SINGAPORE’S BEST PRACTICES

(2nd Part)
 OUTLINE
1. Social Security (Central Provident Fund)
2. Talent Selection & Grooming
3. Talent Strategy & Leadership Development
4. Public Opinion& Policy
1. SOCIAL SECURITY

5 Basic Needs
A. Retirement
B. Education
C. Healthcare
D. Housing
E. Employment

« A to D provided by citizen-government partnership

« Mandatory: seek E & save A to D
1. SOCIAL SECURITY

Central Provident Fund (CPF)

Compulsory comprehensive savings plan primarily to

fund RETIREMENT, HEALTHCARE & HOUSING NEEDS

Employment-based savings scheme w/ employers &

employees contributing a mandated amount to the FUND
1. SOCIAL SECURITY
CPF Scheme
CPF Scheme
« Range : S$ 1,000 - 10,000
« Employee share : 20%
« Employer share : 16%
« Total Savings : 36%

ex. Wage : S$1,000/month

CPF : S$200 (share) + S$160 (employer) = S$360
Cost of employing : S$1,160/month
Annual Savings : S$4,320/year (S$360x12mos)
1. SOCIAL SECURITY
CPF Scheme

Workers below 55 y/o have 3 accounts:

1. Ordinary Account
64% (housing, education)

2. Special Account
18% (retirement)
CPF
3. Medisave Account
18% (healthcare)
Max amount-S$45,000
Note
« 55y/o - Retirement Funds, LE* 70 y/o
« 65y/o - Retirement Funds, LE 80 y/o (proposal)
*LE - Life Expectancy
1. SOCIAL SECURITY
Medisave Account

Highlights
« Employees are entitled with employer’s medical insurance
« Medisave account is used to pay premium for Health
Insurance. Generally useful for unemployed citizen
« MediShield Life – national health insurance scheme (2013)
with no age limit, no exclusion, covers everyone
« Allocates S$8B to subsidize older Singaporeans
« >80y/o and above – Govt pays annual premiums, $800
« 60-80y/o – Govt pays 40-60% annual premiums
2. TALENT SELECTION & GROOMING

Highlights

Government Scholars : Top 10% of HS Graduates

Government Budget : S$1M/student
Can study in a university/course of his choice worldwide. Young
talents is a key driver for development in the aging population of
Singapore
Service Requirement : Bonded for 5 years with stimulus
package (comparable w/ private sector)
2. TALENT SELECTION & GROOMING

Highlights
« Singaporean students competes too much
« Key is education, trainings, skills development
« Workforce – most significant source of economic
development & nation’s competitiveness

nurture local talents for scholarships & fellowships

3. TALENT & LEADERSHIP STRATEGIES

« Declining talent & birth rate

« Needing migrants, especially highly educated & skilled
« < 3% unemployment rate
« Baby bonus, S$10,000 with 6 months Maternity Leave
3. TALENT & LEADERSHIP STRATEGIES

SWOT Analysis
S – strategic location, English proficiency, stable
government, honest/transparent governance &
clean environment
W – lack of natural resources, high cost of living
O – globalization, migration
T – potable water, talents working abroad
3. TALENT & LEADERSHIP STRATEGIES
Eight (8) Core Activities of HR
1. Recruitment
2. Retention
3. Feedback/measurement
4. Professional development
5. Leadership/high potential development
6. Performance management
7. Workforce planning
8. Organizational culture

SG established Skills Development Fund to train its workforce

4. PUBLIC POLICY & OPINION
Highlights
« Govt should provide public good & not the public
« Critical resources are owned by Singapore (port, airport, oil
refinery, etc)

« Systems Failure in a Govt

« Multiple goals
« Multiple principles
« Too politicized
« Conflict of interests

« Some Business Strategies

« Competition Reform
« Pricing Reform

« Strong Leaders
 4. PUBLIC POLICY & OPINION

Highlights

« “if a leader listens to the public always” - WEAK Leader

« “popular decisions / policies” - WEAK Leader

« “I always tried to be correct, not politically correct”

« don’t be obsessed with public opinions

« a Good leader is not necessarily the one who is popular &

sometimes defy public opinion in order to achieve GROWTH
4. PUBLIC POLICY & OPINION

Highlights

« exercise legal & professional judgement & not to be swayed

by the “social media”

« Where do you belong – “vocal minority, silent majority”

« “make HARD decisions, don’t SHY away from public opinion –

if this is GOOD, let’s DO this…”

« keep in mind always – “level the playing field”