TR EMERITUS

From our Correspondent At a grassroots event last night, Senior Minister Goh Chok Tong mused aloud about whether ethnic enclaves should be allowed to be formed by new immigrants here. In a speech that emphasised the importance of Singapore remaining open to foreigners, he asked: 'Do we allow new immigrants to gather in one location, so that that place becomes more Chinese, or more Indian? 'Or do we begin to disperse our new immigrants all over Singapore, so that they do not form enclaves among themselves, so that they will better integrate?' Mr Goh did not indicate his own conclusions on this issue. Some leaders of the ruling party had expressed their concerns earlier on the emergence of ethnic enclaves in the HDB heartlands formed by Chinese and Indians. Mr Goh's ambiguous stance on this matter seemed to suggest that the ruling party may have a change of heart and allow the newcomers to aggregate in their own neighborhoods. PAP MP Dr Lim Wee Kiat had asked Minister Mah Bow Tan last week whether a quota should be imposed on the number of PRs living in each block of HDB flat. For the second time in a week, Mr Goh continued to urge Singaporeans to accept and welcome foreigners living in their midst. He repeated the ruling party's argument that immigrants are needed to stem population decline and to sustain the current standard of living. Without quoting any references, Mr Goh warned that Singapore's economic growth would be "one or two percentage points lower" without foreigners. 'Well, you may say, let us do without this extra boost...and be satisfied with our present quality of life. But it is not that simple......Without the foreign workforce, our flats and MRT will not be built, our buses will come to a standstill, our health-care services will degrade, and many investors, including Singaporean ones, will uproot and go where talent is abundant," he said. Singapore's economy has grown to become heavily dependent on foreigners in recent years due to their lower labor costs. It is unsure how long Singapore can continue to keep its competitive advantage with the emergence of China and India with their large population of low-cost labor. Unlike Japan, South Korea, Hong Kong or Taiwan, Singapore has no international MNCs of its own saved for Creative Technologies which was founded in the U.S.A. by Sim Wong Hoo after his efforts to set up a technological firm in Singapore floundered due to lack of official support. Singaporeans also lack the entrepreneurial spirit and flair of their counterparts elsewhere which results in a relatively weak SME sector in a domestic economy dominated by giant government-linked companies. While Singapore may remain a magnet for immigrants from neighboring countries, especially China and India in the near future, the brain drain may reverse as China and India become more prosperous, developed and affluent. Boosting Singapore's declining birth rates via immigration is only a stop-gap measure which does not address the underlying cause. One key reason why young Singaporeans are not having children is the high cost of living, especially that of public housing. Unless the prices of HDB flats are reduced drastically to a more affordable level like those seen in the 1980s, it will be futile to persuade Singaporeans to procreate. The prices of HDB flats had sky-rocketed in recent years while the median wages of the Singapore worker have not quite kept pace with it. The unremitting influx of foreigners will only depress the wages of Singaporeans, thereby exacerbating the problem in a never-ending vicious cycle. Unfortunately, being economic immigrants themselves, foreigners will also be selective about the places they want to settle down and Singapore is not that attractive considering its lack of social welfare benefits and political freedoms. In a Gallup poll released in July this year, the United States is the top immigration destination for mainland Chinese who harbored the intention of migrating followed by South Korea and France. Singapore may end up getting the second or even third-tier talents of other countries instead of the creme la crop who are drawn to "better deals" elsewhere. At the rate foreigners are allowed to "swarm" all over Singapore, Singaporeans may be the ones who need to take up language courses to "re-integrate" back to a new Singapore society dominated by the newcomers.  Read More →

From our Correspondent A Singapore Indian has expressed his shock and dismay of being "swarmed" by overseas Indians within his own community! In an interview with the state media, Mr K. Varatharaju, 43, a factory owner related his own experience when he sent his youngest daughter to Sarada Kindergarten in Bartley Road: He discovered that she was one of only two Singaporean Indians in the class of 15. (Source: Straits Times) "When I go for a function and I see only expat Indians and no Singaporean Indians, I feel uncomfortable - like the future is being taken over by expats. What will happen in 15 or 20 years' time, when my children start work?' he asked. In all likelihood, Mr Varatharju's children will find themselves competing with foreigners from all nationalities (not only expat Indians) for a decent job if the ruling party's liberal immigration policy continues unabated. Foreigners now made up 36 per cent of Singapore's 5-million odd population which means that one of out three people you see in the streets are non-Singaporeans. About 8 per cent of Singapore's populations are Indians, most of whom are ethnic Tamils whose descendants hailed from the southern Indian state of Tamil Nadu. Singapore has a sizable number of expat Indians working in the IT and engineering sectors and they come predominantly from the northern Indian cities like New Delhi, Mumbai, Kolkata and Bangalore. Apparently, Mr Varatharju does not feel comfortable with the influx of overseas Indians in Singapore, just like how ethnic Chinese are aghast at the arrival of large numbers of Chinese from mainland China. Though Singapore is a nation of immigrants, the four major races of Singapore have lived together peacefully for decades and have evolved an unique culture and identity which is separate from their ancestral homelands. For example, an ethnic Singapore Chinese will probably prefer the Indian Roti Prata or the Malay Mee Rebus for breakfast than the Chinese "jiao3 zi3", a staple diet in northern China. Mr Varatharju may find it easier to strike a conversation in English with his Malay neighbors than an expat Indian from Mumbai with a different accent. Despite rising unhappiness and disgruntlement on the ground at the relentless influx of foreigners, the ruling party is adamant that foreigners are "essential" for Singapore. In the past, foreigners are employed only in sectors shunned by Singaporeans such as the construction industry. Nowadays, foreigners can be found taking up semi-skilled jobs like network administrators which can otherwise by filled by a local. Due to their lower wages, foreigners help to keep Singapore businesses competitive which contributes to Singapore's GDP growth. A substantial percentage of the ministers' multi-million pay is pegged to Singapore's GDP growth rates. The ruling party has lately unveiled a $10-million dollar mega "Community Integration Fund" to make the newcomers feel "welcomed" in Singapore. As the number of expat Indians continue to rise in Singapore, Mr Varatharju may find himself the one who needs to "integrate" into the Singapore Indian community instead of the other way round.  Read More →

By Imran Ahmed, Business Correspondent The monopoly position of Singapore Press Holdings (SPH) has me once again contemplating the future of Singapore’s media sector. Yes, the Straits Times is a decent newspaper as far as international newspapers go but I am convinced Singapore’s print market can absorb at least one additional player. The global media industry is in a state of flux. There is no clarity about its future direction. The New Media (NM) is a relatively recent entrant to the landscape. NM is already influencing the Main Stream Media (MSM) in many ways. In the Singapore context, where media controls are tight, sustainability of potential news websites is a key factor. SPH newspapers represent the entire spectrum of daily newsprint opinion available in Singapore. Through their various sites, SPH and affiliated entities are powerhouses in online news channels too. SPH has announced an initiative in the financial space through an online portal in partnership with the Singapore stock exchange (SGX). SPH minimizes competition in any possible legal manner. It helps that the levers of the state are supportive of SPH efforts to dominate the dissemination of news and views (for socio-political reasons). There is little left in the media punch bowl for other participants to enjoy. SPH’s dominant industry position is not under threat, now or in the near future. SPH is extremely well entrenched. Even a gradual deregulation of Singapore’s media industry will see most competitors as minnows for many years. The media is a ‘sensitive’ industry. Nevertheless, breaking the SPH monopoly on news does not imply an entirely unregulated industry. The government’s fear that its control over a liberalized media sector will disappear is misplaced. Censorship, including self-regulation, will exert strong influence in content creation. Strict laws pertaining to defamation will not disappear overnight. Journalists ignore them at their peril. Common sense and anecdotal evidence suggests the Singapore newspaper market is large enough to accept new entrants. Daily weekday circulation of the Straits Times was 389,000 in August 2008. The most recent US newspaper numbers place circulation of the Chicago Tribune at 466,000 and the Houston Chronicle at 384,000. No comparison is perfect but both Chicago and Houston have smaller populations than Singapore’s five million. Chicago has a population of 2.8 million and Houston 2.2 million. Additionally, the Tribune and the Chronicle have to compete with other daily newspapers, local and national. The United Arab Emirates (UAE) is an Arabic speaking country with a total population estimated at 5.5 million, many of whom read only Arabic language newspapers. The UAE has at least four main English dailies, i.e. the Khaleej Times, Gulf News, Gulf Today and the National. The National is a relatively new paper launched just a few years ago. The circulation numbers for the English language newspapers in the UAE are sufficient to support a thriving service sector with umpteen English newspapers. In Singapore, there is only one domestic mainstream English language broadsheet, the Straits Times. If seemingly smaller markets can commercially support more than one broadsheet daily then why not Singapore? Assuming the deregulation of the print media may not happen soon, what is the future for the NM? Can the NM compete with an entrenched MSM which is able and willing to leverage its existing network to create and package content? A network comprised of hundreds of journalists, editors, copy writers and a multitude of technical staff. It is difficult to answer any of the above questions with certainty. Undoubtedly, the NM in Singapore will transition into something sustainable over time. The revenue model has yet to be defined. The status quo is only sustainable if the NM continues as an amateur arena with a limited audience. It is unclear whether existing sites will move closer to a pure ‘media’ role or further away into a ‘sales’ type model. The sales model implies content geared to sell specific products or services. For example, a travel site dedicated to selling tours or a wealth management site selling financial services. By moving to such a model, the NM sites will naturally move away from being news / opinion providers and into more traditional sales / service sites. It is one way forward for niche websites operated for the primary purpose of profit maximization. The pure media model is a Huffington Post type site which focuses only on disseminating information, especially about current events. The Huffington experience demonstrates that to compete head on with industry majors requires time and resources. Even with the support of ‘celebrity’ writers and massive readership, profitability is not a sure thing, especially in the short term. Survival and longevity is the key for such a news site. Today, most Singaporean sites (amateur and quasi-professional) rely upon the goodwill of fellow netizens, self funding and ‘pocket money’ generated by contextual advertising. It is impossible to create credible content on a regular basis with such a paradigm. Most sites will die a gradual death as content quality withers. Others will remain enthusiastic forums for amateur writers. While there is nothing wrong with amateur forums, the audience is limited and the site’s impact is restricted to a narrow demographic segment. All signs point to the Singaporean NM sites slowly transforming themselves into niche sites operated by ‘experts’ in their respective fields. The main reason for the supposition is the inability of news sites to tap into a larger demographic due to the dominance of SPH. Given SPH’s deep pockets and monopoly position the company will fight fiercely to retain their privileged position. The global media industry is valiantly striving to redefine its relevance in an age marked by the wide availability of free information via the internet. The international (traditional) print media has lost several battles along the way. Not SPH. SPH is like a steamroller - it just flattens any obstacle in its path. Consequently, SPH provides attractive and consistent returns to its shareholders, including the government. The government and shareholders win by having all newspapers concentrated with one owner. However, the policy deprives Singaporeans from receiving a diversity of opinion and constructive intellectual debate on issues of national importance. The real loser is Singapore – and any entrepreneur wishing to invest capital so as to create an enlarged, vibrant media sector. It is time for the government to encourage greater private sector participation in the media sector by reducing barriers to entry and creating a level competitive playing field. Other articles by Imran Ahmed: >> Will the real academics stand up? >> Towards a nation of international capitalists >> PM Lee wades into Singapore’s blogosphere About the Author: Imran Ahmed majored in Diplomacy and World Affairs. He has been a finance professional for the last 20 years, most recently spending five and half years in Dubai before returning to Singapore. He blogs at http://imranwrites.blogspot.com  Read More →