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Tag: Singapore

  • ERP X shows how an agile Government should operate

    ERP X shows how an agile Government should operate

    I dropped by the OGP office to meet fellow ERP X beta testers. had hoped this would be the path we took instead of the current ERP 2.0.

    My sense is that ERP 2.0 is already too deeply entrenched to change course. But that is also why ERP X is a real lesson in how government should operate in a Singapore that is supposed to be agile, fast-paced, and tech-savvy.

    For people in tech, this all sounds very familiar: start small, test in the real world, learn quickly, and adjust based on what you actually find. Don’t spend years locking into a system, only to discover too late what people love or hate about it.

    And it is not just about the tax money spent. It is also about the time, energy, and public sector capacity that a poorly thought out half-billion dollar project consumes.

    One thing I’d like to see more of is the Government running public beta programmes like this, especially for digital services and technology. There’s simply no substitute for real-world feedback from the people who will actually use the product.

    I’m also encouraged to see that there are teams within Government building products with genuine pride, conviction, and a strong sense of responsibility towards taxpayer’s money.

    I also shared that the traditional Government approach of awarding large, monolithic software tenders is becoming increasingly unsuited to today’s pace of technology.

    Agile, experimental, user-centred ways of working should be the default, especially for projects that affect the whole country. This includes also how Government contracts vendors. If ERP X leaves behind anything, I hope it is this lesson.

  • We don’t need more Product Managers, we need more Pride.

    We don’t need more Product Managers, we need more Pride.

    Who still remembers this lion head? If you grew up in the 90s or early 2000s, you probably do. It was often found on products “Made in Singapore”. As a small nation with limited resources, we took pride in proving we could compete with the best.

    Every time I return home through Changi Airport, I’m reminded of what Singapore is capable of. I can disembark, clear immigration, collect my luggage and be on my way in about 15 minutes. It feels ordinary because I got used to it, but extraordinary by global standards.

    That didn’t happen because we had the best procurement process or the most comprehensive governance framework. It happened because we believed Singapore could build something better than everyone expected.

    As organisations grew, so did the layers of process. Every failure led to another approval, another committee, another taskforce, another procurement rule, another governance framework. We became better at managing risk than creating excellence.

    I see this creeping in our digital services.

    I find the NUHS app noticeably simpler and more intuitive than HealthHub, even though HealthHub is meant to be the national platform. Parents Gateway often sends notifications that could just as easily have been an email. There’s a separate forms service for MOE when FormsSG could have been integrated. MOE Student Learning Space (SLS) is still not an app, with various seemingly valid reasons. These aren’t major failures, but they make me wonder what question we’re optimising for.

    Are we asking, “what’s the best experience for citizens?”, or are we just checking boxes?

    The Auditor-General’s recent report points to the same concern. Software flaws, gaps in enforcement and weaknesses in IT controls surfaced across multiple agencies.

    These aren’t just isolated mistakes. They’re symptoms of large, complex organisations where process has slowly become more important than purpose.

    Yesterday’s news that GovTech is restructuring and letting go of 93 officers has sparked plenty of discussion. The agency says this isn’t about AI, but about becoming more product-led and taking greater ownership of the systems it builds instead of relying heavily on vendors. I think it’s moving in the right direction. Product ownership creates accountability, and building capability inside government is important.

    But restructuring alone won’t build world-class systems. Culture will.

    Singapore’s greatest achievements weren’t built because someone wanted to hit a KPI. They were built because people wanted the world to look at Singapore and wonder “how did they do that?”

    We don’t need more Product Managers.

    We need more Pride Managers.

  • Singapore’s TFR – is the Education System really the issue?

    This video is extremely on point. I am heartened to hear that the Minister is well aware of all the issues.

    It is important to distinguish between why people don’t want to have kids, versus why they don’t want to have MORE kids. I think the reasons we hear from parents about the education system is one of the key reasons why many stop at 1 or 2. Of course, housing size, general affordability, and access to private vehicle will also affect these decisions.

    People not wanting to have a child altogether is — as minister points out — often a lifestyle choice. Why give up a nice (and tidy) house just for two, a car (not a minivan), annual travels instead of tuition fees, being able to easily immigrate for job growth? These all are likely reasons some avoid having children entirely.

    I personally didn’t think that much, I just “went with the flow”. But I have to be very frank that if it wasn’t for my wife — and now my children — I would probably have left the country for career opportunities when younger. 

    That said, the points on the education system really hits home. Perhaps one thing many do not know is that the PSLE is a one-of-a-kind system in the world. No other country puts children at age 11-12 through a nationwide high stakes exam. Malaysia had something similar and also did away with it some years ago. In most parts of the world, students automatically progress to middle or secondary school without an exam. Typically, entrance exams only apply if you wanted to get into a prestigious or private school.

    PSLE was devised in early post independence Singapore because we didn’t have the capacity for every citizen to have secondary education, and also because the education standard of the nation was low, PSLE was necessary as a blunt filter.

    But today, after all the tweaks and adjustments to the system over decades, the system is probably due for overhaul. The idea that we should do away with it, or push it further, is starting to make more sense. Perhaps regular, smaller exams should be used more as a diagnostic exam, rather than a singular high-stakes selection/placement exam like PSLE. The subject-based banding subtly happens (as it does now at primary 4) at every stage — perhaps every year or two — all the way to JC.

    The video also mentions a few important points about the post-AI world, just like the post-Internet world where I grew up in: is rote memorisation and certain knowledge skills still desirable or practical? How do we teach our next generation about creativity, cross-domain synthesis, learning to learn, judgment, morals — all the “human” things that we shouldn’t be outsourcing to AI?

    Further reading: History of the Singapore Primary School Leaving Examination

  • Continuation to the CPF MSS Debate

    Here’s a continuation to the big CPF Minimum Sum Scheme (MSS) debate that made a record 128 comments on my Facebook wall post.

    The entire debate broke up into two topics of discussion. One of them is whether CPF is good for us (vs. a welfare system) and while I do agree that CPF is generally better than having to pay high taxes for the general welfare of another misbehaving person, the other part I’m going on and on about is that the MSS is way too, urm… stringent (for the lack of a better word)?

    Based on my extrapolation there is a possibility that the MSS becomes so high that a graduate making the maximum possible CPF contribution from the day he starts work at the age of 25 may never meet MSS despite not spending a single cent on property. This will continue to hold true unless some variables are changed, such as raising the $5K cap, or raising the age at which MSS computation is taken.

    What happens after 55 (till 65)?

    There’s a period between the time we are 55 to 65 that we’ll likely have little or no money left in our CPF OA because it all went to our RA. If people aren’t able to meet the MSS it means that *all* their OA balance will be transferred to RA and they’ll have to cough up cash for property at 55 years of age.

    There is a workaround, however, and that is to fully pay off the property with any balance in the OA before one reaches 55 but not many are aware of this option.

    This period between 55 to 65 is also a pretty harsh period for most people as their kids would have just entered tertiary education at around 20 years old (expensive fees) and their parents are probably also getting really old at around 80 years old (expensive healthcare). Adding a sudden property commitment could be disastrous for a family that’s already tight on financial resources.

    Mortage repayments will go beyond 55

    Most people around me are buying properties in their very late 20s and across their 30s. This means that their 30-year mortgage commitments will extend beyond the age of 55 and the MSS will definitely affect a lot of people.

    I could continue to argue that had CPF not been allowed for property purchases, property prices wouldn’t have been this high. After all it’s money we can’t use in the near term, so people willingly spend it all on a property. However, it is also true that some people with literally no cash savings will never be able to buy a property. It’s a double edged sword, and that’s a discussion for another day.

    So what good is a payout from 65 to 85 that when those who haven’t had sufficient cash savings (presumably that’s the group that the government is trying to save from dying of hunger) aren’t even sustainable 10 years prior?

    Leopard will never change its spots

    The second part about MSS is the question of how useful would a payout of $600+/mth be (at current MSS of $155K). I know of people who will receive $600 for the week and blow it at a horse race. Assuming if the MSS is raised to provide a payout of up to $1,000/mth, nothing would change. If they didn’t have enough money they’ll take a loan, and I’m sure moneylenders, legal or illegal,  would be glad to make a hefty interest by advancing these old folk’s government payouts. Whether it is paid annually, monthly, or daily, there’s no solving this problem, really. Old habits die hard and the burden will continue to be on their children/spouse/siblings/country/state.

    Those who are financially prudent will likely meet and exceed the MSS, so why let that money get stuck in CPF while they could have used it for something more important, like their kid’s education, or to fund a new business venture, or if they’re feeling generous even donate it to charity?

    Thoughts on alternatives

    If the MSS was meant to help those in need, then there should be criteria established to qualify for withdrawal of lump-sum CPF monies. One such example would be for emergency healthcare. If a person had cancer — a very common disease at older age, he/she should be eligible to withdraw a reasonably large percentage of all his RA monies to fund for his treatment. Similar to any form of health insurance scheme, one could surrender early — albeit possibly at a loss, but at their own discretion because not all types of diseases are covered by general health insurance schemes.

    Those who are prudent and have sufficient cash savings could possibly present proof, such as a bank statement, to allow withdrawal of their CPF savings for other purposes, such as for investments, children’s educational funds, or simply to immigrate and live in a peaceful island away from Singapore. In this manner, it would also encourage people to save sufficiently before 55. Cultivating the habit of financial prudence does not occur overnight.

    P.S. I just found out that there is indeed a way to exempt yourself from the MSS. To do so you must have have purchased your own annuity program or have a pension payout that is equal or more than the current MSS monthly payout. But what isn’t clear at this point (to me) is whether I am eligible to receive my CPF monies in full cash once exempted, or if there are other fine prints.

  • CPF Minimum Sum at $155K?!

    The government just announced that the CPF minimum sum will be raised to $155K this year. Back in 2003 the min. sum was $80K.

    Minimum sum will be $600K by 2037

    Looking at this chart I came up with a very conservative 6% compound per annum, the min. sum will be almost $600K by the time I’m 55!

    I (personally) wouldn’t have met the min. sum

    Provided that I continue working till I’m 55 and am paying off my flat with CPF, I would have only accumulated approximately $370K by the time I’m 55 (including CPF interests). I’m no where near the minimum sum projection.

    The $5K max contribution limit will be raised very soon

    I strongly believe that the current max of $5K will be increased very soon because the sums just do not work out. Here’s a fictitious example of a highly paid young and energetic local graduate drawing a salary of $5K/mth so he can make the maximum possible CPF contribution from day one.

    Edit: I made some mistakes in the calculations earlier, this is an updated sheet.

    (I’m having trouble uploading graphics, will do so later.)

    He would have around $807K in his OA + SA by the time he’s 55, but check out his minimum sum! That’s provided if he doesn’t buy a property.

    But I’m sure he wants to get married and buy a flat… and have kids… the government strongly encourages that!

    He’ll have no money left in CPF if he bought a condo

    So after working for 30 years and paying for a flat together with his spouse, it is fair assumption that this bloke would have $300K less in his CPF for a decent HDB flat at current prices ($600K for a flat including interests divided equally between husband and wife).

    If the couple buys a million dollar, they will have nothing left in their OA.

    If his wife gets pregnant and stops working we may find another dead body in Bedok Reservoir/Singapore River.

    Singapore tax rate is effectively >36.5%

    Given that our current CPF rate is 36.5% (20% employee + 16.5% employer) our income tax rates can be considered to exceed 36.5%. Just as an example, the highly-paid graduate above would pay about 3% income tax for a salary of $60K/yr. This would add up to around 39.5% in taxes. This is higher than many developed countries. Even in US the highest tax bracket in the most expensive state is around 40%.

    What the hell are we still contributing to CPF? We should be contributing as little as possible.

    On hindsight, maybe it is a good idea to spend all your CPF money on a property since you’re never ever going to get it back.

    The other question would be why are we even buying older and shorter tenure properties for more money?

  • Motoring tips for wet Singapore roads

    It’s the time of the year again. Singapore gets an average of 19 rainy days and about 260-290mm of rainfall in November and December1. Flash floods and accidents are reported everywhere, as if our traffic isn’t already bad enough!

    There’s two things all drivers can do to help yourselves and help other road users.

    First, get yourself a bottle of spray-on Rain X. Don’t be one of those driving at 20km/h with hazard lights, fog lights and high beam on. It only slows traffic and makes visibility worse for other road users.

    All you need is a few pieces of newspaper. Go to a sheltered carpark. Wipe off any water with a sheet of newspaper first. Spray on Rain X generously on the front, front sides and rear windscreens. Spread/apply with newspaper. Be sure to cover the entire windscreen. Wipe clean with a new sheet of newspaper. Repeat and apply/wipe off one more time. Also apply some on side mirrors. You’ll be set for the entire month.

    Next, this is the time to get your tyres replaced if they are balding. Please don’t buy cheap or eco tyres — they have poor grip, that’s why they’re eco! Friction and fuel economy are inversely related. A lot of eco tyres are made for comfort and longevity and barely saves you any more fuel than a properly inflated tyre. Never compromise your safety for a few dollars in savings or fuel economy.

    Some tyres that are relatively quiet and known to perform well in the wet are Michelin Pilot Sport 3 (PS3) or Goodyear Eagle F1 Asymmetric (v1 and v2).

    The next thing you should check is your tyre pressure. A properly inflated tyre can make a significant difference in aquaplaning and braking performance.

    For FWD cars that are nose-heavy, I usually increase the front tyre pressure by 2-3 psi above the manufacturers’ recommended cold pressure (found on the door pillar or fuel filler cover). Most FWD cars have lower front tyre pressures to induce understeer to make their lawyers happy, but an under-inflated tyre is not good for the wet.

    A good mechanic once told me that if there’s anything you shouldn’t save on, it’s tyres, suspension and brakes.  Each tyre makes a contact patch no larger than the size of your hand. Added together, the total contact patch is no larger than an A4 sheet of paper. That’s the amount of rubber holding your 1,400kg car to the road.

    Safe motoring!

    P.S. I’ve heard people say Rain X damages wiper, etc. Seriously, wipers costs almost nothing to replace compared to a weekly tank of gas. If you keep your windscreen clean and just give your wipers a wipe down often, they should last very long. Our hot tropical climate damages wipers quickly especially when it sits under the hot sun against a dirty windscreen.

    1 Source: Climate of Singapore, from http://en.wikipedia.org/wiki/Geography_of_Singapore