It is very obvious that Singapore is lacking entrepreneurs and competitiveness in the domestic sector of its economy.
During the last two recessions, its economy particularly the domestic sector is languishing under high-cost policies. There has been a lack of clear economic strategy in recent years since the 1970s. Value-adding economic strategy did not seem to work. Nothing was heard of its economic strategic plan for quite sometime although there was here and there mention of key promotion of biotech and petro-chemical sectors.
Countries like China, India, Malaysia, Thailand, Taiwan , Korea or even Vietnam were doing better, during the last two recessions, whereas Singapore was suffering prolonged recessions and downturn.
Currently the reason why Singapore is doing better as compared with before is because the world economy as a whole is finally strongly recovering after the Iraq war is over and many countries are coming out of the recessions.
Singapore's growth in 2004 was 8% as compared with 6 % for bigger country like Malaysia or 8% for China so in a way it is a sign of general market corrections and should not be taken to mean past policies were working either. As expected Singapore was quick to capitalise on leadership and abilities to make it sound like all was well forgetting the helplessness and findings of its economic review committees and Remaking Singapore committee of many shortcomings not yet addressed.
Even assuming that the final come-around of world economy is anything to claim credit for, the small and SMEs of the domestic sector are continuing to languish from the prevailing high costs.
Singapore has not done anything to bring about restructuring to stimulate its own domestic sector since 1970s. Government goes into business full swing to compete against its own businesses. Only the bigger corporations, GLCs and foreign companies are enjoying some growths. The same tax-and-recover governance is continually driving up costs which eventually will stifle growths.
Assets are down badly and people are bearing the blunt of the past Asset Enhancement policy. CPF savings were generally wiped out due to mistake in opening the flood gate to citizens to invest their CPFs in shares and unit trusts during 1996-2000.
For the past many years now, the following problems were still not solved:-
(1) Bureaucracy in civil service.
(2) High costs of essential government services e.g. medical, utilities, housing, transportation, education, etc, etc
(3) Growth Triangles
(4) Affective divide due to lack of understanding of people's views and aspirations.
(5) Work site safety problems (Hotel New World Collapse's blue paper was not effectively implemented)
(6) Deliver a Swiss standard of living
(7) Asset enhancement scheme fiasco
(8 ) Unit trust investment fiasco
(9) Foreign relation fiascos
(10) Non-formulation of a value-adding investment strategy
(11) Double-charging on lands (paid by taxpayers yet charged back to them at full market prices) and triple charges on vehicles.
(12) Meritocratic education policy that backfired - brain drains of thousands
(13) Mother tongue - CL1 admission fiasco
(14) Reaching World Cup soccer league by 2010 - no sign of getting near.
(15) Investment losses by thousands of citizens from CPF funds.
(16) Spiraling of government ministers' and civil servants' salaries.
(17) Failure to implement accountability and transparency in respect of investments of citizens' monies in overseas investments.
(18 ) Loss of economic competitiveness due to high costs.
(19) Neglect in promoting entrepreneurship
(20) Neglect in nurturing the domestic sector of economy.
From Singaporeans' own perspective particularly those suffering from high costs of living and doing business, there is no cause of celebration or real competitiveness in the long term. However the rich, civil servants, GLCs and many big foreign companies repatriating profits to their own parent companies are doing well.
