As an educator and lifelong learner myself, I really buy into the idea of reskilling and continuous education. So it is unsurprising that I support the general thrust of the SkillsFuture program. (1/n) Where I have more quibbles is in its execution, which is also informed by my background and experience in the education sector. A big part of the problem is the sort of retraining on offer. (2/n)

I was somewhat bemused by something DPM Lawrence Wong said, about the lower burden of taxation, in his roundup speech to #Budget2023. He showed, with charts, that the tax burden faced by our middle class was lower than elsewhere. (1/n) He also said that Singaporeans enjoy a much higher quality of public service than elsewhere, for what they pay. There’s a certain truth to that; our public sector, insofar as efficiency is concerned, is pretty value-for-money. (2/n)

When I first arrived in the United States for my doctoral studies, I was shocked at how expensive mandatory healthcare insurance was. At several thousand a year, it seemed a lot more expensive than the twenty or thirty dollars we’d pay when we saw our doctor. (1/n) Plus, I was 25. I would go to the doctor maybe twice a year, if even that often (remember when you were that invincible?). I thought that U.S. healthcare was just an unfair tax on the young and healthy, a reflection of the overall poor health of the American population. (2/n)

The idea of trusts and foundations may conjure up images of rich people and their lofty estates, and seems to be far removed from the everyday concerns of most Singaporeans. (1/n) But the truth is, most of us have encountered trusts in some form. We donate to charities, which is a type of trust. We nominate beneficiaries for insurance or CPF, both of which are trust arrangements. (2/n)

Inflation, as understood by economists, is the rate of change in prices. When prices rise, stuff gets more expensive. This is what is happening across the world now, as well as in Singapore. (1/n) But one-off price increases, while unpleasant, do not give rise to inflation. Inflation happens when price rises are persistent. Many economists, while worried about inflation, do not expect it to persist beyond this year or next. (2/n)

At the commencement of this session of Parliament, Prime Minister Lee expressed his hope that, with a more sizable Opposition, there would be more sophisticated policy debate, with alternatives instead of just objections being offered. (1/n) My #workersparty colleagues and I took that charge seriously. So when the GST hike was proposed, we took pen to paper, and worked out a range of revenue options that we felt could stave off the need to raise GST. (2/n)

In January’s Parliamentary sitting, members debated the transition toward a green economy. It will also feature in the budget and Committee of Supply debates, currently ongoing. The issue is urgent and important, not least because steps need to taken today to get us there. (1/n) I’m not usually a Debbie Downer, but my contributions to the debate were mostly cautionary. I spoke about the importance of measuring progress, and warned about how green financing wasn’t some magic bullet, as well as risks from greenwashing. (2/n)

Every year, I teach a course in international economics. In the first lecture of the course, I teach what is known as the Ricardian model: named after the 18th century economist, David Ricardo. (1/n) The key insight then—as it is today—is that free trade between two countries allows each one to specialize according to what they can do relatively well. This is known as comparative advantage. (2/n)

The term “debate” often evokes images of raucous speeches and lively verbal jousting. Alas, parliamentary debates (in this country at least) are often heavily structured, guarded affairs. (1/n) For instance, to make a point, one has to be recognized by the Speaker. This preserves order and decorum, but it comes at the cost of stifling dynamic riposte, especially for a heated topic. (2/n)

For many Singaporean parents, one of the more stressful events is placing their child in a preferred primary school. What that preference is differs. For some, it is the alma mater; for others, a school offering certain academic options; for yet others, one near their home. (1/n) It strikes me that securing a place close to home is a reasonably modest expectation. This is not guaranteed if the school is especially popular, of course (and parents understand that); but getting into a walking-distance neighborhood school seems eminently fair. (2/n)

Corporate governance is one of the less-sexy topics within corporate finance and asset management. After all, everyone wants to know about firms’ profitability metrics, new product lines, and growth plans. (1/n) In contrast, issues such shareholder rights, board independence, and compensation schemes evoke yawns among all but the most nerdy analysts and researchers. What does “governance” really mean for a private corporation anyway? (2/n)

Last week, @yalenus announced that it would be taking in its final class of students. The college—one of the first liberal arts schools in Asia—is set to close its doors in four years. It marks the end of a bold experiment. (1/n) I suspect most Singaporeans would be apathetic to this development. While Yale has an easily recognizable brand name, it is, after all, an elite institution, which by definition caters to a very limited few. (2/n)

The government recently announced plans to form a nonprofit entity to take over the media businesses of Singapore Press Holdings. Many observers have offered their thoughts on the merits of this arrangement (including my #workersparty colleagues). (1/n) I thought it would be interesting to examine the economics of the local media industry in a little more detail. While it’s not possible to cover all relevant aspects, a few issues did jump out at me. (2/n)

I first arrived in the United States with around 10 grand in savings, a box of economics textbooks, and a baggage full of dreams. Unlike many PhD students, I did not initially receive any financial assistance. (1/n) So the first few months were especially rough. I found the cheapest room I could, traveled by bike, and ate a lot of frozen dinners. But I bled through the savings quickly, mainly because of costly out-of-state tuition fees. (2/n)

This pandemic recession has been brutal for many Singaporeans, especially those that have been displaced from long-held jobs. But such displacements predated #COVID-19; technological advances and trade globalization mean this trend is set to continue. (1/n) This means that what is needed is an end-to-end jobs safety net. At the back end, the Professional Conversion Program and SkillsFuture help workers reskill, while cofinancing via the Jobs Growth Incentive makes it more palatable for employers to take on retrained rookies. (2/n)

I first experienced financial markets as a young boy, going to the stockbroking firm my mother worked at in the evenings and on Saturday morning (Mom often worked late, and we didn’t have a helper until my sister was born, so this was early-80s-style childcare). (1/n) My first few temporary jobs were also in the back offices of different financial firms. That’s what got me interested in international finance to begin with, a field I would write several theses about and go on to get a PhD. It is my (intelectual) first love. (2/n)

Working in a research-focused
institution, one becomes keenly aware of the importance of innovation as a driver of technology and productivity, which in turn is a source of growth and development. (1/n) Indeed, economists widely acknowledge that sustained, long-run growth is only possible with technological improvements. This is the case with old-school (Solow-style) growth models, as well as newer (Romer-type) “endogenous” growth models. (2/n)

A free rider, as defined in economics, is an individual (or group) that reaps the benefits of the actions of others, without paying the cost (or underpaying for it). It is a form of market failure, and characterizes nonexcludable goods (those whose use cannot be restricted). In his opening address to the 14th Parliament, PM Lee spoke of a number of issues. Many points he made were thoughtful, and drew on his deep experience in government, and as Prime Minister. I appreciated his insight and candor.

I spent the largest part of my professional career thus far at the @WorldBank. During that time, I was involved in formulating policy for a wide variety of nations, both democratic, and less so. So FWIW, here are some thoughts on the policymaking process in a democratic society. For good or ill, decisions made by the majority (or representatives of that majority) apply to all citizens in the country. One may individually disagree. If so, the time to debate a policy’s merits is prior to enactment. But once policy becomes law, all are compelled to follow.

There has been some pushback against the claim, from our #workersparty manifesto, that min wages is sound policy. Let me begin by emphasizing a position I've held from the start: min wages is not unabashedly good policy. But it is a good start that is also evidence-based. In social sciences, there is seldom unambiguous evidence. Studies can yield different results, which is why continued research is important & policies should be based on the overall literature. That's why I mentioned that many papers since Card-Krueger corroborate its findings.

One of the issues I have repeatedly raised in my campaign speeches this #GE2020SG has been the problem of stagnant productivity. I see poor productivity growth as the most critical economic challenge that the country will confront in the decades ahead. Why is this so important? Because in the long run, the only way to ensure sustainable growth in our output and incomes per capita is through improvements in productivity. But because it is a technical subject, people tend to shy away from discussions about the matter. I think that this is a mistake.