1.

Explain principles of governance

Singapores economic prosperity.

that

contributed

to

Leadership is key
Honest and capable leaders are necessary to ensure stability and
make sure that someone is making the right decision for the
country. Good leaders should have moral courage and integrity to do
what is right and not just what is popular with the people. Potential
leaders are specially selected for their talent, ability and good
character and are groomed to become future leaders. The leaders
must be incorruptible to earn public confidence and respect.
Example:
Under the good leadership of Mr Thai Ker, the former chairman of
the National Arts Council, local talents had more opportunities to
participate in international projects. Other events like Singapore
Writers festival and Singapore Arts festival were organised to
encourage art appreciation in Singapore.
Anticipating change and staying relevant
Singapore has to be open to new ideas and willing to take risk so as
to stretch its potential. Singapore needs to maintain economically
competitive with other countries.
Example: Singapore built 2 IRs in 2005 at Sentosa and Marina Bay to
increase Singapores tourism industrys competitiveness. This is
necessary because other Asian countries are also developing their
major tourist attractions such as Malaysias Legoland.
Singapore needs to stay competitive so that we can continue to
attract tourists and retain our profits in tourism.
Meritocracy
Meritocracy is the belief that everyone should be rewarded for their
ability and talent regardless of their background. This rewards
people for their hard work and encourages people to work hard to
help Singapore to stay ahead of competition.
Example: Students who perform well in studies and CCAs receive
Edusave Scholarships and Merit Bursaries. This acts as an incentive
for students to work hard and become skilled workers to contribute
to Singapore economy in the future.
Example: Surplus from Singapores growth has also been shared
among all Singaporeans as a form of reward for their hard work,
especially the lower income group. One such package is the Grow &

Share package. This helps to motivate Singaporeans to work

towards the goal of economic growth.
Stake for everyone, opportunities for all
The principle is to ensure every Singaporean is involved in the
decision-making that concerns Singapores development so that
they would feel a sense of belonging.
Example: In 2004, the government consulted the people on the
ground on the issue of developing casinos as part of the Integrated
Resorts. People gave their feedback during the feedback sessions
and this helped them to feel involved in their own country.
This contributes to Singapores [success] as it builds a stronger bond
between the people and the country. The strong bond is necessary
so that people will not feel unhappy and ignored.
2. Explain policies to help the challenges of an aging population.
Individual responsibility
Individuals must be playing the main role in ensuring that he can
age gracefully through early planning. The individual is encouraged
to maintain a healthy lifestyle by watching his diet and exercising
regularly. E.g. Health Promotion Board and their health campaigns
such as Healthier Choice Symbol to encourage people to eat
healthier food. Singaporeans are also encouraged to plan early for
retirement and be financially prepared for their old age. By
attending talks and reading relevant financially planning materials
such as the MAS MoneySense website, individuals can better plan
for retirement.
Family Support
The family should provide the main source of emotional, social and
financial support. The government has introduced measures to
strength family bonds and promote strong and stable families.
Example: The Senior Citizens week is held annually every
November to encourage the elderly to stay active in the family and
community. It also promotes a positive attitude towards aging and
the elderly. Grandparents Day is also celebrated every November to
bring families together to show their appreciation for the elderly.
Community Support
The community helps to give social and emotional support on top of
providing healthcare and social services. The government provides

subsidies to voluntary welfare organisations that run communitybased services for senior citizens.
Example Home Nursing Foundation for Elders
Other community organisations also help to look after the needs of
senior citizens by offering free health checks and organising
recreational activities. This helps the elderly to remain physically,
socially, and mentally active.
Government support
The government has introduced measures to help protect senior
citizens interest.
Example: Central Provident Fund
Savings in the Special Account for meant for retirement, emergency
and investment purposes. Money from the Medisave Account can
help to pay for medical expenses. Individuals must have a minimum
sum in their Retirement Account and will receive a monthly sum
after they turn 62. This ensures that the senior citizens will always
have some money to care for themselves in their old age.
Example: tax relief
Taxpayers can receive income tax deduction or taking care of their
elderly parents or grandparents or for contributing to their elderly.
Income tax deductions are also available if grandparents are helping
to take care of grandchildren while both parents work.
Example: Tribunal for Maintenance of Parents
Parents, who are above 60 and cannot financially take care of
themselves, can get a court order to seek financial support from
their children who are capable but not willing to support them.
Example: First time house buyers are given a housing grant if they
are purchasing a flat near their parents flat. This encourages people
to live nearer to their parents and help take care of their parents in
their old age.
3. Explain policies to manage healthcare.
Encouraging self reliance
Government encourages Singaporeans to be self-reliant instead of
depending on the state for their healthcare needs.
Medisave
A certain amount of money from workers CPF account is channelled
to their Medisave accounts. Money in the Medisave account can be
used to pay for hospital bills and certain medical treatment such as

chemotherapy and medication to control high blood pressure.

Medisave thus helps to lighten the governments burden for paying
for healthcare services as people share the cost of healthcare with
the government. Since the healthcare becomes a shared
responsibility, government need not raise the taxes.
Medishield
Medishield is a national healthcare insurance scheme which is paid
for by Singaporeans with money from their Medisave account.
Patients can claim for medical bills, such as long-term
hospitalisation treatment for serious illness, which Medisave does
not cover. The use of MediShield has been expanded to meet
specific needs of the elderly. Paying premiums for Eldershield allows
those above 40 to pay for healthcare in events of disability.
Keeping healthcare affordable
Subsidies
Direct subsidies are given to government hospitals, polyclinics and
elderly nursing homes to ensure that basic healthcare services are
affordable for all Singaporeans. Healthcare subsidies make up to
35% of government spending in 2013. The most subsidies are given
to the lower-income group as the highest rate of subsidy is given to
Class C wards.
Medifund
Some low income workers may not have sufficient funds in their
Medisave and Medishield accounts to cover their medical expenses.
Furthermore, some self-employed people do not make any CPF
contributions so they do not have Medisave and may not have
enough cash to pay for their medical bills. The government started
the Medifund with $200million and the interest earned from this
fund is given to pubic hospitals to provide help for needy patients.
Patients who need financial assistance can apply to the hospital that
they are being treated.
Restructuring of hospitals [do not use this example]
In 1990s, the hospitals were given more freedom to reorganise to
meet the needs of Singaporeans. The government was also able to
reduce the amount of subsidies .
Means-testing
The reason for means-testing is to ensure that the subsidies
provided for the government should benefit patients who need them
the most. As of 2009, means-testing has been implemented in
government hospitals for patients who choose to stay in Class C and
B2 wards. This ensures that only the truly financially disadvantaged
will enjoy the increased government subsidies.

Promoting a healthy lifestyle

If an individual is in good health, he would not need medical
treatment and can save on medical expenses. This helps to combat
the rising costs of healthcare. Schools and workplaces have
programmes to emphasis the need to maintain good health. For
example, regular physical exercises and a well-balanced diet are
encouraged via pamphlets on healthy eating and benefits of
exercise.
Working with organisations
The community provides some healthcare support services to meet
the needs of the people. This helps to run healthcare services that
the government cannot run itself such as post-hospitalisation
healthcare services. Voluntary welfare organisations and some
private organisations are given hospital. Grants to run community
hospitals, nursing homes and day rehabilitation centres for this
group of patients.
4. What worsened the relationship between Iraq and Kuwait?
Economic problems in Iraq
Iraq suffered tremendously as the result of the war with Iran. Many
Iraqis lost their lives and the economy was also in ruins. Iraq owed
US$80 billion to its neighbours and other countries such as France
and USA that had supplied with it with food supplies and war
equipment. In addition, the cost of rebuilding the country after the
Iran-Iraq war required another US$230 billion. Iraq was in massive
debt and had to find means to pay off the debt.
Oil Production
Initially, Iraq wanted to pay off its debts by earning more revenue
through the sale of its oil. However, as a result of overproduction by
other countries, oil prices were falling. OPEC, the oil cartel, had put
in quotas on amount of oil that its member states could produce to
prevent a further decrease in oil prices. Kuwait and UAE ignored the
quota and produced oil well above their assigned limits. This caused
oil prices to further decrease from US$18 TO US$7 per barrel at one
point in the late 1980s. Iraq lost US$1 billion from oil sales
everytime the price of oil fell by one US dollar. Iraq lost a ton of
revenue as 90% of its income came from oil sales and it felt that the
action of Kuwait and UAE was equivalent to waging an economic
war.
Dispute over territory

Territorial dispute was another source of tension. Iraq and Kuwait

inherited borders from the British and some of the borders were not
well-defined. This continued to be a source of conflict between the
two countries after they gained independence from the British.
Rumaila oilfield
Due to the ill-defined borders between Iraq and Kuwait, they both
share a profitable Rumaila oilfield. In 1990, Iraq accused Kuwait of
stealing oil by drilling for oil from the Iraq side using slant-drilling
technology which Kuwait had purchased earlier and demanded
Kuwait to completely stop drilling for oil in the Rumaila oilfield. Iraq
also demanded that Kuwait pay Iraq US$2.4billion in compensation
for the oil that the Kuwaitis allegedly took from the Iraqi side of the
oilfield. Kuwait denied to pay compensation as they claim that they
only took oil from the Kuwait side of the oilfield.
Bubiyan and Warbah Islands
The Kuwaitis inherited the Bubiyan and Warbah Islands from the
British. The Iraqis were unhappy with Kuwaits ownership of the
islands because they were strategically located off the Iraqi port
Umm Qasr which the only direct outlet for Iraqi oil to the world
markets. As Kuwait had control over the Bubiyan and Warbah
islands, Kuwait had the potential to block off Iraqs access to the
Persian Gulf which would negatively affect Iraqs oil export earnings.
Iraq did not accept Kuwaits ownership of these two islands and
there was failed attempts by Iraq to claim ownership of the islands
through force in the 1960s and 1970s. From 1978, Iraq wanted to
lease the islands from Kuwait but failed to reach an agreement.
Kuwait refused to lease the two islands due to fears that Iraq will
initiate even more territorial demands from Iraq.
5. Responses to invasion of Kuwait
Fear of Iraqi Dominance
Many countries in the region feared Iraq dominance. By invading
Kuwait, Iraq controlled about 20% of the worlds oil production. With
the Iraq army camped near the Kuwait-Saudi Arabia border, Saudi
Arabia feared that Iraq will invade Saudi Arabia as well. Saudi Arabia
knew that their army would be no match for Iraqs larger and more
experienced army. Access to Saudi Arabias vast amount of oil would
enable Iraq to set a high price for oil and solve Iraqs economic
problems. This in turn will devastate the world economy.
Arab Solution
As the Arab countries did not western response for fear of return of
western imperialism in the Middle East, they attempted to have an
Arab Solution. Kuwait appealed to the Arab League to organise a

joint force to counter the Iraq invasion. However, the vote to

condemn Iraq actions was only passed by a slim margin. Eight of the
members did not support the vote. The members were divided on
their response to the invasion and this reduced the effectiveness of
the Arab solution.
American response
The Saudis officially invited the US to help defend the kingdom
against any potential Iraqi threat. The US responded by deploying
soldiers and resources to defend the Saudi Kingdom. The operation
was named Operation Desert Shield. Later on, more than 30
countries took part in the coalition by providing troops, military
equipment and money for efforts to defend Saudi Arabia and get
Iraq out of Kuwait.
International response
The UN Security Council unanimously passed a resolution to
demand immediate Iraqi withdrawal from Kuwait. It also called for
immediate and intensive negotiations. Both Kuwaiti and Iraqi assets
worldwide were immediately frozen to prevent Iraq from making use
of the funds. Economic and military sanctions were used to force
Iraq to get out of Kuwait. Iraq could no longer sell its oil to gain
revenue. No country was permitted to trade with Iraq, except food
and medical supplies. This is critical as Iraq imported more than
90% of its good from overseas.
6. What was impact of the Iraq Kuwait conflict?
Economic and social impact on Kuwait
During the Iraqi occupation of Kuwait, more than 1000 Kuwaiti
civilians were killed and thousands tortured. The Kuwaitis were
treated harshly and museums, hospitals, shops, and homes were
looted by the Iraqi soldiers. When the Iraqi army was retreating,
they set fire to 600 out of the 950 oil wells in Kuwait, the economic
damaged amounted to over US$25 billion.
Destruction of Iraqi military capability
Before the invasion of Kuwait, Iraq had one of the undisputed
military powers in the Middle East and had a 1 million strong army.
During the war, the coalition forces used state of the art weapons
against the Iraqi troops. Stealth warplanes were used to destroy
Iraqi air defence capability. Iraqi air force could no longer provide
cover for their ground troops. The coalition forces carried out a
sustained bombing against the Iraqi troops. There was a lost of
morale among the Iraqi troops after the bombings and many
surrendered.
Political instability in Iraq
..

7. What is the impact of terrorism?

Economic impact
After the 911 attacks, total cost of life and property cost insurance
companies about US$40 billion. The airline companies lost a lot of
business as people became terrified of flying. The US government
actually had to provide economic help to airline industry in the
immediate period after the attacks. After the Bali bombings in 2002,
tourist arrivals feel by more than 50% as this meant that many
Balinese lost their livelihood as the main source of income for most
people is tourism.
Government spending also increased to cater for increased security
at sensitive areas such as airports. Governments also spent a lot of
money to hold exercises to prepare citizens and emergency services
in event of terrorist attack. E.g. Exercise Northstart in 2006: largest
civil emergency exercise which test Singapores ability to respond
effectively to civil emergencies
Social Impact
Acts of terrorism may create suspicion and tension among the
various ethnic and religious groups. Even more than a year alter
than the London Bombings, there was still suspicion and fear
between Muslims and non-Muslims.
e.g. Community engagement Programme
Political impact
Governments are responsible for keeping their citizens safe from
terrorists. Governments had to tighten border security to ensure
terrorist do not slip into the country. This may include greater
checks on travellers identities and belongings. Legislation has also
been introduced to counter terrorism.
8. Management of terrorism
ASEANs efforts
ASEAN leaders view terrorism as a major threat to international
peace and security and a direct challenge to achievement of peace
and progress in ASEAN. The ASEAN governments now cooperate
through joint police and intelligence measures. ASEAN has pledged
to enhance information and intelligence exchange on terrorists and
terrorists activities. For example, in Jan 2002, the Philippines
authorities arrested the JI bomb maker Fathur Rohman Al-Ghozi
based on information provided to them by Singapore. When he was
arrested, he was possession of explosives meant for attacks in

Singapore. This helped member states to disrupt terrorist activities.

In Jan 2007, the ASEAN leaders signed the Convention on Counterterrorism, the regions first legally binding anti-terrorism accord.
International efforts
Nurturing an environment that censures terrorism
Terrorist ideologies often glorify the use of violence and instigate a
person to commit such violent acts. We want to prevent such ideas
from taking root in society and the society must take a very strong
stand against some ideas that encourage terrorism. If a society does
not firmly, unequivocally an actively reject such terrorist ideas, the
ideas may slowly gain legitimacy. Everyone has a role to play in
denying terrorist ideologies. There must be pervasive efforts to
denounce these ideas and prevent people from falling victim to
them.