Then pray tell how do the Japaneses, Swedes, Koreans, Canadian,... manage to compete globally

These countries believe in citizens first.
Don't you think a gov't has to look after own it's citizens first? If they ignore this responsibility then why should Spore citizens have "a duty" to do NS?
If you are going to argue for an open system based on merit then abolish NS, or apply NS to foreigners. Spore gov't should not be subsidising foreigners with freebies like scholarship, housing subsidies, allowing them to cut queue,...
The jobs of running Spore should also be open to any capable Sporeans. Why should LKY & his family be allowed to fix the system? Do you really think it's good value for money them to receive all those millions $$$.