II Good Governance Notes

Why is governance important?

Policy Process: Formulation and Implementation

                    • Meeting the needs of the people and nation, using the transport policy as an example to examine:

                - principles of governance

                - roles and responsibilities of the legislature, executive and judiciary

                - role of media and feedback channels in the policy process

• Case study of Singapore’s population policies to examine policy changes over time

                - population policies from the 1970s to the 21^st century

                    - challenges of and responses to ageing population and declining birth rate

Similar Problems, Different Approaches

• A comparative study of public health care policies in Singapore and United Kingdom

                - how policies work in different countries

                - impact of policies on society and nation

Factors for sustaining good governance in Singapore

• Anticipate Change and Staying Relevant

A good government also needs to be forward-looking. A forward-looking mindset anticipates future challenges and needs. This prepares the country for changing times and helps Singapore remain ahead in a competitive global economy. NeWater and desalinated water are examples of how the government prepares for the future by ensuring self-sufficiency in water supply, a resource important for the survival of Singapore. The reason being, Singapore has long depended on Malaysia for its water supply and its two water agreements with Malaysia will end in 2011 and 2061. It is thus important for Singapore to look ahead and look for alternative sources of water to reduce its dependence on Malaysia so as to ensure that the country is not left stranded and vulnerable if Malaysia decides not to renew the two contracts, thus hindering Singapore’s development, progress and survival.

Another example of how the government anticipates change and stays relevant is the implementation of the Electronic Road Pricing (ERP) System. Although the Area Licensing Scheme (ALS) had been effective in controlling traffic flow in designated areas, the government anticipated future needs and took a step further in looking for improvements to the system. The labour-intensive ALS was replaced by the ERP system. Although both serve the same purpose, the ERP which uses up-to-date technology to monitor and regulate traffic flow was more efficient and effective.  

Another example of how the government anticipates change and stays relevant is the decision to build two integrated resorts at Marina Bay and Sentosa not just to keep abreast of competition in the tourism industry in the region and to capture the growing tourist market but also to provide jobs and to make Singapore a more exciting city.

Thus being forward-looking has helped the government to secure long-term commitment that will ensure that Singapore’s development can continue unhindered and help Singapore to stay competitive in the global economy.

• Leadership is Key

Good leadership in the government is also a key principle of good governance in Singapore. There is a need for honest and capable leaders to maintain stability in the government and to make the right decisions for the country. These leaders also had to be talented, with a good foresight and vision for Singapore, understand Singaporean’s needs and aspirations, and can work together as a team. They must also have the moral courage and integrity to do what is right and not what is popular with the people.

An example was in 1985, as a result of its open economy, Singapore experienced a serious recession which resulted in high unemployment. The government responded quickly to this crisis by a series of bold and unpopular measures that were aimed at quickly lowering the cost of doing business in the country. Such policies include reducing company taxes, wages and employers’ CPF contributions. These measures were bold because they reduced the government’s revenue and the employees’ income. Workers were unhappy but with the help of NTUC, they realized that the measures were needed to strengthen the economy. The policies were effective because within two years, the economy recovered.

Another example is the introduction of the Vehicle Quota system (VQS). Although the VQS was unpopular with some of the people, the government went ahead to implement it as it needed to control the growth of the car population.

The government thus needs to select its leaders very carefully, grooming them to take on leadership roles. Leaders who proved to be capable were given senior positions to test their ability through their rotation of duties in different government departments.

Good leadership ensures that Singapore continues with its path to economic success. This is because good leaders make wise and correct decisions based on sound principles. The latter will help to win the trust and support of the people for its policies and plans. It will also win the confidence of foreign governments & investors.  In turn, this will bring in increased foreign investments, success and growth to the economy.

• Reward for Work and Work for Reward

Meritocracy is a key part of the principle “Reward for Work and Work for Reward”. It refers to a system that rewards hard work and talent. Meritocracy helps to give everybody in society an equal opportunity to achieve their best and be rewarded for their performance, regardless of race, religion and socio-economic background. Rewarding hard work and talent would encourage more people to do well and so provide Singapore with a pool of committed and hardworking people who can continue to contribute positively towards the country’s progress and leadership, thus ensuring continued harmony and good governance. Edusave Scholarship, Merit Bursary and ability driven education encourages students to excel in their studies. and other areas of expertise such as the arts, music or sports. This would provide us with the best people to lead in different sectors of the country.

Meritocracy ensures that the best and talented people are available for the government. This would ensure and sustain good governance as we will have capable leaders who can bring the country forward. This is important as it ensures that talented and capable people in Singapore are able to develop further. This will lead to having more capable and talented people taking up leadership positions and, as a result, wise decisions and policies will be made, helping Singapore become a more efficient country that will enjoy economic progress and growth.

Possible conclusion:

There is no doubt that ‘reward for work and work for reward’ gives rise to good governance but it just encourage people to do well and provide Singapore with a pool of committed and hardworking people who can continue to contribute positively towards the country’s progress.

However, without good leadership in the government, there will be no one for the masses to look to for directions. Good leaders are not only capable, honest and able to anticipate future challenges and needs, but they also have the moral courage to do what is right and not what is popular. Without such good leaders, the policies which are pragmatic, encourage meritocracy and forward-looking may not even be there. Only good leaders can ensure that such policies are in place to prepare the country for changing times and helps Singapore remain ahead in a competitive global economy. Good leaders will ensure that the government practices meritocracy and reward hard work and talent so that it can sustain good governance. It will also ensure that there is fairness as Singapore is a multi-racial society with different races and religions. It also knows that it needs to win the trust of the people and will plan to ensure there is transparency in government. Therefore, good leadership in the government is the key principle of good governance in Singapore because it enables Singaporeans to have trust in their leaders, confident that they understand their needs and keep their promises to deliver results.

Measures to keep traffic smooth in Singapore

• Vehicle Quota System (VQS)

The Vehicle Quota System is a system which controls the number of new motor vehicles allowed for registration by the number of quota set by the LTA which is dependent on how many older vehicles were expected to be taken off the road. The COEs for new cars would be like a replacement of an older vehicle taken off the road. Aspiring buyers of new cars must bid for the limited number of Certificate of Entitlement (COE). Successful bidders will pay the quota premium to obtain the COE. The COE must be renewed after 10 years. The system ensures that the traffic flow is better managed with fewer new cars on the road and older cars are taken off the road unless owners are willing to pay for new COEs. The growth of the car population is better controlled and

thus, managing traffic flow is better.

• Area Licensing Scheme (ALS) and Electronic Road Pricing (ERP)

The Area Licensing Scheme which was started in the 1970s is a scheme whereby motorists had to pay for the use of certain roads in Singapore for example, the Central Business District (CBD). Gantries were set up at the boundaries of the city areas to monitor motorists who drove into ‘Restricted Zones”. It has been replaced by a more efficient technology known as the ERP. The scheme is effective because the volume of traffic flow going into the CBD after the implementation in June1975 was reduced from 32 500 vehicles to 7 700. The Electronic Road Pricing system is implemented to control the traffic flow of designated areas using the ‘pay-per-use” principle. As the payments for the scheme became electronic and drivers could not escape detection if they did not have their cash cards inserted for payment. The ERP system discourages road uses from adding to the congestion of the designated areas when there are alternative routes available, thus reducing the volume of traffic in the areas where ERP is implemented.

• Park and Ride Scheme

The Park and Ride Scheme was introduced in the 1970s also. It is a scheme whereby motorists could park their vehicles at specific car parks which were outside the city area. The motorists who parked here could then use the public transport to enter the city areas. The scheme was not as effective as many motorists were not keen about leaving their cars at designated car parks only to

have to continue their journey using a public transport. For eg, of the 7700 additional parking lots created at 9sites just outside the Restricted Zones only 585 lots were taken up. Thus effectively, it means that not many motorists

supported the scheme. As such the system is not effective.

The Vehicle Quota system must first be implemented before the ERP system can be implemented smoothly. The curbing of car population complements measures like the ERP to control specific road usage. Without the VQS to control the car population, the ERP might still work on its own, as users would still be discouraged to use certain roads, but the level of effectiveness would definitely be lower, since the car population might grow to a level which cannot be supported by the roads available.

Reasons for Singapore’s declining birth rate

• Late Marriages

Singapore’s declining birth rate due to the trend of Singaporeans marrying at a later age. A later marrying age will result in a declining birth rate because women who start a family at a later age tend to have fewer children than those who marry at an earlier age. Singaporeans tend to get married much later than they used to. In fact, the mean marriage age of women has been increasing over the year. Women have equal rights and they want their own careers. They know that having children too soon might mean that their progress at work will be interrupted, so they delay marriage and having children. This delayed in marriage and motherhood resulted in less babies being born. Hence the declining birth rate was due to the trend of Singaporeans marrying at a later age which resulted in the dangers of having children at a later age and the lower chances of conceiving at a later age.

• Previous population policies

Singapore’s declining birth rate could be due to the successful population policies implemented in the 1970s and early 1980s which have changed people’s attitude towards having large families. Between 1966 and 1981, three five-year plans were implemented to persuade people to have fewer children. For example, various measures were introduced to encourage smaller families. These disincentives included no paid maternity leave for women who had their third child and increased delivery charges in hospitals with each additional child. There was also no income tax relief for parents who had the third and fourth child. All these measures contributed to the slow population growth as people realised the advantages of smaller families.

• High costs of raising children

In recent years, the government has introduced the Baby Bonus Scheme in which parents are given cash incentives when they have children so as to help reduce the financial burden on parents taking care of their children. However, this has not helped to raise the birth rates significantly. Many Singaporeans still find it expensive to raise a child. The childcare cost has become too expensive for some Singaporeans due to the increased foreign maid levy, increase in school fees, childcare costs and medical costs. These parents who want to give their children the best will find it expensive to bring up a child. Hence, they chose to have only one child. Moreover, some adults today feel that having children will be a financial burden. Hence there is little incentive to have more children or even to have a child. 

• Improved educational status of women

Since 1970s, the educational status of women has improved. More women received formal education compared to the past. Education allowed women a place in the workforce and the satisfaction of a career. Women are no longer content with being confined to traditional, subservient roles. They desire to advance their careers, be leaders in society, enjoy life and see the world. The monetary incentive of the baby bonus schemes are not an attractive enough stimulant to the modern educated women. As a result, there was a trend of women marrying at a later age or not at all. Motherhood was also delayed. This delayed in marriage and motherhood resulted in the declining birth rate.

In conclusion, previous population control policies were effective in contributing the declining birth rate. The measures made people realised the advantages of having smaller families and provided ways in which people can have small families. However, the improved education status of women contributed more to the declining birth rates as it brought about a change in attitude and mindsets of young Singaporeans.

Measures taken by the Singapore government to encourage population growth

• The Graduate Mothers Scheme

Based on research, it was felt that the education level of the parents had a direct impact of their children in schools. The research showed that parents who were university graduates were more likely to have children who performed better in schools. As a result, the Prime Minister felt that female graduates should be encouraged to have more children so that there would be a higher chance of the new generation workforce being more educated. Thus, in 1984 the Graduate Mothers Scheme was started to encourage marriages among graduates and to encourage them to have more children.

• Pro-family policy

The government ‘Have 3 or More if you can afford it’ policy allowed couples can use their Medisave to pay for the delivery charges of the first 3 children. This scheme was slightly successful and led to a slight increase in population between 1986 and 1988, from 1.48 in 1986 to 1.96 in 1988. Part of this was due to 1988 being the Dragon Year which Chinese consider as an auspicious year for having babies. However, this was still below our replacement target of 2.1. So, pro-family incentives in 2004 such as income tax relief, working mother subsidy to families with up to 4 children and a 5 day working week, were introduced to attract some couples to have more babies. In 2004, Singapore recorded one of the lowest fertility rates among developing countries. So, the 3 child policy did not really help to promote a credible increase in population.

• The other pro-family measures 2004

In that year the Prime Minister introduced a package of new marriage and parenthood measures that were aimed at boosting population figures. These measures came about as a result of public feedback. The new measures included equalized medical benefits for both parents which meant that mothers too could make medical claims from their employers (and not just fathers ). Another measure was the grandparent caregiver relief by which a couple could claim $3,000 in income tax relief if a grandparent was helping them to take care of their child. A third measure is the 5-day work week for the Civil Service. This is to allow for a better work-life balance. Finally, there is the extended maternity leave which was an extension from 8 weeks to 12 weeks. Through these various measures, there is sufficient reason for married couples to have more children as the high cost of raising children and the lack of suitable childcare arrangements (concerns which the public raised) were addressed.

• Attracting foreign talent

The foreign talent policy was slightly more successful, with foreigners contributing to 1% of the 2.8% population growth in 2000. Relaxing immigration policy and providing subsidised housing and education package made it easier for foreign talents to live and work in Singapore. By making it easier for foreigners to work and live in Singapore, the government hoped that some of these individuals would develop an attachment to the nation and take up permanent citizenship or residence. This did help to increase the country’s population. In fact, the government now hopes to attract more foreigners to make up for the declining birth rate as Singapore aims to increase its population from 4 million to 6 million.

The government measures to increase population after 1980s were largely unsuccessful. After 1988, the number of babies per woman fell steadily to 1.59 in 2000. Despite public campaigns on the joys of parenthood, married couples opted to have not more than 2 children. These resulted in fewer babies being born despite the pro-family incentives given after 1980s. So, the policy was largely unsuccessful as it failed to have any lasting impact on the population growth rate until today. Birth rates continue to dip. Even the baby bonus scheme of 2001 that gives monetary incentives for giving birth to more children failed to promote population growth. So, attracting foreign talent is at present the more effective strategy for Singapore to overcome its manpower needs.

Ways in which Singapore prepare for her ageing population

• Government

The government has made laws and introduced measures to protect the interests of the senior citizens.  The first law is the Tribunal for the Maintenance of Parents where parents can obtain the help of the court to seek financial support from their children who are capable of supporting them but are not fulfilling their responsibilities.  Another law is under the Public Housing Scheme which allows first time buyers of government’s flats to obtain a housing grant if they buy a flat in the vicinity where their parents live so that they can look after their elderly parents.

• Community

The community can also play an important role in enhancing the well-being of senior citizens.  It can give social and emotional support and provide healthcare and social services.  The government provides subsidies to voluntary welfare organizations that run community-based services for senior citizens.  An example of such an organization is the Home Nursing Foundation for Elders.  Most of such organizations involved members of the community such as housewives, students and retirees to help look after the needs of senior citizens.  Some community organizations also offer free health checks and organize recreational activities for senior citizens.  These services and activities are means to help senior citizens to remain physically, mentally and socially active.

• Individual

Maintaining a healthy lifestyle is the responsibility of the individual in preparing for their old age.  He should watch his diet and exercise regularly.  He should also plan early and be financially prepared for old age.  At the same time, family support is also important to bring about social stability and harmony.  To strengthen family bonds, Grandparent’s day is also celebrated to bring families together to show their appreciation for the elderly. 

The most important factor is the role of the individual as he is ultimately liable for his own health and therefore life.  The government support is primarily aid to sustaining one’s health while the community helps doubles as reinforcements.  At the end of the day, the community and the government cannot determine nor intervene entirely where the individual’s health or wealth and therefore standard of lifestyle are concerned. 

Ways to meet the healthcare needs of the people in Singapore

• Promoting a healthy lifestyle

Promoting a healthy lifestyle ensures that people of all ages remain healthy. Schools, workplaces and community centres have programmes to emphasise the need to maintain good health. For example, regular physical exercises and a well-balanced diet are encouraged and given active support. If more people were to follow a healthy lifestyle, there would be less people seeking medical treatment. This would mean a savings, not only for the individual, but also for the government which would then not have to invest heavily in healthcare. The funds could instead be channeled to other areas which require more funding such as education.

• Encouraging Self Reliance

Encouraging self-reliance is the best way of meeting the healthcare needs of Singaporeans as this involves people sharing the costs of healthcare with the government. This is done through two schemes – the Medisave and MediShield schemes. Under Medisave, 6-8% from every workers central provident fund contributions every month is channeled into their Medisave accounts,. This money can be used to pay hospital bills and certain medical treatments, including expensive ones, when needed such as chemotherapy. Medisave can be complemented by MediShield, a national healthcare insurance scheme which makes it possible for patients to claim for large medical bills which Medisave does not cover. Making workers self-reliant through such schemes lightens the government’s burden of paying for healthcare services. This means the government does not need to raise taxes to pay for rising healthcare costs, as would happen in a welfare state.

• Means-testing

Means-testing is an effective way to keep healthcare cost affordable as it would mean subsidies that are provided by the government would benefit patients who need them most. Resources would be more fairly distributed if those who cannot afford to pay for healthcare get the most subsidies. In the same way, those who are more well-to-do would benefit less from subsidies. This would ensure that healthcare cost does not become expensive as it would ensure that limited resources are given to those who need it more, etc

• Government Subsidies

In Singapore, providing subsidies for government hospitals is one of the ways to keep healthcare costs affordable. When the government gives subsidies to hospital wards, patients need not pay the full amount for the healthcare treatment received.

This is especially so for patients who choose to stay in Class ‘C’ wards where the subsidy is 80% of the hospital bill for the patient. People who cannot afford to pay for extra facilities during their hospital stays can choose to be treated in Class ‘C’ wards. In this way, healthcare cost is kept manageable for the lower income group, etc. To ensure that healthcare remains affordable for most Singaporeans, means-testing was introduced in Jan 2009. Under the means-testing, patients whose income is $3200 and below would receive subsidies of 65% for Class B2 and 80% for Class C. Those whose income are $5201 and above would receive 50% subside for Class Bs and 65% for Class C.  Patients whose income falls between $3201 and $5200 would receive graduated subsidies between 50 and 65% for Class B2 and between 65-80% for Class C. Government subsidies helps to meet the needs of the people as it ensures that whoever cannot afford to pay for healthcare get the most subsidies.

• Support services/ Working with organisations

The community plays a supportive role in helping the government manage healthcare. It is not possible for the government to run all healthcare services. Some patients who are discharged from hospitals may still need medical care. Voluntary welfare organizations and some private organizations are given grants to run community hospitals, nursing homes and day rehabilitation centres for this group of patients. Organisations also cater to the needs of specific groups of people such as the poor or those with a particular illness like the Home Nursing Foundation, which provides quality and affordable home nursing services for the needy and elderly sick in Singapore. By playing a supportive role to the government, the community helps by providing resources and shares the costs and burden of healthcare services.

Aims of healthcare policies

• Social equality

The healthcare policies must ensure that the lower-income group is not deprived of healthcare. No person must be deprived of healthcare because he can’t afford it. Some lower income groups are not able to afford medical expenses in spite of Medisave, Medishield and government subsidies, thus Medifund was set up & the interest earned is given to public hospitals to provide help for needy patients. The government also gives direct subsidies to government’s hospitals, polyclinic and some nursing homes for elderly to ensure healthcare services are available to all. More subsidies for different classes of wards e.g. Class C gets the most subsidies. It provides good basic medical care at an affordable rate. Government has given assurance that sufficient wards would be built to cater to lower-income Singaporeans. Under means testing, the system of pegging how much person pays to his income, well-to-do will get fewer subsidies than lower income.     

This is essential as it is unhealthy for social cohesion if lower income feel their needs are not taken care of and there’s no scheme to help them level up.

• Economic consideration

It is necessary to reduce healthcare cost in view of rising health cost or the government has to increase taxes.  This can be done through for e.g.  Many Helping Hands approach – which involve the community.  Healthcare policies must also be able to sustain economic growth. Singapore aims to develop itself into a medical hub that provides world-class health care services for the region. It has ventured into new areas like the Life Sciences, which involves the study of genetics and the development of new medical treatments using gene therapy, new drugs and food products that have been genetically engineered.

Reducing healthcare cost means there will be more fund for other sectors e.g. education, defence. By diversifying into services e.g. healthcare, we sustain our economic growth better. Good healthcare services will attract patients from other countries to engage our services.

• Inculcate self-reliance: Social/Shared responsibility

With rising health costs due to use of more expensive equipment and latest technology and increased wages of medical profession, government cannot give very generous health subsidies to the public as it had no wish to raise funds through taxes. Self-reliance must be inculcated – give people good incentives to stay healthy and not use medical services he or she does not really need by making them pay part of their medical expenses through Medisave and Medishield. Medisave scheme is a compulsory savings scheme to help Singaporeans pay for their family members and their hospitalization fees, especially after retirement. It constitutes 6%-8% of a worker’s salary. Medshield scheme is a voluntary insurance scheme to help pay medical fees incurred by serious or prolonged illnesses such as cancer and kidney failure.

Health education is also necessary to help people make informed choices, educate them on importance of regular physical exercises and a well-balanced diet.  An example is the launch of the National Healthy Lifestyle Campaign in 1992 which includes screening programmes for early detection of diseases like hypertension, diabetes and heart diseases.

Encouraging self-reliance will reduce abuse of the healthcare system and also make more effective use of resources.

Ways in which NHS manage healthcare in Britain

• Providing quality service

Providing quality service is important. Increasing demand for free care led to long waiting queues, making it difficult for the NHS to continue to provide efficient service. The NHS Plan (2000) provided for increase in government spending till 2004. It also made use of private hospitals so that there were enough resources to provide faster and more convenient services for the patients. The NHS Improvement Plan (2004) gave patients more choices of free healthcare providers and access to their own personal HealthSpace on the internet to see their care records. So, patients now could decide on the care they needed and did not need to crowd to limited NHS providers as before. They therefore could get treated faster at their own convenient location. The NHS Direct also provided telephone medical advice so that they can save a visit to the doctor. This would reduce the burden on the NHS to provide more resources such as doctors for many patients.

• Increasing efficiency

There is an increasing demand for healthcare, especially with an increasing ageing population and less taxpayers. Yet, the people expected more and better treatments. Although the NHS had expanded, it did not have enough resources such as doctors, nurses and facilities to meet the demands of the people. To overcome this, privatization within the NHS was introduced to reduce government subsidies, save costs and make the NHS more efficient. To make profits, private companies had to be efficient. Hospitals have to improve their services as people had more choices now and hospitals had to compete to stay viable. So, the system encourages hospitals to increase efficiency to attract business and save cost. The government would thus be able to move away from welfare towards self reliance of the companies. Sub-contracting non-medical services to private contractors to provide services such as laundry, cleaning and catering would allow hospitals to concentrate on providing medical services. In this way, they can look at providing more efficient services. Streamlining free medical services encouraged citizens to take responsibility for their own welfare and health. Certain services such as medicines, dental and optical services were no longer free except for a few groups of people. Now, more people will be motivated to work as they no longer can depend on free benefits. The government thus could use the money saved to improve the NHS and the welfare state.

• Managing government spending

As demand for free healthcare increase, the government has to collect more taxes. This would make the country less attractive to business which would make it more difficult for the government to get more revenue to improve the country. The government therefore wanted to reduce government spending on the NHS but at the same time continue to provide free and quality healthcare. The government therefore increased the citizens’ National Insurance contributions in 2003. In this way, it can ensure that it had the funds to sustain the NHS.

Managing government spending was the most important aspect of managing the NHS as this will ensure that the government has the funds to provide resources so that it can provide quality service and increase efficiency. If not for government spending, then the other two aspects could not be carried out as the government would not have the funds too do so.

http://libguides.nl.sg/SingaporeNation
http://libguides.nl.sg/SingaporeGovernance
http://libguides.nl.sg/conflictandharmony
http://libguides.nl.sg/managingIR
http://libguides.nl.sg/globalization