How to streamline the economy? Here we go..
1) Reduce and sell off many of Temasek Holdings' GLCs to local SMEs
and MNCs as Temasek has shown that it is ineffective in controlling
too many different companies in different markets at the same time.
In addition, Temasek Holdings have encouraged a monopolistic
culture in the private sector- which is always an unhealthy sign.
Opening up the market will help in dissolving the monopolistic way
that the private sector and the govt has always been run.
2) With less govt interference in the private sectors, local SMEs
and international MNCs will be the ones who will be providing the
services of the private sector. Meaning that, anyone who owes a
business, no matter what nationality he is or how big or how small
his business is will have a level playing field in terms of
competition. That means that he or she, in order to compete will
need to improve his/her products/commodities/services. This means
he or she also needs to hire good people in order to accomplish
that goal.
Aka, that means more employment.
3) Intense competition always mean good things for both the
companies and the consumers. Prices will be cheaper, quality will
improve, service will be better as companies will be locked in a
battle to attract, retain new and regular customers or consumers.
Unlike in a monopolistic environment where people will be retained
regardless of performance, people working in a competitive private
sector will have to be on their toes because of the intense working
environment they are in.
If they work hard, they get their bonuses, they get their basic
wage packages. if they work intenstively hard, they get even more
bonuses and higher wages and they will need to work very hard to
retain their top positions. It also works for those who
underperform.
Those who lag will be paid less. They have less bonuses, less wages
to bring home etc. Those who are nothing but disrupters, resisters,
or extremely lazy will find themselves unemployed because the
companies they work don't stand for such laziness. And of course to
ensure that these people get employed again, it must be in such a
way that while they don't get too unhappy, they also won't be let
go when they are too old. Its best to let go of underperformers
while they are still in their 20s or early 30s.
4) Local SMEs which succeed in the local markets will, in time,
have chances to expand overseas. Singapore already have a few, like
Tiger Beer, Creative, SIA, 77th Street and Breadtalk. But under a
more liberalised private sector, and with a clear, transparent
system imposed by a new govt, new more open SMEs will expand into
other parts of Asia, even in the West and South America. These SMEs
will be better brands than the current ones and if the new SMEs
succeed, then automatically Singapore will also be in the
limelight. In this case, it isn't the govt who gets all the glory-
instead it will be the Singaporean citizens who will be the main
ones as they are the ones who helped these SMEs succeed
overseas.
5) A last thing to add: The people itself will benefit in many
ways. I have mentioned it before many times. Nonetheless, I will go
through it again.
i) More money in the pocket for the people as govt will transfer a
huge percentage of the money earned from selling of GLCs back to
the people. After all GLC money is taxpayers money. Taxpayers'
money should go back to the people sooner or later.
So lower income families and lower middle class citizens will get
the bulk of the money the govt will gain. Not just S$1000 for a
whole year but S$8000 for the 1st 8 months(for the selected
(really)lower income families) and S$3000 for the last 4
months.
ii) But as time passes, and as the liberalized private sector
improves and the economy improves and with employment rates up,
less cash bonuses or tax breaks will be handled out- especially to
the richer middle class families. Of course, tax breaks will still
be continued for the bottom 10% to the bottom 30% and cash handouts
will be given. But people will be expected to work hard to get more
bonuses. See Point 3.
iii) With also more money in their pockets, people will be
encouraged to use the money to improve their lives. People always
need money to spend: food, clothes, a HDB flat, kitchen appliances,
luxury electronic appliances(LCD, Plasma TV, DVD player, MP3
players, DVD-R video camera recorders, 3G cellphones), fashion etc.
In return, there will also be more retail shops- from the big brand
names of both international and local fame to the mum-and-dad HDB
cheap shops downstairs. All these means a better shopping
experience for all as there are more choices for a more affordable
price.
And did we say that families can now take a break for a holiday-
with more money- as well?
Again, as I said, this is all in theory. IRL, things may or may not
happen as described above. But again, we cannot say whether can it
succeed unless we give it our best shot. And still it sounds better
than the current PAP system where everyone tries to get by and yet
are quite unhappy with both life in the office and at home.