Chapter 2

Ideas Shaping Governance

By the end of this lesson…
• I am able to describe the following Ideas Shaping
Governance:
• Having good leadership
• Anticipating change and staying relevant
• Providing a stake for everyone
• Practising meritocracy
• I am able to explain how each of the Ideas Shaping
Governance have contributed to successful policies and the
development of Singapore.
Link to previous Parts of the Chapter
• As we have seen, deciding what is good for society is
tough. (Part 1)
• In Singapore, we empower an elected government to
make such decisions for us. (Part 2)
• The Ideas Shaping Governance are the values/
principles that guide our government in making those
decisions.
Idea 1: Having Good Leadership
• Leaders must be honest and capable, with the moral
courage and integrity to do what is right, not just what
is popular.
• Leaders must be incorruptible, making decisions for
the good of the country rather than for personal gain.
Idea 1: Having Good Leadership
• Example: the COE (Certification of Entitlement) system
• Potential car buyers in Singapore need to bid on COEs,
which more than triples the price of a car.
Compare the prices in
the USA vs in
Singapore.
Idea 1: Having Good Leadership
• When COE was first introduced in 1990, how do you
think car buyers in Singapore reacted?
• What about those who did not own a car but hoped
to do so one day?
• Nobody likes COE, but the government saw the
necessity of such a policy despite its unpopularity.
The literally textbook example – the Integrated Resorts (i.e. the casinos)
 Idea 2: Anticipating Change & Staying
Relevant
• Integrated resorts – a situation of economic benefits
vs social costs
• In building IRs, the government tried to prepare
Singapore to stay relevant to the global economy in
seeking potential economic benefits, e.g. job
opportunities & higher tourists spending.
• However, problem gambling was/is a potential social
cost.
Anticipating change, the government set up the National Council on Problem Gambling, whose mission
includes public education and outreach to prevent problem gambling, as well as providing counselling
services for problem gamblers and their family members.
Idea 3: Providing a stake for Everyone
• What is a STAKE?
• Original meaning – the sum of money you put up in a game of chance
• E.g. “high-stakes poker”
• Meaning in this context – a share/interest in a business, a situation, or
a system
• E.g. “Jeff Bezos still has a 10.6% stake in Amazon.”
• E.g. “The wedding couple are my good friends, so I have a stake in their
happiness.”
• Important – a stake does not have to be financial/monetary; it can
also be emotional.
Idea 3: Providing a stake for Everyone
• E.g. of financial stake: Public Housing Scheme (PHS)
• Singaporeans can own homes with housing grants from
the government.
• A couple applying for HDB for the first time can get the
Special Central Provident Fund (CPF) Housing Grant and
may qualify for additional CPF Housing Grant
Idea 3: Providing a stake for Everyone
• E.g. of financial stake: Public Housing Scheme (PHS)
• Link – This gives Singaporeans a financial reason to care
for Singapore’s success as their home value if
Singaporean’s economy continues to do well. Conversely,
if Singapore is conquered, their property investment
vanishes.
Idea 3: Providing a stake for Everyone
• E.g. of emotional stake: Our Singapore Conversation –
will be discussed in greater detail in Chapter 3.
 Idea 4: practising meritocracy
• “Meritocracy” – the rule by the best/most worthy
• Rewarding people according to their abilities & effort,
instead of race, religion, or socio-economic status (SES)
• At its best, meritocracy encourages people to work hard
• Example in schools:
• Edusave Scholarship – top 10%
• Merit Bursary – top 25%
Idea 4: practising meritocracy
• However, over time Meritocracy needs to be refreshed or it
can become another form of inequality.
• Families who have done well through meritocracy would
always want to give their children a “head start” –
including tuition, enrichment, special coaching, etc.
• At its worst, meritocracy becomes an excuse for inequality
• E.g. “You are poor because you are lazy.”
• E.g. “I deserve to be this rich because I have worked hard for it.”