Big challenge for Singapore: Boosting productivity
People need to change the way they do business, says PM Lee in interview
By Rachel Au-Yong, The Straits Times, 20 Nov 2015
A major challenge Singapore faces in growing its economy is improving productivity and transforming "old activities into new and more relevant and competitive ones", said Prime Minister Lee Hsien Loong.
But that is an arduous task as productivity growth is slowing and nobody quite understands why, although various explanations have been given for it, Mr Lee added.
He made the point in an interview with The Australian newspaper on the many challenges lying ahead for the country, after celebrating its achievements of the past 50 years.
"The uncertainties in the globalisation ethos... will pose many challenges,'' he said in the interview last week. A transcript was released to Singapore's media this week.
Mr Lee also noted that information technology (IT) has fallen short in raising productivity.
IT has changed lifestyles and the quality of life, but it has yet to show up in performance. He hopes it will happen eventually - "whether it is your hospitals getting scans read by a smart program faster and more reliably, or whether it is delivering your groceries and your daily necessities, logistics more efficiently."
But it would need people to change the way they do business, Mr Lee said. "It is not just doing the same thing a little bit faster. And that's tough, and that means there will be losers and the losers will yell. So, that is one big challenge."
Also, Singaporeans would have to learn to live with slower growth of 2 to 3 per cent a year, instead of 6 to 7 per cent, which would affect the jobs available and the rate at which quality of life improves and incomes go up, he said.
These are trade-offs. "It is not easy and it is very seductive for an opposition who's just trawling for votes, to say, 'Vote for me, I will reduce the taxes and soak the rich'.
People need to change the way they do business, says PM Lee in interview
By Rachel Au-Yong, The Straits Times, 20 Nov 2015
A major challenge Singapore faces in growing its economy is improving productivity and transforming "old activities into new and more relevant and competitive ones", said Prime Minister Lee Hsien Loong.
But that is an arduous task as productivity growth is slowing and nobody quite understands why, although various explanations have been given for it, Mr Lee added.
Greg Sheridan of The Australian interviewed me last Friday. We talked mostly about the region - China and the US, our...
Posted by Lee Hsien Loong on Thursday, November 19, 2015
He made the point in an interview with The Australian newspaper on the many challenges lying ahead for the country, after celebrating its achievements of the past 50 years.
"The uncertainties in the globalisation ethos... will pose many challenges,'' he said in the interview last week. A transcript was released to Singapore's media this week.
Mr Lee also noted that information technology (IT) has fallen short in raising productivity.
IT has changed lifestyles and the quality of life, but it has yet to show up in performance. He hopes it will happen eventually - "whether it is your hospitals getting scans read by a smart program faster and more reliably, or whether it is delivering your groceries and your daily necessities, logistics more efficiently."
But it would need people to change the way they do business, Mr Lee said. "It is not just doing the same thing a little bit faster. And that's tough, and that means there will be losers and the losers will yell. So, that is one big challenge."
Also, Singaporeans would have to learn to live with slower growth of 2 to 3 per cent a year, instead of 6 to 7 per cent, which would affect the jobs available and the rate at which quality of life improves and incomes go up, he said.
These are trade-offs. "It is not easy and it is very seductive for an opposition who's just trawling for votes, to say, 'Vote for me, I will reduce the taxes and soak the rich'.
"Fortunately, in this last election, some of the opposition pitches were so shrill that the population wisely took counsel and decided there was a real risk."
Mr Lee said that the 70 per cent vote share of his People's Action Party (PAP) in the Sept 11 polls surprised him.
Mr Lee said that the 70 per cent vote share of his People's Action Party (PAP) in the Sept 11 polls surprised him.
It could be attributed to three things, he added. They are: a sense of gratitude following the death of his father, founding prime minister Lee Kuan Yew, in March; the feel-good factor of the Golden Jubilee; and the Government and PAP Members of Parliament working hard to solve both immediate and long-term issues.
"Although we have not solved all the problems, people could see we were working at it, and things were getting better," he said. "They gave us credit for trying."
Asked whether the electoral success would be hard to sustain, he said: "Every election is different. I do not work on the basis that this is the baseline for the next election."
Mr Lee said there would be another 100,000 to 150,000 new voters at the next election, and a near-corresponding number would have passed on or would no longer be voting.
No superpower clash, please: PM
By Rachel Au-Yong, The Straits Times, 20 Nov 2015
Singapore recognises there will be some "push and shove" in the relationship between China and the United States but from a small country's perspective, it does not want to see a clash between the two superpowers, Prime Minister Lee Hsien Loong said in an interview with The Australian newspaper.
Both sides, however, want to keep things calm, he added.
"What is missing is what you would call very loosely strategic trust. Meaning the Americans believe the Chinese want to challenge them in the Asia-Pacific. The Chinese think the Americans want to block them and at least slow their growth."
His remarks were made last week, before the two-day Asia-Pacific Economic Cooperation (Apec) Leaders Summit that ended yesterday.
By Rachel Au-Yong, The Straits Times, 20 Nov 2015
Both sides, however, want to keep things calm, he added.
"What is missing is what you would call very loosely strategic trust. Meaning the Americans believe the Chinese want to challenge them in the Asia-Pacific. The Chinese think the Americans want to block them and at least slow their growth."
His remarks were made last week, before the two-day Asia-Pacific Economic Cooperation (Apec) Leaders Summit that ended yesterday.
Referring to the ongoing disputes in the South China Sea, Mr Lee said it is understandable when a global power like the US asserts its rights to enjoy freedom of navigation.
But, he added, it is also understandable for the Chinese to look at the US move and say, "Well, you are raising the temperature'' and ask "why are you coming in from outside of the region?''.
Last month, a US warship sailed within 12 nautical miles of the Spratly Islands. It was the first time since 2012 that the US has directly challenged China's claims of the islands' territorial limit.
The Spratly Islands are claimed by six parties and many have been "creating facts on the ground", Mr Lee noted.
So, a naval power such as the US has to decide whether to let it pass or do something to challenge that, he said. "But I do not see the US claiming any atoll or maintaining a presence there."
He added: "It is not just what the US does, but also what the claimant states do.We have been counselling on all the claimant states restraint and peaceful management.''
As for countries in the region, including Australia, their position on the issue is made difficult by the fact that many are close friends with the US yet see China as their biggest export market. "That is why when we talk about US engagement in the region, or rebalancing, it cannot just be a security, military thing," Mr Lee said. "It has to be a comprehensive relationship, and economics and trade is a big part of that, which is why the Trans-Pacific Partnership (TPP) is a critical thing."
The TPP is a free trade pact that involves 12 Pacific Rim countries, including the US and Japan as well as Singapore. Negotiations were recently concluded.
Two days ago, their leaders met in Manila for the first time since the negotiations, on the sidelines of the Apec summit, to discuss it.
Western govts’ failure to deliver a reason for gridlock: PM Lee
TODAY, 20 Nov 2015
The gridlock common in Western governments is “partly a weakness of the leadership” and also a recognition that the system is not delivering, said Prime Minister Lee Hsien Loong in a recent interview with a foreign newspaper.
Also, people in these countries do not feel that they have an interest in what the system is doing for them, he said. “You promised, but in the end, you cannot deliver. That is a challenge,” said Mr Lee, adding that political deadlock is particularly a problem in the United States “because of the way their system of government works”.
Speaking to The Australian newspaper’s foreign editor Greg Sheridan last Friday (Nov 13) at the Istana, he was asked by Mr Sheridan whether it was “something of a problem in Western politics that the blocking power of popular sentiment, the ability of minorities to stop things from happening and the increased salience of populism in Western politics” appear to be making it difficult for governments in Western democracies to come up with a sound policy and implement it.
The embargoed transcript of the wide-ranging interview — where Mr Lee also spoke about terrorism, the South China Sea situation and the results of the recent General Election, among other things - was made available by the Prime Minister’s Office to the Singapore media. Mr Lee’s remarks on terrorism — made before the Paris attacks - were reported earlier this week.
During the interview, Mr Lee noted that despite the conclusion of negotiations for the Trans Pacific Partnership trade deal, “perpetual” worry lingers over the deal being ratified in the US Congress due to political gridlock. US presidential candidate and former secretary of state Hillary Clinton, who was part of the TPP talks, is now against it, as is Republican candidate Donald Trump, noted Mr Lee.
“(United Kingdom Prime Minister) David Cameron has less of a problem with gridlock or the Australian Government although you have an issue with your Senate from time to time. But with the Europeans and the Americans too, I think their problem is people are disillusioned or disappointed with what they see happening in their lives,” Mr Lee said. “They are disillusioned with the political leadership and then they opt for what they think are pristine solutions.”
Mr Lee said that Singapore has been “lucky” and its government has been able to deliver on its promises. But the country will have to cope with the implications of a different economic situation. “We have to learn how to live with the economy growing 2 to 3 per cent a year instead of 6 to 7 per cent a year, and what that means in terms of the rate at which your quality of life improves, your incomes go up, the bounce in the economy and the society, the sense of optimism, the jobs which are available,” he said. “These are trade-offs which we will have to accept and learn to live with.”
“It is not easy and it is very seductive for an opposition who’s just trawling for votes, to say, ‘Vote for me, I will reduce the taxes and soak the rich’. Fortunately, in this last election, some of the opposition pitches were so shrill that the population wisely took counsel and decided that there was a real risk,” he added.
Mr Lee reiterated that the challenges for Singapore include the need to grow the economy and increase productivity. The task of transforming old activities into new and more competitive ones is “arduous”, and one faced by all developed countries, he said.
TODAY, 20 Nov 2015
The gridlock common in Western governments is “partly a weakness of the leadership” and also a recognition that the system is not delivering, said Prime Minister Lee Hsien Loong in a recent interview with a foreign newspaper.
Also, people in these countries do not feel that they have an interest in what the system is doing for them, he said. “You promised, but in the end, you cannot deliver. That is a challenge,” said Mr Lee, adding that political deadlock is particularly a problem in the United States “because of the way their system of government works”.
Speaking to The Australian newspaper’s foreign editor Greg Sheridan last Friday (Nov 13) at the Istana, he was asked by Mr Sheridan whether it was “something of a problem in Western politics that the blocking power of popular sentiment, the ability of minorities to stop things from happening and the increased salience of populism in Western politics” appear to be making it difficult for governments in Western democracies to come up with a sound policy and implement it.
The embargoed transcript of the wide-ranging interview — where Mr Lee also spoke about terrorism, the South China Sea situation and the results of the recent General Election, among other things - was made available by the Prime Minister’s Office to the Singapore media. Mr Lee’s remarks on terrorism — made before the Paris attacks - were reported earlier this week.
During the interview, Mr Lee noted that despite the conclusion of negotiations for the Trans Pacific Partnership trade deal, “perpetual” worry lingers over the deal being ratified in the US Congress due to political gridlock. US presidential candidate and former secretary of state Hillary Clinton, who was part of the TPP talks, is now against it, as is Republican candidate Donald Trump, noted Mr Lee.
“(United Kingdom Prime Minister) David Cameron has less of a problem with gridlock or the Australian Government although you have an issue with your Senate from time to time. But with the Europeans and the Americans too, I think their problem is people are disillusioned or disappointed with what they see happening in their lives,” Mr Lee said. “They are disillusioned with the political leadership and then they opt for what they think are pristine solutions.”
Mr Lee said that Singapore has been “lucky” and its government has been able to deliver on its promises. But the country will have to cope with the implications of a different economic situation. “We have to learn how to live with the economy growing 2 to 3 per cent a year instead of 6 to 7 per cent a year, and what that means in terms of the rate at which your quality of life improves, your incomes go up, the bounce in the economy and the society, the sense of optimism, the jobs which are available,” he said. “These are trade-offs which we will have to accept and learn to live with.”
“It is not easy and it is very seductive for an opposition who’s just trawling for votes, to say, ‘Vote for me, I will reduce the taxes and soak the rich’. Fortunately, in this last election, some of the opposition pitches were so shrill that the population wisely took counsel and decided that there was a real risk,” he added.
Mr Lee reiterated that the challenges for Singapore include the need to grow the economy and increase productivity. The task of transforming old activities into new and more competitive ones is “arduous”, and one faced by all developed countries, he said.
The trend in the last decade or so is slowing productivity growth. “Nobody quite understands why and there are all kinds of explanations, but the fact is it is very hard to lift productivity and we are facing that, too. We have to do it, but it is a challenge,” he said.
Mr Lee noted that information technology has changed lifestyles and the quality of life but it has “not shown up clearly” in productivity numbers. “Hopefully, eventually, it will show up in performance, whether it is your hospitals getting scans read by a smart programme, faster and more reliably or whether it is delivering your groceries and your daily necessities, logistics more efficiently.”
Another longer-term challenge is the low birth rate and, with it, the need to “top up” with immigration and integrate the new population, he said.
70% share of vote not the baseline for PAP in next GE
TODAY, 20 Nov 2015
TODAY, 20 Nov 2015
The People’s Action Party’s vote share of nearly 70 per cent in the September General Election is not the baseline for the next election, said Prime Minister Lee Hsien Loong.
Every election is different and the ruling party has to work hard to maintain and consolidate the support of voters, he said in a recent interview with The Australian newspaper conducted at the Istana.
“By the next election, you’re talking about another 100,000 new voters or 150,000, maybe, and a corresponding number, nearly, who will have passed on or (will) no longer be voting this time. So, each election is different,” he said. “I do not work on the basis that this is the baseline for the next election.” He said the PAP did not expect the vote share it received, although it had worked hard and knew “the mood was good”.
Mr Lee attributed the election result to a range of factors. “One, the realisation after my father (Lee Kuan Yew) died, that this (Singapore’s success) did not happen by chance and we have a lot to be thankful for,” he said. Another was the feel-good factor from Singapore’s Golden Jubilee. A third reason was that PAP Members of Parliament have been working hard and the electorate gave the ruling party credit for trying, said Mr Lee. In the 2011 GE, the PAP’s vote share was 60.1 per cent.
Every election is different and the ruling party has to work hard to maintain and consolidate the support of voters, he said in a recent interview with The Australian newspaper conducted at the Istana.
“By the next election, you’re talking about another 100,000 new voters or 150,000, maybe, and a corresponding number, nearly, who will have passed on or (will) no longer be voting this time. So, each election is different,” he said. “I do not work on the basis that this is the baseline for the next election.” He said the PAP did not expect the vote share it received, although it had worked hard and knew “the mood was good”.
Mr Lee attributed the election result to a range of factors. “One, the realisation after my father (Lee Kuan Yew) died, that this (Singapore’s success) did not happen by chance and we have a lot to be thankful for,” he said. Another was the feel-good factor from Singapore’s Golden Jubilee. A third reason was that PAP Members of Parliament have been working hard and the electorate gave the ruling party credit for trying, said Mr Lee. In the 2011 GE, the PAP’s vote share was 60.1 per cent.
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