AQ - Features of SG

AQ – Features of Singapore Society “I am accused often enough of interfering in the private lives of citizens. If I did not, had I not done that, we wouldn’t be here today” – Lee Kuan Yew ( National Day Rally in 1986) Note: This list is non-exhaustive; you should update your notes with the latest developments and issues featured in Singapore news. Only use relevant issues / illustrations and policies in your response when they relate directly to the points you have identified from the passages. Descriptors Relevant illustrations / policies Economy - Singapore’s economic prospects are tied to the availability of a highly-skilled workforce given our scarce natural resources. - this has led to a reliance on foreign talent, as well as low- skilled migrants. - At the same time, it necessitates an emphasis on developing human capital (link to education / meritocracy) and the need for constant upskilling and innovation. - there is a reliance on trade / open markets (Singapore has a free-market economy with minimal trade barriers, making it one of the most open economies in the world). - business friendly regulatory environment (low tax rates) and a highly attractive investment climate, which has resulted in large inflows of FDI from global investors and MNCs over the years. - highly developed and diversified economy - state capitalism (the government plays a significant role through sovereign wealth funds like Temasek Holdings and the Government of Singapore Investment Corporation (GIC). These entities hold majority stakes in several of the nation’s largest companies, such as SIA, Singtel, and ST - Engineering. - Singapore is one of the leading financial centers globally, with a robust banking sector, active stock exchange (SGX), and a wide range of financial services. The economy is highly diversified, with key sectors including manufacturing (particularly electronics, pharmaceuticals, and chemicals), financial services, information technology, trade, and logistics. - The Asia-Pacific Economic Cooperation (APEC) is headquartered in Singapore. - Singapore offers one of the most competitive corporate tax regimes in the world, with a headline rate of 17%. There are also various tax incentives for businesses in key sectors, such as manufacturing, finance, and biotechnology. Singapore ranks consistently high in the World Bank’s Ease of Doing Business Index. The country has streamlined procedures for starting a business, often allowing companies to be registered within a day. The government provides various grants and incentives to support businesses, particularly in innovation and productivity. For example, the Productivity and Innovation Credit (PIC) scheme offers tax deductions or cash payouts for businesses that invest in activities like R&D, automation, and employee training.

- fosters innovation and the adoption of technological solutions (Singapore invests heavily in R&D, particularly in high-tech industries, biotechnology, and digital technologies.) - high cost of living - competitive work culture - Skilled Workforce Development - Through initiatives like SkillsFuture, the Singaporean government promotes continuous education and skills upgrading, ensuring that businesses have access to a highly skilled and adaptable workforce. - Smart Nation Initiative Transforming SG Through Tech (smartnation.gov.sg) - Singapore has an extensive network of Free Trade Agreements (FTAs) with more than 25 countries, including major economies. Singapore is also a proactive member of regional and international trade organizations, such as the Association of Southeast Asian Nations (ASEAN) and the World Trade Organization (WTO). - In April 2013, the country was recognised as an increasingly popular tax haven for the wealthy due to the low tax rate on personal income, a full tax exemption on income that is generated outside of Singapore. Australian millionaire retailer Brett Blundy, and multi -billionaire Facebook co-founder Eduardo Saverin are two examples of wealthy individuals who have settled in Singapore. Chinese Media TV celebrities Jet Li and Gong Li have also taken up naturalised Singapore citizenship. - Singapore has one of the highest Gini coefficients among developed countries (0.371. in 2023). Wealth is heavily concentrated at the top, with the richest 10% of households holding a significant portion of the country’s wealth. - According to a 2022 report by the Ministry of Manpower (MOM), the average weekly working hours in Singapore were about 44.9 hours. This is higher than the average in many other developed countries. Singapore often ranks low on global indices measuring work-life balance - in a 2021 study by Kisi, Singapore was ranked 41st out of 50 cities for work-life balance, highlighting the long hours and high levels of stress faced by employees.

Policies / Political System / Governance - pragmatic and interventionist policies (the government intervenes extensively in areas such as population control, housing, education, medical and health services, compulsory savings, industrial relations, wage policy) - paternalistic government (the government takes an active role in guiding society and making decisions that it believes are in the best interest of the country and its people. This includes managing social behavior and promoting certain values.) - authoritarian, centralized power, heavy-handed approach to governance - secular state – religious groups have no influence on the decision-making process - single-party dominance yet contradictorily, this has been accompanied by a high degree of trust in the government, although the younger generation is arguably more questioning - rule of law (Singapore places a strong emphasis on the rule of law, with strict enforcement of laws and a robust legal system. This contributes to a high level of public order, safety, and low corruption rates.) - conservative (Singapore’s governance model prioritizes stability, tradition, and social cohesion, reflecting a blend of Confucian, Asian, and pragmatic principles. This has helped to create a society that is orderly and prosperous, though it also means that certain freedoms and liberal values may be more restricted compared to other developed nations) - meritocratic (leaders and public officials are selected and promoted based on their abilities, achievements, and potential, rather than on connections or favoritism. Strict laws and enforcement ensure a clean and transparent - The government is able to implement policies effectively, thanks in part to the absence of a true parliamentary opposition and the PAP’s dominance of almost every aspect of the country’s political, military, and economic life. - At the 2020 general election, the PAP was returned to power but with a nearly 10 percent reduction in vote share compared to 2015. Younger voters increasingly demand fairness and transparency and desire to see a stronger Opposition in parliament - Under the Maintenance of Religious Harmony Act of 1990, religious leaders and groups are not even permitted to comment on political issues - Singapore’s social security system relies on individuals having mandatory savings, which are then managed and invested by the Central Provident Fund (CPF). This provides income security for retirees in their post-working years without placing an excessive fiscal burden on the state. Similarly, the health care system is characterized by a pragmatic mix of personal payments, limited national insurance coverage, and employment-based health care benefits. - “The Social Compact” – government leaders emphasize the necessity for “reservoir of trust” between government and people. This means that bitter pills, policy-wise, can be swallowed, understood, and accepted by the people, partly on account of the Party’s track record