It is very obvious that Singapore is lacking entrepreneurs and
competitiveness in the domestic sector of its economy.
During the last two recessions, its economy particularly the
domestic sector is languishing under high-cost policies. There has
been a lack of clear economic strategy in recent years since the
1970s. Value-adding economic strategy did not seem to work. Nothing
was heard of its economic strategic plan for quite sometime
although there was here and there mention of key promotion of
biotech and petro-chemical sectors.
Countries like China, India, Malaysia, Thailand, Taiwan , Korea or
even Vietnam were doing better, during the last two recessions,
whereas Singapore was suffering prolonged recessions and
downturn.
Currently the reason why Singapore is doing better as compared with
before is because the world economy as a whole is finally strongly
recovering after the Iraq war is over and many countries are coming
out of the recessions.
Singapore's growth in 2004 was 8% as compared with 6 % for bigger
country like Malaysia or 8% for China so in a way it is a sign of
general market corrections and should not be taken to mean past
policies were working either. As expected Singapore was quick to
capitalise on leadership and abilities to make it sound like all
was well forgetting the helplessness and findings of its economic
review committees and Remaking Singapore committee of many
shortcomings not yet addressed.
Even assuming that the final come-around of world economy is
anything to claim credit for, the small and SMEs of the domestic
sector are continuing to languish from the prevailing high
costs.
Singapore has not done anything to bring about restructuring to
stimulate its own domestic sector since 1970s. Government goes into
business full swing to compete against its own businesses. Only the
bigger corporations, GLCs and foreign companies are enjoying some
growths. The same tax-and-recover governance is continually driving
up costs which eventually will stifle growths.
Assets are down badly and people are bearing the blunt of the past
Asset Enhancement policy. CPF savings were generally wiped out due
to mistake in opening the flood gate to citizens to invest their
CPFs in shares and unit trusts during 1996-2000.
For the past many years now, the following problems were still not
solved:-
(1) Bureaucracy in civil service.
(2) High costs of essential government services e.g. medical,
utilities, housing, transportation, education, etc, etc
(3) Growth Triangles
(4) Affective divide due to lack of understanding of people's views
and aspirations.
(5) Work site safety problems (Hotel New World Collapse's blue
paper was not effectively implemented)
(6) Deliver a Swiss standard of living
(7) Asset enhancement scheme fiasco
(8 ) Unit trust investment fiasco
(9) Foreign relation fiascos
(10) Non-formulation of a value-adding investment strategy
(11) Double-charging on lands (paid by taxpayers yet charged back
to them at full market prices) and triple charges on
vehicles.
(12) Meritocratic education policy that backfired - brain drains of
thousands
(13) Mother tongue - CL1 admission fiasco
(14) Reaching World Cup soccer league by 2010 - no sign of getting
near.
(15) Investment losses by thousands of citizens from CPF
funds.
(16) Spiraling of government ministers' and civil servants'
salaries.
(17) Failure to implement accountability and transparency in
respect of investments of citizens' monies in overseas
investments.
(18 ) Loss of economic competitiveness due to high costs.
(19) Neglect in promoting entrepreneurship
(20) Neglect in nurturing the domestic sector of economy.
From Singaporeans' own perspective particularly those suffering
from high costs of living and doing business, there is no cause of
celebration or real competitiveness in the long term. However the
rich, civil servants, GLCs and many big foreign companies
repatriating profits to their own parent companies are doing well.
