Wednesday, June 4, 2014

Can Asia outwit Sun Tzu's strategy?

Jun 04, 2014

The United States, Japan and China are going eyeball to eyeball at sea, in the air and at the conference table.

By Narushige Michishita, For The Straits Times

ON MAY 30, top defence officials in the Asia-Pacific region gathered in Singapore to participate in the three-day annual Shangri-La security dialogue.

On the first day, Japanese Prime Minister Shinzo Abe said "Japan will spare no effort to make regional stability, peace, and prosperity into something rock solid", and pledged his commitment to the security of the countries in the region.

On the next day, US Defence Secretary Chuck Hagel stated that the US had more peacetime military engagement in the Asia-Pacific than ever before, and declared that US rebalance towards Asia was "not a goal, not a promise, or a vision" but "a reality".

In the face of concerted pressure, Chinese Lieutenant-General Wang Guanzhong, who led the Chinese delegation, was on the defensive. He accused Japan and the US of provocation and intimidation, and said they had coordinated their attacks.

Bus Contracting Model - Two comments

Two transport experts welcome the new bus contracting model and suggest improvements.

Jun 04, 2014

PTC has to set expectations right

By Park Byung Joon For The Straits Times

AS A long-time advocate of the implementation of a full operating subsidy model for the public bus services in Singapore, I was delighted to read that the Government is moving to a bus-contracting model.

Under this model, the Government takes over the ownership of buses and assets, and contracts the running of bus routes to private bus operators for a fee. Fare revenue goes to the Government.

This is different from the current public transport model where the Government pays for and provides the infrastructure, such as railways and bus depots. The Government thus subsidises capital spending in public transport, especially for the MRT train system.

But these assets are held by the public transport operator, which has to pay operating expenses and the cost of depreciation for trains and buses. The operator recoups these in the form of fare revenue. In this way, it is ultimately the commuting public that pays these costs.

But commuters could expect only a level of service that the fare revenue could pay for. It has become increasingly obvious that the public demands a higher level of service than what is available with the current fare levels.

The concept of public transport has also evolved. No longer regarded simply as a service for people who do not own private vehicles, public transportation is also vital for the nation's economy and social integration. Once this latter concept is accepted, the idea that the Government should fund public transport whenever necessary should be embraced.

There are many ways that taxpayers' money can be used. One is to simply inject public money into private operators and hope, or pray, that they will spend the money wisely.

Another way is to nationalise public transport. In this model, the Government does not just own infrastructure and assets. It also takes on the responsibility of operating public transport on a daily basis.

Among the models available to policymakers, I believe the full operating subsidy model - known in Singapore as the government contracting model - is the best approach.

Under a nationalised public transport scheme, the Government must prepare daily operation plans, maintenance schedules, the recruitment of bus drivers and so on.

Some criticise this model on the grounds that it leads to the undesirable intrusion of Big Government. An equally important issue, perhaps, is whether it is practicable. It is always better if the relevant minister does not have to worry about whether there are enough bus drivers to run the system on a daily basis.

Under the government contracting model, however, the Government only needs to set the desired service level for the bus service and to evaluate the chosen operator based on the pre-specified quality standard. The details of running bus services will be the responsibility of the operator which offers the best price for delivering the service level specified by the Government.

If we believe in the power of the free market, we can be reasonably confident that competition among operators from all over the world will give the Government, and eventually Singaporean taxpayers, the best service and best price (or at least, something very close to it).

At the same time, however, it is important that local officials have the tools necessary to ensure that the system works smoothly.

The role of the Public Transport Council (PTC) may need to be expanded beyond setting fares. After all, the service level required of bus operators will be higher than what can be afforded by fare revenue alone. The difference between the two will have to be borne by the Government.

If commuters pay lower fares, taxpayers will have to pay more to cover higher public subsidies. Through the fare adjustment exercise, the PTC will determine the portions recovered via fare revenue and taxpayers' top-up.

A fundamental truth in life is that we get what we pay for. The bill that taxpayers have to pick up could be huge. There must therefore be a mechanism by which a consensus can be reached on the desired level of service and how it will be financed.

In addition to the fare adjustment exercise, the PTC may have to take on the vital role of striking a balance between the desired service level and the price people have to pay.
The writer is head of the master's programme in urban transport management at SIM University.


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Regulatory role needs separation

By Bruno Wildermuth For The Straits Times


IN THE past, the Land Transport Authority (LTA) had failed to properly separate the regulatory function from its other functions, such as building the rail systems.

Instead, it had often held the operators responsible for faults that were clearly the result of poor quality control during construction and a clear lack of stringent acceptance-testing procedures.

With the new bus-contracting model, a good way to separate the two functions will be to have the regulatory function assigned to another, independent entity, such as the Ministry of Transport.

One missing feature that can be incorporated into the bus-contracting model is published and strictly adhered-to timetables for the bus services.

All major cities in the world operate bus services on published timetables. This requires that 100 per cent of the services be performed.

Currently, the LTA lets operators get away with performing only 96 per cent of the scheduled trips without a penalty.

As a result, operators do not have any standby drivers in case one of the scheduled drivers reports sick or otherwise fails to show up. Instead, the scheduled frequency is then adjusted for the reduced number of buses operated.

In order to properly monitor timetable adherence, timing stops need to be identified and strictly monitored.

This can be done with the analysis of the ez-link database and does not require any costly, high-technology systems.

Examples of this approach can readily be found in Australian cities visited by the Ministry of Transport.

The MRT was originally designed to provide basic service for the heavy movements in major corridors where rail service is far more efficient than bus services. To that extent, even improved bus services will not be able to replace the MRT.

Unfortunately, the lack of proper attention by the LTA to the upgrading needs of the original MRT North-South and East-West lines, such as the long overdue replacement of the outdated signalling system, have caused the MRT's current lack of adequate capacity and hence popularity.

The LTA will have to prove its capability to plan for more appropriate bus services, given that the current routes are anything but efficient and often far too long to operate reliably. The LTA needs to find the relevant talent to plan better bus services.

With the LTA planning the bus routes and presumably the required frequency of service, who will be responsible for determining a realistic and achievable timetable and hence the required number of buses?

Will it be the LTA or the bus operator bidding for the route?

This is an important issue that does not seem to have been addressed by the LTA's announced changes.

If the LTA establishes the timetable, which then turns out not to be achievable, then who will hold the LTA responsible?

If the task is to be part of the bus operator bidding for the contract, then the LTA will need to provide all the necessary data available to establish a realistic and achievable timetable. A clear indication of the process is required from LTA.

The writer, a veteran transport consultant, was closely involved in planning for the MRT in Singapore in the 1970s.

CPF Special

May 31, 2014

POLITICS 360

CPF review: Here are my three wishes

Raise minimum withdrawal amount, inflation-proof savings, boost returns

Tuesday, June 3, 2014

Do children get their daily dose of boredom?

 May 31, 2014


By Bharoti Pande For The Straits Times


HAVE you ever wondered why Archimedes had his eureka moment while relaxing in a bathtub? Or why a falling apple gave Newton a brainwave and not just a bump?

I believe it's because both men were at their creative best as they were in the throes of total inactivity, possibly even boredom. Yes, boredom has a value. And so with the summer holidays coming up, make sure you don't cram your children's days with only classes and activities. It's important to give them a dose of boredom too.

Don't get me wrong. I'm not the laid-back, indulgent type of mum. If anything, I fit the stereotype of a "Tiger Mum": I'm Indian-Singaporean, and my children were strictly disciplined. They learnt the value of hard work, and ended up in Ivy League schools where they had to work very hard for scholarships to make the tuition affordable.

Monday, June 2, 2014

The politics of transboundary rivers

BY CECILIA TORTAJADA AND ASIT K BISWAS -

JUNE 2

It was Mark Twain who said: “Whisky is for drinking and water is for fighting over.” The adage behind this view is not difficult to understand.

One cannot do very much with whisky, except to drink it. In contrast, water is an essential requirement for human and ecosystem survival. Thus, water shortages, at least in arid regions where its ready availability is a serious issue, may result in major conflicts among people whose survival and economic development depend on this resource.

Conflicts over water could play out in transboundary rivers that flow through two or more countries. Currently, nearly 47 per cent of the world (excluding Antarctica) falls within transboundary basins.

Sunday, June 1, 2014

It’s halal, no question about it

[An opinion piece from The Malaysian Insider on "halal-ness", and the quest for "halal-icity".

I like his very pragmatic and practical approach, though I can imagine, that some or most Muslims may not be comfortable with his approach.]

May 28, 2014


Abdar Rahman Koya

I had my usual tiff with my wife the other day and this time, it was not about who left the kid’s nappy on the bathroom floor. The subject is philosophical yet it had to do with the tummy.

We were invited by a non-Muslim friend to a birthday party. I always look forward to parties, because we will have plenty of hands to look after the twins, so that we can finally eat in peace. We were probably the only Muslim family. Yet, it was kind of her to assure us that the food catered on that day was halal.

That verbal assurance is good enough for me, but not my wife and understandably so, since this friend of ours does not have many Muslim friends.

Having been told who the caterer was, she called them to get reassurance that the food was halal and queried whether wine was used for the steak.

An outside perspective on Singapore's home truths

May 25, 2014

By Chua Mui Hoong, Opinion Editor


Sometimes, it takes a foreign observer to point out some home truths about Singapore.

This week, I was struck by two commentaries from foreign writers.

The first is from University of Hong Kong professor Joseph Chan, an expert on Confucian political philosophy. He spoke at a public lecture at the Lee Kuan Yew School of Public Policy on “Can Confucianism save the world?” He edited his speech into a commentary article for The Straits Times.

In it, he touted the merits of a blend of Confucian political ideology with liberal democracy as a political system. Or as he put it pithily: “to adopt liberal democratic institutions that are shaped by the Confucian conception of the good rather than the liberal conception of the right.”

In such a world, virtuous citizens are motivated to learn and do good and are ruled by a benevolent elite that has the interests of the people at heart. That sounds appealing, if a tad utopian.

But what really struck me was his observation about Singapore:

“It seems that its model of meritocratic leadership has slowly shifted away from the traditional Confucian notion of the gentleman that ties virtue to a strong sense of self-imposed responsibility to the people.

“Instead, it has become a kind of global CEO ethic that ties merit to an acute sense of self-importance, as expressed through lucrative salaries. As Confucius says, the heavy use of reward or punishment leads people away from proper moral motivation and cultivation. Leaders must set a good example for the people.”

Prof Chan’s candid yet gentle critique of Singapore’s style of political leadership will resonate with many Singaporeans. To be fair to the government, it has trimmed salaries paid to top office-holders, and gone about trying to do good for the people without constantly trumpeting that it knows best.

But Prof Chan is spot on in describing the nature of meritocratic leadership here: merit is tied to a sense of self-importance as expressed through high pay. In such a value system, one’s personal sense of worth is determined by one’s professional status which is determined by one’s pay packet.

Prof Chan did not dwell on how this might affect the people-government relationship, but my guess is that it would have negative consequences.

The second piece I liked is this one.

http://www.zocalopublicsquare.org/2014/05/19/is-singapore-the-perfect-country-for-our-times/inquiries/trade-winds/

The writer Andres Martinez travelled to Singapore and managed to capture both the sense of pride and angst felt by Singaporeans at our successful economy.

He called Singapore a Canary City: “Arguably no other place on earth has so engineered itself to prosper from globalisation—and succeeded at it...There are many cautionary tales to globalisation’s downsides, but no better canary in the gold mine of globalisation’s tenuous triumphs than Singapore.”

Singapore presents the successful side of globalisation: it’s open, rich and fun. Quite fun.

But the ills of globalisation are also felt here keenly: rising income inequality, the spending power of the very rich jacking up prices for the common worker, the massive influx of foreign workers. And because we’re so small, the effects are very much in-your-face.

So Singapore might be a model city of globalisation in some ways. But being a canary unfortunately also means we’re apt to be the one poisoned first by noxious fumes of globalisation.