Wong Chun Han -
Used under Creative Commons licence
Singapore should cut its focus on economic growth and measure its progress with socio-economic indicators apart from the gross domestic product, a nominated member of parliament said Monday.
“The changed circumstances today require a broader framework where policy makers have the benefit of being prompted by socio-economic indicators other than GDP,” Mr Viswa Sadasivan told lawmakers in a speech during Monday’s parliamentary sitting.
Alternative indicators measuring productivity, job satisfaction, household consumption, income distribution, welfare, quality of life and general well-being could be used.
The government could collect information on citizens’ “priorities” to formulate these indicators, then use the social and economic indices to analyse the effectiveness of its policies, he said.
“Economic growth and general well-being must be seen as equally important societal goals…the end goal of economic policies should be to benefit the citizens and improve their well-being and give happiness.”
“It is difficult, even for the best intentioned policy makers to develop this reflex, if the GDP remains the default indicator.”
GDP – the market value of all final goods and services officially made within a country in a year – is a measure of a country’s economic output.
It is not a measure for standard of living, but is often used as such on the thinking that citizens would gain from their country’s increased economic production.
But Mr Sadasivan questioned the viability of such use.
“Used on its own, [GDP] can be a misleading indicator of economic progress and welfare of the individual Singaporean.”
“Some of the socio-economic dysfunctions we see in Singapore have been exacerbated by a combination of a strong focus on GDP growth and the inherent limitations of and the skewing effects of the GDP figures,” he said.
He noted that the use of GDP masks the fact that many Singaporeans are not benefiting from the growing economic output, and also does not reflect the growing income gap.
For instance, profits account for 46 per cent of Singapore’s GDP – much higher than in other developed economies, he said, adding that half of this profit goes to foreign-owned companies with local operations, so Singaporeans do not benefit much from it.
Citing Singstat figures, Mr Sadasivan noted that Singaporean workers’ wages account for only 43 per cent of GDP, while in other developed countries wages take up more than 50 per cent, like in the US (58 per cent) and Japan (57 per cent).
Singapore is also one of the most unequal societies with a Gini coefficient of 48.10 (out of 100; the higher the number, the more unequal the income distribution), according to the CIA World Factbook.
Income inequality is greater here than in Asian countries like China, Malaysia and the Philippines, and is similar to that of many under-developed countries, Mr Sadasivan said.
Focusing solely on economic growth also generates social and ecological costs, such as poor work-life balance, high stress levels and low job satisfaction, he said, citing several studies.
For example, a 2007 Grant Thornton study said Singapore had the sixth most stressed population globally, while a 2009 Robert Half Singapore survey said Singaporeans had the second lowest job satisfaction level worldwide – only 53 per cent.
Another downside is the loss of “peripheral vision” in policy making, resulting in “short-sightedness that could lead to short-cut solutions,” he said.
“Take the policy of importing foreign workers in large numbers into Singapore.”
“Yes, our GDP has risen as a result of this policy – but it has, over the years, systematically depressed wages of lower-skilled workers, caused a surge in rental costs, and contributed to inflation.”
To keep policy makers focused on the importance of meeting social objectives, formal measures have to be created, Mr Sadasivan said.
“If we do not develop a formalised framework for analysis, these other indicators will continue to play second fiddle to GDP, instead of being considered together…with the same level of importance.”
He also stressed the importance of increasing the transparency of Singapore’s performance in the new social indicators – possibly via quarterly reports.
This will “provide greater clarity in policy formulation, resulting in policies and programmes that resonate better with the ground,” he said, adding that the government should not shy away from increased public questioning that is likely to result from greater transparency.
“This inconvenience must be seen as an investment in building trust between the government and the people, and evolving a more engaged society.”
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This is good. Finally someone provide some wise insights to our stupid and daft ministers in Parliament. Hope there will be more active discussions in parliament with regards to this. Viswa Sadasivan is a good NMP.
PAP ministers focus on the GDP not because they are concern for the welfare of ordinary Singaporeans.
Rather, they focus on the GDP focus because their bonus is tied to the GDP figures. Their bonus can be many months their monthly salary.
Without the GDP figures and big salary they may give up being ministers. But we can be sure that with their calibre the truly private sector may not even pay them one-tenth of what they get as ministers
i agreed that our policy makers (aka politicians) are too narrow minded and focus on GDP growth. To the extend of bring in foreigners to boost the short term growth.
May i ask the famiLees, the papayas, what growth areas are you incubating for the present/future singaporeans?
I can’t speak for every1 in singapore, however i only want a decent economic growth. More important is the well being of us, singaporeans, remember. Nice fresh air would be good, compared to more concrete buildings >.<
I can accept a decent pay, enough to feed my family sufficiently, enough savings for some sort of retirement.
Why on earth people want to stress their lives to work for that extra little money, only to grey their hair faster, spend more money on medical bills?
PAP is only happy when they keep on making more and more money, the peoples’ happiness are not important. PAP only wants the people to make money and babies for them to make more money.
Common Singaporeans are not so concerned about our overly mastered GDP growth, but are in fact more worried day by day with high cost of living.
With government ugly focus on unhealthy policies/ practices to push country forward, true pride of Singaporeans are diluted by such meaningless/ short-sighted success.
Focus on GDP is the justification of the humongous salaries & bonuses paid out yearly.
We have reached saturation point where we are the best in almost everything we do and the present Singaporeans which help build Singapore should be the focus and the generation after even though they are not producing to replace the population.
What is wrong with a population of 4-5 million true blue Singaporeans and a sprinkling of TRULY talented FTs to fill the gap???or Rich & Famous people willing to sink their roots here without being a burden???
Is it not time the well paid Ministers should be taking care of the well being of its citizen instead of caring for others who would not cry for the Nation and making them cry for those who cares for the Nation???
Singapore’s approach has never been ‘GDP growth at all costs’: Dr Amy Khor
By S Ramesh | Posted: 19 July 2010 1928 hrs
SINGAPORE: Nominated Member of Parliament Viswa Sadasivan has filed a motion that policymakers should look beyond GDP as a measurement of the country’s well-being.
Moving the motion for adjournment at Monday’s Parliament sitting, Mr Sadasivan said changed circumstances today require a broader framework which looks at non-economic factors.
These could be being able to fulfill aspirations, work-life balance, or just being happy.
For the middle and lower income, it could be buying a flat, or the rising cost of living.
Replying government feedback unit, REACH chairman, Dr Amy Khor stressed that Singapore’s policy has never been a “GDP growth at all cost” approach.
She says a responsible government takes a balanced approach towards developing a country.
This means taking a holistic account of economic, social and security needs for the benefit of citizens, so that progress is broad-based.
Dr Amy Khor, Chairman, REACH, said: “Even as we debate the pros and cons of various indicators to reflect our socio-economic conditions, we must not forget that indicators are what they are described to be — signs and pointers.
“It is a challenge to develop indicators that accurately or unambiguously capture a particular state of affairs in the socio-economic realm, or the outcomes of a policy at any point in time. Hence, it is important that we do not skew behaviour or encourage short term outlook by over emphasising the use of indicators.
“Government policy-making must instead be anchored in a clear understanding of reality, and cannot be driven by short term measurement of indicators.”
- CNA/jm
GDP if more than 10%, Minister’s bonus is 7 months. What does that work out, or, say a $2mil a year minister? Of coz greed will prevail, and thats the stance taken by the PAPayans. The losers? Its obvious.
“Replying government feedback unit, REACH chairman, Dr Amy Khor stressed that Singapore’s policy has never been a “GDP growth at all cost” approach.”
Of course not. But PAP’s policy is.
“Government policy-making must instead be anchored in a clear understanding of reality, and cannot be driven by short term measurement of indicators.”
And how is using only GDP, a reflection of the above? Isn’t the importing of FW to boost GDP in the short term exactly that?
If the government is sincere about caring for its citizens, then ministers should reduce their salary by 80% and ban the practice of paying pension to ex-ministers.
It’s really good to have alternative voices in the parliament but what the fvck is the use if his input is but mere noise, easily deflected by the snores of other “official” MPs?
We need a real opposition force in there. Mr. Sadasivan would do Singaporeans a good deed by offering to renege on his NMP position and formally join an opposition party pre-election.
I’d like to know what is the average income to HDB housing price ratio in the 70′s, 80′s and compared to now.
I wouldn’t be surprised if we are doing worse off than before in this aspect.
Finally, someone with brains speaks up. But with all the dimwit MIW as an audience, it’ll fall on deaf ears I fear. Besides, its not in the PAP’s interest to broaden the measures.
When is the deadline for the election anyway?? I’ve been waiting for sooo long.
I appreciate Mr Sadasivan’s effort in point out the importance on focusing on socio-economic indicator apart from GDP. Unfortunately, PAP will be adamant and probably would not listen to suggestions by “mere NMPs”. That’s how arrogant PAP.
I quote Lim Swee Say’s famous quote, “We are deaf to all these criticisms.”
If the PAP government approach is not GDP growth at all cost, then why is the PM allowing 100,000 foreigners into the country ? Is Amy Khor trying to contradict the PM ?
for those who wants to read the complete transcript of this excellent speech
http://harishpillay.livejournal.com/171406.html
30 years ago, in early 1980s, I was drawing a pay of S$2,200/= pm and was able to afford a 1,000cc 5-year car worth about S$14,500/= and buy a 5-romm hdb flat at $78,000/= using my cpf alone!!
Whats all the use of GDP?? Finally, does the profits enter the pockets of the ordinary citizens? If not then whose??
30 yrs ago is 30 yrs ago, mata still wearing shorts, ur 2.2k salary should be equivalent of 5.5k now. And bought a luxury item like a car. The car might still be worth about there.
u are comparing singapore which is a devloping country in 1980s compared to now.
The ministers’ and senior civil servants’ salaries and bonuses are basedon GDP growth, so naturally they have strong vested increase in this number alone. Thus, the “GDP growth at all cost” policy is just a manifestation of their remuneration structure.
Yes, the mindless import of foreign labour is nothing more than short-sightedness and short-cut “solution”. It leads to immediate GDP growth, but imposes a far far greater social and econmic costs.
Amy Khor: “Also, the Government does not hold down, deliberately or otherwise, wages. Indeed, it is not possible for us to artificially raise or lower the wages of our workers.”
LIE LIE LIE. Bringing in 100,000 Foreigner workers is precisely an attempt to artificially lower the wages of our workers by introducing cheap labour into the market.
Amy Khor: “To do so would distort the market and eventually lead to perverse outcomes.”
So! The PAP knows full well what it’s policies are doing.
Singapore is the best place to be poor, if you are not poor, the PAP will help you to be poorer and poorest.
If you want to be happy in Singapore, you must go to East Coast Park. You can die happy there.
WELL SAID, MR Mr Viswa Sadasivan .
SG now is too distracted by the GDP figures that indirectly neglected the sentiments of its people.
Without People, there won’t be a government. Hence, by manipulating with statistics would greatly compromised the actual needs of the ground.
Its like you never experience yourself, how would you know ???
I WOULD STRONGLY BELIEVED THAT FOREIGN INVESTMENTS BENEFITED THE MOST now with the aid of lower-cost labor available from neighboring countries.
I’m also sad that we must accept another 100 000 foreign workers in where our GDP are growing steadily.
A low-labor investment helps keep businesses here more competitive BUT could also DEPRESSED the locals demographically.
SAD.
in order to veil the ugly truths of their misdeeds,this gvt is merely covering it all up with some look good gdp number that does not,at the same time,spells any good to its resident-workers.
many rational minds must be wondering why this great gdp number does not relate to a better will-being of the citzenry but in fact,make more singaporeans out of jobs.
gdp is just a number and much more so in a no-question asked country like Singapore.
Focus on GDP is good politics. If GDP goes up means PAP is very good. If go down just blame the whole world, it can’t be helped. PAP look good all the time.
Maybe Mr Viswa can consider working for NGO instead, but the pay is low. Or continue and let PAP MP tekan you, but got better pay.
What Viswa said is good and I hope that the pap ministers agree with him and make some U-Turns in their bad policies. What he said is common sense and is basic economics. It puzzles me why the pap ministers cant see it
Did Lee Kuan Yew imply “growth at all costs”?
http://app.mfa.gov.sg/pr/read_content.asp?View,7668,
‘The key is having a good government which will get its policies right, to encourage economic growth.’
‘Once you have growth, all problems can be managed. When you have no growth and you have unemployment and no jobs, then all problems become intractable,’ he said.
GDP is only an effective indicator for our MPs salaries. Expect their pay to rise again soon!!!
With the 100,000 foreigners coming into the country and the hundreds of thousand of foreigners already in the country, the PAP government is in fact looking after the interest of these foreigners instead of born and bred singaporeans. Boosting GDP is just an excuse for the government to bring in 100,000 foreigners to drown the voices of true singaporeans so that their voices will not be heard in parliament.
GDP growth should be seen in the context of the size of the country.
Unlimited, continuing, rapid growth is fine if you are Australia, Indonesia or even Malaysia. But in Singapore, we are limited to just 710 sq kms (a large part of that removed from habitation by the water catchments, SAF training grounds, golf courses and the like). Possibilities for further land reclamation are limited. The kind of breakneck growth that we have had over the past four decades will, if pursued at the same rate, result in a population of 8 million people causing overcrowding, pressure on every type of public and private service and deterioration in the quality of life.
Here is what Robert Kennedy had to say on the subject way back in 1968:
“Too much and too long, we seem to have surrendered community excellence and community values in the mere accumulation of material things. Our gross national product … if we should judge America by that – counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts the destruction of our redwoods and the loss of our natural wonder in chaotic sprawl. It counts napalm and the cost of a nuclear warhead, and armored cars for police who fight riots in our streets. It counts Whitman’s rifle and Speck’s knife, and the television programs which glorify violence in order to sell toys to our children.
“Yet the gross national product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans.”
Robert F. Kennedy Address, University of Kansas, Lawrence, Kansas, March 18, 1968
Importing cheap foreign labour is a short term solution that will bring long term societal problems, just like the “Stop-at-Two” policy.
The better way is to tackle labour costs rationally and truthfully rather than to rely on pseudo, short term solution like cheap foreign labour to look good and pass the problem to the next generation
It is not GDP, stupid. It is GDP accrueing to Singaporeans instead of 76% or more to foreigners and foreign businesses and padding up the thickness of the wallets of the political class.
MP Amy khor was trying to bluff her way out NMP SADA was trying to raise problem regarding singaporeans but kaypoh amy khor and mediacorp just cut him off lie that
it seems our MP of singapore is presenter may wong who present the news to us as if we are small children
Kudos to NMP Viswa Sadasivan for raising this issue. Sadly and unsurprisingly, the minister for finance and even the prime minister have not deem it fit to speak on this, instead relegating it to a lowly mp.
I don’t think you will see much of NMP Viswa soon…Look like he step on quite a few toes by bringing up the Golden Goose…GDP…and questioning it.
I sincerely hope more than 1 decent MP will be on his side, but I think blood money$$$ is thicker than water.
I agree with some here.
GDP is not as meaningful to me as :
1. Quality of Life,
2. Affordability of Living
3. Job Security
Congestion, noise and pollution and job insecurity. Whats the use?
I prefer the good old days of the 80′s-90′s.
I am sure many of you know what i mean.
More good years?
My decision is made.
Didn’t the MP Mr Inderjit Singh also spoke about this at a parliment session?
There will be no more good years as all the figures are drummed up.
Was at a eating place at Race Course Road for lunch today and Enviroment Minister, Yakob Ibrahim and 3 other men turned up. Then it rained cats and dogs for about 45 minutes. Guess what he stayed until the rain ended. I was hoping for it to flood and would have asked him for a boat to get back to office!!!
Dr Amy Khor – ““Government policy-making must instead be anchored in a clear understanding of reality, and cannot be driven by short term measurement of indicators.”
What reality is she talking about ? Get a reality check, please. The present govt has clearly no inkling of ground sentiments. To continue mass influx of 100,000 foreigners despite native already suffering from depressed wages, cramp living environment and increased competition for even lower wages is just killing everyone.
Singaporeans are paying a very heavy price for having opted to have a one-party sytem where the is lack of trasnparency, lack of responsibility, lack of equity and lack of sense of justice.
Besides the claims of GDP in the past as well as now and the futurizing – till today there has never been independent verification to these statistics or what-have-you. Extrapolate to HDB,CPF, Transportation and Health – the same bullshitting! A conniving main stream media is of no help n better to label it as lame media.
I doubt it would have regressed to such a state of sorry affairs if it had been otherwise – a two-party/proportional representation or multi-party.
We can cajole, complain, whine but nothing doing lah. The damage is done and the only solution is for the masses to summon courage with conviction to end this tale of tyranny and greed for power n $$$.
As long as one single individual votes for PAP – it is adding to the misery and suffering and also perpetuating the ‘tyranny’ of this self-serving lot.
20 yrs ago when i first started work, my situation as follows, and I can afford it without any problem.
Salary, $2000
Brand new Honda Accord, $38000
HDB Exec Apmt in Hougang, $148000.
Now:
Salary, $2850 (dont know why)
Parallel Import Honda Stream, $100000
HDB 4 Room flat in Punggol, $400000.
See the disparity? Who gets to benefit? Definitely no you or me, but the multi-million dollars ministers.
Stop dreaming everyone, the overriding aim is to grow GDP by 3-5% each year. So what there’s flooding in Orchard road, TFR are hitting rock-bottom, there is growing underemployment of PMETs, etc…?
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Don’t believe the shit Amy Khor sprouted, or the ‘overheating’ froggy-style tale by LHL. The reason is actually very simple:
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– Adding 100,000 workers each year means a 2% rise in our population. It doesn’t matter whether foreigners or locals.
– Since SG wages is about 44% of GDP, so injecting additional 2% labor/wages means 4.55% GDP growth.
– Note the 100,000 are working adults, not population of which some does not generate GDP. So expected GDP growth would potentially be higher than 4.55%.
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So how to ensure KPI of 3-5% GDP growth (& bonus in pocket)? Need a monkey to solve this? Which part of “Singaporeans First” is in the equation? Where is the part of helping Singaporeans achieved life balance (& hopefully have more babies, and be filial children to grumpy old parents?) Why they foretold us that overcrowding in SMRT/SBS ‘can’t be helped’?
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PS: Can someone provide another source for the wages% of GDP in Japan and USA? I thought they were above 60%.
Singapore’s GDP was built gradually with the team of 65 and its people.A fair and just distribution was implemented across the board with ministers and key players retiring humbly with enough to sustain them for the rest of their lives.
Three exemplary ministers in the likes of Raja,Hon,and GDP architect GKS not forgetting others.
Todays ministers peg themselves to the GDP for their humongous salaries and bonuses and still seeking for more to maintain their lifestyles at home and abroad while the ordinary are struggling to make ends meet and the poor and less fortunate are left to their fate.What shit is Amy talking about????
To talk about pay, the President of America only get a fraction of what our ministers get and yet he got tonnes of responsibilties to solve, no time for leisure.
http://theweek.com/article/index/205136/obama-master-of-the-speed-vacation
Even on vacation with his family, he works non-stop. He is worth every penny of $3m in salary per year. Some americans will even complain that he is not doing his job well. then wtf are the old man and his son? He is damn lucky that s’poreans are timid, selfish and totally not vocal. The monkeys will never last more than 6 months in politics if set in an american society. btw obama’s salary is US$400k per yr or less than S$700k.
Why is anyone surprised by the obsession with GDP? it’s just a natural progression from the nationwide obsession with grades. and GDP, is pretty much the ministers’ grades.
This pursuit of GDP growth is like taking opium, like a marathorn race, you have to keep going at a pace, and once you stop, you just collapse on a heap.
I do not want to collapse with a stroke or a heart attack.
Anyway, the Ministers are obsessed as their pay increase is directed linked to it. I do not want to be fool to be made used of to increase other peoples’ pay.
My health and mental wellbeing are priceless.
People please wake up! this is all a BIG DRAMA for the coming GE…..
guys, i have a surprising finding.
since about 10 years ago, i told myself, my decision is made. I will vote for opposition.
Till now, today, i am still just as determined.
wow, does that not speak volumes?
dig a road,fill it up;dig again,fill it once more!
repeat procedures a hnudred times over and you balloon your gdp!
bravo!bravo!
there are so many ways the miws apply to increase gdp but all of no value-add in actuality.
what is gdp to the common citizens when he is jobless and penniless?
what are these supposedly responsible smart people babbling about?
tiem for them to learn how to do some straight talking instead of side-stepping.
Someone commented that foreigners help generate jobs for Singaporeans.
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Then Pinoys/Blangas need not come to SG; can stay at home, import foreigners instead and jobs should come to them.
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In SG context, thinkin’ all nite to find rationale for such profound wisdom. Then, of course:
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1) many FWs need getting around on back of pickups. Rental & sales of pickups then increased. Those in auto industry very happy.
2) talented FT painter helped security sector. More CCTV need to be installed around sensitive installations, more foot patrols by police. Hurray more jobs!
3) FW pickup driver and crane operator cause unfortunate and unnecessary deaths. The upside? — undertakers gets a boost in business.
4) More FW means more processing of work permits, levies collection, rental of living quarters, eating expenses, etc. MOM then needs to hire more ppl with increased workload.
5) Foreigner labour boosts GDP. Ministers (all are S’poreans) get their bonus – ‘Singaporeans’ (all are ministers) very happy.
6) One foreigner (MKS) also showed that the employment & deployment of 1000′s of our servicemen/police can be justified.
7) Construction industry require more safety officers due to low-skill of increased workforce.
8) Language proficiency training centers got a $10m boost from MCYS to help integrate foreigners with English skills.
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Yes, more jobs indeed for S’poreans…? WTF.