Dr Goh was one of the few analysts during the 1960s to have projected the possibility of China's economic rise by the 1990s. The government of the People’s Republic of China sought out Dr Goh’s expertise and appointed him as its economic adviser on coastal development and tourism in 1985. Dr Goh was the first foreigner to be appointed to such a role, a testament to the international recognition he had achieved for his accomplishments.
Dr Goh was the chairman of the Institute of East Asian Philosophies, which was formed in 1983 and had pioneered the Singapore government's promotion of Confucianism, even in 1990, when the institute was renamed as Institute of East Asian Political Economy (IEAPE), which served as a government think-tank on contemporary China as information on China at that point was limited.
Dr Goh was also responsible for projects that sought to improve Singaporeans' cultural and leisure lifestyle. He conceived the idea of setting up a bird park in Jurong in 1968. While in a World Bank Meeting in Rio de Janeiro, he had the opportunity of visiting a zoological garden and was mesmerized by the free-flight aviary over there. He felt that Jurong would be an ideal place where Singaporeans can relax in the lap of nature. In December 1968, Jurong HillÂ’s western slope was selected as the location of Jurong Bird Park, which was built at an investment of $3.5 million, excluding the cost of land.
In 1973, Dr Goh observed that it was "a scandal" that Singapore had no symphony orchestra, and he not only paved the way for the Singapore Symphony Orchestra (SSO)'s formation in 1979 but also secured for the orchestra a performing home in the Victoria Concert Hall. On 19 May 1978, the Singapore Symphonia Company Limited was set up to facilitate the setting up of the SSO. To ensure a long-term financial base for the orchestra, an Endowment Fund was created almost immediately. On securing the approval of the Cabinet for SSO's formation, Dr Goh said in an interview: "The PAP is supposed to be very hard-nosed, but I had little difficulty in persuading my colleagues... We believe that there's more to life than making money and that the orchestra would be worthwhile as it would raise the standard of culture of Singaporeans."To ensure a strong Singaporean component in the orchestra, Dr Goh set up music scholarships from the very beginning, to benefit promising young Singaporean musicians who could join the SSO upon graduation. The Public Service Commission administered this scheme in collaboration with the SSO for many years, sending up to eight scholars abroad annually. Today, due to Dr Goh's far-sighted vision, there is a good number of Singaporeans in the SSO's midst.
On 24, 25 and 26 January 1979, enthusiastic music lovers ranging from government ministers to young students streamed into the Singapore Conference Hall for the inaugural concerts of the Singapore Symphony Orchestra, and Dr Goh attended the second night of the performance. Ever passionate about classical music, he was to be seen at almost every SSO concert from then on until the early 1990s. After Victoria Memorial Hall was re-opened as Victoria Concert Hall on 1 October 1980, Dr Goh would always be seen seated in the first row of the balcony at SSO performances.
The Singapore Zoological Gardens was opened by Dr Goh in June 1973. He backed the construction of the Kreta Ayer People's Theatre in his constituency as a venue for Chinese opera performances. He also introduced rugby in the Singapore Armed Forces and later in schools. In recognition of his role in promoting the sport, the Schools "C" Division Cup is named after him. Impressed by an oceanarium in the Bahamas, he contacted the Sentosa Development Corporation and persuaded them to have one, thus Underwater World Singapore opened in 1991.
Friday, May 28, 2010
Economics
Dr Goh became Singapore's first Finance Minister when the People's Action Party (PAP) won the general elections in 1959. When he discovered that the government was on the verge of going broke that year, he immediately and firmly introduced drastic measures to cut spending, including unpopular policies like cutting civil service salaries. At the end of the year, the government had achieved a small surplus of $1 million, instead of the $14 million budget deficit it hed expected. The PAP government has ever since followed Dr Goh's prudent nature, and always upheld budget discipline and fiscal prudence.
Next, Dr Goh began to jump-start Singapore's stagnant economy. He decided on a radical and untested strategy to industrialise Singapore rapidly, attracting foreign investments from multinational corporations (MNCs) to create jobs and exports. It was contrary to the conventional wisdom then, that developing countries could achieve economic growth through import substitution, and that MNCs were new colonial powers out to exploit poor workers in Third World countries. The Third World governments would impose taxes on imported goods, making locally produced goods more attractive to consumers. However, this had its disadvantages, such as lower productivity, price distortion and creation of local monopolies. Now, Singapore is one of the world's most open economies and its exports are more than double its GDP.
Important to the industrialisation programme was an enormous project to transform a 3,600ha of swampy area in Jurong into a modern industrial estate. Dr Goh saw this project as "an act of faith in the people of Singapore". He and his friend Mr Hon Sui Sen, then Chairman of the Economic Development Board, started to develop Jurong. This strategy did not work immediately. Investors were reluctant to set up their businesses there due to the instability and chaos created by the Communists and their sympathisers, especially after Singapore joined Malaysia, and the federal government in Kuala Lumpur controlled the award of Pioneer Certificates (for tax holidays) to investors. Not a single application for Pioneer Certificates was approved during this period. Therfore, Jurong made very little progress. The venture was nicknamed "Goh's Folly" by cynics.
However, after separation from Malaysia, these problems were solved. To create confidence in local investors and attract more foreign investors, Dr Goh made a big show of attending ground-breaking ceremonies and official openings for each factory, and getting TV coverage, Minister Mentor Lee Kuan Yew recalled in his memoirs. The much-needed jump-start for Jurong came when Dr Goh managed to persuade two Indonesian businessmen to set up the National Iron and Steel Mill. The industrialisation strategy proved worthy, and Jurong industrial estate took off. By 1968, almost 300 factories operated in Jurong, employing 21,000 workers. Today, the Jurong project has far outgrown its geographical boundaries. Jurong Town Corporation was renamed JTC Corporation, because it was managing industrial estates all over Singapore, not just in Jurong. JTC Corporation has also spun off commercial arms, like Ascendas and JTC International, which have planned and built industrial parks and townships in many Asian countries. These successes have won Singapore an international reputation as a first class infrastructure provider.
Dr Goh pioneered many other economic institutions. He helped form the Economic Development Board (EDB) in 1961 to kick-start Singapore's industrialisation programme. Its objective is to draw foreign companies to Singapore, by developing industrial promotion strategies and tax incentives, and serve as a one-stop agency for all their needs. The EDB grew so rapidly that Mr Hon Sui Sen, its first chairman, had to hive off different segments. The industrial estates segment was turned into Jurong Town Corporation while the development finance segment became the DBS Bank of today. In 2009, the EDB attracted $11.8 billion of investments and helped create 21,900 new jobs.
Dr Goh helped set up Jurong Shipyard, as he felt that in view of Singapore's strategic location, Japanese shipyards could be interested in establishing a shipyard here. In the early 1960s, he travelled to Japan to look for a large shipyard which was willing to cooperate with the Singapore Government in setting up a joint venture. He eventually managed to persuade Ishikawajima-Harima Heavy Industries Company of Japan to consider a joint venture, which paved the way for the establishment of Jurong Shipyard on April 25, 1963. Jurong Shipyard is now part of Sembcorp Marine group.
While being Minister of Defence, Dr Goh suggested that Sentosa be developed as a tourist attraction. Back then, the island was used mainly to house military units, and to train navy recruits. Dr Goh's suggestion took hold, and in 1968 plans were announced to develop the island into a holiday resort. The island's original name of Pulau Blakang Mati, which is Malay for "the island behind which lies death", was changed to Sentosa, which is Malay for "peace and tranquillity". Sentosa is now among Singapore's biggest tourist destinations, drawing more than six million visitors a year.
The Post Office Savings Bank (POSB) was established by the British in 1877 as part of the Straits Settlements' postal department. It flourished at first, but slowly declined. From 1957 to 1967, its deposits had plummeted to about $38 million. Dr Goh decided to make use of POSB to encourage a savings culture among Singaporeans, and to mobilise these savings for national projects, by creating a committee to revitalise POSB. Under the committee's recommendations, POSB created a savings competition for schools and launched new services and incentives. By the end of 1968, the bank's deposits was no longer declining. In 1972, the bank was made a statutory board under the Finance Ministry. POSB was acquired by DBS in 1998 and now boasts 3.5 million customers.
Dr Goh bought Singapore's first 100 tons of gold reserves, reserves, at US$40 per ounce, from then South African Finance Minister, Dr Nicolaas Diederichts, in a private exchange at the World Bank meeting in 1968. As of March 2010, Singapore had about US$212 million in official gold reserves, according to the MAS website. Gold price is currently nearly US$1,250 an ounce.
Dr Goh helped create the Monetary Authority of Singapore (MAS) in 1971, where he introduced policies that produced a stable Singapore Dollar and preserved the purchasing power of Singaporeanns. He firmly opposed allowing market players free rein to speculate on the Singapore dollar. MAS applied a very strict policy, famously known as "the non-internationalisation of the Singapore dollar". By the late 1990s, the restrictions were relaxed in incremental steps, in order to grow the fund management industry in Singapore. Under Dr Goh, Singapore implemented a unique monetary policy centred on exchange rate, instead of interest rate as in most other countries. The policy, still in use today, has brought about low inflation and high growth for Singapore.
However, instead of letting MAS take charge of issuing Singapore dollars, Dr Goh, who is an early proponent of a Singapore currency, insisted that a Currency Board should be kept separate. A currency board system is more troublesome to maintain as every single Singapore dollar has to be fully backed by reserves, but it also prevents the over-enthusiastic issuing of new dollar notes that could stroke inflation.
In the 1970s, the MAS invested the reserves from budget surpluses mainly in short-term assets that did not have the best returns. Dr Goh conceptualised the Government of Singapore Investment Corporation (GIC) to manage Singapore's foreign reserves in long-term investments, long before the term - sovereign wealth fund - was coined. He persuaded then-prime minister Mr Lee Kuan Yew to create it in 1981 and became its first deputy chairman. GIC has now grown into what analysts estimate to be the world's fourth largest sovereign fund, with a portfolio speculated to be worth more than US$200 billion.
Temasek Holdings was established in 1974 by Dr Goh to take over the management and ownership of 30 fledgling Singapore firms in which the government had co-invested, as Dr Goh believed that the government as policy-makers should distance itself from its role as shareholder in these companies. Temasek Holdings cultivated these start-up investments, and they grew into major corporate successes, including Singapore Airlines and SingTel.
Dr Goh also decided to close down all pig farms in Punggol, arguing that it was cheaper to import pork, given the cost of Singapore's land and pollution. The pig farmers were given about $50 million and they turned to farming orchids and ornamental fish. The last pig farm closed down in 1990.
Next, Dr Goh began to jump-start Singapore's stagnant economy. He decided on a radical and untested strategy to industrialise Singapore rapidly, attracting foreign investments from multinational corporations (MNCs) to create jobs and exports. It was contrary to the conventional wisdom then, that developing countries could achieve economic growth through import substitution, and that MNCs were new colonial powers out to exploit poor workers in Third World countries. The Third World governments would impose taxes on imported goods, making locally produced goods more attractive to consumers. However, this had its disadvantages, such as lower productivity, price distortion and creation of local monopolies. Now, Singapore is one of the world's most open economies and its exports are more than double its GDP.
Important to the industrialisation programme was an enormous project to transform a 3,600ha of swampy area in Jurong into a modern industrial estate. Dr Goh saw this project as "an act of faith in the people of Singapore". He and his friend Mr Hon Sui Sen, then Chairman of the Economic Development Board, started to develop Jurong. This strategy did not work immediately. Investors were reluctant to set up their businesses there due to the instability and chaos created by the Communists and their sympathisers, especially after Singapore joined Malaysia, and the federal government in Kuala Lumpur controlled the award of Pioneer Certificates (for tax holidays) to investors. Not a single application for Pioneer Certificates was approved during this period. Therfore, Jurong made very little progress. The venture was nicknamed "Goh's Folly" by cynics.
However, after separation from Malaysia, these problems were solved. To create confidence in local investors and attract more foreign investors, Dr Goh made a big show of attending ground-breaking ceremonies and official openings for each factory, and getting TV coverage, Minister Mentor Lee Kuan Yew recalled in his memoirs. The much-needed jump-start for Jurong came when Dr Goh managed to persuade two Indonesian businessmen to set up the National Iron and Steel Mill. The industrialisation strategy proved worthy, and Jurong industrial estate took off. By 1968, almost 300 factories operated in Jurong, employing 21,000 workers. Today, the Jurong project has far outgrown its geographical boundaries. Jurong Town Corporation was renamed JTC Corporation, because it was managing industrial estates all over Singapore, not just in Jurong. JTC Corporation has also spun off commercial arms, like Ascendas and JTC International, which have planned and built industrial parks and townships in many Asian countries. These successes have won Singapore an international reputation as a first class infrastructure provider.
Dr Goh pioneered many other economic institutions. He helped form the Economic Development Board (EDB) in 1961 to kick-start Singapore's industrialisation programme. Its objective is to draw foreign companies to Singapore, by developing industrial promotion strategies and tax incentives, and serve as a one-stop agency for all their needs. The EDB grew so rapidly that Mr Hon Sui Sen, its first chairman, had to hive off different segments. The industrial estates segment was turned into Jurong Town Corporation while the development finance segment became the DBS Bank of today. In 2009, the EDB attracted $11.8 billion of investments and helped create 21,900 new jobs.
Dr Goh helped set up Jurong Shipyard, as he felt that in view of Singapore's strategic location, Japanese shipyards could be interested in establishing a shipyard here. In the early 1960s, he travelled to Japan to look for a large shipyard which was willing to cooperate with the Singapore Government in setting up a joint venture. He eventually managed to persuade Ishikawajima-Harima Heavy Industries Company of Japan to consider a joint venture, which paved the way for the establishment of Jurong Shipyard on April 25, 1963. Jurong Shipyard is now part of Sembcorp Marine group.
While being Minister of Defence, Dr Goh suggested that Sentosa be developed as a tourist attraction. Back then, the island was used mainly to house military units, and to train navy recruits. Dr Goh's suggestion took hold, and in 1968 plans were announced to develop the island into a holiday resort. The island's original name of Pulau Blakang Mati, which is Malay for "the island behind which lies death", was changed to Sentosa, which is Malay for "peace and tranquillity". Sentosa is now among Singapore's biggest tourist destinations, drawing more than six million visitors a year.
The Post Office Savings Bank (POSB) was established by the British in 1877 as part of the Straits Settlements' postal department. It flourished at first, but slowly declined. From 1957 to 1967, its deposits had plummeted to about $38 million. Dr Goh decided to make use of POSB to encourage a savings culture among Singaporeans, and to mobilise these savings for national projects, by creating a committee to revitalise POSB. Under the committee's recommendations, POSB created a savings competition for schools and launched new services and incentives. By the end of 1968, the bank's deposits was no longer declining. In 1972, the bank was made a statutory board under the Finance Ministry. POSB was acquired by DBS in 1998 and now boasts 3.5 million customers.
Dr Goh bought Singapore's first 100 tons of gold reserves, reserves, at US$40 per ounce, from then South African Finance Minister, Dr Nicolaas Diederichts, in a private exchange at the World Bank meeting in 1968. As of March 2010, Singapore had about US$212 million in official gold reserves, according to the MAS website. Gold price is currently nearly US$1,250 an ounce.
Dr Goh helped create the Monetary Authority of Singapore (MAS) in 1971, where he introduced policies that produced a stable Singapore Dollar and preserved the purchasing power of Singaporeanns. He firmly opposed allowing market players free rein to speculate on the Singapore dollar. MAS applied a very strict policy, famously known as "the non-internationalisation of the Singapore dollar". By the late 1990s, the restrictions were relaxed in incremental steps, in order to grow the fund management industry in Singapore. Under Dr Goh, Singapore implemented a unique monetary policy centred on exchange rate, instead of interest rate as in most other countries. The policy, still in use today, has brought about low inflation and high growth for Singapore.
However, instead of letting MAS take charge of issuing Singapore dollars, Dr Goh, who is an early proponent of a Singapore currency, insisted that a Currency Board should be kept separate. A currency board system is more troublesome to maintain as every single Singapore dollar has to be fully backed by reserves, but it also prevents the over-enthusiastic issuing of new dollar notes that could stroke inflation.
In the 1970s, the MAS invested the reserves from budget surpluses mainly in short-term assets that did not have the best returns. Dr Goh conceptualised the Government of Singapore Investment Corporation (GIC) to manage Singapore's foreign reserves in long-term investments, long before the term - sovereign wealth fund - was coined. He persuaded then-prime minister Mr Lee Kuan Yew to create it in 1981 and became its first deputy chairman. GIC has now grown into what analysts estimate to be the world's fourth largest sovereign fund, with a portfolio speculated to be worth more than US$200 billion.
Temasek Holdings was established in 1974 by Dr Goh to take over the management and ownership of 30 fledgling Singapore firms in which the government had co-invested, as Dr Goh believed that the government as policy-makers should distance itself from its role as shareholder in these companies. Temasek Holdings cultivated these start-up investments, and they grew into major corporate successes, including Singapore Airlines and SingTel.
Dr Goh also decided to close down all pig farms in Punggol, arguing that it was cheaper to import pork, given the cost of Singapore's land and pollution. The pig farmers were given about $50 million and they turned to farming orchids and ornamental fish. The last pig farm closed down in 1990.
Thursday, May 27, 2010
Education
Dr Goh's last ministry was education. Here too he introduced major reforms, leaving his imprint on a fundamentally changed education system. His approach was systematic, analytical, and results oriented. Today, nearly every student completes secondary education, masters both English and a mother tongue, and attains standards of mathematics and science that are among the highest in any country. As in so many other areas, Dr Goh's work laid the foundation on which his successors have built, to reach greater heights. Dr Goh was the Minister of Education from the year 1981 to 1984. The drop-out rate at that time was great and he imposed the streaming, bilingualism and moral education, all which can still be found today. Dr Goh believed that an excellent education system could only be built upon a high quality, professional teaching service. He improved teachers’ work conditions and raised pay scales. Many young and promising officers were sent overseas to develop expertise in the various fields of education. The Curriculum Development Institute of Singapore was set up, producing quality instructional materials that helped support teaching and learning. All these endeavours had a long term impact in raising the quality of teaching and learning in Singapore schools. Dr Goh believed that school leaders needed to be empowered to raise the standards of their schools. In that spirit, he initiated steps to give more autonomy to our school leaders, introducing the School Council to promote greater professionalism and communication within MOE. Seen as a significant innovation during its time, the Council was a leap forward in empowering schools and elevating the status of Principals as professionals. This established the culture for the continual engagement and dialogue between the ministry and school leaders and teachers today. Dr Goh’s vision of a professional teaching force continues to guide us today.
Defense
Dr Goh was the minister for defense for Singapore from Singapore’s independence and to 16 August 1967. He made national service mandatory, a highly unpopular rule as Chinese parents believed that good sons should not be made to join the army and he built up the army from scratch. The Singapore Armed Forces was modeled closely after the Israel army. He was also responsible for setting up many government-linked defense technology companies, with the Chartered Industries being the first. He also set up a scholarship scheme for young officers in the SAF. Though Dr Goh knew almost nothing of military matters, he took a personal interest into everything happening in the SAF. A well-recounted incident by PM Lee Hsien Loong is that he and Dr Goh went to inspect a troop of soldiers digging a bunker with all of them working. He said that the soldiers should not all work at once, but should have 1/3 of them working, 1/3 of them resting and 1/3 of them guarding. Also, he took a special interest into developing ability and talent. The SAF needed commanders and staff officers with the leadership qualities, intellectual abilities and professional competence to build and operate a modern, high-tech defence force. He created Project Wrangler, a talent management scheme overseen personally by the Minister, to identify promising officers, and systematically track, groom and advance them to key command and staff appointments. He introduced the SAF Scholarship scheme to induct top talent into the SAF. But he did not forget the older officers, mostly non-graduates, who had got the SAF off the ground: so he implemented a programme to enable deserving ones among them to study for Master's degrees at Duke University in military history and strategy. This is why today we have a cadre of capable and committed SAF leaders who understand defence technology, appreciate the strategic context, and can make sound decisions on and off the battlefield to ensure Singapore's security. Without such a team, we could not have built up, nor could we operate the 3G SAF, a professional and credible deterrent force respected alike by Singaporeans, partners and other armed forces in Asia and around the world. For the first batch of SAF scholars (including PM Lee Hsien Loong), he presented each of them with two books 孙子兵法 and Liddell Hart’s Strategy.
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