Better engagement is the way forward

May 29, 2011

The N-S Expressway project shows need to communicate well with affected parties

By Christopher Tan

Engagement, inclusivity and transparency are words which have been used fairly liberally in the last one month.

They are words filled with promise and hope, of a country where citizens have a say in issues that affect their lives and the lives of their children.

And it might as well start with transport, one of the things Prime Minister Lee Hsien Loong apologised for in a moving election rally speech on May 3.

There is no need to harp on crowded trains and unpredictable bus arrivals. These are being addressed with infrastructural improvements, fleet expansion and extra actions such as bus priority schemes.

Relief should be in sight from as early as October, when the rest of the delayed Circle Line opens. It is to be followed by the completion of nearly one new rail project a year till 2020.

We can only hope that there will be no more hiccups between now and then, and that the planners have their projections right in terms of route and capacity (most, if not all, of the new railways will have stations that accommodate only three-car trains).

What is opportune now is perhaps for the Government to re-examine the way policies and projects which can have a profound impact on citizens are rolled out. This is because even the best of intentions can get off to a bad start if they are not communicated well and sufficiently.

The case of the North-South Expressway (NSE) comes to mind.

There is no arguing that with a fast-growing population, Singapore needs the additional capacity that the highway project will offer.

But the way in which it was announced on Jan 19, and the way the concerns of parties adversely affected by it have been addressed, fly in the face of engagement, inclusivity and transparency.

Last month, I interviewed residents at Nuovo, a residential estate in Yio Chu Kang affected by the NSE which runs from Sembawang in the north to the city centre in the south.

From their responses, it is clear that most of them understand the need for new roads, and they understand that road alignments will sometimes be close to residences.

What they find hard to accept though is the way the project had been communicated, the way their concerns were addressed (or not addressed) after they learnt of the project, and the level of accessibility of the authorities involved.

For starters, they first heard of the NSE through newspaper articles.

A few days after the news broke on Jan 19, there was a briefing by Land Transport Authority (LTA) and Singapore Land Authority officers facilitated by Ms Lee Bee Wah, then an MP for Ang Mo Kio GRC.

Despite that, residents felt the authorities did not have satisfactory answers to questions about why portions of the highway near residences could not be underground.

Another briefing was facilitated two weeks ago by Mr Seng Han Thong, a new MP for the ward. Residents felt officials were making a better effort this time at reassuring them that there would not be any appreciable change in noise levels.

But they still could not accept a reason given for why the expressway near their homes could not be underground: ventilation shafts would eat into training ground near Lentor Avenue used by the Ministry of Defence.

Residents felt some public engagement with parties affected by the new highway before decisions were made would have helped immensely. They felt they were left to deal with the foreseeable impact of the NSE - the noise, dust and pollution - by themselves.

I asked the LTA last month why it did not engage affected residents before finalising its plans.

It replied: 'The Government as a norm does not carry out consultations when finalising the alignment of major transport infrastructure projects... as these would involve commercially sensitive information affecting property values.

'This is to ensure that no party will have privileged information or have any undue advantage over others, and that this does not lead to unnecessary speculation.'

Is this really a valid reason?

In 2003, Seoul Mayor Lee Myung Bak proposed the demolition of a massive elevated highway in town to restore a covered waterway (the Cheonggyecheon river).

The views of thousands of residents, businesses and commuters were sought before a decision was made.

His office faced opposition from some quarters, including traffic engineers and civil engineers. Three thousand illegal street vendors had to be moved as well.

Still, the planners took pains to convince detractors, which included compensating those whose businesses would be affected.

The project was completed successfully in 2005, and the site is now a major attraction for locals and tourists. There was no traffic mayhem as well.

Mayor Lee went on to become President.

Admittedly though, the challenges of public involvement are real. And Singapore is not alone in the dilemma of balancing efficacy with the need to consult ordinary citizens for views that may or may not contribute to the greater good.

Dr Karen Bickerstaff, a lecturer at King's College London, noted in a 2002 paper Transport Planning And Participation: The Rhetoric And Realities Of Public Involvement that major transport projects tended to go through a 'decide, announce, defend' route.

But in a 1998 White Paper, the British government charted a new course.

It decided that first, an inclusive approach will ensure better support for plans. Second, locals have intimate insight into issues in their neighbourhood and can contribute. Third, public participation is key to raising travel awareness.

But Dr Bickerstaff and other academics recognised that, in practice, involving the public is easier said than done. And there has been little evidence of how involvement actually impacted transport plans. Hence, there are doubts about the efficacy of the practice.

Even so, the British and Korean exercises brought into focus normative arguments about public involvement. Meaning, governments should involve the public not only because it is beneficial, but also because it is the right thing to do.

Will the authorities do the right thing here?

The LTA recognises that there 'will always be difficult trade-offs that have to be made for a major project like the NSE, but we need to make a decision taking into account wider interests'.

That is true.

It is also true that most people will have a 'not-in-my-backyard' stance when it comes to infrastructural projects built near their properties.

But it also means that those whose backyards will soon be fronting a six-lane expressway should be compensated.

Policy studies refer to them as 'losers'. Right now, there seems to be a reluctance on the part of the authorities to even commit to relatively small mitigating measures such as noise barriers and double-glazed windows.

And that may not be defensible.

christan@sph.com.sg

[Doing the "right" thing takes time.]

Here's how to raise a genius

May 29, 2011

By Irene Tham

Parent alert: Turn off the TV set and computer if you want to raise smart children.

Far-fetched? Not compared with this: Fathers, if you want to get your children into Harvard, start cleaning the toilet.

These suggestions from University of Washington molecular biologist John Medina, 55, may sound radical or, as some would put it, absurd.

This is because most parents have little scientific knowledge about how babies' brains work, said Dr Medina, who specialises in the genetics of psychiatric disorders.

Applying the understanding of brain sciences to early childhood education is his lifelong interest.

Dr Medina was the founding director of the Seattle-based Talaris Institute, which was established in 2000 and supports early childhood research projects as well as developing parenting programmes for caregivers. And he is director of the Brain Centre for Applied Learning Research at Seattle Pacific University.

Dr Medina is adamant about this one rule: 'Get the blue light out of their eyes.'

He is referring to exposing children to television and computer screens before they are two years old.

It is a no-no because blue light emanating from electronic media keeps them awake, and can lead to attention deficit disorders later in life.

'Exposure to electronic media of any kind can be very dangerous in the first couple of years of life,' he stressed.

The conservative scientist also believes that children above two years old - if allowed to be glued to digital screens - will be robbed of the opportunity to form competent human relationships, thus affecting their 'theory of mind'.

A psychiatric term, theory of mind refers to the ability to shift perspectives - a trait lacking in children with autism or those experiencing severe pain.

The ability to shift perspective reflects a child's quantitative reasoning and therefore his ability to do maths, he said.

His lifelong interest in how brain sciences influence the way children learn has been captured in his latest book, Brain Rules For Baby: How To Raise A Smart And Happy Child From Zero To Five, published last October.

He spoke to The Sunday Times recently, when he was here at the invitation of early childhood training institute Asian International College.

Over two days here, he spoke to more than 100 early childhood educators from global education group Knowledge Universe, which operates the Learning Vision, Pat's Schoolhouse and Odyssey, The Global Preschool brands.

Dr Medina spoke with conviction and passion about how parents and educators should 'start over' if they want to raise smart, happy and moral children.

And the answer is not teaching children to read French by the time they are three, or do differential equations by the time they are six.

'The single greatest predictor of academic performance that exists is the emotional stability of the home in which the kid is being raised,' he said.

Breaking what may be bad news to fathers, he said that men should do more housework for the sake of their children.

The second biggest source of conflict in the United States - the first being sleep deprivation once the baby arrives - is the inequity of household chores, with women doing 70 per cent of the housework. The numbers may not be very much different in Singapore.

'Guys, get a clue,' he said in a thunderous voice.

'If you want to stop the source of conflict, stop the World Of Warcraft and fix dinner.'

How a child's parents get along at home affects his 'executive function' score - a measure of impulse control and the ability to do well in maths, said Dr Medina.

'It is only with emotional stability that the kid can mobilise whatever IQ he already has,' he added.

Because babies' brains are highly stimulated, they can sniff out parental conflict.

And perceived unresolved conflicts can 'rewire their nervous systems in a way that hobbles their ability to do maths, language arts and certain motor skills', he said.

The human brain is designed to 'solve problems related to surviving', so the child will feel threatened by unresolved conflicts and will grow up particularly scared, and not creative or bright, he explained.

'It doesn't matter how much calculus maths you give them.'

Conversely, a child's nervous system will be fine if the amount of fighting and resolution is equal.

'They will also learn that conflict and its resolution are a normal part of life,' said Dr Medina.

His earlier book, Brain Rules: 12 Principles For Surviving And Thriving At Work, Home And School, was a New York Times bestseller for nine months in 2008.

Although it was his first visit here, he had heard about Singapore's stressful education system and would like parents to hear this: 'Education is not a race.

'Tiger Mum Amy Chua is wrong. The more stress you produce in children, the more likely they are to not mobilise their IQ.'

He was referring to the Yale law professor whose book Battle Hymn Of The Tiger Mother recently created a stir and became a bestseller.

Stress, in particular, stubs out creativity, or what Dr Medina describes as 'fluid intelligence'.

Fluid intelligence is the ability to improvise as soon as something is learnt - a skill employed by jazz musicians.

It is as important to the process of learning as 'crystallised intelligence', which is characterised by memory work or repetition.

The interview was peppered with lots of laughter as he explained how an over-emphasis on either of the two forms of intelligence will create either a robot - which does not win Nobel Prizes - or an air guitarist, who does not have knowledge.

Drills are important, but just as crucial is playtime, which unlocks the creativity in children, he added.

It is for the same reason that he thinks that an accelerated syllabus is bad.

'Make education a race and the learning is destroyed.'

Transforming the PAP

May 27, 2011
 
3 Ps behind PAP's image problem
The men and women in white are members of the People's Action Party, but some have accused them of being proud, arrogant politicians. Why? And what can the PAP do about it? Li Xueying, Cassandra Chew, Elgin Toh and Teo Wan Gek report
 

THEY seem a breed apart, dwelling in a pristine bubble far from the madding crowd.

That, at least, is the stereotypical view of a People's Action Party (PAP) politician. He or she is likely to cruise around in a luxury car, never having to take public transport.

When he goes to the ground, the PAP MP tends to arrive after everyone else, speaks mainly to grassroots leaders and then makes a quick exit.

Undergraduate Elly Mohamad, 24, says these politicians are 'atas', a Malay word to describe people who think they are above everyone else. That image is at odds with the PAP ethos of being 'servants of the people' - as Prime Minister Lee Hsien Loong reminded party members at a Young PAP event last month.

'Never forget we're servants of the people, not their masters,' he said then. 'Always maintain a sense of humility and service. Never lord it over the people we're looking after and serving.'

THE PROBLEM

THE May 7 elections saw the PAP's historic loss of six seats, its worst performance since Independence.

Among other things, the 6.5 percentage point vote swing - from 66.6 per cent in 2006 to 60.1 per cent this year - has been blamed on a widespread perception that the ruling party, in power for 52 years, has become arrogant.

It was first surfaced during the hustings by former foreign minister George Yeo, who said the PAP has to take a 'very hard look' at itself and review the way it governs. He identified the problem on two levels: It has to listen harder; and it should not dismiss people's unease over the pace of change driven by globalisation.

'We need a transformed PAP,' he concluded.

That has to go beyond just rhetoric. The PAP has to acknowledge the grievances, he said.

He recounted how he told Mr Lee during the campaign: 'It's not enough to just say, we're servants, you're masters, because that's just one line. Until people are convinced that you've heard, they are not sure that you have.'

The next day, Mr Lee apologised for his government's mistakes and after the elections, promised that the ruling party would evolve to accommodate more views and participation.

But what really is it about the PAP that has led people to think of it as arrogant?

It can be drilled down to three Ps: poor public relations, personalities and policies.

Poor PR

MANY take umbrage at the way the PAP handles people's concerns - at least, publicly.

Housewife Annie Ang, 60, said: 'They have been in power for too long; they have forgotten to listen to the hearts of the people.'

For instance, many Singaporeans were unhappy that they had to wait three years for an unqualified apology from the Government on the escape of terrorist detainee Mas Selamat Kastari. Mr Lee apologised for it during a lunchtime rally at UOB Plaza during the recent campaign.

Retiree Saleem Akhtar, 59, said: 'They need to change their style. When they are wrong, they just try to argue and explain their way out. If you made a mistake, just come out and admit it. What we want is accountability. You acknowledge, and we move on.'

Mrs Ho Jong Lin, 55, an assistant general manager of a manufacturing company, pointed to another instance of ministers brushing people off when they voice their worries.

'When we talk about rising health- care costs, the PAP will compare us to other countries to tell us we are better off. But that's such a turn-off.'

Personalities

FOR others, the problem lies with individual MPs and ministers.

Mr C.T. Lingam, 77, a retired technical officer, said he has written letters of feedback to five or six different ministers. Only one replied. 'I'm very hurt,' he said. 'Good ideas are submitted but not being looked into.'

Mr Timothy Lim, 48, a sales director, was disappointed his former MP in Aljunied GRC did not follow through on his case after he went to her at a Meet-the-People session.

He added that he had not seen his MP before the elections, saying if 'after five years they do not feel like your MP, then the personal touch is missing'.

The perception of arrogance is exacerbated by instances of MPs arriving late for community events.

Worse, some speak only with grassroots leaders before exiting quickly. They not only leave a bad impression, but also leave without a good sense of what moves ordinary Singaporeans.

Observed a grassroots leader from Moulmein-Kallang GRC: 'So they are close to only a limited pool of people, hear from only the limited (group of) people what's happening, and they don't really know what's happening to other people, those on the buses or trains.'

In 2004, then-party whip Lim Boon Heng had to issue a reminder to MPs to be punctual.

Policies

WHEN it comes to policies, one source of tension seems to be between the PAP's aversion to being viewed as populist and yet, at the same time, reassuring people that they are being heard and their concerns will be addressed.

The ruling party prides itself on being able to push through necessary but unpopular policies, which will yield results only years down the road.

For instance, as noted by Pioneer MP Cedric Foo, it cashed the political chips it gained after successfully managing the Sars crisis in 2003, to restructure the Central Provident Fund (CPF) and cut contribution rates - 'a problem that needed fixing though we knew it was unpopular'.

But has it swung too far in the direction of tough love, such that people feel PAP politicians care little for them?

Procurement manager Beni Ong, 52, believes so.

In the past, PAP MPs 'know what it's like to fight for every vote', he said. But today's MPs are 'more like technocrats, recruited to run and administer policies, but not to look into the problems of residents'.

He added: 'They think they can let the grassroots organisations do the job. But they forget that the grassroots are often feeding them false information, because they are always very positive.

'All they think about is policies and not the people.'


Change needed, locally and nationally
 
CLEARLY, it can no longer be business as usual for the PAP.

Insight spoke to 15 MPs and all agree that much needs to be done to alter the perception of PAP arrogance.

They point to feedback received during the election campaign and decreased vote shares - especially in areas they knew previously to be PAP strongholds - as clear signals.

Said Pasir Ris-Punggol GRC MP Teo Ser Luck: 'This GE was a very good lesson for all of us.'

Change, they said, will have to take place at both the national and local levels.

THE SOLUTION

At the local level

THE relationship between MPs and residents has to be strengthened, they say.

Mr Liang Eng Hwa is taking one firm step to strike at the image of the MP placed on a pedestal.

The MP for Holland-Bukit Timah GRC has told his grassroots leaders that starting this term, he should not be called the 'guest of honour' at grassroots events. Rather, they should tell residents that 'the MP will also be attending'.

He will also arrive ahead of time to mingle, instead of turning up only at the appointed time.

MPs are also thinking of ways to reach out to people beyond the routine MPSes and grassroots events.

Mr Edwin Tong, an MP for Moulmein-Kallang GRC, acknowledged that the grassroots events have been reaching out to 'the usual suspects'.

Meanwhile, it is difficult having meaningful conversations at MPSes, as people are impatient after the long wait, said Sembawang GRC MP Ellen Lee. She hopes she can persuade residents to 'stay on to have a decent conversation'.

Mr Tong has started to organise small informal coffee or makan sessions with residents of two to three blocks at a time. There is no speech, no programme - just chit-chat.

'I would like to do the same with schools, condominium residents, hawker associations, unions etc, the people we seldom see,' he said.

Mr Liang is going one step further - meeting residents in one-on-one sessions at kopitiams. For instance, one e-mailed him with concerns about the layout of the new Bukit Panjang MRT station. They will have a coffee together this week.

In cyberspace, the party's online efforts would have to be beefed up to better reach out to the young.

Mr Zaqy Mohamad, a Chua Chu Kang GRC MP and Young PAP vice-chairman, acknowledged that the party does not yet have a good formula for packaging content.

'Our MPs are on Facebook, they put up pictures of block visits, but there are no substantative elements that explain to residents why certain things are done,' he said.

So to gather feedback on the transport system in Chua Chu Kang, he is conducting surveys of the bus services on his page.

Meanwhile, MPs could visit schools informally to give talks that would raise political awareness.

'We can teach about democracy, and also how to analyse policies and manifestos,' said Mr Zaqy.

But it is not just about talk. MPs have to take action to follow up on interactions with residents, said Mr Teo.

'Sometimes we have good intentions, but when they are executed on the ground, they are less than perfect because of a lack of follow-up, so we end up disappointing residents and confidence falls.

'If we want to transform, we cannot just change at the intent level at the top.'

Ultimately, MPs must remember that they need to be the face and the voice of the residents, said Mr Tong.

'It used to be that politics was about the party.

'Now, it is becoming more about what the individual candidate can offer to the residents. And I think it is up to each MP to take the initiative.'

At the national level

THE philosophy of how the PAP Government crafts its policies has to evolve, and its process revamped, said the MPs.

One important change is that policymakers need to be more mindful of short- term pain, and not be overly focused on the long-term good.

Health Minister Gan Kim Yong said: 'Even for policies that are good for Singaporeans in general, there could still be negative impact on certain segments of the people, especially in the short term.'

This means that policymakers have to be 'engaged with the people at every step of the policy implementation process'.

'We may need to fine-tune our policies to minimise the impact, find ways to help them cope, and explain the trade- offs in our policy choices,' said Mr Gan.

'This way, we can help our people more effectively and gain their support for our policies.'

West Coast GRC MP Arthur Fong notes that some Singaporeans are caught between policies.

One instance is when old housing blocks undergo the selective en-bloc redevelopment scheme (Sers) and residents have to plough back their compensation into their CPF accounts, leaving them with little liquid income.

'This is good in the long term in ensuring that they have sufficient retirement funds,' said Mr Fong.

'But sometimes, we need to consider their needs too and be more flexible in mandating that they channel the money back into CPF.'

A second change that backbenchers like veteran MP Inderjit Singh hope to see is an opportunity to be involved in the policymaking process much earlier.

'We need more upfront involvement of the MPs, even before the policies are formulated, rather than at the tail end of the policymaking process,' he said.

Currently, MPs are tapped for feedback after policies are more or less crafted, but before they are passed in Parliament, he said.

He believes that policies which would have benefited from earlier discussions with MPs range from the housing income ceiling, now being reviewed, to whether more Singaporeans should be allowed to stay in rental flats.

Such a process will mean some time lost, conceded Marine Parade GRC MP Seah Kian Peng, 'but I think it's time worth losing'.

'Because once the communication is done well, everyone can catch up later. When everyone is on board, they can move at double the speed.'

But how much longer can this process stretch without compromising the capability of policymakers to move in time?

Mr Singh said it is a 'matter of judgment and the PM has to decide'.

'If that is what it takes for a policy to be effective and to be right, then it's okay for us to lose the efficiency.'

A lifting of the party whip on more Bills in Parliament will also go some way in convincing people that a full debate is taking place and that all concerns will receive a complete airing and be taken into account, added the MPs.

PAP MPs also recognise the need to better communicate the thinking behind policies. That has to go beyond speeches in Parliament because as Mr Zaqy said: 'Ministers give one long speech in Parliament. Who remembers?'

Office holders, civil servants and MPs will have to do constant explaining on the ground - in layman's terms.

There is a need to convince younger and better-educated voters of the necessity of certain policies and teach them about trade-offs, said Mr Zaqy.

Added Nee Soon GRC MP Muhammad Faishal Ibrahim: 'The policymakers should be more open and upfront in what are the challenges that we face as a society.'

Immigration is one area where more openness and explanation are needed, MPs said.

A lack of communication has also allowed untruths to perpetuate. Said Sembawang GRC's Ms Ellen Lee: 'We have been accused of not doing a lot of things, when actually it has been done or is work in progress.'

Finally, policymakers must be prepared to admit mistakes and be ready to change when their policies are found to be wanting.

Nee Soon GRC MP Lee Bee Wah said policymakers should not see 'fine-tuning as a loss of face'.

'Rather, see it as an act of faith to the people affected,' she added.

The Prime Minister said as much during the election, when he sought Singaporeans' understanding for missteps by the Government.

'When these problems vex you or disturb you or upset your lives, please bear with us. We're trying our best on your behalf.

'And if we didn't quite get it right, I'm sorry but we will try and do better the next time.'

His humility struck a chord with many and has set the tone for the PAP's transformation.

SGH warns against evangelising

May 26, 2011

Christian volunteer told to leave after complaint by a Taoist patient's son
 
By Yen Feng

THE Singapore General Hospital (SGH) has put up signs in all its wards to remind visitors against proselytising after a volunteer was found recently to be evangelising to a patient and was told to leave.

The signs - believed to be the first in hospital wards here - read: 'At SGH, we respect the religious and ethnic beliefs of Singaporeans. No staff, patient, visitor or volunteer is allowed to impose their religious beliefs on another.'

The move to spell out guidelines on proselytising follows an incident involving a Christian volunteer and an elderly patient who is a Taoist. The patient's son wrote to the Health Ministry last month seeking an explanation, and the ministry asked SGH to investigate the matter.

The patient's son, who would only give his surname as Chan, said the volunteer had approached him and his father on April 2, asking if they wanted to learn origami. The volunteer is a member of the Church of Praise in Lavender Street.

Mr Chan, 38, said: 'I told her no, then she started asking me about my father. That was when she told me she's a stroke patient and that the Lord saved her.' She began talking about her faith, he added.

In a statement to The Straits Times, SGH said the incident was 'isolated' and it has asked the volunteer to leave. It added that all volunteers are expected not to impose their religious views on anyone. 'Any volunteer who breaches this code of conduct will be asked to discontinue their involvement with the hospital,' it said.

When contacted, the Church of Praise described the incident as a misunderstanding. It said the church member had been volunteering at SGH for six years.

Pastor Pang Yan Cher said the church may now cease its activities at SGH. 'We would not want to put SGH to further inconvenience, as well as unwittingly affecting adversely the delicate balance of the different religions we have been working so hard to achieve in our country thus far,' she said.

For Mr Chan, whose father is still receiving treatment at SGH, the incident left him upset and he hoped public hospitals would not 'allow religious evangelists to harass people during difficult times in their lives'.

Three other public hospitals - Tan Tock Seng Hospital (TTSH), National University Hospital (NUH) and Alexandra Hospital - said they too do not allow any kind of religious proselytising.

There is no hard data on how widespread the practice is: The hospitals either did not comment on how many cases are reported, or said they were rare.

But social workers and health-care professionals told ST it happens often enough, at least anecdotally, to prompt hospitals to have strict guidelines to prohibit any form of proselytising.

'It's hard to say no when you're ill and somebody says they want to pray for you to get better,' said Ms Jenny Teo, 46, a counseller with Care Spring Community Services. 'That's how it begins - the religious talk.'

At NUH, patients can ask for spiritual counselling, but neither staff nor volunteers are allowed to proselytise.

Over at TTSH, volunteers get a list of dos and don'ts which include 'prohibiting the preaching and sharing of religious beliefs', a hospital spokesman said.

Religious organisations and their affiliated groups, on their part, said their guiding principle is this: Patients' needs come first. Sultan Mosque's manager, Ustaz Khair Rahmat, said even though prayers play a role in their hospital visits, 'it is more important to give the patients a listening ear... regardless of race and religion.'

Mr Herman Lim, coordinator for First Hands, a programme run by City Harvest Community Services Association (CHCSA), said any reference to Christianity happens only when the patient requests it and with the approval of the social worker or the staff nurse. CHCSA, which is affiliated to City Harvest Church, works mainly with the terminally ill at TTSH.

Mr Paul Tobin, president of the Humanist Society (Singapore), called the move by SGH to put up the signs 'a positive step in the right direction'.

He said: 'To proselytise to a patient, who is at a moment of trauma and stress, is an unacceptable exploitation of that patient's emotional vulnerability.

'This is also an intrusion into the patient's right to privacy.'

zengyan@sph.com.sg

[Stupid Christians at it again.]

Reviewing ministerial salaries: Seven lessons from the private sector

May 26, 2011
by Mak Yuen Teen

Last week, I taught executive and director pay to an executive MBA class and, during lunch, the subject of conversation at my table was ministerial pay in Singapore - a regular topic among the executives attending the programme over the years.

While most of the rest of the world is concerned with high executive pay, this must be the only country where ministerial salaries are of more interest.

Quite coincidentally, on Saturday morning, I had begun writing a commentary with the tentative title of "Ministerial pay: Lessons from corporate scandals and the financial crisis". That night, I saw on the news the Prime Minister's announcement that he was setting up a committee to review ministerial pay.

When you pay poorly, you might still get good people but, undoubtedly, the pool you select from will be smaller. You may also attract some who are willing to take low pay because they want to use their position for other benefit, such as taking bribes or getting directorships in companies.

When you pay very well, the pool will be larger, but you also risk attracting the wrong people who are motivated purely by money. People who are attracted to politics because of the money (or power) might still want to use their positions for their own benefit because for some, it is never enough.

I personally do not believe that high pay is effective for fighting corruption; I think it is an affront to the many who make an honest living on low pay to suggest that paying little encourages corruption.

However, it is very difficult to determine what is the "right" pay for CEOs, people with very specialised skills - and government ministers. For CEOs, certain "benchmarks" have been suggested, such as some percentage of profits, some ratio to average employee pay, the pay of sports stars and celebrities or fellow CEOs. None of these are wholly satisfactory.

Benchmarking ministerial pay to other professions has its limitations because they are totally different jobs, and different jobs come with different lifestyles and employment risks. When I look at my peers who have gone to the private sector, many are earning a lot more than I do now, but they do not have my more flexible lifestyle as an academic, and they are not able to achieve tenure which gives better job security.

In any case, I believe that the best people in any field are those who are driven first by their passion and calling.

IT'S HOW THEY EARN IT

As a corporate governance advocate, it has never been my concern if someone is well paid and earns it in the right way. I would be outraged if someone makes a lot of money but does so in an illegal or unethical manner, where it is not related to appropriate measures of performance, or the pay determined is through a contaminated process.

The corporate sector suggests the following "best practices" which should be followed in setting senior executives pay:

- An "arms length" process for determining remuneration policy and packages

- Benchmarks used should be comparable (similar job responsibilities, similar size and industry, etc)

- There should be a reasonable mix of short- and long-term pay

- Pay should be based mainly on factors within the executive's control

- Performance measures used for evaluation should have strong links with the corporation's long-term performance

- There should be minimal benefits and termination payments that are generally unrelated to performance

- There is good disclosure and transparency

A private sector approach which treats running a country as equivalent to running a corporation is, of course, flawed to start out with. After all, a government can always print money, raise taxes, determine whether it wants to make a profit (budget surplus) or a loss (budget deficit) and so on.

Tying ministerial bonuses to annual GDP growth can create the same perverse incentives as tying CEO pay to annual revenue growth. For example, it can lead to incentives to invest in projects with high economic payoffs, but with attendant high social costs and under-investing for long-term growth.

But if we are determined to follow a private sector approach to setting ministerial pay, then we should go the whole nine yards and adopt similar sound pay practices, which could involve the following. (Incidentally, when I showed someone the draft of this commentary, I was alerted to a 2007 speech by MP Denise Phua in which she made some similar points. I am glad there was such an alternative voice in Parliament and wish that her views were taken more seriously then.)

DEFER PAY, BE TRANSPARENT

One, have an independent ministerial pay committee to oversee ministerial pay policy and levels (members must be independent and perceived to be so).

Two, adopt a small number of macro performance measures which capture overall performance in a holistic way (such as average GDP growth, average wage growth, Gini coefficient and unemployment rate) and micro performance measures which directly reflect a particular minister's performance (such as traffic accident rates, average expressway speeds, admission rates of Singaporeans into local universities, percentage of low-income families owning HDB flats).

Three, tie a minister's pay primarily to his individual responsibilities and performance, based on his portfolio (a small component can be tied to more macro measures but these may be more relevant to assessing the performance of the "chief executive", that is, the Prime Minister).

Four, benchmark targets such as GDP growth to trends in comparable economies, to better ensure that improvements are not largely due to external factors (for example, a significant increase in GDP growth - just like a significant increase in a company's stock price - may be driven more by general trends in the inter-connected global economy).

Five, defer a part of a minister's pay for a number of years and put in place conditions under which the deferred pay may be reduced.

Six, eliminate or significantly reduce pensions and other benefits not linked to a minister's performance.

And seven, publish a report each year on the actual amount of each minister's pay and its breakdown.

This may sound like an awfully tedious process for setting ministerial pay. Unfortunately, corporate scandals and the recent financial crisis have taught us that poorly designed pay schemes set through a flawed process and which lack transparency can create perverse incentives and undermine governance. The current approach to setting ministerial pay emulates the pay levels in the private sector but not the sound pay principles that well-governed companies follow.

If we are not prepared to adopt similarly robust processes and practices for setting ministerial pay, then perhaps we should just follow how other countries determine pay for their government officials.

We can then rely more on robust selection processes and strong enforcement of laws to take to task ministers who are corruptible, in order to ensure that we get ethical and competent government leaders.

However, even if we decide to "de-privatise" ministerial pay, I believe there are certain merits in adopting some of the good practices in the private sector approach - such as having a more independent mechanism for setting ministerial pay, having better measures of ministerial performance, creating mechanisms to encourage ministers to focus on longer-term consequences of decisions, and greater transparency in ministerial pay.

This may minimise the risk of receiving an "unexpected" performance appraisal from the electorate every four years.

Mak Yuen Teen is an associate professor at NUS Business School.

HDB flat prices: Opposition v PAP wards

May 26, 2011
special report
Differing conclusions on where value of flats is likely to be lower
 
By Jessica Cheam

ARE the values of public housing flats in opposition wards lower than in those of the ruling People's Action Party?

This was a contentious issue that surfaced during the recent General Election. Everyone from party leaders to members of the public took different positions, using statistics to back up their arguments.

Former minister mentor Lee Kuan Yew started the debate when he said that homes in Hougang, held by the Workers' Party (WP) since 1991, sold for less than similar ones in neighbouring areas because they belong to an opposition ward.

WP chief Low Thia Khiang rebutted these comments by citing figures from the Housing Board website that showed five-room flats in Hougang SMC sold for higher prices than those also in Hougang but located in the PAP-held Pasir Ris-Punggol GRC.

In response, former national development minister Mah Bow Tan pointed out that Mr Low had used flats in Pasir-Ris Punggol GRC for comparison, when the constituency nearest to Hougang SMC is actually Aljunied GRC.

Mr Mah then highlighted figures from the HDB website showing that five-room flats in Aljunied GRC fetched 15 per cent more than those in Hougang over the past 12 months.

Four-room flats in Aljunied GRC had a 16 per cent premium over those in Hougang, while three-room flats were sold for 3 per cent more.

The units in the calculations were located in Hougang Avenue 6, 8 and 10 for those in Aljunied GRC, and in Hougang Avenue 5 and 7 for those in Hougang SMC. The blocks were on either side of Upper Serangoon Road and roughly equidistant from the MRT station. They were also the same age - having been completed between 1980 and 1985.

In its analysis, the Ministry of National Development (MND) also pointed out that within Hougang Town, flats in Hougang SMC generally have a locational advantage over those in Ang Mo Kio GRC and Pasir Ris-Punggol GRC, as they are nearer the town centre and the MRT station.

'This is why it is more meaningful to compare flats in Hougang SMC with flats in Aljunied GRC, and even then, only between those in comparable vicinities,' it said, justifying why it limited its study to the blocks it chose.

Counter-arguments

THE study prompted other analyses that strove for the opposite conclusion.

One notable study was by two PhD students and trained statisticians, Mr Chong Kwek Yan and Mr Giam Xingli, from the National University of Singapore and Princeton University respectively. But both made clear the study was their own, not that of their university.

The duo found that if one looked at 15- to 20-year-old flats, HDB's website data showed that flats in Hougang SMC were nearly 4 per cent higher in value than the same type of flats in Aljunied GRC. HDB's website makes available resale transactions of flats up to a year ago.

They argued that Mr Mah's analysis, which uses only 25- to 30-year-old flats, was not a meaningful comparison as looking at a specific group of flats by flat age is too narrow a comparison.

To capture the widest possible data set, the researchers broadened their calculations to include all transacted five-room flats of all ages from Hougang SMC and flats in the Hougang part of Aljunied GRC.

They also used statistical techniques to control for age of flat, size of flat, type of flat, and height/level of flat, all of which they said are 'factors that co-vary strongly with the value of a flat'.

Their conclusions: A resale flat in Aljunied-Hougang can be sold, on average, for between $22,600 more to $3,600 less than a resale flat in Hougang SMC.

Using the same methodology, however, a resale flat in the Hougang Town portion of Ang Mo Kio GRC was worth on average $26,500 less than a flat in Hougang SMC.

Similarly, a resale flat in the Hougang Town part of Pasir Ris-Punggol GRC was worth $18,000 less than a flat in Hougang SMC.

So who's right?

BOTH arguments have their merits, say statisticians.

'They're both right. It's normal for researchers looking at the same data to draw different conclusions,' said Associate Professor Low Chan Kee, acting head of the economics division, School of Humanities and Social Sciences, Nanyang Technological University.

'There are so many factors in determining the value of flats and these assumptions will affect how researchers conclude their studies. The important thing is for readers to judge for themselves, to decide which of the two studies reflect what they look for in a flat - different facilities, the age of the flat, the location,' added Prof Low, who specialises in applied statistics.

While Mr Mah's analysis controlled for age and type of flat, as well as location, one could argue that the data set was too small to draw definitive conclusions.

The two researchers' study, on the other hand, included a much larger set of flat transactions, including all flats aged about seven to 36 years old and comparing across four different constituencies.

But its analysis had one major flaw in that it did not account for locational differences.

When contacted, Mr Giam said they were unable to test if locational differences - distance from amenities and transport nodes as defined by HDB - account for price differences as geographic information system (GIS) data of flats is not publicly available.

'If the HDB is willing to release the data, we are willing to incorporate location in our analysis,' he told The Straits Times.

But he noted that if the HDB wanted a more comprehensive study, it could have compared prices of flats in Hougang SMC with those in Aljunied, Pasir Ris-Punggol and Ang Mo Kio GRCs that are the same distance from the nearest MRT station.

'Simply comparing Aljunied GRC and Hougang SMC also does not tell us any general relationship about political affiliation and flat prices, because no matter how many flats they include, it's still effectively a sample size of two,' he said.

If the same relationship is found between Hougang SMC and its neighbouring PAP-held GRCs, as well as Potong Pasir SMC and Bishan-Toa Payoh GRC, then perhaps one can conclude with more confidence that the political party controlling it has an effect over and above all other factors, he added.

'But if the trend that they claim only holds when comparing Aljunied and Hougang SMC and not between other pairs of opposition versus PAP comparisons, then it may be something due purely to other unique differences between Aljunied and Hougang.'

Prof Low said both studies needed a wider scope to lead to appropriate conclusions for a statistician.

'If they want to draw a fair conclusion they need to conduct a very thorough study involving a lot of different factors,' he said. 'The study also needs to take into account whether the difference in flat value is significant and the possibility of sampling error.'

Mr Giam threw up a different suggestion: The best way to assess the impact of opposition control on flat prices is to monitor the flat prices of Aljunied GRC over the next five years or so.

The Workers' Party clinched a historic win when it won Aljunied GRC in the recent election - the first time an opposition party has wrested control of a GRC from the PAP.

'We all know that flat prices are likely to increase (with the general economy), but will the increase of flat prices in Aljunied and Hougang SMC keep up with the increases in neighbouring PAP constituencies like Ang Mo Kio GRC and Pasir Ris-Punggol GRC,' asked Mr Giam.

'Knowing this may help to advance our current understanding on how political parties affect flat prices,' he said.

But until more such data sets become available, the debate is likely to continue.

jcheam@sph.com.sg

Additional reporting by Cheryl Ong

Pluralism an ally of justice everywhere

May 25, 2011
RELIGION AND THE PUBLIC SPACE
 
By Asma Afsaruddin

RELIGIOUS pluralism is one of the few, truly, modern expressions. The term refers to the acceptance of a multitude of religions existing in harmony despite internal doctrinal differences and variations in external rituals and practices.

Although the term itself hails only from the 20th century, one might argue that the idea has been around for much longer and has been part of a Muslim ethos from a very early period.

This is not to deny that other religious traditions may also have developed such an ethos in the past or that they are capable of doing so in the future; I speak only from my personal observations, which are strictly limited to the religious tradition that I know best - Islam.

Religious pluralism may be inferred from the Quran itself and the abundant commentary literature on it from the early centuries of Islam.

The Quran valorizes Judaism, Christianity and Islam equally on the basis of a shared belief in the one God and righteous behaviour. It praises righteous practitioners of all monotheistic faiths as belonging to a moderate, balanced and just community.

Justice is extolled in the Quran as an ethical principle held in common by righteous believers, a natural correlate of their moral charge on earth to uphold what is good and forbid what is wrong.

The pluralist ethos imparted by these verses was largely endorsed by early Muslim scholars. Historical literature indicates that this general principle of inclusion was eventually extended to other non-Abrahamic religious communities, such as the Zoroastrians, Hindus and Buddhists.

However, roughly after the 9th century, this pluralist impulse began to be progressively diluted and compromised in response to various socio-political and theological developments.

Over time, many (though by no means all) Muslim scholars came to consider 'right' belief and 'right' practice as, exclusively, a confessional allegiance to Islam. While other religious communities were to be tolerated and even granted autonomy in determining their internal affairs, these jurists decided that they were not to be deemed equal to Muslims.

Today, we find that there is a resurgence of interest among a substantial number of Muslim thinkers in retrieving the early pluralist ethos, and making it part of contemporary Muslim-majority societies, especially since many of these societies are already quite multi-cultural, multi-ethnic and multi-religious.

And yet, recent shocking examples of religious intolerance and sectarian hatred in some of these countries have dominated global news. In Egypt, on New Year's Eve last year, there was a brutal attack by militants on Saints Church in Alexandria; 21 Christian Copts were killed.

Though the reaction from the majority Egyptian Muslim population was one of outrage and horror - Al-Azhar University, the premier institution of learning in the Sunni Muslim world, took the lead in condemning the attack - media coverage focused on horror.

Less well-noticed were scenes of heart-warming inter-faith solidarity and loyalty that followed in the wake of the attacks. Mr Muhammad el-Sawy, a young Muslim entrepreneur, immediately organised what became known as a 'human shields' campaign. Under the slogan, 'We either live together or die together', he and his fellow organisers, aided by social media tools, rallied thousands of Egyptians - from ministers to movie stars - to turn up at the Coptic church on Coptic Christmas - Jan 7 - for a dramatic show of solidarity, a finger-in-the-eye gesture at the militants.

We are so accustomed to stories of injustice emanating from the Middle East, we might be tempted to dismiss this as a fluke. Except that this trend of inter-faith solidarity asserted itself repeatedly during the spontaneous pro-democracy movement that erupted in Tahrir Square in Cairo this year.

On the Sunday during the so-called 'Week of Resistance', Copts held their mass in Tahrir Square while Muslims formed a protective ring, defending worshippers against government troops. The Christians, in turn, created a protective cordon the following Friday when Muslims assembled for prayer.

During funeral prayers for slain protestors, Muslims and Christians prayed together, carried copies of the Quran and the cross during the service, and chanted 'One Hand!'. If religious supremacists were squirming, no one was paying attention.

Young people and many of their elders across the Middle East are realising that the desire for justice and freedom remains a common, basic denominator that cuts across religious, ethnic and other divides.

Religious pluralism is an ally of justice and freedom-seeking people everywhere. Egyptians recently proved that this new-found inter-religious solidarity is the wave of the future, regardless of the considerable challenges that lie ahead.

The writer is professor of Islamic Studies at Indiana University in the United States.

[I feel hopeful when I read stories like this, and I hope it ceases to be unusual, and religious attacks become universally condemned.]