RiskandOpportunityofTransparency&AccountabilityinSingapore

Singaporeexperiencedhaze,asystemicrisk,fromIndonesialastyear.Eventurningonthelight,therewasnoclearskythen.Inreality,theislandstateisfacingtransparentriskasdecisionsareconcentratedonafewpersons. Singaporewillbecelebrating50yearsofindependencenextyear.Hereconomicsuccessseemstoberiskfreeandhasbecomeadevelopmentmodelintheworld#0.However,doesthecountryhavesustainabilityissues?

Lowtransparency HighAccountability

ForSingaporeans,riskisapossiblelossifthereislowtransparency.

Opportunityisapossiblegainiftherearemore

accountability,checksandbalances.

WorldDevelopmentReport2014highlightsseveralrisksthatSingaporeisfacing.Thecentralbank(MonetaryAuthorityofSingapore)isnotanindependentbody.Thegovernmenthasfullcontrolofmonetarypolicywhichemphasizesgrowthandcareslessaboutsocialsafetynet. TherulingPeoplesActionPartyhasbeeninpowerformorethan50yearsandalleconomic,socialandpoliticalpoliciesarebasedontheprincipleofutilitarianismandpragmaticapproachoftradeoffandcostsandbenefits. TheWorldBankreportalsocallsforanindependentfiscalcounciltobesetup.Veryunlikely,Singaporegovernmentwillbuythisidea.Infact,veryfewpersonsknowabouttheactualvalueofthereserveeventhePresident#1whoholdsthesecondkeyforreservedidnothavethefullpicture. Frommonetaryandfiscalpoliciestoreserve,sovereignfunds#2andCentralProvidentFund(pensionfunds)#3,

Singaporesfutureischallengedbyhazewithlittletransparency,checksandbalances.Theriskisfurtherworsenedbytheinformationandmediacontrol.Beingoneoftherichestcountriesintheworld,Singaporespressfreedomranksamongstthelowest#4.ToimprovetheriskmanagementinSingapore,thegovernmentwillhavetobeopenandtransparent.Itcannolongerimplementpolicieslikebefore.Greateraccountability,checksandbalancesareneededtomanagetherisksandopportunities.SingaporeinthepasthasstressedtoomuchononepartysopportunitiesandignoretherisksfacedbySingaporeans.TheReportstressesriskmanagementcansavelife,preventcrisisandunleashopportunities.

BasedontheWorldBankReport,Singaporeislikeadevelopingcountry.TheReportsaysthereisanabsenceofimportantsafetynetandinsurance,includingmedicalinsuranceandbasicfinancialassistances,inpoorandlowerincomecountries.

ThelowerincomegroupnotedintheWorldBankReportisthemostvulnerableoneandsuffersthemostunder

shocks,eitherhouseholdorsystemicrisk.Singaporespragmaticapproachhasofferedlittlehelpstothelowerincomepeopleastheirwageshavebeenfrozenformorethan10years#5. RiskManagement

ThepastsuccessmodelofSingaporedevelopmentneedsfurtherexaminationundertheWorldDevelopmentReport2014sriskmanagementframework:

Knowledge:Underacontrolenvironmentandlackoftransparency,itwillbedifficulttoassesstheuncertainties,riskandopportunitythatSingapore

faces.SincetheestablishmentofCentralProvidentFundin1955,Singaporeansuntilnowstillfindithardtounderstandtheoperationsofthefund#6. Protection:Protectionframeworkisdesignedbyonepartywithoutaccountability,checksandbalances.TheprobabilityoflossesandgainsissolelydecidedbythegovernmenteventhePresidentmaynothaveafullpictureofthereserve. Insurance:Transferandfairdistributionofresourcesisbasedonpragmaticapproachofnofreelunch,tradeoffandcostsandbenefits.Untilrecently,underpoliticalpressure,thegovernmentstartstorolloutuniversalmedicalinsuranceandcashcoupons.However,richpoorgapremainsoneofthehighestintheworld#7.Coping:ThepreparationtoequipSingaporeanswithknowledge,protectionandinsurancehasfailed.Itisonlyprovidedanddrivenbyonepartywithlimitedpublicparticipation.Coping,inthiscircumstance,canonlyfollowthepreparationwithlittleflexibilityandadjustment.

TherisksandopportunitiesinSingaporeareuniqueanddifferentfrombothdevelopedanddevelopingcountries.Thegovernmentwantstocontinueherpragmaticapproachwithlimitedtransparencyandaccountability.TheybelievetheyaredoingthebestforSingaporeans.Thequestionisisitthebestforthepartyorforthepeople?Thedebatecontinues...

Singaporehasgoodinstitutionsandexpertisestoengageinriskmanagement.Theonlyshortfallishowtoimprovetransparencyandaccountability.Morehazierdaysareexpectedifthesituationremainsunchanged.

Notes:#0http://www.channelnewsasia.com/news/singapore/singaporeshealthcare/1271336.html#1http://app.mof.gov.sg/reserves_sectiontwo.aspxQ18onvaluationofphysicalassets#2http://dr.ntu.edu.sg/handle/10220/4542http://www.swfinstitute.org/swfs/governmentofsingaporeinvestmentcorporation/http://www.swfinstitute.org/swfs/temasekholdings/#3http://mycpf.cpf.gov.sg/Members/home.htm#4http://en.rsf.org/singaporegovernmentsubjectsnewswebsites30052013,44689.html#5https://sg.news.yahoo.com/1000minimumwageschemeas%E2%80%98lastresort%E2%80%99forwageshocktherapylimchongyah.html#6http://www.todayonline.com/singapore/whyitssohardsporeansunderstandcpfhttp://news.asiaone.com/news/singapore/manyunsureaboutcpfcpflifedetails#7http://www.straitstimes.com/breakingnews/singapore/story/richpoorgapnotcausedrecentgrowthstrategiesdpmtharman20130824http://globalvoicesonline.org/2013/10/26/singaporerejectsproposaltodefinepovertyline/