S’pore ranked most trade-friendly nation: Who benefits most?
July 10th, 2009 | 
Author: From The Newsroom Team
According to the World Economic Forum, Singapore is the most trade-conducive economy in the world. (read full article here)
Its Global Enabling Trade Report cited the open market, highly efficient and transparent border administration, well-developed transport and communications infrastructure, and an open business environment.
The WEF highlighted that the Singapore Government is highly transparent and efficient, while exporters face relatively low tariffs in target markets.
As usual, the state media has been quick to attribute Singapore’s “achievement” to the efforts of the PAP government.
However, it has conveniently chosen to leave out the key question: who benefits the most from Singapore’s economy?
In summary, the three main groups of people who have reaped tremendous benefits from Singapore’s economic growth are:
1. The PAP ministers and senior civil servants whose bonuses are linked to the country’s GDP growth.
2. Employers, businessmen and bosses of MNCs and local companies whose profits are maximized by the low tariffs.
3. Foreign talents who flocked to Singapore to seek job opportunities.
Of course, it is undeniable that ordinary Singaporeans have benefitted greatly from the nation’s robust growth especially in the 1980s and 1990s.
In recent years, the wages of Singapore workers, in particular the lower-income group have remained stagnated while rampant inflation depreciates the value of their savings.
With their CPFs tied up mostly in mortage loans for their 99 year public housing flats, many Singaporeans are ill prepared for their twilight years.
Singaporeans are at the bottom of a ranking of retirement income from pensions in the Asia-Pacific region, says the Organisation for Economic Cooperation and Development (OECD). (read article here)
The Pensions at a Glance study, which also involved the World Bank, found that Singapore’s average gross replacement rate – the value of the pension as a percentage of earnings when working – is just 13.1 per cent.
Singapore also has one of the highest income disparity, as measured by the Gini Coefficient, amongst developed countries (read report here). It is closer to Kenya, Senegal and Ivory Coast than to Japan, Australia and Korea.
This can only mean that over the years, the richer have become richer and richer with the poor becoming poorer.
The economic pie is not divided equally amongst all citizens of the country. Only a select group of elites with better qualifications and connections are really benefitting from Singapore’s status as the world’s most ‘trade friendly’ nation.
WEF’s report is of interest primarily to academicians and economics. It has little relevance for the ordinary Singaporean struggling daily at work to bring the bread home.
Is it little wonder that Singapore is ranked 49th in the Happy Planet Index 2.0 survey conducted by the New Economics Foundation even though it was ranked fourth highest per capita income in the world by the International Monetary Fund last year? (read article here)
The economy, GDP growth, per capita income, conduciveness of trade and other economic indicators count for little if citizens are unhappy and do no not have a sense of belonging to the nation.
We need to move from being overly obsessed with material growth to caring and nurturing our people in our governance to ensure that no Singaporean is left behind.
Posted in Opinion
17 Responses to “S’pore ranked most trade-friendly nation: Who benefits most?”
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The Happy Planet Index (HPI) letter to the ST Forum that you cited is mistaken. The HPI does not measure happiness per se. It measures “the ecological EFFICIENCY of supporting well-being (see Wikipedia HPI article).” In other words, how efficient, or how environmentally friendly, your happiness is.
Example: do you need to own two cars and a three-storey bungalow to be happy? Then you leave a huge ecological footprint. The Costa Ricans are ranked number 1 on the HPI because they are happy and they have a low ecological footprint.
If you look at the HPI website, most of the developed nations including Singapore rank high in terms of life satisfaction and life expectancy, but also high in terms of ecological footprint.
http://www.happyplanetindex.org/explore/global/life-sat.html
Look at this. Highest Paid Govt, yet according to Forbes – Bottom 10 economies in the world .
http://www.forbes.com/2009/07/08/economics-iceland-ireland-business-beltway-countries_slide_8.html?thisSpeed=15000
no wonder more and more bursarys,awards,aid schemes are being devised nowadays. in the 80s,these were very rare.
Let’s be fair and not try to mislead readers here.
Whatever the limitations of the Gini Coefficient, having a high value does not empirically infer that the “richer have become richer and richer with the poor becoming poorer”. I’m sure there are means to show that the poor are indeed getting poorer, but the Gini Coefficient doesn’t.
As to the question of who gains when S’pore is ranked most trade-friendly nation, let me pose a converse argument.
What if S’pore turns out to trade-unfriendly country which imposes much trade and tax barriers, has bureaucratic rules and government bodies that impede trade and does not promote an open-economy?
Well, it’s not easy to envisage businesses not only leaving S’pore to our more trade-friendly regional neighbours, but also not even setting up shop here in the first place. Yes, the foreigners will clamour to come here. But then where we end up? – opening bubble tea shops, selling 2nd hand HPs, and peddling otah at the pasar malam? (Did I spell otah correctly?)
And yes, the WEF’s report is of interest primarily to academicians and economics. But you forget to add the CEOs such as those form GSK, Shell and Philips who make decisions where to set up their regional research labs and production stations.
FRANCE will benefit the most, with the sudden influx of elite families taking up $50k cooking courses at Le Cordon Bleu (5 weeks of leave too).
The people… the way they is as if they are running a brothel…
They are friendly to the customers (those who trade with them)… they give minimum protection to the girls (the people who work for them) because they can find any other girls to replace the naughty ones (by lowering employment rules and standards).
Best of all, with this kind of rules, their cost is low and profit is high… And they can claim a high profit! because their KPI is tied to profit.
We don’t have elites governing us.
We have pimps.
let say you make 1000 a month.
You lose 13% of your employer’s CPF contribution to CPF.
You lose another 20% of your pay to the CPF.
Then you have to pay at least 18% tax.
Total ~ 51% paid to the govt.
The brothels in Geylang charge their workers 50% for rental and water.
See the parallelism.
These people… the way they run the show is as if they are running a brothel…
They are friendly to the customers (those who trade with them)… they give minimum protection to the girls (the people who work for them) because they can find any other girls to replace the naughty ones (by lowering employment rules and standards).
Best of all, with this kind of rules, their cost is low and profit is high… And they can claim a high profit! because their KPI is tied to profit.
We don’t have elites governing us.
We have pimps!
Ok idiot question, is trade good?
If it is why one earth would any country not go out of the way to be more trade friendly?
If it is not then why on earth would a country want to be trade friendly.
So is Singapore really that smart to have seen what all the other countries cannot?
Come’on the so called non trade friendly measures most countries have are there for a good reason. Most if not all are to look after the country’s interest and again most are to cater to the country’s workers or domicle business or producers.
Granted that Singapore has almost zero domicle producers (we grow next to nothing and produce (naturally) next to nothing) there is nothing much to protect however we have our “world class” labor (actually no longer so “world class” since its not been heavily tempered by FWs and FTs) dont we need to protect this resource? Sadly I dont think enough has been done here.
Some people would have felt so good by this ranking but I think more understanding is required in fact too high a ranking suggest that we could have over exposed ourselves to the “shylocks” of the world
[...] The Price of Progress – The Kway Teow Man: The Conundrum of Labour – Mr Wang Says So: The Very Wise are Happy, and the Stupid are very Sad – The Wayang Party: S’pore ranked most trade-friendly nation: Who benefits most? [...]
Amazing! Not clear for me, how offen you updating your wayangparty.com.
Thank you
Coupons and other special freebie offers are great! This sounds like a good site to learn more about being eco friendly, please keep it up to date with more stuff. I have made several lifestyle changes in order to become greener and more eco friendly. I take quick showers rather than long baths, I always use natural products too, and they must be free from animal testing. I send e greetings cards rather than buying expensive ones from the shops, and I walk to as many places as I could. Does anyone else have any more ideas I could try out?
homo sapiens aren’t homo economicus by nature.
For the first I find you making a lot more moderate and balance sense. Let me spring-board on your points this time as a compliment …
Why does our government promote Sgapore the way it does? Like repeatedly quoting almost blind ex-Indonesian President Gas Da calling Singapore as ” A little Red dot”? Miniscule actually we truly more are as Singapore really. As, with the dynamics of “Free-Trade” and also some “Trade-Barriers” popping up like in France and elsewhere, HOW DOES SINGAPORE STAND ANY CHANCE AT ALL? As now there are still Americans & Europeans Who NOT ONLY Think THAT Singapore Is In Malaysia, BUT also IN CHINA!!!
But then let’s NOT get overly anxious as these people aere mostly the ordinary working class ones. Even those high up in the academic, economic and business ladders, we need not worry to much if THEY ALSO fall into this category. WHY? Because the REAL Entrepreneur Guys WILL LEARN about us when they REALLY want to do busines WITH Singapore right? SYNERGIES FOR WIN-WIN IS THE KEY!!! AND NOW BryanT …
1. Any so-called Dissactifcations or even said to be ‘quarrels’ with PAP, are mainly NOT about not growing the economy.
2. Has always been about them being …
2.1 Always having the Last Says.
2.2 No Government charity as LKY repeatedly stressed the failure of the Western “Welfare Model”.
2.3 That Everyone MUST work FOR their Own keep WITHOUT any exceptions! WHY? Like BryanT said about some being natural not endowed by God – only he didn’t offer reasons why and I did in my preceing comment to this comment.
2.4 So, though we have no other natural resources as they kep harping too, AREN”T WE RESOURCES OF THE BEST KIND FOR AN “IT” AGE??? Their pessimisms may be good for their “protectionist” traits. BUT they are certainly NOT GOOD for OUR Long Term GOOD!
Reasons ARE OBVIOUS BryanT. Like to tell us why?
2.5 … 2.99 and …!
3. Me thinks you’re a smart govt guy or party advisor planted here to learn from WP for Singapore. But More Important me thinks you’re are also here for PAP”s political and ‘HIDDEN’ learning processes like here in WP. I amy be wrong, But THIS IS the REALITY WITH PAP isn’t it? Talk a lot Minister’s etc. aren’t they?! Seek feedback, then implement later with own mods and say their ideas! If something go wrong, Nothing is simple or perfect. And we’re flexible!
4. AND for your PAP’s favour, the “take” of purpose of WP and the negative comments against PAP are unhappiness or complains or disgruntle, or Angst, even Acrimony or also Oppositionas to PAP, ARE NOT so much about their trade policies. All the emotions, feelings and minds of nothing but their “Lack of EMPATHY for the poorest man-inthe-street” AND the promises by PMs THAT “NONE WILL be LEFT-OUT” but are! Any DIFINITIONS by PMs or just their GENERALIsATIONS As Usual???
MCYS Minister Dr. Vivian Balakrisnan’s reply to Dr. Lilly Neo on the PA $260 to $290 raise shows! It also showed he became a ‘YES-MAN’ because, before this raise was announced, he had said the PA can be RIASED by like 20, 30% or more “as necessary”! Why then his 2nd thoughts?
Obvious IS, he likely didn’t think it was necessary to get father & son duo’s consent first. So, ran into a wall and HAD TO BECOME a Yes Man or what? If not so, why then does PM son now says even hard to get high talent, even talent to join PAP? When his Ah Pa is still harping Top-Pay – even above 1st-World, And they are the HIGEST PAID IN THE WORLD! – AREN’T They??? How to get WISE MAN this way when one self isn’t wise too in the first place?
And … now Bryan I am beginning to have a bit of confidence in you to be more balance and tell us some of PAP’s or this governments lack, slack. Please kicj the ball over. Just a game in CyberSpace leh haw!
No,I don’t think they “slack” (in the street-talk sense). I think they are pretty busy people with heavy responsibilities. Partly, the reason is that they know that every move and message is being watched and heard, and easily criticized.
But my personal feel is that too many ministers of the same mould have been chosen – too pragmatic, too achievement-focused, and at last, lacking in the correct level of ground sensitivity.
Some people say that the correct way to get the message across to the people is to repeat it often enough. However, it’s frustrating when it verges on “preaching”. Yes, it cringes sometimes. (I’d also be the first to say that some people deserves a good kick in the rear, but that’s another story.)
I was disheartened when some MPs who used to speak up for the laymen were retired by the ruling party. Yes, we need leadership renewal, but we also need a good mix of people in parliament as well, especially those how keep their ears and hearts firmly on the ground.
I’m not sure about whether Ministers talk a lot, but I’d agree that some of them are better off not talking. But frankly, I thought they would be clever enough to want to be seen to take in some feedback, and be seen to be adopting them. Show people that they can swallow their pride and admit that they make mistakes or overlooked things once in a while. But at last, perhaps they probably perceive it as a sign of weakness, and that is a no-no in the much-preached meritocratic system.
Even if the multi-million dollar salaries are really justifiable based on the “market” competitive rates, it was not politically sensitive and much moral high ground is lost. Messages, and even slogans, are better put across if backed by an healthy dose of respect.
The heading of this blog is clearly and loud…
“S’pore ranked most trade-friendly nation: Who benefits most?”
Minister Pays Have RISEN TEN-FOLD from a couple of 100 thousands TO A FEW MILLION BUCKS!
Meanwhile, even PMETs or Professionals, Managers, Engineers and Technician have over the last 20 years risen by a miserable like 1.5-Fold to 2-Fold at best!!!
Also, your “HEAVILY-Subsidised” HDB flat have also RISEN DRAMTICALLY by TEN-TO-TWELVE-FOLD at minimum!!! IS THIS EQUITABLE BryanT and his like-minded genre? Perhaps they HAVE STRUCK IT RICH TOO by “Towing-the-line”??? And so write here in WP the way they do – LIKE ELITEs!!! Elites ARE Elitists right? Am not sure you’ll agree knowing where you come from.
So, since HDB and so PAP government claim HDB Flats ARE “HEAVILY-SUBSIDISED, is it fairgame ofr US To Assume THAT they mean AT LEAST a Median SUBSIDY of 50% – YES FIFTY-PERCENT!!! Now, with some 85% HOUSED in HDB Apartments, WHER DOES government get THAT SUBSIDY running into TENS-OfBILLION If NOT into 100s Of BILLIONs.
I Wholly TRUST THAT BryanT CAN Provide US With THE ANSWERS!!! But a suggestion before HE DOES won’t in all fairness be out-of-place yah! So, Common Sense Ask US, IS IT From-The-Other 15% living in private apartments and landed properties?. But then there’s a Percentage TOO of them being old ones out there. So, these ARE NOT contributing TO THIS CLAIMED VERY-HIGH HDN SUBSIDY Are They??? LOL Haw BryanT and look Alikes!!!
In the other WP blog about how much has govt made out of the last property boom. Thought I read and heard from FM or the Finance Ministry in the media that govt MADE like MORE THAN $6BILLION!!!
Last but not least, in TODAY paper’s Voices on Property Sales and Revised Tax Regime, an astute Mr. Gilbert Tan Hee Khian pointed out that a PRIVATE Condominium 1000 Sq. Ft. (92.6 Sq, M) Apartment IN Australia or Canada goes for between $200,000 and $300,000. NOW, a FOUR-Roomed HDB Apartment of 90-91 Sq. M here in the Heartlands AND NOT In The URBAN Areas goes For $240.000 to $250,000 Unless its in an outlying AND Unpopular Area like the Failed Ponggol 21, Jurong Sembawang, etc.!!!
KNOW THAT here We ARE COMPARING our GOVT’s CLAIMED “HEAVILY-SUBSIDISED MASS Apartment Housing Scheme!!! So, AT 50% SUBSIDY, Does IT not MEAN TO THAT HDB build them 4-Roomed Flats AT $480,000 TO $500,000 each and sell to US AT HALF-PRICE. IF THIS IS THE CASE, then won’t it mean TOO THAT, HDB’s Building COSTs are likeAT LEAST TWICE those of PRIVATE Condomiums SELLING PRICES in Auadtralia and Cananda?
Of courseour Govt’s stance WILL ALWAYS BE, we’re a small city state, lack of land mass, ET CETERA, ET CETERA, ET CETERA!!! DO YOU BELIEVE “THEIR-STORY” IN THOSE ‘Figures’??? WAKE UP SLEEPING ‘GIANTS’ LIKE BryanTs!!!
NEED I SHARE MORE? Except to urge you to go to http://www.todayonline.com and read that reader’s letter to convince yourself. Of course, official reply WILL SURELY question that Mr. Gilbert Tan didn’t mention whether those PRIVATE Condomimiums he referred to are in Towns, Cities, Suburbs or Rural locations! Go surf the internet and satisfy yourselves if really Mr. Tan who wrote such an astute letter, WASN’T smart enough to have given a comparative comparison!!!
Webpage to reader Mr. Gilbert Tan Hee Knian’s letteron S’pore’s property price referred to my other comments here:
http://imcms2.mediacorp.sg/CMSFileserver/documents/006/pdf/20090720/2007VOC020.pdf