RI English Language Blog Entries- Assignments only

Sovereign Wealth Funds in Singapore

2008-08-25T05:45:00.000-07:00

http://newslink.asiaone.com/user/OrderArticleRequest.action?order=&_sourcePage=%2FWEB-INF%2Fjsp%2Fuser%2Fsearch_type_result.jsp&month=03&year=2008&date=03&docLanguage=en&documentId=nica_NP_2008_8251469

The above article raises one side of an issue that has been brought to light in the recent months, that of sovereign wealth funds(SWFs). I do admit that small states like Singapore need SWFs to tide us over economic fluctuations that may leave us vulnerable on the global stage, however what i feel we need is regulated and transparent SWFs.

An SWF is a fund owned by a state composed of financial assets such as stocks, bonds, property or other financial instruments. They are entities that manage the national savings for the purposes of investment. Why transparent? First, we need to understand the current situation regarding SWFs in Singapore. Presently, there are 2 main SWFs in Singapore, Temasek Holdings and the GIC (Government of Singapore Investment Corporation) which answer directly to the Ministry of Finance. Now the main problem, I feel, lies in the fact that the money used for investment is taxpayer's money.

Recently, parliamentary reports in January have shown that the Minister of Finance expressed his trust in the SWFs, but how far can this trust go? Safeguards have to be put in place to protect the people's interests. The situation right now is that commonfolk like you and I have hardly any idea of what is going on in the investment scene. Is our money being lost? Or is it reaping in profits? We have the right to know, no matter where our money goes to.

My cautiousness is not baseless, as there are incidences to prove that SWFs cannot be fully trusted with taxpayer's money. For example, I quote from "Singapore Politics under the People's Action Party" by Diane K. Mauzy, Robert Stephen Milne: 'In 1996 a GIC manager was charged with eight cases of corruption involving at least $2.4m’. Even more recently, this was raised in a parliamentary debate at the start of the year by Mr. Inderjit Singh: “Sir, in July last year, Temasek invested a few billion dollars into Barclays bank. I think it was around $3 billion minimum and up to $7 billion, if I remember correctly. From what I understand, these values have now come down to about half of the value of the investment. Is the Minister not worried that if GIC and Temasek continue with this kind of multi-billion dollar investment all in one sector – in the banks – this could quickly wipe out a significant portion of our reserves. ”

As such, SWFs should not be given free reign on their investments, rather, the general populace should at least be informed, if not given a choice on whether to give the SWFs that vote of confidence to invest or not. We certainly cannot allow SWFs to invest in whatever they like without any knowledge whatsoever. Whatever losses or profits that are made, majority of the Singaporeans have no inkling of what is happening.

Now the issue here is actually not whether we control the investments of SWFs or not, frankly speaking that is not practical or even feasible. All i am saying is that there has to be a certain degree of accountability and responsibility on the SWF's part to at least inform the general public on it's investment schemes and their outcomes, be it good or bad. Only then can our nation succeed in moving towards a more trustworthy and transparent world-class economy.

555 Words

Democracy Creates Stability

2008-05-28T19:31:00.000-07:00

"Tyranny of the majority" often comes to mind when democracy is discussed. Hence, some fear that this tyranny may result in a gradual build-up of discontentment among the minority. The very fabric of society would unravel should there be any trigger that enrages the minority. As a result, the minority has to be taken largely into consideration. This measure is absolutely necessary in order to prevent conflict and violence. However, there are some who argue that conflict need not actually be something that society fears.

Historian G.W.F Hegel once said that to every thesis, there will be an antithesis, only then can there be a synthesis and progress can take place. In other words, opposition and conflicts are in fact part of the cycle that eventually leads to improvement and progress. Yet, is conflict really the promoter of progress?

Taiwan’s political and economic standstill is a perfect example of what conflict can do to society. Their plight is a testament to the need for a clear majority in government. “We have swung from one end of the political spectrum to the other. From authoritarian rule to no authority at all,” was what Professor Kuan Chungming of Academia Sinica, Taiwan’s leading research institute, had to say about the country’s political state. Taiwan’s main problem is that there is no clear majority in government. The opposition camp often boycotts bills initiated by the ruling camp, leaving the legislature log-jammed. Recent bickering over a proposal to amend the make-up of a key lection committee has stalled the debate over the government budget. As a result, all public projects had to be put on hold and society cannot move on. As long as there is no clear majority to hold power in government, the socio-economic standstill cannot be solved.

Conflict leads us nowhere, as the Taiwanese situation clearly exacerbates. However, does democracy actually bring about conflict?

Personally, I feel that this “tyranny of the majority” is absolutely necessary. Along with majority comes power, the power to decide and the power to implement. At any time, only one group of people can hold this power in society. Only then can society progress without conflict among groups of people as the minority would be too weak to provide any opposition.

Opinion is somewhat subjective and the people in society who make up the minority can gradually be won over. Most of the time, it is just a matter of time and persuasion before a change in mindset. Take Singapore for an example. Why is it that the PAP can maintain their status as the ruling party election after election? Simply because the people are convinced that the PAP are responsible and can run our nation well.

Hence, the “tyranny of the majority” is actually not much of an issue towards society. What really matters is that society and the economy can progress smoothly without much deliberation. That is what democracy gives us and that is why it creates stability more than anything else.

497 words

Online Blog Entry 1- Teenage and Social Issues

2008-03-05T05:24:00.000-08:00

"Mission possible"

Section: Sat News
By: ZUBAIDAH NAZEER
Publication: The New Paper 19/08/2006

This article begins with the example of physiotherapist Ms Wai Yen Jasmine Wong's 250km run across the Atacama to raise money for underprivileged children. This was followed by Pastor Andrew Choo and his ambition to raise $100,000 for female ex-offenders through a 100km run.

The article brings many issues to light. Currently, there have been many projects aimed at integrating the ex-offenders into society and also to help the less privileged. A well-known example is the Yellow Ribbon Project, in which these ex-offenders are rehabilitated and posted to jobs that are suitable for them. The article further asserts the view that Singaporeans are willing to go the extra mile to help the less privileged.

The also shows that there are still many underprivileged people that we may not be aware of. I feel that Singaporeans, being part of a closely-knit society, need to be aware of the people in need and we have to do our part to help them. This is especially needed the ex-convicts, who tend to have a lower self-esteem, need to be helped to get back on their own two feet so that they can go somewhere in life. Like Pastor Andrew Choo had said, he wishes to run the race alone as the road to redemption for an ex-convict is a lonely one that will require much perseverence. Their long and lonely road towards acceptance and redemption would be greatly helped if we can go the extra mile to help and support them in their times of need.

Even though this article was published in 2006, i feel that it still has a lot of relevance to our society today. Crime is something that will be ever present no matter which country one is in and we can always identify with it. I feel that the willingness of Singaporeans to help these underprivileged people is really touching and inspiring.

Through this i realise that there are many ways to help people. For example, being a cross country runner, i never thought that it could be used to help the less privileged. The article really has inspired me to help the less privileged and i realised that i can do it in many different and creative ways. It has opened my eyes to the many possibilities that are available and opportunities in which i can help others.

Our country has never failed to impress me time and again at the things that we can accomplish despite our small size. As such, i will strive to help others whenever i can and help to do my part for society.