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I'd like to share an anecdote of how we dealt with globalization + respond to some points.
I was in a company that designed and manufactured cars for the domestic market in Australia that was protected by high import tariffs - around 60% in the 1980s. (not too different to Malaysia, right?). The government then pursued a free trade / globalization agenda that reduced car import tax to virtually 0% over a period of three decades.
This policy would result in an influx of cheaper cars from overseas (primarily Thailand) that destroyed the local car manufacturing industry, eliminating roughly 50,000 jobs. Those people would lose their income for a period of time until they retrained, but it would benefit the other 99.7% of the people in the country who then got to buy a car for much cheaper. This would permanently raise the standard of living in the country.
Our company closed the manufacturing operations then transitioned into a pure design and engineering center. We quadrupled the number of designers and engineers, opened a factory in Thailand and leveraged the scale of their industry and low labor cost to build our vehicles there, then imported them back to Australia tax free.
The two other local competitors pursued a different strategy. Both of them invested heavily in local manufacturing hoping the increased scale, automation and efficiency would enable them to compete with lower cost countries. They set up ambitious export programs to the US, Middle East and Asia. That is also in theory a viable path forward - leveraging export markets as part of globalization. But for various reasons it did not work out for them resulting in the closure of their operations.
Some thoughts -
1. To raise everyone's incomes, you have to stop doing lower value-add jobs in order to start doing higher value-add jobs. This inevitably means job losses and business closures. Thus outsourcing the bank customer service staff to Malaysia could be not only necessary, but even a good thing.
2. The role of the government isn't to prevent job losses or company failure. Their job is to ensure an "orderly exit". The best outcome is for them to provide subsidies and incentives for companies to pivot out of declining industries while retaining their core expertise and talent. If job losses are inevitable, then they would mandate or even supplement generous retrenchment packages and retraining for affected workers. Basically the 99.7% of people who are better off have an obligation to temporarily help the 0.3% affected by the transition. If people perceive the "gains were not evenly distributed" then it's squarely on the government to fix that - if there TRULY are gains from this policy, why aren't you redistributing it fairly? I believe the government should take responsibility for its policies. They can't wash their hands and go "too bad you lost your customer service job, but you know, other people in the economy got richer so it's all good!"
3. I've had the privilege of working closely alongside colleagues from all over the world. We could hire 5 people in a high cost country, or 25 people in a low cost country for the same cost. That's your real competition now - not your colleague in the same building who earns the same as you vying for the same promotion. You have to be 5x as productive as someone in India who also has a 4 year engineering or finance degree.
we need to have honest and capable leaders in the government. Our leaders need to have the moral courage and integrity to do what is right and not what is popular with its people. Good leaders need to be pragmatic and have a long term vision. For example the government introduced NEWater despite Singaporeans objections and fear to drink it. The government felt that it was necessary to have an alternative water supply so that we would not have to rely solely on Malaysia.when there are honest and capable leaders in the government, they will make decisions that are in the best interest of the people thus this ensures that the country will be run smoothly.
-REWARD FOR WORK, WORK FOR REWARD
Reward for work and work for reward is important in ensuring stability in Singapore. It is based on a system of meritocracy which rewards people for their abilities and hardwork. Meritocracy helps to give everyone an equal opportunity to achieve their best and be rewarded for their performance regardless of race,religion or socio economic background. For example, students who perform exceptionally well in their studies or co curricular activities are rewarded with the edusave scholarship award or the bursary scheme award. When everyone is given an equal opportunity to achieve their best this will ensure that singaporeans will put in their best effort for the country. Thus there will be stability in Singapore.
-ANTICIPATE CHANGE AND STAY RELEVANT
our leaders need to be forward looking and to make decisions that are in the anticipation of our future. Leaders must also be open to new ideas and willing to take risks. The NEWater is an example of our the government is forward looking. The leaders are forward looking by providing NEWater incase the agreement with Malaysia is not renewed. When leaders are are forward looking, Singaporeans will be confident that the government will be able to tackle any threats.
✔️HEALTHCARE POLICIES IN SINGAPORE
-GOVERNMENT'S RULE
The government plays an important role in ensuring healthcare services in Singapore are managed efficiently though the introduction of measures like providing subsidies such as medifund and means testing. The subsidies provided helps to ensure that basic healthcare services are available to all Singaporeans . Medifund is provided for those who cannot afford to pay for their medical bills. The means testing also ensures resources are evenly distributed the the lower income group.
When healthcare is affordable for the people, shared responsibility between the individual and the government is feasible. Thus people would not be so reliant on the govt for healthcare provision.
-COMMUNITY SUPPORT
Community support is important in ensuring that Singaporeans healthcare services are managed efficiently. For example some patients who are discharged from hospitable May still need medical care, some private organizations are given grants to run community, hospitals, nursing homes and day rabbi ligation for this group of patients. Besides that, support is given by the government to provide healthcare support services for the poor and needy. it is not possible for the government to run all the healthcare in Singapore. Thus it is important and necessary for the community to step in to provide supportive aftercare services for Singaporeans.
I'd like to share an anecdote of how we dealt with globalization + respond to some points.
I was in a company that designed and manufactured cars for the domestic market in Australia that was protected by high import tariffs - around 60% in the 1980s. (not too different to Malaysia, right?). The government then pursued a free trade / globalization agenda that reduced car import tax to virtually 0% over a period of three decades.
This policy would result in an influx of cheaper cars from overseas (primarily Thailand) that destroyed the local car manufacturing industry, eliminating roughly 50,000 jobs. Those people would lose their income for a period of time until they retrained, but it would benefit the other 99.7% of the people in the country who then got to buy a car for much cheaper. This would permanently raise the standard of living in the country.
Our company closed the manufacturing operations then transitioned into a pure design and engineering center. We quadrupled the number of designers and engineers, opened a factory in Thailand and leveraged the scale of their industry and low labor cost to build our vehicles there, then imported them back to Australia tax free.
The two other local competitors pursued a different strategy. Both of them invested heavily in local manufacturing hoping the increased scale, automation and efficiency would enable them to compete with lower cost countries. They set up ambitious export programs to the US, Middle East and Asia. That is also in theory a viable path forward - leveraging export markets as part of globalization. But for various reasons it did not work out for them resulting in the closure of their operations.
Some thoughts -
1. To raise everyone's incomes, you have to stop doing lower value-add jobs in order to start doing higher value-add jobs. This inevitably means job losses and business closures. Thus outsourcing the bank customer service staff to Malaysia could be not only necessary, but even a good thing.
2. The role of the government isn't to prevent job losses or company failure. Their job is to ensure an "orderly exit". The best outcome is for them to provide subsidies and incentives for companies to pivot out of declining industries while retaining their core expertise and talent. If job losses are inevitable, then they would mandate or even supplement generous retrenchment packages and retraining for affected workers. Basically the 99.7% of people who are better off have an obligation to temporarily help the 0.3% affected by the transition. If people perceive the "gains were not evenly distributed" then it's squarely on the government to fix that - if there TRULY are gains from this policy, why aren't you redistributing it fairly? I believe the government should take responsibility for its policies. They can't wash their hands and go "too bad you lost your customer service job, but you know, other people in the economy got richer so it's all good!"
3. I've had the privilege of working closely alongside colleagues from all over the world. We could hire 5 people in a high cost country, or 25 people in a low cost country for the same cost. That's your real competition now - not your colleague in the same building who earns the same as you vying for the same promotion. You have to be 5x as productive as someone in India who also has a 4 year engineering or finance degree.
Thank you for taking the time to pen down your thoughts Ice Fox - our team thoroughly enjoyed reading it!
It's crazy how incredibly spot on your comics are, always! I wait keenly for them every single time 😁🔥
PRINCIPLES OF GOVERNANCE
-LEADERSHIP IS KEY
we need to have honest and capable leaders in the government. Our leaders need to have the moral courage and integrity to do what is right and not what is popular with its people. Good leaders need to be pragmatic and have a long term vision. For example the government introduced NEWater despite Singaporeans objections and fear to drink it. The government felt that it was necessary to have an alternative water supply so that we would not have to rely solely on Malaysia.when there are honest and capable leaders in the government, they will make decisions that are in the best interest of the people thus this ensures that the country will be run smoothly.
-REWARD FOR WORK, WORK FOR REWARD
Reward for work and work for reward is important in ensuring stability in Singapore. It is based on a system of meritocracy which rewards people for their abilities and hardwork. Meritocracy helps to give everyone an equal opportunity to achieve their best and be rewarded for their performance regardless of race,religion or socio economic background. For example, students who perform exceptionally well in their studies or co curricular activities are rewarded with the edusave scholarship award or the bursary scheme award. When everyone is given an equal opportunity to achieve their best this will ensure that singaporeans will put in their best effort for the country. Thus there will be stability in Singapore.
-ANTICIPATE CHANGE AND STAY RELEVANT
our leaders need to be forward looking and to make decisions that are in the anticipation of our future. Leaders must also be open to new ideas and willing to take risks. The NEWater is an example of our the government is forward looking. The leaders are forward looking by providing NEWater incase the agreement with Malaysia is not renewed. When leaders are are forward looking, Singaporeans will be confident that the government will be able to tackle any threats.
✔️HEALTHCARE POLICIES IN SINGAPORE
-GOVERNMENT'S RULE
The government plays an important role in ensuring healthcare services in Singapore are managed efficiently though the introduction of measures like providing subsidies such as medifund and means testing. The subsidies provided helps to ensure that basic healthcare services are available to all Singaporeans . Medifund is provided for those who cannot afford to pay for their medical bills. The means testing also ensures resources are evenly distributed the the lower income group.
When healthcare is affordable for the people, shared responsibility between the individual and the government is feasible. Thus people would not be so reliant on the govt for healthcare provision.
-COMMUNITY SUPPORT
Community support is important in ensuring that Singaporeans healthcare services are managed efficiently. For example some patients who are discharged from hospitable May still need medical care, some private organizations are given grants to run community, hospitals, nursing homes and day rabbi ligation for this group of patients. Besides that, support is given by the government to provide healthcare support services for the poor and needy. it is not possible for the government to run all the healthcare in Singapore. Thus it is important and necessary for the community to step in to provide supportive aftercare services for Singaporeans.