2014 Forbes Global CEO Conference dialogue session with PM Lee

PM Lee on democracy: Asian states must find own way
Power structure, politics in nations in the region work in different ways
By Nur Asyiqin Mohamad Salleh And Walter Sim, The Straits Times, 29 Oct 2014

THE Western media may paint popular democracy as a good thing but politics operates in different ways in Asia, Prime Minister Lee Hsien Loong said yesterday.

"If you look at the countries in Asia, you'll know these are complicated countries and they work in different ways.

"Even when you have elections, the power structure, the politics, the government functions in different ways in these countries," he added.

For instance, in Thailand, beyond the elected government, the king and the military play critical roles, he said.

Mr Lee made the point at a dialogue on the opening night of the three-day Forbes Global CEO Conference, which brings business leaders together to discuss global economic issues.

Replying to a question on the fate and future of popular democracy in the region, Mr Lee called it a slogan.

"I think each country has to find its own way forward. I don't think there's salvation in saying, oh, we need more democracy and that will make these countries prosper," he said, citing recent events in the Chinese territory of Hong Kong as a case in point.

In India, he noted, a new government is at the helm every now and again. This makes it harder for the country to address fundamental challenges.

In China, however, "they have no elections, but that doesn't mean they don't have the problems (faced by) a government which is legitimate, which is functioning well, and which is subject to checks and balances".

On Singapore, he said an elected government is in place.

"Yet if you ask whether that is a formula which will automatically yield a good government and a successful country for the next 50 years, nobody can say.

"It depends on the people, it depends on the values of the society, it depends on the quality of the leaders and the connection between the leadership and the population."

Though upbeat about the future of Singapore and the region with the Asean Economic Community with freer trade and investment targeted to debut by end-2015, Mr Lee also spoke of issues that keep him up at night.

The possibility of regional turbulence is a key concern, he said.

"The fundamental assumption when we look forward and say we are confident is that peace will remain, that countries will cooperate and, therefore, we can gradually solve our problems and develop our economies," he said.

This confidence could be shaken by conflicts erupting in the region. Territorial disputes breaking out in the South China Sea, or over the Diaoyu/Senkaku islands, which involves two significant powers - China and Japan - going head to head, are cause for concern.

Likewise, the unpredictable hermit kingdom of North Korea.

Outside Asia, the Islamic State in Iraq and Syria and other terrorist groups like it pose a global threat, said Mr Lee, highlighting a concern he has raised repeatedly this year.

These groups could bring "the virus and radical fervour which they've acquired fighting somebody else's war" to Singapore.

But at the same time, each country needs to solve its own problems, he said, citing Singapore's dearth of babies.

Also, challenges like maintaining political and social cohesion in a fast-changing world, with income inequalities, are going to put a lot of pressure on societies, Mr Lee said.

But, he added: "Other people can't solve these problems for us. We have to solve our own, so that we are able to work together and prosper together."

IN PM LEE'S WORDS




More grey hair today and even less hair in 10 years' time. But hopefully, with a bit more sense of the limits, but also a bit more confidence to push those limits because it's always a balance. You're trying to do what is possible, what you think is possible. You must know because, otherwise, you're just talking in a vacuum...

- When asked what he had learnt in his 10 years as prime minister and how he has evolved as a leader



 
It's not what we say which will convince other people to change. It is when other countries conclude that this is real and that they are going to be affected, that countries have to get together and deal with it together. You cannot go in alone... You can't do these things by yourself unless there's a global agreement to do it together. And a global agreement to do it together depends on the big emitters: China, India, America, Europe.

- On convincing leaders in Asia that climate change is important






Wages outpacing productivity 'OK in short term'
The Straits Times, 29 Oct 2014

HAVING wages in Singapore rise faster than productivity is manageable in the short term, but not forever, Prime Minister Lee Hsien Loong said last night.

Eventually, productivity must catch up - through more education and mid-career training, and replacing unsuccessful businesses with more promising ones, he added at the 14th annual Forbes Global CEO Conference.

He was addressing worries about economic restructuring as Singapore nears the mid-point of its 10-year productivity drive. Wage costs are up but productivity is stagnant. The International Monetary Fund has said that while Singapore restructures, it may suffer lower growth, less competitiveness and higher costs.

For now, the more rapid increase in wages is "okay" because there is still demand for Singaporean workers as companies flock here to invest, Mr Lee said in a dialogue with Mr Steve Forbes of Forbes Media.

"Getting that bonus from being a Singaporean because people want to come to Singapore... that's one of the ways we want to improve the wages of our people," said Mr Lee.

But this cannot continue to the point where people are paid millions for doing no work, he added.

Long-term productivity must go up through education, training and economic restructuring. "It's not magic, it's not easy, but it's the only way we can do it," he said.

Upgrading the economy and workers is also vital for Singapore to keep abreast of developed countries and a changing world.

"People look at us and say, yes, we're doing well, but we're still a small country even though we're doing well. And we'll never forget that."

Post by Lee Hsien Loong.

Future of Asia, S’pore far from certain: PM Lee
By Wong Wei Han, TODAY, 29 Oct 2014

While momentum for greater economic growth and political reform in Asia is picking up, the outlook of the region’s future is far from certain as nations grapple with deep-seated issues such as territorial disputes and the rising threat of religious radicalisation, said Prime Minister Lee Hsien Loong yesterday.

Against this backdrop, he reiterated that Singapore cannot take its success for granted and Singaporeans must remain vigilant of foreign and domestic challenges as the Republic strives for a better future beyond its 50th anniversary.

Mr Lee made these comments during a dialogue at the Forbes Global CEO Conference held at Shangri-La Hotel yesterday. Speaking to Forbes Media chairman, Mr Steve Forbes, Mr Lee expressed his concern about threats to the region’s peace, particularly the maritime disputes in the East and South China Sea.

“Temperature has gone up on both (disputes) and they’re not easy to resolve ... it’s a game of brinksmanship and we’ll have to hope there’s no mishap,” he said. “But I don’t see these issues being resolved quickly because sovereignty and pride are involved ... All we can do is manage the disagreements and hope that our grandchildren would be wiser than us and can make progress on it.”

At the same time, regional countries including Singapore must guard against the violence and radical fervour that extremist groups such as the Islamic State are threatening to bring to South-east Asia, Mr Lee said.

“If that goes wrong, we have a problem in Asia and I have a problem in Singapore,” he said. “It’s also incumbent on us to solve domestic challenges such as economic and population growth ... as well as maintaining political and social cohesion in a rapidly changing world with income equality.”

In Singapore, that entails calibrating the inflow of foreigners while pushing for economic restructuring and capability upgrading to ensure higher-quality growth, he said. But while Singaporeans need to be aware of the Republic’s challenges, there are reasons for confidence.

“Looking forward, beyond Singapore’s 50th anniversary, I think that’s what we need to do: To be aware, to be paranoid so that you know there’s always someone that can take your lunch away. But at the same time, to have the confidence that we have a good base and we’re in strong position to do better,” Mr Lee said.

During the dialogue, Mr Lee also shared his views on a wide range of topics such as the state of democracy in Asia, as well as the global economic outlook. Noting that political conditions vary greatly across individual countries in Asia, he said democracy can sometimes hamper a government’s ability to address fundamental issues, citing the example of India versus China.

Meanwhile, the world’s economic conditions remain uncertain, he cautioned, with the eurozone still struggling to address its structural issues, while the United States continues its long and weak recovery.