, especially the older and vulnerable. This perhaps explains why the average monthly household income of our bottom 20th percentile in 2007/8 stood at $1,274. This amount is lower compared to 10 years ago in 1997/98, whereby the average monthly income of our bottom 20th percentile was $1,309 [6].
Our Vulnerable Lower & Middle-Middle Class8. For the lower & middle-middle class in Singapore, (which could be identified as those between the 21st – 61st income percentiles) bread & butter issues are of paramount concerns. Singapore has one of the highest costs of living, but one of the lowest wages in the developed world. In 2009, our top 20% of income earners earned 5 times more than those from the 21st to 40th percentile. More shockingly, this is 14 times that of our bottom 20% [6].
Sustaining Singapore’s Economic Growth 9. In the long term, one viable way to sustain economic growth is not just about enhancing productivity, but that of supporting continuous innovation. For instance in the United States, at the University of Texas, the non-profit Austin Technology Incubator (ATI) provides tremendous support for entrepreneurial firms. Since its founding in 1989, ATI has worked with over 150 teams of entrepreneurs, who have collectively raised over $936 million in investor capital and created thousands of jobs. [7] & [8].
10. New companies are therefore the key to economic growth and the uplifting of communities economically. As we move forward, continuous innovation must be supported. Innovation and business incubators will not be good enough, if only beneficial to Governmental Linked Companies and for Small & Medium Enterprises to desire upon. Some of us here might have already watched the movie ‘The Social Network’, which accounted for the phenomenal growth of Facebook. Who knows, perhaps the next BIG idea is already happening right here in this LT!
11. Last but not least, as Singapore moves forward economically, it is always importantly for us as a society, to strive for inclusive growth, to remember our destitute, disadvantaged and to help our poor and needy. Allow me to end off with the ideological vision of democratic socialism, that is: To build a democratic-socialist society with a human face! Thank you.
Translation Of my Q&A comments reported by LHZB (4th Nov 2010): Although Yaw Shin Leong also pointed out the policy excessiveness of the foreign labour import policy, still during the Q&A session, he objectively pointed out the complexities involved in macro policy conceptualization, which require balanced considerations from various micro aspects too.References:[1]
Singapore Key Population Indicators 2010 (Sing Stats 2010)
[2]
SMRT Key Operating Data (2005 – 2009)
[3]
Length of Rail in 2005 & 09 (% increase = [(147.7km - 138.2km) / 138.2] * 100% = 6.874%)
[4]
Two to three minutes - the highest frequency MRT trains can achieve (3rd July 2010)
[5]
Comments on Train Frequency by STOMPERS (Straits Times Online Mobile Print)(June 2010)
[6]
Key Indicators of Household Expenditure & Income (Sing Stat 1997/98 – 2007/08)
[7]
Coinmill.com – The Currency Convertor (USD 725 million to SGD)
[8]
Nonprofit Austin Technology Incubator
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I made an informal courtesy call to Uncle Chiam See Tong after his Meet the People Session yesterday. 
