We have successfully conducted our Singapore Budget 2019 Forum today.

We thank all who have attended and also great appreciation to those who have helped to make this possible.

The following is our official statement on PAP government's Budget this year:

Budget 2019: Political Gimmicks without Bold Vision

Expansionary Budget with Money locked up in CPF and Medisave?

1. Finance Minister Heng Swee Kiat has declared that his Budget 2019 for Singapore government is an “Expansionary” budget and he cited the projected budget deficit of $3.5 Billion after taking into account of the net effect NIRC and Special Transfers of $3.6 Billion as supporting fact. However when we put the details of the Budget at closer examination, we have come to the conclusion that this Budget is NOT the usual “Expansionary” budget but just full of political gimmicks without bold vision.

2. A government Budget is an important tool of fiscal policy that is used to manage the economy. An Expansionary Budget would result in fiscal stimulations of the Nation’s economy in anticipation or direct mitigation of any potential economic slowdown or recession. But in Minister Heng’s Budget 2019, there is no mention of any job creation initiative nor bold vision for Singapore’s Future Economic development direction.
3. Most of the “additional spending” announced for the populistic Merdeka package ($6.1B), Long Term Care ($5.1B) and other the various injections of money into healthcare, workfare, schemes for SMEs ($4.6B) and education (Total of $15.3B of Special Transfers) are either just money transfers credited into CPF or Medisave accounts or deferred expenditure across a few years which do not have an immediate direct impact on overall spending in the economy.

4. It basically means that these money are effectively an “expected surplus” (over the announced $3.5B deficit) ultimately stashed away into the reserves via such Special Transfers arrangement.

5. Thus we do not really see this year’s Budget as “Expansionary” but rather a pack of Budgeting Acrobatic Gimmicks which channeled money back into the reserves masqueraded as “Goodies” for Singaporeans without real positive impact on the Economy.

Cost of Living

6. In a normal free market economy, inflation is normally caused by an excess demand on goods and services. This will drive up the cost of living for everyone.

7. However, in Singapore, inflation is mostly caused by the PAP government and its Government Linked Companies. The rise in water tax, electricity tariffs, public transport fares, healthcare cost, the rapid increase in rentals by GLC REITS, petrol and diesel prices etc. are the direct results of PAP governance.

8. How could the derisory $300 GST voucher cover the inflation caused by all these increases?

9. The BEST gift to ALL Singaporeans is NO GST instead of GST vouchers!


Cost of Healthcare

10. Any increase in healthcare subsidies for Merdeka generation could easily be offset by another round of increase fees in polyclinics and public hospitals.

11. We have witnessed how fees at public polyclinics and hospitals increased right after the last Pioneer Generation Package was announced in 2015.

12. At many instances, the fees at these public “restructured” healthcare entities are even higher than private clinics or hospitals before subsidies were taken into account.

13. There is a need to rethink whether the current model of “Restructured Hospitals” really serve Singaporeans’ interests at all.



Adverse Impact on SME

14. There are a couple of new but insignificant programs initiated in this year’s budget to help SME and workers to cope with changing dynamics of the economics.

15. However, out of the $4.6B slated to help both SMEs and workers over next three years, only $100million was put into funds for helping SMEs to upscale.

16. Although we agree to the overall strategy of reducing dependency of Foreign Workers in the long run, but we do not think it is a good move at all to apply such one-size-fit-all policy of reducing the Dependency Ratio Ceiling to cut across the board for the whole Service Sector.

17. Local SMEs are always grossly disadvantaged by the foreign workers policy whereby larger foreign companies enjoy concessions through government special incentives or technical advantage in sourcing their foreign labor via internal transfers from foreign bases.


Where are the Good Jobs?

18. Within the Service Sector, there are many sub-sectors which have very different labor situations. Singaporeans generally shy from certain industry or service sectors like hospitality, Food and Beverage sectors while there is a great underemployment for Singapore PMETs who cannot find jobs in other service sectors like banking, finance or IT etc.

19. A more calibrated approach should be implemented to focus more on reclaiming PMET jobs for Singaporeans in service sector instead.


Tax Cut for Taxi Companies while Higher Tax on Taxi Drivers?

20. The increase of diesel tax will affect SMEs greatly with an increase in business cost despite of the cut in road tax for diesel vehicles.

21. We are particular concerned on the impact on taxi drivers. While the PAP government gave a generous reduction in Special Tax on Diesel Taxi by $850, but this may only benefit taxi companies while taxi drivers suffer higher diesel price due to the double of diesel tax.


The Real Vision and Plan to Cut Pollution

22. A great percentage of commercial vehicles used in Singapore runs on diesel engines. The increase of Diesel Tax will not have significant effect on lowering the consumption of diesel for these commercial vehicles because the demand is totally inelastic.

23. Raising Diesel Tax now without providing a viable alternative to businesses will only result in a drastic rise in business cost. This may affect our leading position as logistic hub in Southeast Asia.

24. PAP government lacks the bold vision to explore clean alternatives for commercial vehicles running on diesel.

25. The key problem with diesel engines lies with the toxic cancer-causing nitrogen oxide emission. Thus we should phase out diesel vehicles from our roads totally instead of just raising diesel tax.

26. In fact, our long term plan should aim to reduce air pollution on the roads by phasing out both petrol and diesel vehicles totally by replacing them with electric vehicles.

27. Instead of harming our SMEs and economy by raising diesel tax now, we should be putting more investment and focus efforts to implement a comprehensive plan to promote electric vehicles by building relevant infrastructures and battery waste management system.

28. Singapore is lagging behind countries like China and Norway when it comes to implementation of a systematic plan of replacing diesel and petrol vehicles by electric vehicles to cut down harmful air pollution. This is due to the lack of bold vision and political will of PAP leadership.


CPF Inadequacy

29. About 75% of retirees are getting less than $500 from CPF payout. This is totally inadequate which resulted in many retirees living in absolute poverty.

30. It is an irony that Singaporeans had paid 37% of their monthly salary into CPF but yet they could not retire comfortably with a good payout from CPF.

31. It basically means that the CPF system along with the HDB and Medisave policies had failed to secure a decent retirement for most Singaporeans.

32. This will have to be looked into and only with Bold Vision could a government come up with bold plans to revamp the whole structure.


Long Term Care for Ageing Population

33. We will be facing the Silver Tsunami very soon when the baby boomers from 1950s to 1970s start to reach retirement age.

34. Putting billions into funds as future subsidies is a passive act which lack forward looking planning vision.

35. We would rather spend these billions now to build up both infrastructure and human resource capacity for long term care to prepare for the inevitable Silver Tsunami in the coming decade.


Pre-School Childcare and Education vs Fertility

36. The cost of Pre-school education is extremely high even after subsidies.

37. This is one important factor among the many issues that cause low fertility rate in Singapore.

38. Instead of putting more money in Edusave, it is time to focus to solve this pertaining issue of Pre-school education.

39. A cheap or even free Pre-school education system for all will also level up for children from poor families which will improve future potential social mobility.


Our Concerns:

HDB

40. There is no mention on any plan for PAP to resolve the huge problems which they have created in the past via Asset Enhancement Scheme.

41. No funds is allocated for any initiative on solving the time bomb of a huge stock of ageing HDB flats in the coming decades.

42. On the contrary, the Ministry of National Development has the biggest cut in its budget by 19.3%!


Financing Huge Infrastructure Spending via Borrowing

43. It is mentioned that part of the huge infrastructure spending like Changi Terminal 5 will be partially financed by borrowings.

44. It is also mentioned that Government will provide guarantee to these loans.

45. Is there a necessity for Government to finance such infrastructure spending when we have a huge National Reserve well above $500B?

46. Financing such infrastructure through borrowing would mean such spending on extremely expensive mega projects will escape rigorous scrutiny by parliament while the government has taken up huge potential liability as a guarantor.

47. The lack of accountability to parliament when the government takes up such huge liability will result in unchecked ex-Budget spending which could go wrong.


Conclusion: A Budget that Lacks Bold Vision

48. We are utterly disappointed by this year’s Budget which basically mimics the 2015 Election Budget without Bold Visions and lacks New Ideas.

49. This Budget contains a pack of gimmicks that attempt to make Singaporeans feel good and make believe that they had gained something substantial from it. However, most of these goodies are deferred goodies.

50. Unfortunately, these political gimmicks are done at the expense of the need of REAL immediate expenditures on various areas which we have listed out here.

51. Singaporeans deserve a better deal than what the current Budget could offer.
52. The reduction of GST relief and duty free alcohol concession for travelers is the best key feature to sum up this Budget 2019 – Small Mindedness without Bold Vision.

Goh Meng Seng
Secretary General
For CEC People’s Power Party Singapore

PPP Singapore Budget 2019 Forum

Budget 2019: Political Gimmicks without Bold Vision

 

 The PAP Government will be announcing their Budget statement on 18 Feb 2019.

People's Power Party will issue our statement, responses and views on this Singapore Budget 2019 in this Forum.








Guest Speaker: Mr Tan Kin Lian

Venue:
Agora Singapore
28 Sin Ming Lane, #03-142 Midview City
Singapore 573972, Singapore ,

Time:
2pm-5pm

As seats are limited, please RSVP.

TOTD: PAP's Poison to the Sick Economy

Thought of the Day - PAP's Poison to the Sick Economy

I didn't comment much about the current budget debate now but I look on with much nauseating disbelief with what PAP is doing right now.

It actually reminds me of what happened in 1981 and 1984, when the economic downturn and crisis was imminent but PAP government back then continued to increase cost to the people and businesses. It did cost PAP two seats in parliament but apparently that wasn't bad enough for PAP to learn its lesson.

Most importantly, the economy dipped much worse than expected due to PAP's totally senseless economic policies melted out through its yearly budgets.

70% of Singaporeans have to take responsibility for the current senseless doings of PAP government. They had given PAP such a strong mandate that PAP literally has the total blank cheque to sign on.

We are going to face a serious structural economic downturn in the coming months but what did PAP do? It just adds on the burden of Singaporeans and businesses by raising various costs. Water, as the most basic necessity for human beings, is slated to raise 30% within two years! But PAP's MPs and Ministers, with totally naive and sometimes, idiotic senseless humor, expects Singaporeans' pay to increase in such economic difficult situation while goods and services should not increase in prices!

The water pricing, along with electricity tariff, are the two basic fundamentals for both human beings and businesses. It would be totally naive to believe PAP's rhetoric that each household only pay $18 more on average for water when other goods and services, especially food and beverages, will increase in prices as well!

Right from 2015 "PAP VICTORIOUS 70% mandate", PAP had increased almost everything possible. Mark my word, GST would be the next golden goose they will aim at.

Singapore has already one of the most expensive water pricing in the world while its raw water cost from JB is kept fixed at such a low level. Hong Kong which bought raw water from China, had paid a higher price as compared to Singapore but in the end, Singapore's portable treated water price is more than 5 times more expensive than Hong Kong! Hong Kong is definitely not a "low cost" city but why did Singapore's water price so much higher? There are many reasons but I shall not deal with it here. In fact, the real cost of raw water from JB which Singapore bought, had DECREASED due to depreciated Malaysian Ringgit! Basically, Singapore has allowed cost to escalate without much control.

The introduction of Carbon tax at this instance, will add oil to the fire we have. Not only electricity tariff will go up but all cost will shoot up in no time!

Most people have realized PAP's CFE report is nothing but just old wine in new bottle. These are not some magic pills to address our current and future economic development. But the current acts of PAP increasing so much costs to livelihood in Singapore, is definitely a poison to our ailing economy, which our dear PM refused to acknowledge its sick status.

It is a common knowledge that PAP will want to increase prices and milk Singaporeans for whatever they can milk at the mid term of their 5 year rule so that Singaporeans could slowly forget such pain by the time when elections come in another 2 or 3 years time. They will throw goodies and candies just before the next GE just to appease all voters. They thought the current "bitter pills" would be OK for Singaporeans to swallow but they are wrong. These are really POISON they are feeding Singaporeans, without any good sense of judgement of the current economic situation!

The current Finance Minister, who had just recovered from his "stroke", may not be thinking proper. It is unbelievable for him to come up with such poisons for Singapore at this stage. Finance Minister Heng Swee Kiat should resign if his proposed massive increment in prices, indirect taxes and cost burden to Singaporeans and business finally killed us in the upcoming economic storm.

On top of that, PM Lee should also take assumed responsibility for allowing such bad budget to be passed in parliament.

Goh Meng Seng

People’s Power Party (PPP) Response Committee on the Future Economy Report

For Immediate Release:

People’s Power Party (PPP) Response Committee on the Future Economy Report

We refer to the Committee on the Future Economy report. 

There is nothing exceptionally new from the report apart from recognizing International Trade and Relations as an important integral component of our Economic Success.

International Trade Treaties

People’s Power Party would like to reiterate our stance that whatever Trade Agreement or Treaties signed by the PAP must put Singaporean workers’ interests as the uncompromising first priority.

Singapore’s ruling People’s Action Party (PAP) has been very focused on securing trade agreements for its economic sustainability in an increasingly globalised world. 

Nonetheless, trade deals had more often came along with some trade-offs. One nagging opportunity cost has been the unemployment of locals.

In recent years and decade, we have seen PAP government having negotiated and signed Free Trade Agreements without much public consultation, debate or engagement. These FTAs include CECA signed with India which had basically opened up the flood gate for Indian PMETs to get jobs and stay in Singapore without much control. This has inevitably displaced quite a number of Singapore workers. In return, CECA mainly benefited large corporations like Temasek Holdings and GLCs to invest in India without substantial job creation for Singaporeans. 

We have also seen PAP government negotiated the now-failed TPP (Trans-Pacific Partnership) in secrecy without any public consultation. Only big MNCs were involved in the negotiation without the involvement and participation of our Labour Union or any other political parties or civil society groups. 

The failure of the TPP may mean a loss of opportunity for Singapore’s businesses.

However, we are more concerned about the need for transparency of any negotiation or signing of such trade pact . 

The failure of TPP coupled with the shocking “Brexit” of the United Kingdom’s withdrawal from the European Union, presented starkly to Singaporeans sudden moves against agendas that they have been herded towards.

Coming out of these shocking episodes is the clamour for transparency. The peoples of those nations wanted their voices to be heard and they have done so. The citizens of the US and UK have signaled that they want to be involved in decision-making that involves their lives and affects their nations. They want to know the details and not just be told. 

It would only be wise for the Singapore government to be open for a constructive dialogue that discusses the costs and benefits of all trade pacts including the TPP. 

PPP would like to suggest a public forum in which Singaporeans would be able to discuss any future negotiation of Free Trade Agreement with the Singapore government directly. This is especially important when FTA in present context is no longer just about demolishing trade barriers but involve more other aspects such as free mobility of labour, legal aspects of commerce and trade etc.

International Relations

We have seen how PAP’s missteps in handling international relationship had caused much upheaval, tension and unnecessary pressure to Singapore businesses in China. 

PPP would like to remind PAP that it no longer enjoys the protection of political goodwill and respect that Mr Lee Kuan Yew had garnered and it should tread carefully in the world politics, especially when it comes to the politics of big countries with huge economic clout. 

Singapore has survived and prosper throughout the decades with the help of great diplomacy in building bridges, making friends and creating political stability in our immediate region of existence. We have survived the uncertainty due to Confrontation, Vietnam war, Korean war, Cambodia war and the uncertainties due to the cross strait ties between China and Taiwan. We have managed to turn past enemies and threats into friends. We should not create unnecessary tensions in our region which is critical to our survival and prosperity. 

Apart from Globalization and Free Trade, Diplomacy of Peace is one of the most important survival strategy for an open economy like Singapore. It is worrying to witness how the current PAP government handle International Relationship and Diplomacy which will eventually affect our economic well being as a whole. 

We can only hope that the current mindsets of those involved in PAP government’s dangerous diplomatic stunts could be replaced with more humility and wisdom. 

Soft Power of Cultural Essence and Organic Industrial Growth

While we are not against the PAP government spending money on upgrading the skills of Singapore workers, but we observe throughout the decade, such programs had minimum value add to Singaporeans when our workers are not protected adequately from the displacement due to the influx of foreign PMETs. 

We also observe that PAP government has finally given up spotting “successful industry” to bet on after experiencing mediocre results from past bet on Bio-Tech industry. PAP government had led us in chasing rainbows one after another in the past decades but in the end, many Singaporeans of past generations eventually found that their skills are fast becoming obsolete when PAP tried to focus on other industries. 

We have serious doubt of such economic strategy. We would like to stress that most productive and useful innovations are derived from organic industries instead of learning something totally new and trying to compete with other countries which are already experts in this field. 

Singapore should identify its own Organic Growth Industries: those industries which we have comparative and competitive advantages. Innovations should be developed from these Organic Growth Industries to increase productivity. Else, we would be chasing Rainbows again like a headless chicken in the fast changing world of technology.

While technology is important in today’s economy, we should not lose sight of the Soft Power of Cultural Essence. We observe that there is a lack of utilization of Cultural strength in our local businesses and industries. 

There is a lack of in-depth exploration of the huge economic potential of our rich cultural heritage. Although we have a few good local brands that go regional and international, but compared to other countries we are still lacking behind. It shows that we have not put in enough efforts to help local companies in making use of our Cultural strength to enhance our international brand status.

Our cultural heritage could also provide us an advantage in enhancing our role in economic connectivity with our regional neighbours. But the apparent lack of general knowledge of our neighbouring countries has become a hindrance in making us an effective hub for the region. 

Increasing Business Cost vs Productivity Growth and Wage

DPM Tharman had put up a grand strategy to increase yearly productivity growth by 3% back in 2011. It seems that it has become an empty promise again. 

There are a few reasons why our Productivity Growth has been extremely low in recent decades. The high cost of doing business in Singapore has forced businesses to look for cheaper labour from foreign sources. This high business cost is basically due to the high rental which was basically controlled by GLCs and government agencies. Apart from that, indirect taxes such as COE on commercial vehicles has also taken a toll on businesses, especially business start-ups. 

Instead, PAP had addressed these issues by opening up the floodgate for cheap foreign labour which inevitably affect local wages and even displacement of local workers creating underemployment. Such move will inevitably reduce productivity growth as well as wages. 

The only way to ensure that Singapore continues to grow with high productivity growth is to prevent a Rent-Seeking Economy to develop. Rental and indirect taxes should be controlled so that more resources could be put into developing local human resources as well as business development.

Unfortunately, the CFE report did not touch on these important issues at all. 

Business Connectivity and Market Intelligence

There is generally a weak support of Market Intelligence and Research provided to local SMEs to help them in reaching out to the various matured as well as emerging markets in the region and the world. 

While the GLCs enjoy the support from the various government statutory boards in providing the necessary help in getting connected to the world and obtaining market intelligence of target markets, SMEs lack a comprehensive approach in obtaining such information and network.

If networking and connectivity are crucial for our local economic success, we would expect the PAP government to put more resources into building up resource centre and network of trade offices that focus on providing relevant information to local SMEs. 

Conclusion

We hope that this CFE report is not just another old wine in new bottle effort by the PAP government.

Sivakumaran s/o D Y Chellappa

Vice Chairman c/o Head of Policy Research

For CEC of People’s Power Party

PAP's Abuse of Power & National Resources: People's Association IS PAP's Political Tool

Picture Credit: Sin Rak Sin

Let's make it clear once and for all. PAP government set up People's Association for its POLITICAL PURPOSES.

If you go back to history, it was clear that PAP government, after marginalizing its leftist leaders like Lim Chin Siong (who were all detained under ISA), decided that they should strengthen their grassroot outreach (by the English Elites of the PAP) via their own grassroot platform. Thus, People's Association was formed to combat the leftist and/or "communist" grassroot system (they have their own "communication/community centres or points" within each district and village).

This was the first major step of the English Elites of PAP led by the man who cannot be named, made with the aim of cutting down their reliance on their Chinese Elites/leftist faction within their party to mobilize the grassroot voters.

From Wikipedia:

"According to the Central Intelligence Agency of the US government, the People's Association had its origins as a national building programme 'designed to wean pro-Communist voters away from the opposition'. Besides serving as a communication channel between the government and ruling party at the top and the people below - making way for a more responsive government - it was also intended for the PA to blur the boundaries between the government and the party, such that 'the people tended to praise the party for activities undertaken by the government'.[5]"

From the Singapore National Library electronic resources:

" The People’s Association (PA) is a statutory board under the Ministry of Culture, Community and Youth (MCCY) that was established on 1 July 1960 through the People’s Association Ordinance.[1] [2] Officially, the PA was formed to achieve two objectives: first, to develop patriotic youth leaders who would serve the community; and second, to create a common national identity through organising and promoting community involvement in social, cultural, educational and sporting activities.[3]

Politically, the PA was created to help the People’s Action Party government develop and maintain links with the people at the grassroots level through centralised control over the community centres.[4] [5] Initially, activities organised in such centres were meant to compete with those run by left-wing unions and associations for grassroots support.[6]" 

It was the most important political move the English Elites had made which anticipated or led to the eventual break-off of the leftist faction from PAP.

There is no single doubt that PA was and still is PAP's major political tool utilized to prolong its hold on power. The plain fact is that its management board is filled with PAP ministers, PAP cadre members, current and former MPs, under the leadership of the Prime Minister himself.

This is a gross abuse of power and National resources to serve PAP's own political agenda and needs. Nobody in Singapore would believe that all the grassroot organizations under PA are not related or work for PAP's political agenda.

I have volunteered in my own CCC before when I was young and I was immediately passed a form to join PAP's youth wing when I progressed to lead a small interest group within the CCC. I didn't join, of course. And I have seen with my own eyes that CCC personnel have been mobilized to help out PAP's campaign during GE! Resources have been deployed for PAP's electioneering and I wonder why PAP still have the cheek to deny such "politicization" of PA which nobody in Singapore whom understand the workings would believe!

Don't be shy, PAP. You have been abusing your power and the Nation's resources for your political benefits for more than 5 decades. Every true blue Singaporeans know that. It would be too thick skin and shameless to say otherwise.

Goh Meng Seng