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Singapore is run very much like a company. Despite being a democracy, power very much lies in the hands of the government elite. Lee Hsein Long, the curent pr

by newy 16y ago

Singapore is run very much like a company. Despite being a democracy, power very much lies in the hands of the government elite. Lee Hsein Long, the curent prime minister, is the son of Lee Kuang Yew. Together, the Lees have been in power for 37 out of the 51 years of the country's existence. The People's Action Party has ruled since, well, the country started become self-governing in 1959. The government owns much of "private" enterprise. The current prime minister is married to the CEO of Temasek Holdings, a $100 billion sovereign wealth fund that is owned by the Ministry of Finance. It owns the largest companies it Singapore, including telecon, bank, Singapore Airlines, the media, electric. For good measure, they also own the zoo and 49% of Virgin Atlantic. The government also does a great job of recruiting talent. Males are required to complete military service - a way to build loyalty to the country and create disincentives for moving away. The government also hands out "scholarships" for US college education, but really these are loans that require one to return and work for the government for X years (5+? anyone at Stanford or Cornell + maybe others would know what I'm talking about). All this ends up in a country thats focused, prime and nimble for economic growth. Not sure if its a good or bad thing, but certainly interesting.

barmstrong 16y ago
I was surprised to see you say "The government owns much of 'private' enterprise". Singapore is known as one of the most economically free countries in the world, consistently outranking the U.S.: http://en.wikipedia.org/wiki/Index_of_Economic_Freedom_historical_rankings http://en.wikipedia.org/wiki/Index_of_Economic_Freedom_histo... One measure of the percent of private industry the government owns is the tax rate (just as an investor would earn a percent of profits based on his ownership, so does the government). As the article points out, Singapore's tax rate is 12% while the U.S. is 44%. You mention some specific companies which I'm not familiar with, but overall, wouldn't it be more accurate to say "the government owns the least amount of private enterprise compared to almost any country in the world?"
- avoidinglawsuit 16y ago
  "In 2008, The Economist reported that Morgan Stanley had estimated the fund's assets at US$330 billion, making it the world's third largest sovereign wealth fund." That's in addition to Temasek Holding's ~US$100 billion. http://en.wikipedia.org/wiki/Government_of_Singapore_Investment_Corporation http://en.wikipedia.org/wiki/Government_of_Singapore_Investm...
- Avshalom 16y ago
  I'm pretty sure Newy mean 'owns' in a pretty literal sense http://en.wikipedia.org/wiki/Temasek_Holdings http://en.wikipedia.org/wiki/Temasek_Holdings
  - barmstrong 16y ago
    Gotcha - yur right.
avoidinglawsuit 16y ago
Smurf account so I can write freely without risk of lawsuit. HN regular-ish (karma > 1k) and Singaporean. newy is very right with the summary above. Some points to add: "The government also hands out "scholarships" for US college education, but really these are loans that require one to return and work for the government for X years" The bond period is 4 years for local scholarships, 6 for overseas. "Males are required to complete military service" The conscription period is 2-2.5 years. Until you're age 40/50 (latter for officers), you are eligible to be recalled arbitrarily. This is typically 2-3 weeks a year. The company analogy is apt. It is most certainly not a democracy. There is no freedom of speech, no freedom of press, no rule of law. Some highlights: - NYTimes pays $114k damages and makes apology to Singapore's ruling family: http://www.reuters.com/article/idUSTRE62N26D20100324 http://www.reuters.com/article/idUSTRE62N26D20100324 - International Bar Association's report on how rule of law does not exist: http://www.ibanet.org/Article/Detail.aspx?ArticleUid=0081C460-4B39-4ACB-BB40-8303FCEFDB31 http://www.ibanet.org/Article/Detail.aspx?ArticleUid=0081C46... - very recent (July 2010): UK author of book on death penalty in singapore arrested for defamation: http://www.guardian.co.uk/world/2010/jul/18/singapore-british-arrest-alan-shadrake http://www.guardian.co.uk/world/2010/jul/18/singapore-britis... - citing anti-corruption, the government pays itself very, very well. "In 2008, the annual salary for entry-level ministers was $1,924,300." http://http://en.wikipedia.org/wiki/Cabinet_of_Singapore http://http://en.wikipedia.org/wiki/Cabinet_of_Singapore .
thewileyone 16y ago
Government elite? That just means the Lee Kuan Yew family in Singapore. Singapore has a very open and friendly economy because the Lee family will make money one way or the other in any enterprise in Singapore. Singapore also deals with countries like Myanmar; the junta leaders send their children to be educated and receive healthcare in Singapore. One of those dirty secrets Singapore doesn't want anyone to know.

by newy 16y ago

barmstrong 16y ago

I was surprised to see you say "The government owns much of 'private' enterprise". Singapore is known as one of the most economically free countries in the world, consistently outranking the U.S.: http://en.wikipedia.org/wiki/Index_of_Economic_Freedom_historical_rankings http://en.wikipedia.org/wiki/Index_of_Economic_Freedom_histo... One measure of the percent of private industry the government owns is the tax rate (just as an investor would earn a percent of profits based on his ownership, so does the government). As the article points out, Singapore's tax rate is 12% while the U.S. is 44%. You mention some specific companies which I'm not familiar with, but overall, wouldn't it be more accurate to say "the government owns the least amount of private enterprise compared to almost any country in the world?"

avoidinglawsuit 16y ago
"In 2008, The Economist reported that Morgan Stanley had estimated the fund's assets at US$330 billion, making it the world's third largest sovereign wealth fund." That's in addition to Temasek Holding's ~US$100 billion. http://en.wikipedia.org/wiki/Government_of_Singapore_Investment_Corporation http://en.wikipedia.org/wiki/Government_of_Singapore_Investm...
Avshalom 16y ago
I'm pretty sure Newy mean 'owns' in a pretty literal sense http://en.wikipedia.org/wiki/Temasek_Holdings http://en.wikipedia.org/wiki/Temasek_Holdings
- barmstrong 16y ago
  Gotcha - yur right.

avoidinglawsuit 16y ago

Smurf account so I can write freely without risk of lawsuit. HN regular-ish (karma > 1k) and Singaporean. newy is very right with the summary above. Some points to add: "The government also hands out "scholarships" for US college education, but really these are loans that require one to return and work for the government for X years" The bond period is 4 years for local scholarships, 6 for overseas. "Males are required to complete military service" The conscription period is 2-2.5 years. Until you're age 40/50 (latter for officers), you are eligible to be recalled arbitrarily. This is typically 2-3 weeks a year. The company analogy is apt. It is most certainly not a democracy. There is no freedom of speech, no freedom of press, no rule of law. Some highlights: - NYTimes pays $114k damages and makes apology to Singapore's ruling family: http://www.reuters.com/article/idUSTRE62N26D20100324 http://www.reuters.com/article/idUSTRE62N26D20100324 - International Bar Association's report on how rule of law does not exist: http://www.ibanet.org/Article/Detail.aspx?ArticleUid=0081C460-4B39-4ACB-BB40-8303FCEFDB31 http://www.ibanet.org/Article/Detail.aspx?ArticleUid=0081C46... - very recent (July 2010): UK author of book on death penalty in singapore arrested for defamation: http://www.guardian.co.uk/world/2010/jul/18/singapore-british-arrest-alan-shadrake http://www.guardian.co.uk/world/2010/jul/18/singapore-britis... - citing anti-corruption, the government pays itself very, very well. "In 2008, the annual salary for entry-level ministers was $1,924,300." http://http://en.wikipedia.org/wiki/Cabinet_of_Singapore http://http://en.wikipedia.org/wiki/Cabinet_of_Singapore .

thewileyone 16y ago

Government elite? That just means the Lee Kuan Yew family in Singapore. Singapore has a very open and friendly economy because the Lee family will make money one way or the other in any enterprise in Singapore. Singapore also deals with countries like Myanmar; the junta leaders send their children to be educated and receive healthcare in Singapore. One of those dirty secrets Singapore doesn't want anyone to know.