LKY-era policies
In a way, Lee is paying for the consequences of his father’s politics and policies.
Take, for example, our economic policies. Since the 1960s, Singapore has depended on foreign investments, relying on MNCs to supply jobs in Singapore and generate GDP growth. The domestic sector of the economy is dominated by a plethora of Government-linked companies (GLCs) operated by Temasek Holdings, a conglomerate whose CEO is Ho Ching, wife of the PM.
The MNC-GLC combination has created an economic structure that has crowded out local entrepreneurs. As a result, we have been unable to develop into a knowledge-driven economy able to compete on ideas and innovation on the global stage.
In fact, Singapore’s economic growth has largely been due to what economist and Nobel laureate Paul Krugman call input-driven growth where GDP expansion is largely the result of the government extracting much revenue from the populace and ploughing that back into building the infrastructure. Little of the growth is coming from creative production and knowledge-based industries.
Such an economic arrangement will lead to a state of diminishing returns and is ultimately unsustainable. We are witnessing the beginning of such a slowdown and gone are the days where the GDP accelerated at breakneck speeds.
The education system is another one of the major failings of the PAP. This was admitted, perhaps unwittingly, by Lee Kuan Yew himself. In 2008, Lee Kuan Yew told the media that “without [foreigners], the jobs will not be there to begin with.” The current Prime Minister Lee Hsien Loong, reiterated this view in 2011: “Without the foreign workers, we would not have attracted [investments].”
This is, perhaps, the biggest indictment of the PAP government. It has had more than half-a-century – uninterrupted – to educate the populace. Yet, it has not been able to equip the people with the talent, knowledge, and creativity to ensure the survival of our economy without having to depend on foreigners.
And not only are Singaporeans unable to generate jobs for our own people, local talent is leaving the country in alarming numbers. Lee senior pointed out that about 1,000 Singaporeans are leaving the city-state for other countries every year – and the number is growing. Given the size of the country, this is no small number.
He added that “every year, there are more people going abroad for their first or second degree” and many of them are not coming back. These people make up the top 4 or 5 percent of skilled Singaporeans that our economy needs.
How did we come to such a state where our education system cannot keep our best and brightest at home or, after they leave, attract them back?
But instead of taking a good, hard look at where it has gone wrong with its education policies, the PAP has decided in its immigration policy to bring in foreigners to replace Singaporeans.
In 2013, the government published its White Paper on population growth and announced that it would increase our population size from the current 5 million to 7 million by bringing in yet more foreigners even though we are the most densely populated city in the world.
Such a pronouncement did not sit well with Singaporeans, of course, and it caused a considerable backlash against the government.