Interesting thoughts from everyone on what policies Singapore could improve with.
Issues seem to revolve around wanting more money (either for working class people or retirees), improvements in health care and transportation issues.
There seem to to be worries about the elite taking more than they should (and foreign elite doing so). One thing, true everywhere, is that it is easier to find problems than solutions.
Singapore could eliminate all taxes on cars. That would help people that can't afford them now. My guess is it would help for about 6 months before the roads just didn't move at all being so packed with cars. That is just my guess, maybe I am wrong. I actually think the smartest policies for Singapore on transportation is to extract big fees from those using cars (like they are now) and use the money to keep spending more on mass transit (MRT and busses). I would also look to increase the number of taxis.
I don't think there are any great health systems. Some Europeans ones are maybe a bit better (maybe Japan and Taiwan?). Basically it seems to me you have a whole bunch of health care systems that are decent and pretty close to the same goodness (including Singapore, Europe, Japan, Canada...). Then you have the USA which is the worst by far for any rich country. All this means is that there are no easy examples of how to do this really well (though a few in Europe or Asia might be noticeably ahead - I may just not know).
Saving for retirement is basically a mess everywhere. One of the comments said why did I think Singaporean's in their 30-40's are ahead of USA and Europe. It is because USA and Europe in those age ranges are HORRIBLY prepared. Singapore could be doing poorly and be way ahead. I am not familiar with Singapore's plan in any detail. But just forcing people to save as much as I think Singapore does puts them well ahead of the USA and Europe.
Now paying below market returns is annoying. But really it is better than the USA (which doesn't pay returns but the way Social Security worked is they paid out to people far more than they paid in - so there is a huge tax necessary to pay for all the benefits that have been paid). Getting below market returns is not ideal, but it is preferable to the USA situation in my estimation.
Paying minimal amounts to the elderly that are poor as a form of welfare is something I would support myself. But it has to be paid for with taxes. Europe does this well. Even the USA is decent at this (via Social Security - even food stamps...). I think, in general Asia does this the least. My guess is that may well change over the next 40 years (my guess is a big part of it is that the Asian countries are mainly newly rich also large government welfare programs are not supported yet - I don't think). We will see what happens.
Housing is one area where Singapore doesn't have many places to look. I actually think Singapore does pretty well considering the options. Allowing rentals of "public housing" by owners is rare. If non-Singaporeans can own them that seems like something you could change (one commenter said they could). Even only allowing citizens to live in them would make sense.
It seems to me a big core issue is what to do about letting others into the country for long term living and working is the biggest decision the country has to make. There are problems with whatever solutions people support, I think. If you don't let people in the economy may suffer. You also get illegal migration (if the economy is strong) - the USA, Europe... experience this. Keeping people out would help various issues, it does make sense to me to limit it given the amount of space and issues with space. You can also run into problems if not enough of your own citizens want to take certain jobs. I like the idea of just raising those wages until people do want those jobs. But if the wages go too high businesses have real problems. But the actually policy changes (how do you limit, how drastic will you be, how many businesses will decide to leave...) make how you implement this a difficult decision I think.
The Singapore government it seems to me has taken some sensible measures to deal with the housing bubble. I don't know of any solutions to provide good, cheap housing. But at least the government is putting in sensible measure to discourage speculation. It does seem to me this remains an area that needs great attention and continual action as needed. Lots of effort can be productively made, by the government, related to housing it seems to me.
There are many things the Govt can do, but do they have the guts to do it?
1) Transport -- COE sys for 1, needs reforming for the interest of the middle-class. Many easy ways to improve the sys for the middle-class, but is the govt willing to disadvantage the elites?
2) Population -- More incentives can be given to increase birth rates of citizens, such as HDB flat discounts. But is the govt willing to invest in its citizens?
3) Health -- Public heath spending as a % of GDP is disgraceful. But is the govt willing to increase its overall spending beyond the historically low 17% of GDP?
4) Housing -- Our housing market is in a state of bubble, due to historically low interest rates. This is partly due to the govt needs to keep CPF rates low. Is the govt willing to look at measures to ensure a more sustainable housing market, such as a "housing loan tax"?
5) Economy -- Is the Govt willing to take a long & hard look at whether their strategy of "low wages, high rental" policy is sustainable? As Prof Lim pointed out, our wages as a % of GDP is embarassing. Yet we see many SME with super low margins due to the high rental, charges etc.
6) Free press -- Part of the country's problem is compounded by our low press freedom ranking. Is the govt willing to let the press play a more active & vigilant role in ensuring citizens' voices are correctly reflected?
7) CPF returns - Is the govt willing to index our CPF returns to inflation rates, such that savers are not unnecessarily penalised? Even Malaysia's EPF seems to give a fairer return to citizens. If so, there would be no need to increase the CPF min sums.
Except for point 5, I have little confidence that our govt has the will to solve these problems. Even on pt 5, we are moving far too slowly to tackle the drug overdose of cheap labour.
Where do you get 17% of GDP. That would be a huge amount. I would think Singapore only pays around 5%? total for health care. Only the USA is close to 17%, as far as I know. Maybe you meant 1.7%?
Why increase the birth rate of citizens - because they being swamped by others? Why not just reduce the inflow. It doesn't seem like many people think Singapore needs more people. Is it that Singapore needs more young people and if you stop foreigners from coming there wouldn't be enough young Singaporeans? That would be an issue, so then I guess I can see the reasoning.
I can't image "low wages, high rents" is really a policy. I am guessing some people see the policies as resulting in that? In many ways Singapore has raised wages quite a bit. Yes there may still be many low wage jobs. But there are lots of very highly paid Singaporeans. Many more than 40 years ago. And many mid level people, highly skilled factory workers, knowledge workers...
Press restriction is something I don't really understand now that Singapore is rich. In 1970 I could see why it might be valuable. For rich countries anywhere it seems to me a free press (even to do things that the government find very annoying) is very valuable. This is a political decision for the country to make though.
You are exactly right about the challenges to make companies profitable with high rents though. Some companies just really can't do it. They need to move work to Indonesia, Malaysia... or go out of business and then companies from those countries will do the work...
So are you working in SG or JB or where? And which country are you from since you mentioned health and retirement issues in so many countries?
How about job security? Do you think SG govt has done well in ths respect? How does it compare to your country of origin? Did you enjoy job protection from govt policies in your home country or are foreigners allowed freely to take away jobs in your country?
Anyway, to answer your question, some policies that SG government can and should copy from countries like Australia are:
a) strict policy to ensure companies have tried all ways before hiring foreigners. Not just some quota that is easily manipulated.
b) annual wage increment to follow annual CPI increase
c) CPF funds can choose other fund manager or even self managed like Australia superannuation fund, instead of compulsory managed by CPF giving 2.5% return
d) return the CPF lumpsum at age 55 and not delayed to 65 and only payout few hundred, this is people's own money
e) learn from Malaysia or any countries where public housing means for citizens only, not any PR can buy and take advantage to rent out while they retire in their home country
f) learn from China where car COE is based on ballot and free, not something to generate revenue for themselves
g) learn from China, Australia or etc that pays senior citizens a few hundred so that elderly no need to work as cleaners to earn the few hundred and be bullied for being slow
This is what i can think of offhand, perhaps other learned bros/sis can contribute more to educate you.
Good stuff. I like raising money on the rich to drive cars in order to fund public transportation but your way would be fine. Just everyone has to pay more taxes (or higher fees for public transportation if you don't soak the rich who buy cars).
Strict policies on giving jobs to citizens first would be like most countries on earth (especially rich ones). There are drawbacks though.
I, personally, would like a system that lets you manage your retirement assets. If you wanted have 1/2 in some government fixed fund and let people manage the rest. I doubt it works to let people take it at 55. If the actuarial tables said it would work, I would be fine with it.
