Issue 2 | APR 2007 ETHOS Issue 2 | APR 2007

05 Creative Cities: 66 The City and My Home Can they be Comfortable? Simon Tay Peter Hall

40 Singapore as a Global Water 80 The Globalisation Game Knowledge Hub Interview with Martin Wolf Interview with Asit K. Biswas

ETHOS Advisory Board Chan Heng Kee – CEO and Dean, Civil Service College Chan Lai Fung – Permanent Secretary, Ministry of Law Chew Hock Yong – Deputy Secretary, Ministry of Community Development, Youth and Sports Loh Khum Yean – Chief Executive, SPRING Singapore Ow Foong Pheng – Chief Executive Officer, JTC Corporation Andrew Tan – Deputy Secretary (International), Ministry of Foreign Affairs

Editorial Team Alvin Pang – Editor • Sheila Ng – Assistant Editor June Gwee • Lai Wei Lin

We welcome contributions, suggestions and letters to the Editor. The editorial team reserves the right to select, edit and publish articles according to its editorial policy. All correspondence should be directed to:

The Editor, ETHOS Centre for Governance and Leadership Civil Service College 31 North Buona Vista Road Singapore 275983 Fax: +65 6775 8207 Email: [email protected]

©2007 Centre for Governance and Leadership, Civil Service College

Published by the Civil Service College The Civil Service College (CSC) is a statutory board under the purview of the Public Service Division (Prime Minister’s Office). Established in 1971, the College is an integrated learning institution comprising the Centre for Governance and Leadership, the Institute of Policy Development, the Institute of Public Administration, Public Service Centre of Organisational Excellence, CSC Consultants and CSC International. Its vision is to be the Heart of Learning Excellence and Development for the Singapore Public Service.

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the Editor and the Centre for Governance and Leadership, CSC. The opinions and views expressed in Ethos are those of the authors, and do not necessarily reflect those of the Centre for Governance and Leadership, the Civil Service College or the Public Service Division. ISSN: 1793-3773

Website: http://www.cscollege.gov.sg/ethos 02

CONTENTS Issue 2, April 2007

03 Editorial 58 Quality of Life in Singapore 05 Creative Cities: Can they Tan Li San be Comfortable? Peter Hall 62 Spaces and Scapes — Thoughts on Urban 08 Managing Singapore’s Planning Land Needs Aaron Maniam Melissa Sapuan 66 The City and My Home 22 Homes for a Nation — Simon Tay Public Housing in Singapore ******************* Yap Chin Beng 70 Positioning Singapore in a New Asia 31 Water Management Andrew Tan in Singapore Cecilia Tortajada 75 Strategic in Outlook, Nimble in Execution: 40 Singapore as a Global Strengthening the Water Knowledge Hub Centre in the Singapore Interview with Asit K. Biswas Government Ng Chee Khern 45 Implications of Prospect Theory on Road Pricing 80 The Globalisation Game Anthony T.H. Chin Interview with Martin Wolf 50 Wanted — An Ambitious Vision for Singapore’s Public Transport Paul Barter

ETHOS | Issue 2 | APR 2007 03

EDITORIAL

he Asian Development Bank has and home, imitating successful cities enlisted Singapore’s help to step elsewhere will only take us so far. T up urban development in the Participation in regional development will region. The multimillion dollar agreement, offer our planners a broader canvas on inked in March this year, will see Singapore which to try out new ideas, technologies share its expertise and conduct joint and approaches. There may well be research in urban planning and opportunities to develop our own management with policymakers and innovative solutions and cultivate fresh planning professionals in developing talent in the fields of urban design, countries across the Asia-Pacific. planning and regulation. These will pay This partnership is more than a ringing off richly for Singapore’s own cosmopolitan endorsement for Singapore’s competence. future. In a rapidly urbanising region where as At heart, urban planning is about a much as 60% of the urban population still strengthening city’s capacity to respond to live in slum-like conditions, this deal change. The question is how this capacity represents a salient opportunity for might best be served. Indeed, Professor Sir Singapore to export one of our maturing Peter Hall of University College London strengths to a much under-served market. argues that the creativity of great cities in Our public housing and airport the past was the result of tensions wrought infrastructure have been lauded in the past. by rapid economic and social change; he However, some scholars in the challenges Singapore’s planners to embrace developmental field, like Dr Cecilia such creative tensions rather than plan Tortajada, also see Singapore as an unsung against them (see page 5). In contemporary leader in specialised sectors such as water urban design, the prevailing question management, where global demand for seems to be: What to plan for, and what to relevant expertise is still growing (see page allow to grow organically? After all, 31). buildings, roads and sewers give a city Lending a helping hand to the region structure and value, but it is the free and is all well and good, but what does this often unanticipated interaction of its mean for a small city-state that aspires to inhabitants that bring cities to life. be a distinctive, vibrant and world-class Nevertheless, in all cities, but particularly cosmopolis? If we are to distinguish in land-scarce Singapore, trade-offs have ourselves as an urban destination, venue to be made between equally attractive

ETHOS | Issue 2 | APR 2007 04 opportunities. the relationship between place and identity. It is for these reasons that public In addition, featured in our General communication, community participation, topical section are essays by Andrew Tan, and consensus building have become Deputy Secretary (International), Ministry integral to the planning process in cities of Foreign Affairs, and BG Ng Chee Khern, worldwide, from Boston to Berlin. Chief of Air Force, and a conversation with Singapore’s own Urban Redevelopment noted financial journalist Martin Wolf Authority has derived great value from on globalisation and its implications for engaging the public, as the review of its our region. We will also be making latest Concept Plan attests (see page 8). additional material on topics under Undoubtedly, the public discussion will discussion available online at http:// continue to mature and deepen in the years www.cscollege.gov.sg/ethos. to come. We look forward to hearing from you and wish you a constructive read.

Urban planning is about Alvin Pang strengthening a city’s capacity Editor, Ethos to respond to change. [email protected]

It is our hope at Ethos to contribute to the discourse on urban planning and management in some small way. Our contributors in this issue offer bold new perspectives on the theme. In an interview, Professor Asit K. Biswas envisions Singapore as the water capital of the world. Paul Barter from the National University of Singapore proposes ambitious changes to public transport development and regulation. Rounding up the issue’s theme is Professor Simon Tay, National Environment Agency Chairman and former Nominated Member of Parliament, who reflects on the value of the unplanned and

ETHOS | Issue 2 | APR 2007 Creative Cities: Can they be Comfortable? | Peter Hall 05

Peter Hall Creative Cities: Can they be Comfortable? Many urban centres aspire to be creative global cities, but they should be prepared to embrace the tensions and turbulence of genuiue change.

ities everywhere see themselves as respect, as international rankings have competing in a globalised world, shown. C just like companies. Some argue But there is a nagging sense that this is a false analogy: cities do not something more is needed. Cities compete, their companies and their worldwide are repeating the mantra of employees compete. So the job of city creativity, struggling to embrace the administrations is to ensure that they can creative economy as the basis for their govern effectively, by providing both hard regeneration. They have all read Richard and soft infrastructure: utilities, transport Florida’s argument that success in the so- links, schools, universities and hospitals, called New Economy depends on a new and basic structures of law and order. creative class. This class chooses congenial Singapore has performed brilliantly in this locations like the San Francisco Bay Area,

ETHOS | Issue 2 | APR 2007 06 Creative Cities: Can they be Comfortable? | Peter Hall

Austin (Texas) and Seattle. It does not economic and social transformation — particularly care about attributes like economically, socially and in value systems. expressways, airports or entertainment They were in a state of uneasy and unstable districts; it looks for high-quality amenities tension between conservative and radical and experiences, an open and free forces and values — places of great social atmosphere, and the everyday opportunity and intellectual turbulence, not to assert its own creative identity.1 comfortable places at all. This disjuncture Richard Florida argues that a was experienced and expressed by creative “Bohemian Index” — the number of writers, people who felt themselves outsiders: the designers, musicians, actors and directors, guild craftsmen of Renaissance Florence, painters ands sculptors, photographers and the young actor-playwrights of Elizabethan dancers — is “an amazingly strong predictor London, the court musicians, and later the of everything from a region’s high- Jewish intellectuals of Vienna, the Parisian technology base to its overall population Impressionists and Cubists. An old, and employment growth”.2 He produces established order was being challenged or statistical evidence, but it is unclear which had just been overthrown — London in is the cause and which the effect. It may 1600, Paris in 1860, Vienna in 1900 or Berlin be that successful places are dominated by in 1920. economic sectors that need large numbers No city on earth today would want to of such people. More likely, it is a circular be a city like some of these places. Indeed, process: growing activities attract talented their stories sometimes resembled workers who then, in turn, generate new contemporary Baghdad more than any city activities and new growth. most of us live and work in. But perhaps In a book I wrote ten years ago, I looked cities can become too comfortable, too cosy. at six undoubtedly creative cities: Athens In his new book The Art of City Making, in the fifth century B.C.; Renaissance Charles Landry argues that many cities are Florence; Shakespearean London; Vienna pursuing the wrong objective. He estimates in the eighteenth and nineteenth centuries; that no less than 60 cities worldwide are Paris between 1870 and 1910; and Berlin claiming to be creative — but, viewed more in the 1920s.3 These places did not offer closely, most are concerned narrowly with much quality of life to most people who strengthening the arts and cultural fabric lived in abject squalor by today’s standards. and the creative industries. This, for him, What they did have was something is different from — though obviously related elusive — a creative milieu. I came to the to — the critical issue, which is how to conclusion that this resulted from creative achieve a truly creative city. He argues for tension. soft creativity, thinking of solutions that All six cities were undergoing rapid go with the grain of the local culture, rather

ETHOS | Issue 2 | APR 2007 Creative Cities: Can they be Comfortable? | Peter Hall 07 than believing in a technological fix to migrants, vital to bringing in new ideas, everything; “hard” policy instruments, products and services. But it finds it whether airports, freeways, concert halls difficult to go the final mile, actually or art galleries, have only a very tenuous stimulating creative tension: as Landry puts relationship to this process. it, creating conditions open enough so that Singapore is one of his case studies. He it can rethink its potential in every aspect concludes that “The notion of a creative of urban life. This is the challenge for city implies a level of openness that Singapore’s planners. potentially threatens Singapore’s traditions of more top-down action.”4 So, he argues, “Singapore’s strengths embody its Peter Hall is Professor of Planning and weaknesses. It is better at creating the Regeneration at the Bartlett School of containers than the contents, the hardware Architecture and Planning, University College rather than the software”. In particular, London. From 1991-94, he was Special Adviser “Singapore therefore oscillates between on Strategic Planning to the UK Secretary of constraint and creativity. It has a desire to State for the Environment. In 1998-99, he was plan creativity as against creating the a member of the Deputy Prime Minister’s Urban conditions in which creativity can occur.”5 Task Force. He has authored over 35 books on How can Singapore overcome this planning and related topics, including London contradiction? Landry argues that citizens 2000, The World Cities, Urban and Regional need to “think of your city as if it were a Planning, Technopoles of the World, Cities in Civilization, Urban Future 21 and The Polycentric living work of art where citizens can involve Metropolis. He received the Gold Medal of the and engage themselves in the creation of Royal Town Planning Institute in 2003 and the a transformed space. This will involve Balzan International Prize in 2005. different creativities: the creativity of the engineer, social worker, planner, business person, events organiser, architect, housing NOTES specialist, IT specialists, psychologists, 1. Richard Florida, The Rise of the Creative Class (New York: historians, anthropologists, natural Basic Books, 2002), pp5-7, 218. 2. Richard Florida, The Rise of the Creative Class (New York: scientists, environmentalists, artists of all Basic Books, 2002), pp260. kinds and, most importantly, ordinary 3. Peter Hall, Cities in Civilization: Culture, Technology and Urban people living their lives as citizens. This is Order (London: Weidenfeld and Nicolson, 1998). comprehensive creativeness.”6 4. Charles Landry, The Art of City Making (London: Earthscan, 2006), pp354. Singapore, I would judge, does this well 5. Charles Landry, The Art of City Making (London: Earthscan, much of the time. It has the diverse 2006), pp360. population that is critical for urban 6. Charles Landry, The Art of City Making (London: Earthscan, creativity, and it goes on absorbing new 2006), pp385, 386.

ETHOS | Issue 2 | APR 2007 08 Managing Singapore’s Land Needs | Melissa Sapuan

Melissa Sapuan Managing Singapore’s Land Needs Visionary urban planning transformed a tiny island nation into a bustling business hub. Now Singapore has set its sights on becoming a distinctive global city.

uch has changed in Singapore’s homes are readily available, in self- urban landscape in the four sufficient new towns and in the heart of M decades since Independence. In the city. The island is served by an efficient the 1960s, Singapore was beset by high transport system and high-quality unemployment, an overcrowded city infrastructure. centre, and a shortage of proper housing None of this occurred by chance. and adequate infrastructure. Today, the Singapore’s unique circumstances and city centre is a bustling business and land limitations demand judicious, financial hub, with a vibrant mix of retail comprehensive and long-term planning. and entertainment activities catering to Planners in Singapore must ensure that all both residents and visitors. Good quality land use needs can be met, not only in the

ETHOS | Issue 2 | APR 2007 Managing Singapore’s Land Needs | Melissa Sapuan 09 present but also in the longer term, in general public was also considered. The order to sustain growth and development consultation process highlighted the need in the years to come. to intensify housing and industrial areas, This is achieved through the Concept while retaining parks and identity areas Plan, a strategic land use and transportation as these provided a quality living plan which sets out Singapore’s environment. This exercise provided a clear development directions some 40 to 50 years indication of public aspirations for the ahead. The Concept Plan takes into future landscape of Singapore. consideration all major land use demands such as housing, industry and commerce, recreation and nature areas, transport and Public consultations provide utility infrastructure, as well as defence a clear indication of public requirements, and represents Singapore’s aspirations for the future planning strategies to make best use of its landscape of Singapore. precious land resources. Many features of Singapore’s physical landscape, such as new towns, the airport at Changi, the port at Pasir Panjang, the reclamation of Jurong FROM PLANNING TO IMPLEMENTATION Island for the petrochemical industry, its The Master Plan translates the broad network of expressways and mass rapid strategies of the Concept Plan into detailed transit lines, and business parks, are the plans to guide development over the next result of earlier Concept Plans. 10 to 15 years. It is a statutory land use To prepare the Concept Plan, plan showing the permissible land use and government agencies study long-term land density for every parcel of land in requirements for various major land uses. Singapore. Planning approval is required This collective effort ensures that national for development projects from both the priorities and strategic directions for private and public sectors. This ensures various sectors are incorporated into the that developments in Singapore are carried land use plan. out in an orderly manner and in During the recent review of the 2001 accordance with the intentions stipulated Concept Plan, focus groups — comprising in the Master Plan. academics, interest group representatives, Zoning of land for specific uses ensures professionals and citizens — were formed that sufficient land is earmarked for as part of a public consultation exercise to different needs, in line with strategic gauge public values. Feedback from the directions. This is necessary because if left

ETHOS | Issue 2 | APR 2007 10 Managing Singapore’s Land Needs | Melissa Sapuan

A BALANCING ACT In land-scarce Singapore, land use planning involves trade-offs between many compelling priorities.

An important principle of planning is to out public consultations on the guidelines protect amenity by preventing uses with for childcare centres within landed areas negative externalities (i.e., those that create to find a balanced solution that addressed nuisance or have a negative impact on both the concerns of residents regarding others in the vicinity) from being noise and traffic, and the needs of parents inappropriately located. For instance, and childcare operators. industrial activities which could be A balance also has to be found between pollutive are prevented from operating in flexibility for businesses and longer term predominantly residential areas. sustainability. For example, while A balance also needs to be found guidelines for industrial developments were between providing flexibility for businesses relaxed to allow some e-businesses and and facilitating development, and selected media activities to be carried out minimising adverse impact on within industrial premises, the neighbouring uses. White sites were requirement of a minimum 60% of introduced in 1995 to give developers industrial activities remains in place. This greater flexibility by allowing commercial, is to ensure that the stock of industrial residential, hotel or any mix of these space needed to support Singapore’s compatible uses at suitable locations.1 manufacturing sector is not eroded through Several white sites have been successfully conversion to other uses, which could also sold, including those which are now the inadvertently drive up industrial land Novena Medical Centre cum retail mall, prices. – Melissa Sapuan and The Sail at Marina Bay. In residential areas, childcare centres within landed housing estates, while NOTE providing a greater choice of locations for 1. Urban Redevelopment Authority, “URA to sell “White Sites”.” parents and childcare operators, could Press release, October 25, 1995, http://www.ura.gov.sg/pr/text/ pr95-15.html (accessed 21 March 2007). create nuisance for neighbours. URA carried

ETHOS | Issue 2 | APR 2007 Managing Singapore’s Land Needs | Melissa Sapuan 11 to the market, uses with higher commercial example, sites are identified to meet the value could price out uses such as demand for hotel rooms in suitable healthcare facilities or parks which are locations such as within vibrant and needed by the community. By ensuring interesting mixed-use belts along the that retail amenities and facilities such as Singapore River and Orchard Road. libraries, sports facilities, schools, community New strategic areas are identified for centres and parks are accessible within development in the medium-term to meet housing estates, planning enhances the business needs so that infrastructure can liveability of residential areas and reduces be put in place and demand channelled the need to travel. to develop these areas. The Urban Redevelopment Authority (URA) co- ordinates the efforts of government Since the release and agencies in infrastructure development to development of sites is market- open up new areas such as Marina Bay (see led, the pace of implementing box story). The Government Land Sales new development areas programme is an important tool for implementing development strategies and depends on market demand releasing land to meet the demand for and investor confidence in the various types of properties. It also facilitates real estate sector. the participation of the private sector in the development of Singapore. Since the release and development of sites is market- Stipulating the allowable use and led, the pace of implementing new intensity of land parcels provides a degree development areas depends on market of certainty for estimating the provision demand and investor confidence in the needed for public infrastructure and real estate sector. facilities such as roads, drains, schools and hospitals. It also facilitates planning for PLANNING FOR SUCCESS the distribution and phasing of these Planning in Singapore is about making the amenities, and for coordinating their most effective use of limited land resources implementation. Furthermore, it gives to create a distinctive, attractive and certainty to owners and occupants vibrant city, not only for now but also for regarding the land use or activities in their future generations to enjoy. Long-term neighbourhood. Zoning also encourages planning for all our various land needs the clustering of compatible uses: for provides the assurance that population and

ETHOS | Issue 2 | APR 2007 12 Managing Singapore’s Land Needs | Melissa Sapuan economic growth can be accommodated. world-class city which is not only attractive, This includes providing a choice of different but also distinctive and authentically housing types and locations, space to grow Singaporean. businesses, attractive and accessible recreational amenities, and a comprehensive and efficient road and rail Melissa Sapuan is Executive Planner in the system to meet transport needs. Planning Physical Planning, Concept Plan and Policies also enables Singapore to retain its natural Section of the Urban Redevelopment and built heritage, helping to create a Authority.

LAND USE PLANNING IN SINGAPORE: PRINCIPLES AND STRATEGIES FOR SUCCESS

SMALL ISLAND, BIG NEEDS to the free development of an already Land use planning in Singapore presents limited stock of land. Building height is unique challenges. Singapore is a small limited by the flight paths of planes. There city-state. In addition to catering for are also restrictions on locating pollutive housing, business, social and recreational uses of land, such as industries, which have needs, activities which are typically located to be restricted within water catchment outside the city have to be accommodated areas to protect the quality of the water within Singapore’s limited land area. These supply. Other major utilities such as power include international ports and airports, stations and incineration plants impose and major utilities such as water treatment health, safety and nuisance buffers, which plants and power stations. Land also has limit the activities and developments that to be set aside for water catchment and can be permitted near them. storage, as well as for security needs, such Singapore’s finite land resource means as military training areas and bases. trade-offs inevitably have to be made At the same time, there are constraints between different uses. For example,

ETHOS | Issue 2 | APR 2007 Managing Singapore’s Land Needs | Melissa Sapuan 13 providing more land for industrial areas. This can be achieved by providing developments may require housing to be good amenities and transport facilities to more densely built, while the retention of make living in high-density areas more natural areas may reduce land available convenient. Greenery and good urban for development. design can also make dense residential The key challenge is therefore to areas more attractive. Public feedback has consider the various land use demands also shown that people are generally comprehensively so that potential trade- prepared to live in high-rise apartments offs between uses can be evaluated with higher floors, if privacy is maintained holistically in order to meet two primary through good design and layout. objectives: catering for growth, and providing a good living environment. Should we set aside more land for Singapore’s challenge is to find industries to support economic growth? a balance between optimising Should we plan for more landed and industrial land use and retaining low-density housing areas, or should its competitive edge as a we keep more nature areas, parks and manufacturing location. open spaces, as well as heritage areas which could otherwise be redeveloped? How can we decide what is more important Industrial Land Use for the country? What does the public Given that manufacturing is expected to value? remain a significant contributor to the economy, land is needed to support the STRATEGIES FOR SUCCESS growth of the industrial sector. This Residential Land Use includes high value-added sectors, such as Singapore’s strategy for residential areas is petrochemicals and pharmaceuticals, to increase densities for new housing, which typically require large tracts of land particularly in the city area, in order to due to the nature of their production minimise land required. At the same time, processes and plant layouts. landed and low-density housing areas are Without further intensification of land retained to create variety and offer options use in land-scarce Singapore, it may be in Singapore’s residential environment, in difficult to continue to sustain the growth order to meet the housing aspirations of of the industrial sector in the longer term. Singaporeans. The challenge is to create However, companies are often reluctant to equally attractive high-density housing redesign their processes or intensify their

ETHOS | Issue 2 | APR 2007 14 Managing Singapore’s Land Needs | Melissa Sapuan development, as this could introduce parcels in the span of about a decade. production risks. Requiring them to do so Tampines today is an established hub for could make Singapore less competitive. the back offices of many financial Some design innovations, such as JTC’s institutions, and a retail and entertainment stacked-up factories,1 which have ramps hub serving the needs of residents in the which allow container trucks to make eastern part of Singapore. In the next few doorstep deliveries to higher floors, are years, the focus outside the city centre will geared towards more efficient use of be to build up Jurong Regional Centre into industrial land. a business and transportation hub and Nevertheless, higher-intensity industrial to develop Paya Lebar into another developments have yet to gain widespread commercial hub to meet the demand for acceptance from industrialists. Singapore’s business space. Detailed plans for these planning challenge is therefore to find a new commercial centres will be released balance between optimising industrial land in 2008 as part of the review of the Master use to ensure that future needs can be met, Plan. and retaining its competitive edge as a manufacturing location today. Transportation Land use planning plays an important role in improving accessibility to goods and services and reducing the need to travel. For instance, the majority of commercial activities is planned to be located within the city centre to create a critical mass of activities and help position Singapore as a global business hub. To allow people to live Tampines Regional Centre close to this concentration of employment opportunities, more housing is being Commercial Centres introduced into and near the city centre. The growth of the Central Business District Outside the city, more employment areas into the reclaimed land at Marina Bay was are planned near suburban residential planned over 30 years ago and is now being areas; for example, industrial estates are realised. Tampines Regional Centre, the situated at the fringe of housing estates first of the regional centres proposed in and more commercial hubs such as the 1991 Concept Plan to be developed, was Tampines Regional Centre and Novena built up through the sale of over 10 land fringe centre. This helps reduce commuting

ETHOS | Issue 2 | APR 2007 Managing Singapore’s Land Needs | Melissa Sapuan 15 and lessen transport demand. town centres, sports complexes and homes. The rail network will be expanded to This expands recreation space and increases at least double the current network in the accessibility to parks and the coastline, long term. Radial lines will provide direct with minimal opportunity cost, since park links to the city centre, while orbital lines connectors generally run along drainage will serve those travelling from one place reserves, road reserves or under viaducts. to another outside the city centre. This will Today, the total length of park connectors enhance accessibility and reduce travel in Singapore is 70 kilometres; the aim is to times, making public transport more increase this total length to 200 kilometres attractive and reducing reliance on private by 2012, and to more than 400 kilometres transport. in the long term. With less reliance on private transport, Water bodies will also be integrated the need for more roads and road-widening with parks and green spaces to create new which may affect surrounding land uses opportunities for water-based recreational will be reduced, and environmental quality and leisure activities. Promoting sky- will be better maintained as noise and air gardens and high-rise greenery will also pollution will also be reduced. Higher- help to create a sense of pervasive lush density developments can be sited at greenery even in built-up areas. locations well-served by rail transit stations, providing convenient access without Land Optimisation creating excessive congestion. To help manage land demand, several innovative land optimisation strategies Recreational Land Use have been adopted, such as building more As Singapore becomes more built up, the intensively, making better use of presence of greenery and open spaces will underground space or co-locating uses. become even more important as a relief to Singapore’s long-term planning approach high-density living. While parks and open ensures that even as land is set aside for spaces take up a significant amount of land, economic activities, there is sufficient their availability is highly valued by the provision of land for a variety of housing public for recreation and relaxation. Hence, types, parks and open space for recreation, even though demand for land will increase and community facilities without with a bigger population,2 more land will maximising the use of every land parcel to be set aside for parks and open spaces. the detriment of the overall quality of the The introduction of park connectors environment. Some areas, not needed to creates “green corridors” linking parks with be developed yet, are put to interim short-

ETHOS | Issue 2 | APR 2007 16 Managing Singapore’s Land Needs | Melissa Sapuan term uses, for example, agriculture in Lim to create an awareness and appreciation Chu Kang and cultural/arts activities in the for good design and to encourage greater old Tanglin Camp. creativity in design. Even in the area of infrastructure Another strategy is to capitalise on planning, land optimisation measures are assets such as Singapore’s islandness — for in place. The Deep Tunnel Sewerage System, example, with waterfront housing, coastal currently under construction, will link parks and waterfront recreational two centralised water reclamation plants; opportunities. A further measure towards once the system is in use, many existing creating an attractive environment is water reclamation plants and pumping through greening and conserving our stations located all over the island can be natural heritage where possible. Beyond phased out eventually and the land put to the protected nature reserves, nature areas other uses. are retained and integrated within parks and other developments where feasible. Creating a Distinctive, Attractive City For example, as a result of government- An important planning principle in facilitated consultations between a golf Singapore is to create a city which is course developer and the Nature Society, attractive, vibrant, liveable, and distinctive. core areas with rich flora and fauna were One of the tools to achieve this is good preserved at Kranji, and the re-creation of urban design, which can generate quality natural habitats allowed birds, including environments and distinctive identities. some endangered local species, to continue For instance, urban design guidelines to roost. require new developments fronting the Singapore River to be no more than four Conservation storeys high at the front and up to 10 The preservation and restoration of historic storeys high at the back. This maintains a areas is an important element in comfortable human scale along the Singapore’s distinctive cityscape, and there promenade defined by the low-rise is now widespread public support and conserved shophouses and warehouses interest in conservation. As more of our along the river. Pitched roofs are required city becomes developed and redeveloped to complement the distinctive historic to cater to the needs of a larger population, character of the area. To create an exciting the retention of our identity through cityscape, the Urban Redevelopment conservation will become more important. Authority (URA) also actively promotes Nevertheless, it remains a challenge to architecture and urban design excellence strike a balance between retaining

ETHOS | Issue 2 | APR 2007 Managing Singapore’s Land Needs | Melissa Sapuan 17

NOTES 1. JTC Corporation, Stack-up Factory, http://www.jtc.gov.sg/ products/readybuilt/stackup/pages/index.aspx (accessed 21 March 2007). 2. Urban Redevelopment Authority, "Planning for Growth, Investing in Our Future", Speech by Mr Mah Bow Tan, Minister for National Development, 9 February 2007, http://www.ura.gov.sg/pr/text/2007/pr07-14.html

The "old-and-new" approach allows for shophouses to be conserved between new infill development. historic streetscapes for the public and intensifying the use of land through redevelopment. Innovative strategies like the “old-and-new” approach allow for shophouses to be conserved between new infill developments, such as China Square. In the conservation of buildings in the Syed Alwi area, while critical buildings which contributed to the identity and character of the street were retained, others were excluded to minimise the loss of development potential and restrictions in redevelopment. – Melissa Sapuan

ETHOS | Issue 2 | APR 2007 18 Marina Bay: The Shape of Things to Come | Ching Tuan Yee & Benjamin Ng

Ching Tuan Yee & Benjamin Ng MARINA BAY: THE SHAPE OF THINGS TO COME

Singapore’s new waterfront business district will feature state-of-the-art infrastructure and urban design features.

Waterfront business districts such as Canary waterfront business district in Marina Bay Wharf in London and Pudong in Shanghai had been laid as early as the late 1960s. have come, in recent years, to signify urban Land adjacent to the CBD had been progress and prosperity. They have raised reclaimed in phases between 1969 and the international profile of their respective 1992, but the long-term vision for Marina cities while spurring growth and Bay was first crystallised in the Urban investment. Redevelopment Authority’s (URA) 1983 Singapore’s own flourishing Central conceptual Master Plan. Business District (CBD) will have to be expanded to meet the challenges of FACTS & FIGURES a growing economy, and to maintain The 360-hectare Marina Bay is located Singapore’s position as a premier financial at the southern tip of Singapore and most and business centre. The groundwork for of the developments will be completed this expansion of the existing CBD into a by 2009:

Marina Barrage end 2007 The Singapore Flyer 2008 Marina Bay Sands 2009 The Sail @ Marina Bay 2009 Marina Bay Financial Centre (first phase) 2009 – 2010 Gardens by the Bay (first phase, at Marina South) 2010

ETHOS | Issue 2 | APR 2007 Marina Bay: The Shape of Things to Come | Ching Tuan Yee & Benjamin Ng 19

GROUNDWORK FOR SUCCESS an extensive system of underground URA adopted a holistic and integrated tunnels which houses all essential utilities, approach to land use, transport planning including a district cooling system and a and implementation in Marina Bay, with centralised refuse collection system. several distinctive features: Value Creation Flexibility In the planning of Marina Bay, specific To cater for the seamless extension of the attention was paid to the ambience and CBD, the development parcels in Marina value of individual developments. Bay were planned based on a grid urban Distinctive districts, each with attractive pattern. This pattern facilitates public open spaces and tree-lined development by creating a flexible boulevards, provide signature address framework that can accommodate the locations for developments. amalgamation, subdivision and phasing of Along the waterfront and fronting key developments according to market needs. open spaces, urban design guidelines It also provides a vehicular and pedestrian ensure that building heights are kept low network with a clear sense of orientation and visual porosity is maintained between and hierarchy. buildings. This safeguards views to and from individual developments, enhances Innovation their attractiveness, and creates a pleasant Planners recognised that current fixed-use and aesthetic “stepping up” skyline profile zoning system would be too inflexible to for the district. meet the constantly changing land use Developments in Marina Bay will be needs of the new business district. The served by a comprehensive transport and concept of “white” zoning was thus pedestrian network — a critical but often introduced, where developers have the underestimated factor in real estate flexibility to decide on the mix of uses for planning. Marina Bay is well connected to each site, including housing, offices, shops, the city’s road and rail network and is a hotels, recreational facilities and short 15- to 20-minute drive from the community spaces. This increased the airport. Developments are fully integrated potential for mixed-use developments and with transport nodes, through extensive encourages live-work-play communities. underground, at-grade and above-grade The infrastructure of Marina Bay also pedestrian links. A 3.35-kilometre long features creative engineering approaches pedestrian route is planned around the such as the Common Services Tunnel (CST), Bay, including a waterfront promenade

ETHOS | Issue 2 | APR 2007 20 Marina Bay: The Shape of Things to Come | Ching Tuan Yee & Benjamin Ng and a new bridge, which will create a Marina Bay’s green and blue assets to create continuous loop of attractions accessible an international attraction and local to all. amenity, enhancing the value of More than 100 hectares of the developments in the district. The Gardens waterfront land has been set aside for the will be interconnected and linked to creation of the Gardens by the Bay. Three surrounding developments, open public waterfront Gardens will capitalise on spaces, transport nodes and attractions.

PLANNING PRINCIPLES IN ACTION: THE MARINA BAY FINANCIAL CENTRE

The planning and sale of the Marina At the time of the announcement Bay Financial Centre (MBFC) site of the sale of the MBFC site in 2005, exemplifies the principles of there were concerns that it would flexibility, innovation and value result in an oversupply of office space, creation. and that it would lead to a hollowing- For this site, the concept of a out of the existing CBD, given the Master Developer was introduced for poor economic sentiments then. To the development of an integrated allay market concerns and minimise business and financial centre on a risk to the master developer, URA, as large site, three times that of a typical Land Sales Agent on behalf of the commercial site. This was to allow State, introduced a new flexible the developer flexibility to master scheme for the sale of the site. Under plan and customise the development the scheme, the developer was to meet the needs of modern financial allowed to purchase and develop the institutions and global businesses, site in phases to match market and to implement it in phases, in demand, thus mitigating business tandem with market demand. risks and lowering upfront costs. Marina Bay: The Shape of Things to Come | Ching Tuan Yee & Benjamin Ng 21

PARADIGM SHIFT public spaces and water-bodies has been In planning for Marina Bay, URA has had planned, with URA playing a coordinating to challenge established boundaries in role with various partner agencies such as order to develop a new model of city living. the Public Utilities Board, National Parks Having provided for much of the Board, Singapore Tourism Board, Singapore “hardware” for the new business district, Sports Council and Singapore Land it became clear that URA had to go beyond Authority. Signature events like the Marina its traditional roles of urban planning and Bay Countdown have initiated a new urban land sale management — it had to tradition to welcome the New Year, while undertake marketing, promotion, and place sporting events like the F1 Powerboat Race management activities as well, in order to have created much excitement on the showcase the distinctiveness of Marina Bay. water. Other unique activities have been To this end, the Marina Bay Development planned, including the Marina Bay Urban Agency (MBDA) was set up as a department Challenge, which includes a series of within the URA to focus on the “software” sporting events and races such as a of developing Marina Bay. duathlon, a vertical challenge and special A branding exercise for Marina Bay runs for children and women. established a consistent brand platform, which enabled future stakeholders, such as the MBFC, to market their offerings to Ching Tuan Yee is Executive Architect in the international investors and visitors and Urban Planning Section of the Urban define the strength of the new business Redevelopment Authority. Benjamin Ng is Place Manager in the Marina Bay Development district. As a result, the profile of Marina Agency. Bay has been raised both locally and internationally, catching the attention of international developers and investors through URA’s conscious efforts to showcase Marina Bay at major overseas conferences and international real estate exhibitions. Branding has set Marina Bay apart from the competition: to date, it has attracted development investment of $10 billion. To generate buzz at Marina Bay, a calendar of events and activities for the

ETHOS | Issue 2 | APR 2007 22 Homes for a Nation — Public Housing in Singapore | Yap Chin Beng

Yap Chin Beng Homes for a Nation — Public Housing in Singapore To meet the changing needs and aspirations of a more affluent and diverse population, Singapore’s public housing will have to evolve in significant new directions in the coming decades.

A TOTAL LIVING ENVIRONMENT by today’s standards, these flats were far Singapore’s public housing programme better than the slums and rural huts of has its roots in the 1960s, when the acute the past. housing shortage called for a low-cost Following the first Concept Plan1 for housing model that could meet the Singapore in 1971, HDB designed its people’s accommodation needs in the public housing estates on two basic shortest possible time. Housing designs principles: were kept simple and utilitarian — slab 1. Optimise scarce land resources to blocks of 1-, 2- and 3-room flats which meet long-term housing demands came with basic amenities such as piped which led to the building of high- water and electricity. Although spartan rise, high-density public housing.

ETHOS | Issue 2 | APR 2007 Homes for a Nation — Public Housing in Singapore | Yap Chin Beng 23

Singapore’s Approach to Public Housing

When Singapore attained self-government land, raw materials and manpower in 1959, only 9% of Singaporeans resided for large-scale construction in a way in public housing. Most of the population that optimised resources and was living in squatter colonies and city achieved economies of scale. slums in unhygienic and potentially b. An integrated approach to housing hazardous conditions. from planning and design, through The priority at that time was to build a land assembly and construction, to large number of flats as quickly as possible. management and maintenance. To resolve this housing crisis, the Housing c. Strong political and financial and Development Board (HDB) was set up commitment from the Government. in 1960. There have been vast improvements in Three features have characterised the living conditions of Singaporeans Singapore’s approach to public housing over the years. Today, 82% of the population since Independence: live in 879,000 HDB flats located across 23 a. A sole agency in charge of public towns and estates. More remarkably, about housing, enabling more effective 95% of all HDB residents own the flat they resource planning and housing live in. allocation. HDB was able to secure

2. Provide a total living environment the high quality, reasonably priced with educational, social and apartments that are the hallmark of community facilities in sustainable Singapore’s urban landscape today. and self-contained new towns. To meet the changing needs and 1970s — Rise of the New Towns lifestyles of Singaporeans, public housing By the late 1960s, HDB adopted a more has evolved over the years from the basic sophisticated “New Town” approach to low-cost housing units of the 1960s to residential urban planning: integrating

ETHOS | Issue 2 | APR 2007 24 Homes for a Nation — Public Housing in Singapore | Yap Chin Beng residential areas with a town centre, sub-divided into several housing parks, commercial and industrial areas precincts, each comprising 400 to 600 and communal facilities such as a sports dwelling units. A wide variety of stadium and swimming complex. recreational facilities for residents — Developed in the 1960s and 1970s, Toa playgrounds, fitness corners, multi- Payoh was the pioneer New Town, purpose courts and reflexology followed by others such as Ang Mo Kio paths — were located at each precinct and Bedok. Towns were comprehensively centre. To facilitate community planned, so that each neighbourhood had interaction, precinct pavilions were also its own smaller neighbourhood centre provided. Examples of the precinct with shops, while the whole town was planning concept can be found in Bishan served by a larger town centre which and Pasir Ris Towns. formed the main activity hub. For the newer towns developed in the late 1970s 1990s to the Present — Premium Housing such as Yishun and Bukit Batok, HDB In the 1990s, greater emphasis was placed incorporated additional design factors on creating a quality living environment such as scale, street architecture and and building up the identities of natural landscaping. Open space precincts, neighbourhoods and towns. guidelines and pedestrian path systems Landmark buildings, landscaping, open were also introduced. spaces and special architectural features were incorporated to achieve a strong 1980s — Quality Precincts visual identity for new towns like Choa Rising affluence in the 1980s brought Chu Kang, Sembawang and Sengkang. To greater social aspirations and higher give residents a wider choice and variety expectations for public housing. Town of housing, HDB also launched a new planning began to consider factors such range of apartments — Premium Flats — as urban form, town structure, and the designed with better fixtures, finishes provision of regional facilities such as and facilities. New residential concepts parks and open spaces. There was also such as the “Punggol 21” waterfront town greater emphasis on streetscape and the were also developed in response to building of point-block apartments. changing lifestyles and aspirations. In During this time, the “precinct Punggol, intimately scaled estates were concept” was established to provide a developed, each with a common green as more conducive setting for community a recreational focal point for the interaction. HDB neighbourhoods were community.

ETHOS | Issue 2 | APR 2007 Homes for a Nation — Public Housing in Singapore | Yap Chin Beng 25

PUBLIC HOUSING — A PILLAR OF NATION-BUILDING

Beyond providing physical shelter for flat. Together with the Central Provident Singaporeans, the public housing Fund scheme, healthcare support and programme has also served as an important Workfare, public housing has become one policy instrument in promoting national of the key pillars of Singapore’s social objectives such as social mobility, security framework. rootedness and social integration. A hallmark of the public housing Social Mobility programme has been its policy of home Singapore’s home ownership framework ownership. Started in 1964, the Home has helped to create a large asset-owning Ownership for the People Scheme gives population, with a strong work ethic home-owning citizens a tangible asset and oriented towards upward social mobility. stake in the country, and promotes As the value of HDB flats have generally rootedness and a sense of belonging among risen over time, many flat owners would Singaporeans, thus contributing to the realise gains from selling their flats. The overall economic, social and political asset values of HDB flats are also preserved stability of Singapore. Home ownership and enhanced through various estates also provides Singaporeans with a hedge renewal programmes funded by the against inflation and a store of value, which Government. These asset values can be can be monetised during times of need. unlocked when owners sell their HDB flats Today, a framework of public housing on the open market. subsidies makes public housing affordable for families buying their first HDB flat, and Social Integration for second-timers to upgrade to a bigger Public housing plays a crucial role in

~ Continued overleaf

ETHOS | Issue 2 | APR 2007 26 Homes for a Nation — Public Housing in Singapore | Yap Chin Beng

~ Continued from page 25 maintaining social harmony in multi-racial, Shared Experience multi-cultural and multi-religious Today, 82% of the population is housed in Singapore, by providing a living HDB estates, and the estates (comprising environment where Singaporeans of flats and a comprehensive range of facilities) different races and socio-economic groups have become a common point of emotional have opportunities to mix and interact with reference for the vast majority of one another. This is achieved by providing Singaporeans. This “HDB Experience” has commercial, educational, recreational, played an important role in bonding community and social facilities in public Singaporeans, in the same way that housing estates; varying the flat types and National Service and the education system sizes within each HDB block; and setting have created common experiences among limits on the ethnic proportions within Singaporeans of all races and from all walks each public housing block and of life. – Yap Chin Beng neighbourhood.

THE FUTURE OF PUBLIC HOUSING: Shifting Demography — Changing Needs CHALLENGES AND OPPORTUNITIES HDB regularly reviews the type of flats Today, public housing continues to play and housing forms to be built based on a central role in nation-building. One of the changing demography and life-cycle the most important considerations for housing needs of the population. planning and policy is to ensure that With evidence of an ageing public housing remains responsive to the population and a widening income changing needs, aspirations and disparity in Singapore, more attention is circumstances of Singaporeans over time. now being paid to meet the housing While public housing in the 21st needs of the elderly and low-income flat century will evolve to encompass a wider buyers. Strategies that HDB have adopted spectrum of housing types, the mission to address these needs include: of providing Singaporeans with More flat types — HDB launched affordable homes in cohesive Studio Apartments (SAs) in 1998 to communities will remain a top priority. provide the elderly with an alternative

ETHOS | Issue 2 | APR 2007 Homes for a Nation — Public Housing in Singapore | Yap Chin Beng 27 housing option. The SAs feature a with step-free interiors and wider compact design and elder-friendly safety corridors to facilitate wheelchair fittings such as grab bars, bigger switches movement. At the precinct level, BFA will and an alert alarm system. The units are be supported through provisions such as sold in a move-in condition, with flooring, ramps, which will provide the elderly built-in wardrobes, kitchen cabinets and and the wheelchair-bound with seamless stoves provided. Located in established access to carparks, bus stops and other towns near existing amenities and facilities. HDB is also working with transport nodes, SAs maximise relevant agencies such as the town convenience for the elderly while councils and the Land Transport allowing for independent living. Where Authority to expand barrier-free possible, a social support facility run by improvements in existing HDB estates, a voluntary welfare organisation is also with the objective of making all HDB provided within each development. To housing estates barrier-free by 2011, so date, seven SA projects have been that residents of all ages will be able to completed, with another seven currently move about easily within the new estates under or slated for construction. and enjoy all facilities to the fullest. In recent years, HDB has also re- introduced new 2- and 3-room flats to Private Sector Involvement cater to the housing needs of lower- To meet the rising aspirations of income groups. Additional subsidies are Singaporeans, HDB has sought to provide also given to aid the purchase, ensuring more variety in housing forms through that up to 90% of the population can partnership with the private sector. continue to afford an HDB flat. In addition to the Design and Build Accessibility — To meet accessibility Scheme, in which HDB engaged private needs, particularly those of our ageing sector consultants to design and build population, HDB has embarked on a public housing, HDB launched the three-pronged approach, comprising Lift Design, Build and Sell Scheme (DBSS) in Upgrading, Universal Design (UD) and 2005. Under DBSS, the private developer Barrier Free Accessibility (BFA). UD was is responsible for the entire public introduced to make all future HDB estates housing development process — from more user-friendly for the elderly, bidding for the land, designing the disabled and those with young families. project, overseeing construction to selling New HDB flats will henceforth be built the flats directly to eligible buyers.

ETHOS | Issue 2 | APR 2007 28 Homes for a Nation — Public Housing in Singapore | Yap Chin Beng

Estate Renewal and Regeneration the concept of “Housing in a Park”, which Another key emphasis of public housing will complement Singapore’s vision to in Singapore is estate renewal and be a City in a Garden. This will involve rejuvenation. In the 1990s, the Estate the creative integration of greenery and Renewal Strategy (ERS) — comprising the eco-friendly features into public housing. Main Upgrading, Interim Upgrading and The new generation of HDB estates will Lift Upgrading Programmes — was also feature more communal spaces introduced to bring older towns to the within each precinct, and even at the standard of newer ones. The Selective mid-levels of HDB blocks, to facilitate En bloc Redevelopment Scheme (SERS) greater community participation and was also introduced to enable HDB to ownership (see box story “Community In acquire older flats for redevelopment. Bloom”). The residents involved are offered new The urban regeneration of HDB estates replacement flats nearby so that they can will mark a new milestone in Singapore’s enjoy modern amenities and a fresh lease public housing programme. It will of 99 years, while retaining communal constitute an integral part of our vision ties in a familiar neighbourhood. to build a distinctive city and an In the next decade, as the number of endearing home for Singaporeans, while HDB flats aged 40 to 50 years grows, the also meeting their life-cycle needs. need to upgrade and redevelop the older estates will take on greater urgency. One priority area is lift upgrading. The Yap Chin Beng is Director of Estate Government has committed to bring lift Adminstration & Property at the Housing and Development Board. upgrading to all eligible HDB blocks by 2014, so that residents of these blocks can enjoy lift access on every floor. HDB NOTE is also studying innovative lift solutions 1. The Concept Plan is the long-term strategic development to lower upgrading costs so that more plan for Singapore. It has guided Singapore’s physical development since 1971 and is revised every 10 years. HDB blocks can qualify for lift upgrading. Looking further ahead, HDB will be embarking on a programme to build a new generation of public housing and regenerate existing public housing estates. Among the ideas under study is

ETHOS | Issue 2 | APR 2007 Community In Bloom | Simon Longman 29

Simon Longman COMMUNITY IN BLOOM

Community In Bloom is a programme as well as volunteer groups to promote by the National Parks Board (NParks) to gardening among residents, students promote a gardening culture and a and workers, with NParks providing greater sense of civic ownership and guidance and advice. Gardening interest participation among Singaporeans by groups collaborate to provide encouraging and facilitating community opportunities for people of diverse gardening. backgrounds to come together and share The therapeutic effects of gardens their gardening knowledge, forming a are well documented. Gardens relieve self-help network among residents, stress and stimulate the senses, making schools and organisations in them ideal features in public housing maintaining the gardens. The gardens communities. In addition, gardening are safe outdoor spaces on public or provides a form of expression, physical private lands, where neighbours meet activity and release that helps people to grow and care for ornamental and heal mentally and physically and stay flowering plants, vegetables, herbs/spices active, particularly in their senior years. and other plant species. The gardeners An NParks survey showed that at least take initiative and responsibility for one in two respondents grows plants organising, maintaining and managing and a significant proportion (53%) is the garden area. keen to participate in Singapore’s greening efforts, for example, through COMMUNITY GARDENING, planting, maintenance upkeep, FRUITFUL RESULTS volunteering and funding. The response towards Community In Community In Bloom brings together Bloom has been encouraging. Since its public and private sector organisations, inception in 2004, communities that

ETHOS | Issue 2 | APR 2007 30 Community In Bloom | Simon Longman participated in the programme have witnessed a number of positive changes: neighbours returning to outdoor green spaces; school teachers using gardens as outdoor classrooms; daycare providers integrating outdoor play with indoor activities; and senior citizens gathering and socialising in the gardens. These are testaments of an enhanced living environment, increased community involvement and better neighbourhoods. Communities involved in the programme have grown closer and are collectively proud of what they have created. It is this sense of joy and spirit of togetherness in gardening that will help to transform our Garden City into a “City in A Garden”.

Simon Longman is Director, Streetscape Division, Operations Department at the National Parks Board. For more information, visit www.nparks.gov.sg

ETHOS | Issue 2 | APR 2007 Water Management in Singapore | Cecilia Tortajada 31

Cecilia Tortajada Water Management in Singapore Singapore has developed from a water-scarce developing nation to a world leader in the field of water management in the space of three decades. Dr Cecilia Tortajada reviews the city-state's water practices and strategies in detail.

ith a territory size of just 700 Singapore imports its entitlement of square kilometres (km2), water from the neighbouring Malaysian W Singapore is a water-scarce state of Johore. Under agreements signed country not because of lack of rainfall in 1961 and 1962, Singapore can transfer (2,400 millimetres/year), but because of the water from Johore for a price of less than limited amount of land area where rainfall 1 cent per 1,000 gallons until the years can be stored. One of the main concerns 2011 and 2061 respectively.1,2,3 of the Government has been how to provide Long-term security of water is an clean water to its population, which important consideration for Singapore. As currently consumes about 1.36 billion litres a result, the country has developed plans of water per day. for enhancing water security and self-

ETHOS | Issue 2 | APR 2007 32 Water Management in Singapore | Cecilia Tortajada sufficiency through increasingly more SUPPLY MANAGEMENT: CATCHMENT, efficient water management practices, DESALINATION AND RECLAMATION, AND including the formulation and LOSS REDUCTION implementation of new water-related Singapore is one of the very few countries policies, and significant capital investments that looks at its supply sources in their in infrastructure and technology. totality. In addition to importing water One main reason for Singapore’s success from Johor, it has made a determined in managing its water resources is its attempt to protect its water sources in concurrent emphasis on supply and terms of quantity and quality on a long- 4 demand management, including term basis, expand its available sources, wastewater and stormwater management; use technological developments to increase institutional effectiveness; and an enabling water availability, improve water quality environment which includes a strong management, and steadily lower political will, effective legal and regulatory production and management costs. frameworks, and an experienced and Over the years, there has been an motivated workforce. increasing emphasis on catchment Singapore’s entire water cycle is management. Protected and partially managed by the Public Utilities Board (PUB), protected catchment areas are well 5 a public sector agency previously demarcated and gazetted, and no responsible for managing potable water, pollution-causing activities are allowed in electricity and gas. In 2001, responsibilities such areas. At present, half of the land area for sewerage and drainage were transferred of Singapore is considered to be protected to PUB from the Ministry of the and partly protected catchment. This ratio Environment, allowing PUB to develop and is expected to increase to two-thirds by implement a holistic policy, including 2009. protection and expansion of water sources; Desalination is becoming an important catchment, demand, stormwater and component for augmenting and wastewater management; desalination; diversifying available water sources. In late and public education and awareness 2005, the Tuas Desalination Plant, the first programmes. At present, PUB also has an municipal-scale seawater desalination in-house Centre for Advanced Water plant, was opened at a cost of S$200 million. Technology, with about 50 expert staff Designed and constructed by a local water members who provide it with the necessary company, it is the first designed, built, research and development support. owned and operated desalination plant in Singapore. The process used is reverse

ETHOS | Issue 2 | APR 2007 Water Management in Singapore | Cecilia Tortajada 33 osmosis and it has a capacity of 30 million drainage and sewerage systems to facilitate gallons per day (mgd). The cost of the used water reuse on an extensive scale. desalinated water during its first year of From 2002 to 2004, the amount of treated operation was S$0.78/cubic metres (m3).6 wastewater increased from 1.315 to 1.369 Faced with the strategic issue of water million cubic metres (mcm)/day.9 security, Singapore considered the Used water is reclaimed after secondary possibility of recycling wastewater (or used treatment by means of advanced dual- water) as early as the 1970s. It opted for membrane and ultraviolet technologies. proper treatment of its effluents instead While NEWater is safe to drink quality- of discharging them to the sea.7 However, wise, it is also used for industrial and the first experimental recycling plant was commercial purposes. Since its purity is closed in 1975 because it proved to be higher than tap water, it is ideal for certain uneconomical and unreliable — the types of industrial manufacturing technology was simply not available three processes, such as semiconductors which decades ago to make such a plant practical. require ultra pure water. It is also In 1998, PUB and the Ministry of the economical for such plants to use NEWater Environment formulated a reclamation since no additional treatment is necessary study. Reclaimed water from a prototype to improve its quality. The first year tender plant, started in 2000, was monitored price for NEWater from Singapore’s Ulu regularly over a period of two years. An Pandan plant was S$0.30/m3, which is expert panel endorsed the safety and significantly less than the cost of potability of the NEWater, a term now used desalinated water. The selling price of for the treated used water. In 2002, the NEWater is S$1.15/m3, which covers expert panel confirmed that NEWater was production, transmission and distribution safe and could be used as a sustainable costs. source of water supply for Singapore. Its Because the production cost of NEWater quality meets the water quality standards is less than that of desalinated water, future of the Environmental Protection Agency water demands will be met with more of the United States and the World Health NEWater rather than with the construction Organisation.8 of desalination plants. With more PUB decided to collect, treat and reuse industries using NEWater, water saved can used water on an extensive scale, a step be used for domestic purposes. that very few countries have taken. A small amount of NEWater (2 mgd in Singapore is 100% sewered to collect all 2002 and 5 mgd in 2005, or about 1% of used water. It has constructed separate the daily consumption of the country) is

ETHOS | Issue 2 | APR 2007 34 Water Management in Singapore | Cecilia Tortajada blended with raw water in the reservoirs, Singapore’s. Similarly, UFW in most Asian which is then treated for domestic use. It urban centres now range between 40% and is expected that by 2011, Singapore will 60%. produce 65 mgd of NEWater annually, 10 mgd (2.5% of water consumption) for DEMAND MANAGEMENT indirect domestic use,10 meeting 15% of Concurrent to the diversification and Singapore’s water needs.11 expansion of water sources, PUB has put The supply of water has been further in place well-thought out and expanded by reducing unaccounted for comprehensive demand management water (UFW), which is defined as actual policies. It is useful to review the progress water loss due to leaks, and apparent water of tariffs for water from 1997 to 2000. losses arising from meter inaccuracies. Before 1 July 1997, the first Unlike other South and Southeast Asian 20 m3/month of domestic consumption for countries, Singapore simply does not have each household was charged at S$0.56/m3. any illegal connections to its water supply The next block of 20 to 40 m3 was charged systems. at S$0.80/m3. For consumption of more than 40 m3 and for non-domestic 3 Only 4.5% of water in Singapore consumption, it was S$1.17/m . Effective from 1 July 2000, domestic is unaccounted for — this is a consumption of up to 40 m3/month and level that no other country at non-domestic uses were charged at a present can match. uniform rate of S$1.17/m3. For domestic consumption above 40 m3/month, the tariff In 1990, UFW was 9.5% of the total water became S$1.40/m3, which is higher than production.12 Even at that level, it would for non-domestic consumption. The earlier have been considered to be one of the best cheaper block rates for the first 40 m3 of examples in the world at the present time. domestic consumption was eliminated. By 2006, PUB had managed to lower UFW In addition, the Water Conservation to 4.5%. This is a level that no other country Tax (WCT), levied by the Government to can match at present. By comparison, in reinforce the water conservation message, England and Wales, the only region in the was 0% for the first 20 m3/month world which has privatised its water more consumption prior to 1 July 1997. For than a decade ago, the best level any of its consumption over 20 m3, WCT was set at private sector companies have managed to 15%. Non-domestic users paid a WCT levy achieve is more than twice that of of 20%.

ETHOS | Issue 2 | APR 2007 Water Management in Singapore | Cecilia Tortajada 35

Effective 1 July 2000, WCT was increased Figure 1 shows the domestic water to 30% of the tariff for the first 40 m3 for consumption per capita per day from 1995 domestic consumers and all consumption to 2005. It shows a steady decline in per for non-domestic consumers. However, capita consumption, from 172 litres per domestic consumers pay 45% WCT when day per capita (lpcd) in 1995 to 160 lpcd in their water consumption exceeds 2005, because of the implementation of 40 m3/month. In other words, there is now demand management practices. a financial disincentive for higher water consumption by households. FIGURE 1. DOMESTIC WATER Similarly, the Water-Borne Fee (WBF), CONSUMPTION, 1995 TO 2005 a statutory charge prescribed to offset the cost of treating used water and for the 174 172 maintenance and extension of the public 170 sewerage system, was S$0.10/m3 for all 168 166 domestic consumption prior to 1 July 1997. 164 Effective 1 July 2000, WBF was increased 162 3 160 to S$0.30/m for all domestic consumption. Litres per day capita 158 The impact of these tariff increases on 156 154 consumers can be seen in Table 1: ‘95 ‘96‘97 ‘98 ‘99‘00 ‘01 ‘02 ‘03 ‘04 ‘05

TABLE 1. AVERAGE MONTHLY CONSUMPTION These statistics indicate that the new AND BILLS PER HOUSEHOLD, 1995, 2000 tariffs had a notable impact on the AND 2004 behaviour of the consumers, and have turned out to be an effective instrument Item 1995 2000 2004 for demand management. This is a positive Average monthly consumption (m3) 21.7 20.5 19.3 development since the annual water Average monthly bill, demands in Singapore increased steadily, of all taxes S$14.50 S$31.00 S$29.40 from 403 mcm in 1995 to 454 mcm in 2000. Source: PUB, 2005, Personal communication. The introduction of demand management Average monthly household policies resulted in the lowering of this consumption steadily declined from 1995 demand, which declined to 440 mcm in to 2004. The consumption in 2004 was 11% 2004. Water tariffs have not been raised less than in 1995. During the same period, since July 2000. the average monthly bill more than In terms of social equity, the doubled. Government provides specially targeted

ETHOS | Issue 2 | APR 2007 36 Water Management in Singapore | Cecilia Tortajada help for lower-income families. Households as more WCT per unit of consumption living in one- and two-room flats receive beyond 40 m3/month. These penalties higher rebates during difficult economic have a perceptible impact on household times. For hardship cases, affected behaviour in terms of water conservation households are eligible to receive social and overall demand management. financial assistance from the Government. • Differentiated costing: The WBF is used The current tariff structure used by PUB to offset the cost of treating wastewater has several distinct advantages, among and for the maintenance and extension which are the following: of the public sewerage system. For non- • Pay-as-you-use: There is no low “lifeline” domestic consumption, this fee is double tariff, used in many countries with the that of domestic consumption due to rationale that water should be affordable the fact that it is more difficult and as a basic necessity. Such a tariff in effect expensive to treat non-domestic subsidises consumers who can afford wastewater. to pay for the actual quantity of water • Financial viability: Revenue from WCT they consume. In Singapore, the poor accrues to the Government. However, who cannot afford to pay for the current a major component of the overall water tariffs receive a targeted subsidy revenue collected through water tariffs instead. This is much more efficient accrues to PUB for operation, socio-economically, instead of providing maintenance costs and new investments. subsidised water to all households This is in sharp contrast to many irrespective of their economic countries where internal cash conditions. generation of water utilities to finance • Disincentive to over-consume: The water supply and sanitation has steadily current domestic tariff of water declined. consumption up to 40 m3/month/ household is identical to the non- OVERALL GOVERNANCE domestic tariff. In other words, An institution can only be as efficient as commercial and industrial users do not its management and the staff that work subsidise domestic users, which is often for it, and the overall social, political and the case in many other countries. legal environment within which it operates. However, households who use more Water management in a country can only than 40 m3 of water per month are be efficient if its holistic management of subject to higher rates than other development sectors — be they commercial and industrial rates, as well agriculture, energy or industry — is just as

ETHOS | Issue 2 | APR 2007 Water Management in Singapore | Cecilia Tortajada 37 effective. The current implicit global Capital Investment assumption that water management can The Singapore experience indicates that be improved unilaterally when other given autonomy and other appropriate sectors remain inefficient is simply not enabling environmental conditions, the realistic. utilities are able to be not only financially The overall governance of the water viable but also perform their tasks supply and wastewater management efficiently. Such an approach has enabled systems in Singapore is exemplary in terms PUB to fund its new capex investments of its performance, transparency and over the years from its own income and accountability. internal reserves. In 2005, for the first time, PUB tapped the commercial market for a Human Resources S$400-million bond issue. The budgeted Most water utilities in Asia have a limited capex for the year 2005 was nearly S$200 say over their own staff recruitment and million. remuneration — often owing to political interference, union activity or lack of Outsourcing administrative mandate. Corruption is also Unlike many other similar Asian utilities, endemic in many places. As a result, these the PUB has extensively used the private utilities are beset by problems such as lack sector where it did not have special of competence, inability to recruit qualified competence or competitive advantage in staff, or overstaffing. This results in order to strive for the lowest cost inefficiency and low productivity. alternative. Earlier, the use of the private PUB offers a competitive remuneration sector for desalination and wastewater and benefits package benchmarked to reclamation was noted. In addition, specific market rates, provides strong performance activities are often outsourced to private incentives and pro-family policies, and is sector companies. According to the Asian committed to train its staff for their Development Bank (November 2005),13 professional and personal development. some S$2.7 billion of water-related activities As a result, it has managed to attract were outsourced over the “last four years”, and retain good performers and ensure and another S$900 million will be good organisational performance. With a outsourced during “the next two years” to good remuneration package and a strong improve water services. national and organisational anti-corruption culture, corruption is also not an issue Overall Performance in PUB. No matter which performance indicators

ETHOS | Issue 2 | APR 2007 38 Water Management in Singapore | Cecilia Tortajada are used, PUB invariably ranks in the top • strategic national interest and 5% of all urban water utilities of the world economic efficiency; and in terms of its performance. A few of these • strengthening internal capacities and indicators include: reliance on external sources. • 100% of population has access to In other words, the country has drinking water and sanitation; successfully implemented what most water • 100% metering of the entire supply professionals have been preaching in recent system, from water works to consumers; years. • unaccounted for water as a percentage By ensuring efficient use of its limited of total production was 4.5% in water resources through economic 2006; and instruments, adopting the latest • monthly bill collection efficiency was technological development to produce 99% in 2004. “new” sources of water, enhancing storage capacities by proper catchment CONCLUSION management, practising water Viewed from any perspective, any objective conservation measures, and ensuring analysis has to conclude that water supply concurrent consideration of social, and wastewater management practices in economic and environmental factors, Singapore have been exemplary in recent Singapore has reached a level of holistic years. Its water demand management water management that other urban practices are unquestionably one of the centres will do well to emulate. best, if not the best, whether among the developed or developing countries, irrespective of whether a public or private Dr Cecilia Tortajada is Vice-President, Third sector institution is managing the water World Centre for Water Management in Mexico, Director of the International Water Centre, services. Singapore has successfully International Centre of Environment and Water managed to find the right balance between: (CIAMA) in Aragon, Spain and President of the • water quantity and water quality International Water Resources Association considerations; (IWRA). She is also Editor of the International • water supply and water demand Journal of Water Resources Development, and management; past member of the Editorial Board of Water • public sector and private sector International. Dr Tortajada is currently working participation; on a number of issues, including the • efficiency and equity considerations; development of new and innovative approaches

ETHOS | Issue 2 | APR 2007 Water Management in Singapore | Cecilia Tortajada 39

for poverty alleviation through integrated regional 9. Ministry of the Environment and Water Resources, Key development, environmental and social policies Environmental Statistics 2005, (Singapore: MEWR, 2006). 10. Public Utilities Board, Annual Report 2003, (Singapore: PUB, related to water resources development, and 2003). public participation and capacity building in the 11. Editor's Note: With the opening of the latest plant in March water sector. 2007, the four NEWater plants can meet more than 15% of Singapore’s water demand today, well ahead of the original target date of 2010. PUB will also bring forward the construction of the fifth NEWater Factory at Changi which will produce 50 This article was adapted with permission from the paper “Water million gallons per day. Hence by 2011, the NEWater plants will Management in Singapore”, first published in the International have the combined capacity to meet 30% of Singapore’s water Journal of Water Resources Development, Volume 22, No. 2, needs, double the original target. The ramp-up of NEWater June 2006: pp 227-240. © Routledge, Taylor & Francis Group, capacity has yielded significant operational efficiencies and www.tandf.co.uk/journals economies of scale. From 1 April 2007, PUB will reduce the price of NEWater from S$1.15 to S$1.00/m3. This will benefit all NEWater customers, and will translate into lower costs for businesses.[http://www.channelnewsasia.com/stories/ NOTES singaporelocalnews/view/264240/1/.html] 1. “The Tebrau and Soudai Rivers Agreement between the Government of the State of Johore and the City Council of the 12. Khoo, Teng Chye, “Water Resources Management in State of Singapore signed on 1 September 1962”, Singapore.” (paper presented at the Second Asian Water Forum, http://www.channelnewsasia.com/cna/parliament/ Bali, Indonesia, August 29 – September 3, 2005). relationsdocuments.htm 13. Asian Development Bank, “Country Water Action: Singapore. 2. “The Johore River Water Agreement between the Johore Technology Turns Water Weakness to Strength, November 2005,” State Government and City Council of Singapore signed on 29 http://www.adb.org/water/actions/SIN/Technology.asp (accessed September 1962”, http://www.channelnewsasia.com/cna/ March 15, 2007). Parliament/relations/documents.htm 3. Malaysia, Act of Parliament No. 53 of 1965, Constitution of Malaysia (Singapore Amendment) Act, 1965: An Act to amend the Constitution of Malaysia and the Malaysia Act, August 9, 1965. 4. Lee, M. F. and Nazarudeen, H. “Collection of urban storm water for potable water supply in Singapore.” Water Quality International, May/June (1996): 36-40. 5. Appan, A. “A total approach to water quality management in partly-protected catchments.” (paper presented at The Singapore Experience, International Workshop on Management and Conservation of Urban Lakes, Hyderabad, India, June 16-18, 2003). 6. Lee, Poh Onn, “Water management issues in Singapore.” (paper presented at Water in Mainland Southeast Asia, Siem Reap, Cambodia, November 29 – December 2, 2005). 7. Trade Effluents Regulations (1976) Water Pollution Control and Drainage Act, Act 29/75, Pub. No. SLS 29/76, Republic of Singapore. 8. Public Utilities Board, Annual Report 2002, (Singapore: PUB, 2002).

ETHOS | Issue 2 | APR 2007 40 Singapore as a Global Water Knowledge Hub | Interview with Asit K. Biswas

Interview with Asit K. Biswas Singapore as a Global Water Knowledge Hub One of the world’s leading authorities on water, Professor Asit K. Biswas is also the President of the Third World Centre for Water Management in Mexico. Speaking to Ethos, he argues that Singapore has the know-how and track record to position itself as the water hub of the world.

Given that Singapore is a small water- wastewater management in recent decades. scarce nation, how can it better manage its It will be progressively more difficult water resources? to improve radically on what Singapore Overall, Singapore’s water management is has already achieved, especially when you already one of the best in the world. In consider that the rest of the world is still water management, Singapore has made trying to achieve much of what Singapore a transition from a developing country to has already accomplished. There is, of a developed country in only 30 to 40 years. course, always room for improvement. For In contrast, much of the developing world example, per capita water consumption in has made only incremental progress during Singapore can be further reduced to around the past decades. In areas such as 135 litres, from around 158 litres at present. technological innovation, institutional With increasing population and industrial arrangements, pricing, leadership, and activities and limited freshwater resources, stakeholders’ participation, what Singapore further reduction in water demand will be has achieved during the last 30 years is most necessary. Already, a few European cities commendable. have brought down their per capita water Of course, it is much easier to manage consumption to the 130 to 135 litres range. a small city-state like Singapore compared to big countries like India, China or Brazil. How well does Singapore’s water management However, size itself is not the only compare with best practices around consideration because most of the Central the world? What can we learn from other American, Caribbean and Pacific Island approaches elsewhere? states are often no bigger than Singapore, Water management in Singapore is now and yet none of them have managed to significantly better than the rest of the make a fraction of the progress that developing world and much of the developed Singapore has made in water and world. Indeed, it is often claimed that the

ETHOS | Issue 2 | APR 2007 Singapore as a Global Water Knowledge Hub | Interview with Asit K. Biswas 41 private sector manages water better than countries, both developing and developed. the public sector, yet Singapore’s Public Singapore needs to carefully and objectively Utilities Board (PUB) is a public sector document what it has already done, how organisation, and its performance record it has done this, and with what costs and is simply superb. In fact, private sector results. These analyses will be of great value companies would do well to emulate a to the rest of the world. public sector institution like PUB. For example, there is a great deal of Let us compare the performance of PUB with the performance of private sector water companies in England, which have Singapore, in recent years, has been privatised completely for about 20 been a trendesetter. It now has years. In Singapore, the water loss from tremendous economic the system is around five per cent. For opportunity to export its know- Thames Water, the biggest UK private sector how to many other countries. water company, the loss is nearly six times this amount. PUB, a public sector company, has been performing much better than a discussion on the advanced technology major international private sector company used in Singapore for managing its water with a long track record. The whole of cycle. But with NEWater, the most Singapore is now sewered. Wastewater and important issue is not technology, though storm-water are now collected and reused it is important. The technology is well- much more extensively than in nearly all known and can be bought off the shelf. The other developed countries. The local critical issues are public psychology, population accepts the idea of properly institutional dynamism and leadership, treated wastewater for domestic and public acceptance of the use of treated consumption. Viewed from any perspective, water. these are remarkable achievements. Technologically, it has been known for Singapore, in my view, now has some years that if wastewater is treated properly, unique opportunities in the water sector its quality should be better than drinking which it should consider pursuing. Because water. Globally, however, we have failed Singapore has succeeded so well, it should to convince the public that there is nothing consider very seriously how these wrong in using properly treated management techniques, technology, wastewater. Major industrialised countries economics, pricing policies and public like the United States and Australia have participation processes can be used in other thus far failed to get the public to accept

ETHOS | Issue 2 | APR 2007 42 Singapore as a Global Water Knowledge Hub | Interview with Asit K. Biswas the concept of reused water. Yet Singapore This is being done to a certain extent, but has managed to successfully marry much more could be done. In my view, the technological possibilities with public current effort needs to be increased by 60% acceptance. How this has been done is of to 80% within four or five years to show great interest to the world. positive results. The second possibility is to be a knowledge What opportunities are there for Singapore to hub for water — something the world lacks take advantage of its head start in the field of at present. Many universities in the US and water management? the UK are doing good theoretical research; Singapore, in recent years, has been a yet these types of research will not solve trendsetter. It now has a tremendous the developing world’s water problems economic opportunity to export its know- promptly or cost-effectively, because the how to many other countries. They can boundary conditions are very different. significantly improve their water management These problems can be solved only by efficiencies by adopting the Singapore applied research that is specifically focused experience with appropriate modifications. on the circumstances of the developing These countries will be willing to pay for world. good technical and management advice Asia’s water problems, for instance, from Singapore to improve their water climate-wise, are very different. Countries management practices and processes. Such like Singapore, Japan, India, Bangladesh an approach will benefit Singapore as well and Pakistan are all in the monsoon region. as the rest of the world. If we compare the annual rainfall figures, But most of the world at present does for example, between London and Delhi, not know what Singapore has achieved. they are not that dissimilar, differing by Thus, considerable effort needs to be only about 15%. But the main difference expended to make the world aware of the for water management between these two progress made. In my view, PUB has locations is this: in Delhi, nearly all the decisively outperformed the multinational annual rainfall occurs in about 80 hours companies that are now providing water (albeit not consecutively), whereas in management services to the world. London, it occurs over the entire year. Thus, A small state like Singapore must find water management practices needed in good market niches, and urban water Delhi are very different from those in management is a very special niche that London. For monsoon areas like Delhi, the Singapore can now exploit. The country main consideration has to be how to collect needs to make a determined effort to this immense amount of rainfall within a market its expertise to the rest of the world.

ETHOS | Issue 2 | APR 2007 Singapore as a Global Water Knowledge Hub | Interview with Asit K. Biswas 43 very short period, then store it, treat it and hub for the world, including focusing on use it over the entire year, most of which applied research on water management is rainless. Thus, the water management and looking into future water problems requirements for the monsoon regions are and policies needed to solve them. It already very different compared to countries in has outstanding institutions like PUB. There temperate climates. is absolutely no reason why an established Regrettably, very few institutions in institution in Singapore should not become Asia and the developing world are engaging in good quality research that will solve their If Singapore can synergistically combine own water problems; many the water expertise it currently has with institutions from India to Japan new water-related activities, it can become and China are mostly trying to the water capital of the world within the follow the type of research next five to six years. conducted at Oxford or Harvard. Asia needs to develop its own research agenda which will help the pre-eminent global authority in the to solve its own water issues, and should area of water policy and governance, which not adopt Western practices and solutions the world at present simply does not have. blindly. Singapore also has extremely good In addition, no single water institution tourism infrastructure. It is surrounded by exists anywhere in the world that is looking water. It has done remarkably well in urban at the water problems of the future, either water planning and management. Perhaps for developed or developing countries. They it could also consider a water festival where invariably focus on how we did things in the main focus could be on water-related the past, and expect developments to occur activities. The city could become a tourist only incrementally. But there is no question destination during the water festival. that within the next 20 years, water But along with the water festival, management practices and processes will Singapore needs a main event, similar to change more than what we have witnessed an international forum such as the World during the past 2,000 years. There is a big Economic Forum, held in Davos, gap between what is being done and what Switzerland, every winter. There is nothing should be done in terms of water research. similar to the Davos Forum in the field of Singapore has a golden opportunity water anywhere in the world, but it is now right now to become the water knowledge needed. The Singapore Water Forum would

ETHOS | Issue 2 | APR 2007 44 Singapore as a Global Water Knowledge Hub | Interview with Asit K. Biswas attract leading water policymakers, experts Professor Asit K. Biswas is President of the from public and private sectors, academia, Third World Centre for Water Management in industry, as well as non-governmental Mexico. He has been a senior advisor to 17 organisations and the media from across governments, six heads of the United Nations the world. Agencies, and most major international organisations. One of the world’s leading There are many water-related professional international authorities on water, he is the associations in the world at present. They founder of International Journal of Water could be invited to come around the time Resources Development and has been its Editor- of the Singapore Water Festival and in-Chief for the past 22 years. He authored and Singapore Water Forum to discuss water- edited 69 books and has published over 600 related issues. It should be possible to make scientific and technical papers. In 2006, Prof Singapore a model for the water world, Biswas was honoured with the Stockholm and a centre for knowledge on water for Water Prize for “his outstanding and multi- the world. It can be done, and should be faceted contributions to global water resource done. issues”, the prestigious Aragon Environment There is already some thinking in this Prize of Spain, the Man of the Year Award of direction but it could be more ambitious. Canada, and the honorary Doctor of Science There is no question that great potential degree from the University of Strathclyde, exists to put Singapore on the world map Glasgow. in terms of water-oriented knowledge generation, synthesis, dissemination and This article is excerpted from an interview conducted in Singapore application. Singapore can contribute a (15 January 2007) by Sheila Ng, Assistant Editor, ETHOS. great deal of knowledge and management expertise, which is now missing in the water field. My view is if Singapore can synergistically combine the water expertise it currently has with new activities like a Singapore Water Festival, or a Singapore Water Forum, and a few similar water-related activities, it can become the water capital of the world within the next five to six years. This is a very exciting prospect.

ETHOS | Issue 2 | APR 2007 Implications of Prospect Theory on Road Pricing | Anthony T. H. Chin 45

Anthony T. H. Chin Implications of Prospect Theory on Road Pricing

While the economic costs of traffic congestion are well documented, the effectiveness of economic instruments, such as road pricing, in containing traffic congestion is less clear. Prospect Theory, a leading behavioural model in experimental economics, may explain inelastic driver behaviour in response to road pricing during peak hours. It may also shed light on the phenomenon of consumers who continue driving despite its higher economic cost relative to other modes of transport.

PROSPECT THEORY AND BEHAVIOUR a Certainty Effect: gains and losses are Prospect Theory observes that individuals accorded more psychological value when tend to be “loss averse”: in other words, they are certain than when they are less they are more sensitive to losses than to probable. Certainty increases the pain of gains. Indeed, empirical studies suggest losses while increasing the appeal of gains. that losses are valued at twice that of gains. In the event of loss, this Certainty Effect Furthermore, Prospect Theory demonstrates can lead to more risk-taking behaviour,

ETHOS | Issue 2 | APR 2007 46 Implications of Prospect Theory on Road Pricing | Anthony T. H. Chin

Road Pricing Then and Now

As of 2005, Singapore has 3,234 kilometres In 1998, Electronic Road Pricing (ERP) came of road and 754,992 motor vehicles, of into effect, with 48 gantries in operation which automobiles make up about 50%. as of 2005. ERP rates are revised every three Road pricing, first introduced with the Area months to ensure traffic speeds remain Licensing Scheme in June 1975, has since within the desired speed limits of 45 to 65 been extended to major expressways with kilometres per hour (kph) for expressways the Road Pricing Scheme. and 20 to 30 kph for arterial roads.

rather than the risk-averse behaviour schedule [for instance, to reschedule trip predicted by standard economic theory departure times in order to incur lower under the same circumstances. Electronic Road Pricing (ERP) charges]. This is further supported by Dube,2 whose Endowment Effect findings show that people are averse to the One implication of Prospect Theory is that risk of losing time. people often demand much more to give This suggests that in order for road up an object compared to the amount they pricing to be effective, travel times relative are willing to pay to acquire it — this is to road pricing need to be consistent and known as the endowment effect. The stable, in order to minimise uncertainty — existence of this effect contradicts standard this is more likely to alter driver behaviour. economic theory, which assumes that for a given good, the minimum price people Mental Accounting are willing to accept is identical to the Drivers may also simply treat road pricing maximum price people are willing to pay. costs differently when evaluating their This phenomenon (also known as status overall financial activities. Individuals tend quo bias) is one reason for the inelastic to assign their expenditures into different response of drivers to road pricing. Drivers “brackets” or categories (e.g., travel, food are willing to pay much more in order to or entertainment) for evaluation on a maintain their preferred arrival times (PAT) regular basis, be it daily, weekly or monthly. when travelling, than to adjust their Evaluations made frequently have

ETHOS | Issue 2 | APR 2007 Implications of Prospect Theory on Road Pricing | Anthony T. H. Chin 47 implications on perceived consumption. the driver from switching away from Thaler3 suggests that individuals frame private transport. Thus, the driver will their decisions in three different ways, continue to drive, resulting in an inelastic known as “accounts”: a minimal account, demand when faced with road pricing. a topical account and a comprehensive account. In the minimal account, only the Drivers may value the additional cost differences between two possible of road pricing less than the potential options are examined, loss of travel time in avoiding peak disregarding all other common features. In a topical account, hour road use. possible options are evaluated using a reference point that is This sunk cost effect is manifested in determined by the context of the situation. a greater tendency to continue an Only in the comprehensive account are endeavour once an investment in money, options evaluated by incorporating all effort or time has been made.4 Economic other factors such as wealth, possible states theory postulates that sunk costs ought to and externalities. The outcome of this be irrelevant in the calculation of utility, “mental accounting effect” is that the value since the costs cannot be recovered. Instead, of money is context-dependent. In terms only incremental costs ought to be of the driver’s mental accounting, a dollar included. Empirical evidence demonstrates, saved by avoiding priced road use does not however, that people do base their decisions have the same utility as a dollar saved in on sunk costs. The reluctance of drivers to another category of spending. switch from driving to alternative modes In other words, drivers may not evaluate of transport is made worse by the sunk cost the increase in their travel costs relative effect of “lost” investment in the automobile. to their total wealth or alternative financial This situation can also be explained in activities; instead, they may value the terms of Prospect Theory. Having already additional cost of road pricing less than made a once-off investment during the the potential loss of travel time in avoiding purchase of the vehicle, Arkes5 suggests peak hour road use. that additional losses owing to investment will do little to depress the driver’s utility, Sunk Cost while any potential gain will improve the Finally, even if driving were no longer driver’s utility considerably. Furthermore, economically optimal, sunk costs may deter endowment effects mean that although

ETHOS | Issue 2 | APR 2007 48 Implications of Prospect Theory on Road Pricing | Anthony T. H. Chin investments in automobiles may have from giving up their cars. Drivers are thus depreciated on paper, people are unwilling more likely to continue driving, even to translate paper losses into real losses. though it may be optimal to use public While a consumer would be better off transport. selling his automobile, the effect dictates that the price at which he would be willing to sell his car will be far higher than any buyer’s Prospect Theory would suggest that valuation and willingness to pay. purchase decisions for automobiles are In such a context, drivers have based on upfront costs while ignoring an incentive to continue driving the running costs, since upfront costs despite the negative economic are considered as being more salient at utility, instead of selling their vehicles. This situation may be the time of automobile purchase while compounded by a series of daily usage costs are discounted. rebates on the cost of automobile ownership in response to the government’s focus on regulating road usage. While the reduction in taxes and CONCLUSION costs were aimed at offsetting the In response to road pricing, drivers have automobile owner’s perception of losses been shown to be unwilling to switch from with the imposition of road pricing, it their status quo, whether it be a change in inadvertently led to an increase in the departure times or a change in mode of demand for automobiles. Prospect Theory transport. They are also averse to risking a would suggest that purchase decisions for loss of time, given the uncertainty of automobiles are based on upfront costs alternative schedules, other modes of while tending to ignore the running costs, transport, or traffic congestion conditions. since upfront costs are considered as being They are thus more likely to continue more salient at the time of automobile driving at peak hours on the same roads. purchase while daily usage costs are Sunk cost and mental accounting effects discounted. The daily costs of road pricing, also skew drivers’ evaluation of the true which tend to be narrowly “bracketed” in costs of car ownership, resulting in the daily accounting, seem small in comparison tendency for car owners to continue with the huge cost of purchasing the driving. All of these behaviours have an vehicle; this difference discourages drivers impact on the effectiveness of road pricing.

ETHOS | Issue 2 | APR 2007 Implications of Prospect Theory on Road Pricing | Anthony T. H. Chin 49

Prospect Theory suggests that for road NOTES 1. Kahneman, D. and A. Tversky, “Prospect Theory: An Analysis pricing to be more effective, charges will of Decision under Risk,” Econometrica 47 (1979): 263-92. have to be set according not only to 2. Dube, L., LeClerc, F., and B. Schmitt, “Waiting Time and inelastic demand but to the high value Decision Making: Is Time like Money?,” Journal of Consumer Research 22 (1995): 110-19. drivers place on the loss of travel time. It 3. Thaler, R. H, “Mental Accounting Matters,” Journal of must be noted, however, that such an effort Behavioral Decision Making, 12 (1999): 183-206. must be accompanied by a holistic 4. H. and C. Blumer, “The Psychology of Sunk Costs,” Organizational Behaviour and Human Decision Processes 35 approach that promotes a comprehensive (1985): 124-40. public transport network, high parking 5. H. and C. Blumer, “The Psychology of Sunk Costs,” charges within the Central Business Organizational Behaviour and Human Decision Processes 35 (1985): 124-40. District, and an increasing awareness on the social costs of traffic congestion on the FURTHER READINGS environment. Duxbury, D., K. Keasey, , H. Zhang, and S.L. Chow, “Mental accounting and decision making: Evidence under reverse conditions where money is spent for time saved,” Journal of Economic Psychology 26 (2005): 567-80. Knetsch, J.L., “The Endowment Effect and Evidence of This article was adapted from a longer study based on a series Nonreversible Indifference Curves,” American Economic Review of experiments replicating various conditions under road pricing. 79 (1989): 1277-84. The three experiments tested for the effects of sunk cost, Prospect Knetsch, J.L., “Anomalies: The Endowment Effect, Loss Ascenario Theory, and the endowment effect on drivers. and Status Quo Bias,” Journal of Economic Perspectives 5 (1991): 193-206. Olszewski, P. and L. Xie, “Modelling the effects of road pricing on traffic in Singapore,” Transportation Research Part A: Policy Anthony T. H. Chin is Deputy Head and and Practice 39 (2005): 755-72. Associate Professor in the Department of Thaler, R. H., “Anomalies: Seasonal Movements in Security Economics at the National University of Prices II: Weekend, holiday, turn of the month, and intraday Singapore, where he teaches urban economics, effects,” Journal of Economic Perspectives 1 (1987): 169-77. Thaler, R. H., “Anomalies: Savings, Fungibility, and Mental transport economics and microeconomics. Accounts,” Journal of Economic Perspectives 4 (1990): 193-205. Within the University, A/Prof Chin is Director Tversky, A. and D. Kahneman, “The framing of decisions and the of the Economics Executive Programme and psychology of choice,” Science 211 (1981): 453-8. Principal Researcher in the Centre for Tversky, A. and R.H. Thaler, “Anomalies: Preference reversals,” Transportation Research. He also serves on the Journal of Economic Perspectives 4 (1990): 201-11. Vickrey, W, “Congestion Theory and Transport Investment,” Singapore Public Transport Council, Government American Economic Review 59 (1969): 251-60. Parliamentary Committee on Transport and is Chief Editor of the European Journal of Logistics and Sustainable Transport.

ETHOS | Issue 2 | APR 2007 50 Wanted — An Ambitious Vision for Singapore’s Public Transport | Paul Barter

Paul Barter Wanted — An Ambitious Vision for Singapore’s Public Transport In order for public transport in Singapore to compete with the lure of private cars, a radical overhaul in regulation and organisation may be necessary.

omentous issues lie behind the transport. Existing arrangements are apparently dry choices facing the almost certainly not up to the task and Mexperts now reviewing fine-tuning them will not be enough. Singapore’s public transport arrangements. This article discusses a bold yet feasible As a large, compact city, Singapore is vision for public transportation in approaching limits to road capacity Singapore. It proposes the introduction of expansion. Increasingly, public transport real competition to the public transport will be called upon to compete with cars market. At the same time, it requires a for customers who have a choice. To do stronger role for the public sector in this successfully, Singapore will have to planning a highly-attractive, comprehensive adopt a much more ambitious approach and well-integrated transport system. to the organisation and regulation of public

ETHOS | Issue 2 | APR 2007 Wanted — An Ambitious Vision for Singapore’s Public Transport | Paul Barter 51

SUCCESS SO FAR DESPITE HUMBLE ASPIRATIONS FOR PUBLIC TRANSPORT SEOUL’S 2004 BUS Singapore’s public transport has done quite well even without a very ambitious vision. SYSTEM REFORMS It aims to be a basic utility, providing no- Seoul in South Korea has a large subway and, fuss mobility to the masses who do not until 2004, had a bus network run by own cars. Since the 1970s, this modest numerous private operators with poor ambition has combined very well with coordination. Since the mid-1980s, it has efforts to contain car ownership and usage. faced the challenge of rapid increases in car 1 In the process, a steady stream of ownership. Pucher et al described reforms improvements, including the expanding in 2004 that reorganised Seoul’s bus services. Inspired by integrated urban public transport Mass Rapid Transit (MRT) network, has been systems in Scandinavia, Germany and successfully delivered to a customer base Switzerland, the changes focused on of mostly non-car owners who have become improved, more customer-oriented service, increasingly middle-class in profile. integration and a shift to a hub-and-spoke This approach, however, will soon face network structure. Regulatory reforms were growing tensions. Social and economic also a key feature. changes and shifts in vehicle tax policy are ‘ The Seoul Metropolitan Government reducing the number of captives to public greatly increased its control over bus routes, transport. For example, as car usage costs schedules, fares, and overall system design. go up while cost barriers to car ownership It introduced what it calls a “semi-public go down, we are likely to see larger operation system” that retains private bus numbers of relatively low-income car- firms but leaves route, schedule, and fare owning households. At the same time, decisions to the Seoul Metropolitan larger numbers of relatively high-income Government. Moreover, it now reimburses bus firms on the basis of vehicle kilometre of households may choose not to own cars, service instead of passenger trips…(p.48) ’ encouraged by the expanding MRT network and the boom in centrally-located premium The necessary monitoring and coordination housing options that serve an increasingly is handled with an advanced application of attractive “cosmopolitan” inner-city Intelligent Transport System (ITS) technology, using Global Positioning System (GPS). lifestyle. These and other “choice” users of Benefits claimed so far include impressive public transport will have high increases in bus speeds (especially on new expectations of public transport. They are Bus Rapid Transit corridors) and an upward more likely to demand a higher frequency trend in bus passenger numbers without a of services and shorter waiting times. drop in subway use.

ETHOS | Issue 2 | APR 2007 52 Wanted — An Ambitious Vision for Singapore’s Public Transport | Paul Barter

The authorities have already expressed It is in places where the private car is concern that public transport needs a real threat and where public transport improvement, but do not seem to be refuses to accept defeat that we find the considering a fundamental restructuring most intense public transport innovation of the system. This article argues that the efforts. Some of the most energetic efforts institutional and regulatory arrangements have been in the inner cities of Central and to support public transport in Singapore Northern Europe, but Seoul and certain require significant changes, if it is to meet Latin American cities, such as Bogotá, have the changing needs of its customers. also taken dramatic steps. The best of these cities aim to make public transport a real INTERNATIONAL ROLE MODELS FOR competitor for cars in order to halt the loss AMBITIOUS PUBLIC TRANSPORT of market share to private transport. Where should we look for role models of superior public transport? Certainly not to THE IMPORTANCE OF PUBLIC TRANSPORT automobile-dependent cities in North INTEGRATION America or Australia, where public Infrastructure, such as urban rail systems transport has largely admitted defeat and and Bus Rapid Transit (BRT), is a key aspect retreated to “niches”, such as serving radial of efforts to improve public transport. The work trips and providing welfare service most ambitious approaches, however, also for people without alternatives. involve excellent, highly customer-oriented Public transport “paradises”, such as integration. In an integrated public Hong Kong and Japan’s large cities, transport system, the private car — and not certainly offer some lessons but, other public transport operators — is seen surprisingly perhaps, not when it comes as the primary rival. Highly-integrated to the challenge of competing with private public transport systems are planned and cars. The huge rail systems and tiny marketed as a unified whole and presented endowment of road space in Japan and the as a single brand image to the general congestion and extreme urban density of public. Stockholm pioneered this approach Hong Kong (it has triple Singapore’s in the 1960s and Zurich has taken it population per urbanised hectare) limit further.2 the appeal of cars and help to protect the If public transport aims to become a role of public transport. Strenuous public comprehensive mobility tool in transport promotion efforts are less competition with cars, strenuous efforts necessary in such places than they would are required to ensure that transfers are be here. simple, quick and reliable. Easier transfers

ETHOS | Issue 2 | APR 2007 Wanted — An Ambitious Vision for Singapore’s Public Transport | Paul Barter 53

falls short in several of these respects. In It is in places where the private the 1990s, Singapore’s transport planners car is a real threat and where proclaimed integration (or “seamlessness”) public transport refuses to to be a key goal in the improvement of public transport. Significant progress was accept defeat that we find the made, especially on physical integration most intense public transport of the bus and MRT systems, and on innovation efforts. common ticketing. However, integration improvements seem to have stalled. are vital if the full range of destinations is EXISTING ARRANGEMENTS LIMIT to be served beyond just the city centre. INTEGRATION AND IMPROVEMENT This requires either high-frequency, regular Singapore’s existing public transport service on all provisions or a carefully- regulatory arrangements involve two coordinated, “timed-pulse” approach to operators facing fare regulation and service scheduling in lower density areas. standards overseen by the Public Transport One way to increase frequencies at low Council (PTC), a public agency at “arm’s cost is via a shift to a more thoroughly length” from the Government. Each “hub-and-spoke” network layout. However, operator has a permanent monopoly within this obviously requires more transfers, its own zone. The operators have which must be made as easy as possible. considerable autonomy over the details of Clearly, integration will also enhance their routes and schedules since the service efforts to improve service frequencies. standards do not specify these in minute The role of unified marketing cannot detail. Having two operators makes the be dismissed. Unified marketing seeks PTC’s regulation task slightly easier by customer loyalty to the system as a whole, allowing their performance to be often with the help of heavily-discounted benchmarked against each other. This so- season passes. In addition, it assumes that called “benchmark competition” does not, information for trip planning is in fact, entail any competition at all. In consolidated for the entire system. To this addition, numerous charter, school and end, integrated systems generally make shuttle services fall outside the main system available high-quality, comprehensive maps — each with their own information, of the entire public transport network to payment and marketing structures. their customers. This arrangement has delivered a good Singapore’s public transport system basic transport system, but it presents a

ETHOS | Issue 2 | APR 2007 54 Wanted — An Ambitious Vision for Singapore’s Public Transport | Paul Barter number of barriers to customer-oriented together with car-rental, taxis, home- improvements. First, it hampers the delivery services, car-free housing creation of a more fully integrated system. developments, and the humble modes of In fact, rivalry between the two companies walking and bicycling. At its most seems to be undermining existing ambitious, such cooperation creates an integration, especially in information and “alternative mobility package” with the marketing. Attractive season passes that aim of making a non-car owning lifestyle cover the whole system seem unlikely. Each an attractive alternative to the car-owning operator runs its own website and lifestyle. Such efforts would be difficult to telephone service and neither provides encourage under Singapore’s current substantial useful information about the public transport regulatory system. services of the other. Second, the existing arrangement IS COMPETITION COMPATIBLE WITH allows only incremental steps to “raise the AMBITIOUS AND INTEGRATED PUBLIC bar” and enhance service levels. Under the TRANSPORTATION? existing system, the Government cannot If the existing arrangement of a regulated impose innovations, except indirectly via monopoly with “benchmarking” limits service standards. With only indirect tools integration and discourages more available, it may be difficult to create a ambitious reforms, does this mean that more ambitious, attractive and customer- any increase in competition would be oriented public transport system. even worse? Certainly, the “free-for-all” The problem of limited direct influence approach of open entry to the public goes further because we may need to transport industry or “competition in the pursue cooperation beyond the public market” would destroy integration and be transport system. Public transport alone, disastrous. even if truly excellent and highly Nevertheless, there is a way to enhance integrated, may not be enough to dent competition that is compatible with significantly the appeal of private cars. improved integration and customer- Cooperation needs to be extended to all of oriented improvements. It requires the alternatives to private transportation. “competition for the market”, which Since the late 1990s, in German cities such involves competitive tendering for the right as Bremen and Hanover, and Swiss cities to operate different sets of public transport such as Zurich, cooperation has been routes (see box story on “Three Forms of expanding between public transport and Competition for the Market in Public Transport”). its natural allies, namely car-sharing The simplest way to shift competition

ETHOS | Issue 2 | APR 2007 Wanted — An Ambitious Vision for Singapore’s Public Transport | Paul Barter 55

THREE FORMS OF COMPETITION FOR THE MARKET IN PUBLIC TRANSPORT

Gross cost contracting has been used successfully which may act against the passengers’ for procuring bus services in a number of interests, and to ensure that any loss- developed cities. It transfers the production making service that is required is not risk to private operators but shields them neglected. from the full commercial risks. This has Franchising can be used for routes or the advantage of facilitating integration groups of routes over a contiguous area. In and enlarging the pool of competition, the latter case, operators will usually have which is particularly important in cities the freedom to plan services to maximise where there has been a long tradition of a combination of operational and passenger public provision and public transport service efficiency. The role of the authority markets are weak. Cost saving over public is limited to setting down the fares and monopolies in the range of 20% to 30% service parameters and monitoring the is not uncommon with this type of performance of the franchisee. Like net cost competition. contracts, franchises can involve payment Net cost contracts require the operator to in either direction between the authority bear most or all of the revenue risks and and the operator depending on the strength are also used in bus operations. They have of the public transport market and, given the advantage of relieving the authorities constraints on fares, how much of revenue risks and responsibilities and, unremunerative service the authority in some circumstances, can act as a spur requires to be operated. Whilst taking fine to improving operator performance. This control out of the hands of the authority, kind of contracting, however, does make an exclusive franchise will encourage the integration more difficult to achieve and operator to provide fares and service requires safeguards to prevent operators integration within the franchise domain.3 indulging in revenue-share competition,

ETHOS | Issue 2 | APR 2007 56 Wanted — An Ambitious Vision for Singapore’s Public Transport | Paul Barter in the market may not necessarily be the for system improvements has been most best answer. Singapore could quite easily notable.4 This approach involves assigning adopt the franchise system used for Hong a single public agency with responsibility Kong’s mainline buses, which is very similar to integrate the planning of routes, to Singapore’s bus arrangement, although timetables and pricing, in accordance with the former has competitive tendering. In a unified vision for the public transport both places, operators largely determine system. Private operators compete via their own routes and schedules in periodic tendering for the right to operate accordance with broad guidelines. Such a routes specified by the agency. In addition, change would probably offer efficiency the gross cost approach involves the central gains through competition, while it might pooling of fare revenues and payment to also offer the opportunity to increase operators on the basis of performance and service standards substantially at tendering services delivered. times. Unfortunately, a shift to competitively This model requires a more “hands-on” tendered franchises would do little to approach to public-sector planning and improve integration. Franchises would monitoring which would mark a significant probably maintain separate public change from Singapore’s relatively hands- identities, information services, and off regime at present. Service contracts marketing approaches, and would have may not work in countries that lack the little incentive to cooperate with each necessary institutional capacity. Singapore, other. Hong Kong’s level of integration is however, could clearly muster the certainly not poor, but as a public transport administrative capacity to succeed and “paradise”, it does not need to strive in this benefit from the improved policy options area, as Singapore probably does. that this approach allows. In Singapore, the Government could Singapore may be too concerned about consider “service contracts” and, in the size of its public transport market to particular, “gross-cost” service contracts. attempt competitive tendering. However, This alternative approach to competition because public transport plays such a is most compatible with both a high degree significant role in Singapore, the market of system integration and a more is far from tiny, with total demand ambitious, customer-oriented planning comparable to that of the whole of mechanism. Service contracts have been Australia. Nevertheless, the need for widely applied but it is in Scandinavia that sufficiently competitive tendering may the combination of competitive tendering, eventually prompt a gradual opening up excellent integration, and ambitious targets of the local public transport market to

ETHOS | Issue 2 | APR 2007 Wanted — An Ambitious Vision for Singapore’s Public Transport | Paul Barter 57 international players. Fortunately, there are Paul Barter, Assistant Professor at the Lee Kuan many precedents to learn from. While Yew School of Public Policy, National University opening up the local public transport of Singapore, researches urban transport policy. market may cause concern, it is in line The views expressed here are those of his own with Singapore’s desire to encourage local and do not reflect those of his employer. operating companies to venture into international public transport markets — NOTES a process well underway. 1. Pucher, J., H. Park, M. H. Kim, and J. Song. “Public Transport Reforms in Seoul: Innovations Motivated by Funding Crisis.” Journal of Public Transportation Vol. 8, No. 5 (2005). CONCLUSION 2. Mees, P., “The “Zurich” Model: Planning and Integration as Singapore needs a more ambitious, an Alternative to the Market.” in A Very Public Solution: Transport in the Dispersed City. (Melbourne: Melbourne University Press, customer-focused vision for public 2000), 120-151. transport that will appeal to everyone, 3. Halcrow Fox. Department for International Development, including affluent people with choices, Review of Urban Public Transport Competition, Draft Final Report. (London, UK: Halcrow Group Limited, 2000), 3. and that will become a central component 4. Hidson, M. and M. Müller. Better Public Transport for Europe of a high-quality “car-free” lifestyle. through Competitive Tendering — A Good Practice Guide. No regulatory system is a panacea since (Freiburg, Germany: ICLEI — Local Governments for Sustainability, 2003). all have their strengths and weaknesses. This article has suggested a model well- suited to Singapore’s current imperatives and strengths. It demands a more intensive role for the public sector in planning public transport but with continued private-sector operation and the introduction of real competition via competitively tendered gross-cost service contracts. Such a model should help Singapore to reap efficiency benefits from competition, while also enabling an accelerated effort towards a much more ambitious and highly-integrated public transport system.

ETHOS | Issue 2 | APR 2007 58 Quality of Life in Singapore | Tan Li San

Tan Li San Quality of Life in Singapore Can Singapore become one of the world’s most liveable cities in the 21st century?

hile having a picnic lunch at Could this be Singapore in the near the reservoir park, your future? While Quality of Life tends to be W spouse spots a kayak booth associated with fashionable cities such as and thinks it would be a novel idea to tour Sydney and Vancouver, mention Singapore the reservoir on boat. After a leisurely and the first impression tends to be: too hot paddle and a stop for ice-cream, it is time and humid; too few entertainment options; too to head home. Your in-laws drop in for a urban and built up. Singapore has even been visit, bringing presents and sharing how caricatured as a sterile “police state” where they hopped from one mall to another censorship is rife and individual views along the shopping belt, never having to suppressed. leave the air-conditioned comfort of the It may come as a surprise to many that newly opened underground linkways lined Singapore is ranked first among Asian cities with interesting shops and cafés. in Mercer’s 2006 Worldwide Overall Quality

ETHOS | Issue 2 | APR 2007 Quality of Life in Singapore | Tan Li San 59 of Living Survey. The Economist SURPRISING SINGAPORE Intelligence Unit’s (EIU) Worldwide Quality- In recent years, investments and of-Life Index, 2005 accords Singapore 11th developments have been undertaken to place in a list of 111 countries. The Country further enhance Singapore’s attractiveness Brand Index has also ranked Singapore as a city in which to live, work and play. second-best city in the world for dining To this end, arts and entertainment options and night-life! have increased. The Esplanade showcases Having said this, Quality of Life is no esoteric international fare and pop culture guarantee of economic growth or success. performances, while nightlife hotspots, Still important are our national such as the Ministry of Sound in Clarke fundamentals: our safe and politically- Quay, Café del Mar on Sentosa, and the stable environment; good connectivity newly transformed St. James Power Station, within and out of Singapore; and quality have the potential to rival those in Europe. educational opportunities for our young. More recreation options are now available, Furthermore, the primary draw that retains from wakeboarding at beaches to rock Singaporeans and attracts foreign talent climbing in disused quarries. is and will continue to be the availability Those who pine for green spaces might of vibrant and diverse economic be surprised to learn that there are some opportunities. 300 parks and gardens in Singapore, 70 But when Singapore is in competition kilometres of park connectors that link up for global talent (international as well as various parts of the island, with another our very own), what could make all the 130 kilometres planned by 2012. Rich difference is a compelling Quality of Life. ecosystems of biodiversity exist in our Singapore should be an interesting place secondary rainforests, mangrove forests, where the talented can participate in and coral reefs, many of which are intellectual discourse, let their hair down, accessible to the public. The recent vision and fulfill their aspirations. By enhancing to make Singapore a “city of gardens and our Quality of Life, we hope to create a water”, with high-rise gardens and lush, Singapore that all Singaporeans can be landscaped waterways, can only reinforce proud of; at the same time, we want to our green image. offer differentiating factors that may Quality of Life for some is about attract those who are seeking a new freedom of expression and avenues for investment location for their businesses fulfilling their dreams. In this respect, or a conducive place to raise their Singapore has liberalised over the years. families. Our censorship approach has become more

ETHOS | Issue 2 | APR 2007 60 Quality of Life in Singapore | Tan Li San liberal in terms of content standards for houses have no place in the tropics; we can mature persons. For example, the film do more instead to promote tropical design classification system has been refined. The and architecture. We can also encourage content of arts entertainment need no vertical greening to soften our urban sky- longer be vetted. There is also greater rise landscape and high-density living tolerance for diversity of views and public environment. debate. Our education system is gradually evolving towards one that encourages Software: User-Centric Development multiple pathways to success. There is room to adopt a more user-centric perspective in urban planning. WHERE WE CAN GO FROM HERE Functionalities and features should be led While developments have been promising, by the needs and desires of users and the there are opportunities for Singapore to community, not only by what is most do even more in the area of Quality of Life. expedient. We have been doing this more consistently: for example, universal design Hardware: Capitalising on our Tropical features are now incorporated in our public Attributes housing projects to cater for the elderly While heat and humidity have often been and disabled. But the answer to improving touted as inconveniences, Singapore has identity and culture, according to architect done much to mitigate these effects with Tay Kheng Soon, does not entail a “design pervasive air-conditioning. Plans are solution” but rather “empowerment”. In a underway to pursue greater integration in 1998 interview, he argued that the our development of townships and urban challenge lies in “how to encourage and areas, with covered linkways and bridges how to allow people to take power to run between transport nodes to ensure that their own lives. Because if they have no pedestrians are sheltered, come rain or power to run their own lives and to run shine. Just as underground cities have their own communities, they have no flourished in Montreal and Osaka in power to imagine any possible future response to the cold, underground malls except the one prescribed to them.”1 in Singapore would also offer a choice to Greater community ownership and the visitors — enjoy the tropical sunshine or a development of common spaces would be cool climate-controlled environment. desirable outcomes. Singapore can also do much more in terms of turning our tropical attributes into our Heartware: More Voices, More Choices strengths. For instance, heat-trapping glass The intangibles matter as well. We need to

ETHOS | Issue 2 | APR 2007 Quality of Life in Singapore | Tan Li San 61 move away from prescriptive rules toward do well to adopt a “triple bottom line” risk management: instead of taking an ex- approach, which demands that we take a ante view that people need to be holistic view of economic, social and “protected” from themselves, we need to environmental considerations in balance safety concerns against evaluating our projects and making opportunities in order to cultivate buzz. decisions on major developments. Where possible, a negative-list approach to rules and permits should be adopted: for example, instead of stipulating what Tan Li San is Director of Social Programmes at mobile hawkers can sell, we could specify the Ministry of Finance. She leads an inter- a minimal list of what they cannot sell. ministry team which studies a framework for Where people have turned public spaces enhancing Quality of Life in Singapore. into spontaneous hives of activity (such as the use of unused urban spaces as skate NOTE parks), officialdom should refrain from 1. Bay, P. “Tay Kheng Soon and SPURS: Activism in the early days of Singapore’s history,” (interview conducted in October discouraging such impulses, particularly 1998), http://www.newsintercom.org/index.php?itemid=57 when they are not creating public (accessed 7 March 2007). nuisances or impinging on the rights of others. There should be greater room for spontaneous and organic development. To address any misperceptions about “restraints” in Singapore, we also need to become savvier in marketing and public communication, and in engaging the international media.

CONCLUSION As with other public policy objectives, the pursuit of Quality of Life must be balanced with other imperatives, including economic ones. To ensure that our strategies for enhancing our Quality of Life do not inadvertently impinge upon other important goals (and vice versa), we may

ETHOS | Issue 2 | APR 2007 62 Spaces and Scapes — Thoughts on Urban Planning | Aaron Maniam

Opinion Aaron Maniam Spaces and Scapes — Thoughts on Urban Planning

henever I hear the phrase untouched by human presence for months, “urban planning”, three dandelions standing like sentinels to W experiences come to mind. The potential intruders. first involves staying in Seoul’s “The Shilla”, The phrase “urban planning” also which many think of as the Korean evokes memories of visiting friends in equivalent of our Raffles Hotel. Located far Boston. Each time, some gravitational force enough from downtown Seoul’s urban seemed to pull us towards the string of bustle to be beyond the raucous sounds of cafés surrounding Harvard Square, where Insa-dong market, the hotel overlooks the we would sit and sip hot beverages, lush greenery of Namsan Park. My reaction savouring each moment of school vacation may have, in part, been due to seeing with (or latterly, leave from work) and watching a newcomer’s eyes, but I found the park a the world go by. treasure trove of interesting corners — an I have often wondered why the phrase archery range in one spot, a pétanque space prompts such recollections. After all, most in another, and a basketball court in yet traditional understandings of the concept another. of urban planning paint it as clinical and I also think of my time as an scientific, bringing order and structure to undergraduate in Oxford. The university situations which could, otherwise, lapse town is rightly famous for its college into risky randomness or the damaging architecture — from the imperious edifices effects of urban sprawl. My memories seem of Balliol and Christ Church to the more focused on micro-spaces rather than the modest Victorian façades of Lady Margaret larger forces that have shaped cities in the Hall and Somerville. Equally memorable, past — the walls and moats of feudal towns, though less awe-inspiring, were the many for instance, being a response to security crannies unearthed by the familiarity of needs; town squares a result of the need three years, often nestled between larger for a space dedicated to commerce; buildings: a moss-covered cemetery here, industrially-replicated buildings born from a centuries-old pub elsewhere, or a field a need to house large volumes of

ETHOS | Issue 2 | APR 2007 Spaces and Scapes — Thoughts on Urban Planning | Aaron Maniam 63 manufactured goods; and the lack of key ways that small spaces serve to crowded buildings in the Pacific “ring of humanise our cities, bringing life and fire” a response to the potential risks of dynamism to urban landscapes. earthquakes and geomorphology. The Shilla and its contiguous parkland Upon further reflection however, I highlight the important aesthetic function think a genuine case can be made for that small spaces can play. Some urban including the study of “small spaces” in planners see this function as being urban planning. In one of the poems in my principally “anti-urban sprawl”, but there collection Morning at Memory’s Border,1 the is also a important positive role. Small city-scapes captured in the photographs of spaces beautify and provide alternative Alfred Stieglitz remind me of how: lines to buildings. “... as cities bud, build and bloom The originators of Singapore’s Higher, the more need we find for niches, aspiration to be a “garden city” are likely Corner comforts and the solace of small to have had a similar objective in mind. spaces.” Their experience belies the instinctive Studying this human “need... for assumption that aesthetic considerations niches” in urban settings actually formed will take care of themselves through some a large part of the work of William Whyte, spontaneous process of rationalisation. an eclectic intellectual who was, at Rather, while the final output should different times, a planning consultant for appear creative and spontaneous, the major US cities, adviser to Laurence process can be every bit as precise and Rockefeller on environmental issues, a orchestrated as other branches of urban Distinguished Professor at Hunter College planning. This applies not just in Singapore, of the City University of New York and a where land scarcity requires the deliberate trustee of the American Conservation designation of areas for their aesthetic Association. function. In the example of The Shilla, planning is evident in how the park’s spaces dovetail with the Small spaces humanise our cities, hill that forms its core; while bringing life and dynamism to famously “aesthetic” cities like urban landscapes. Rome and Paris demonstrate a conscious earmarking of certain areas as sacrosanct and separate The three memories I described above from the more obvious functionality of correspond quite neatly with some of the others.

ETHOS | Issue 2 | APR 2007 64 Spaces and Scapes — Thoughts on Urban Planning | Aaron Maniam

Oxford is a prime example of how small temporal counterpoint to modern or spaces allow cities to accommodate a modernising architectural designs, by process that I have come to think of as providing sanctified areas where the “historical sedimentation” — the gradual vicissitudes of time and tide are kept layering of different parts of a city’s past at bay. with aspects of its present and future. I The Boston cafés highlight a much more remember similar principles being widespread phenomenon that two human illustrated (consciously or otherwise) in geographers from Glasgow University, Eric the Syrian city of Aleppo, where ancient Laurier and Chris Philo, describe as the rise gardens and the city’s central citadel are of a “cappuccino culture”, where cafés surrounded by modern restaurants and provide the means for increasingly shops. In a nascent way, I think we see this fragmented human societies to “come in Singapore as well — even a short walk together again”. This may not seem like a from Little India to Chinatown unearths particularly groundbreaking observation, such gems as the Jamae Chulia Mosque and until we remember that the advent of the Sri Mariamman Temple. Where viable, efficiency-enhancing technology can often recognition of such spaces’ historical and be a cause of reduced social interaction, cultural significance helps to provide a alienation and isolation. Small spaces in our cities cannot be a panacea to this phenomenon — which Harvard political scientist Robert Putnam described as “bowling alone” — but they can provide a counter to its growing pervasiveness. Of course, the practical limits and physical constraints involved in urban planning mean that small spaces cannot be an over-riding consideration in landuse. They are an important part of a city’s life, however, and should be recognised for the texture, nuance and variegation they bring. It is probably not for nothing that in one of his most seminal books, The Social Life of Small Urban Spaces,2 William Whyte said:

ETHOS | Issue 2 | APR 2007 Spaces and Scapes — Thoughts on Urban Planning | Aaron Maniam 65

“I end then in praise of small spaces. The multiplier effect is tremendous. It is not just the number of people using them, but the larger number who pass by and enjoy them vicariously, or the even larger number who feel better about the city centre for knowledge of them. For a city, such places are priceless, whatever the cost. They are built of a set of basics and they are right in front of our noses. If we will look.”

Aaron Maniam is First Secretary (Political) at the Singapore Embassy to the United States in Washington, DC. He previously served on the North America Desk at the Ministry of Foreign Affairs. He was educated at Oxford where he read Philosophy, Politics and Economics (PPE), and Yale. He is also an award-winning poet and author of Morning at Memory’s Border, a volume of poetry published in 2005. The views expressed within this article are his own.

NOTES 1. Maniam, A. Morning at Memory’s Border: Poems by Aaron Maniam. Singapore: firstfruits publications, 2005. 2. Whyte, W. H. The Social Life of Small Urban Spaces. Washington, D.C.: The Conservation Foundation, 1980.

ETHOS | Issue 2 | APR 2007 66 The City and My Home | Simon Tay

Opinion Simon Tay The City and My Home

A CONTRAST OF PLACE AND PLANS could be a luxurious bungalow or condo This evening I thought of the New Year in the prime districts. To others, it is an countdown and fireworks at the Bay while HDB apartment and neighbourhood they walking with my son and his dog around grew up in. In my case, this individual Seletar air base, where we live. The disparity picture of home is Seletar Air Base, where we have lived for a decade. is stark and tells me how the city is changing and affecting our lives. LIMITS TO PLANNING AND THE VALUE OF The Bay and Countdown are new THE UNPLANNED creations that aspire to be national icons: Seletar Air Base has for many years been a a place and an annual event that can gather place that has prospered from neglect, from attention from thousands of those who live being on the fringe of things. It is an in this city. They are potentially svelte unplanned space, spontaneous, accidental; emblems for the new exciting global city it evolved from an English and military that is planned and emerging in Singapore. enclave to become quite a cosmopolitan There is, however, a contrast between bohemia with a mix of peoples in public and private spaces in Singapore. Singaporeans and many different When Singaporeans think of our country, nationalities, diverse in ethnicities and collectively we may see the image of our outlooks. It is a green and gentle place that skyline, the Padang, Orchard Road on a calmly defies the norms of Singapore as a busy afternoon and, perhaps in time, the fast-paced and compact city. new Bay. Why should we value such unplanned Yet, when Singaporeans individually places? Planning must be thorough, think of home, it is a much more particular rational and holistic enough to take into and varied space, dependent on individual account social and environmental costs. and differentiated memory. To some, it Even so, Humanity’s power is so magnified

ETHOS | Issue 2 | APR 2007 The City and My Home | Simon Tay 67 by machines and technologies that we must like fashions and dance forms, from tango be cautious of the unintended and to disco. What we consider as peripheral unforeseen consequences of plans. influences and helps shape evolution in the Understanding the complexities of nature mainstream. The unplanned, the spaces and of change, we must try to account for between, are a necessary balance, not in the things we cannot plan for, even if there terms of a static and fixed balance, but in is less than full evidence that they are likely a moving and changing balance, like the to happen. Environmentalists call this the Yin and Yang. precautionary principle. The sociologist, James Scott, in his book, Seeing Like A State, reminds us The peripheral influences and many follies can otherwise follow. In helps shape evolution in the lesser hands and minds, planning led mainstream. to long queues and shortages and the eventual collapse of the Soviet system. Planning is fundamentally built on We should allow diversity in our projections of the present, made into landscape and society. The unplanned the future. The planning of the domestic provides surprise, texture and serendipity. industries, of jobs, and for public This can be physical: in a modern city, a housing in Singapore have — implicitly or conserved building; or in the heart of an explicitly — made these calculations. All old city, a gleaming tower. It can be mental may have seemed logical and rational at and social: in a busy business day, an hour the time, given what we knew then. But for coffee with a person with an interesting there are many surprises and revolutions story or even the prospect of falling in love, in our expectations. Planning cannot like the famous photograph by Robert account for that. The unplanned is a hedge, Doisneau, where amidst the milling, an insurance policy in times of bustling crowd, a couple kisses. Planned revolutionary change. schedules are disrupted, put on hold, for The unplanned also has its value. All something — romance — that no one can societies have a mainstream that is really plan for, even if we can hope for it. supported by government plans. But this We can draw cities on a clean slate, on is not natural and permanent but created a blank page: we can plan a city of 6.5 and subject to change. The relations million, with Integrated Resorts and between periphery and centre are many expensive, shiny apartments downtown. and complex. Within a society, habits from But the sense of home and of belonging a minority can come into the mainstream grows best from the chemistry of old and

ETHOS | Issue 2 | APR 2007 68 The City and My Home | Simon Tay new, past and future. Planning is best when In a society that puts rational it allows for the organic and unplanned, calculation first, the idea of loving what pre-exists, and takes the best of those Singapore is emotive and radical. So often qualities to inform what is new. we hear of people rationalising the cost of buying homes abroad, the quality of LOVING THE CITY education here versus there, the Planning can make or unmake images and opportunities to get ahead — and make a memories of home. It has now come to my decision based on bottom lines. home at Seletar. But planning will not In contrast, the idea of having “no create and reinforce the special qualities other” is to recognise that these cannot be of this place. Instead, the plan to grow an real options, and calls for dedication to aviation hub will, in the process, destroy this country, this city and the places we much of the green and quiet spaces and know. Yet, it can also be a desperate call if old black and white houses, dispersing the the city no longer resembles the one you community that thrives here. My home have known and grown to love. will go. This story is not mine alone. There are many others who live here who can tell of markers of their memories — houses, schools, favourite restaurants, neighbourhoods — that have been removed. There are those involved in en bloc sales, in which homes are sold collectively even if a minority of owners may vote against it. There are selective en bloc redevelopments too. In the macro calculations of mega projects and national interest, these trade- offs of course make sense. What is the loss of one person’s home? When we see as a state sees, the interests of individuals are merely digits. But the lens of memory is We are trying to create national identity individual. and national spaces. We can belong to the I once wrote in a poem about Singapore nation for one or two days a year. On such that, “if you cannot learn to love / (yes love) this days, we will recite the national pledge city / you have no other.”1 with our hand over our heart. But on many

ETHOS | Issue 2 | APR 2007 The City and My Home | Simon Tay 69 other days, each of us belongs to other NOTE more personal places, to home in this 1. Tay, Simon, "Singapore Night Song," “5” (Singapore: Dept of English Language and Literature, National University of Singapore, smaller more immediate sense. 1985), pp137. Re-published in "No Other City: The Ethos Anthology We cannot achieve a national or of Urban Poetry," Eds., Lee, Aaron and Pang, Alvin (Ethos: Singapore, 2000). collective sense of home at the expense of personal identities and spaces that create that individual sense of home. That individual sense of home is the everyday anchor to the collective. The state and the individual both must have their respective and interlinking places in Singapore.

Simon S. C. Tay is a law professor, environmentalist and former Nominated Member of Parliament. He co-chaired the 2001 Concept Plan focus group on conservation and currently chairs the National Environment Agency. He is also a published writer of poems and stories.

ETHOS | Issue 2 | APR 2007 70 Positioning Singapore in a New Asia | Andrew Tan

Andrew Tan Positioning Singapore in a New Asia

With the resurgence of Asian economies led by India and China, Singapore’s economic prospects have never been better.

A TALE OF TWO CITIES — accommodate the new Airbus 380s. As part BEIJING AND MUMBAI of the city’s extreme makeover, Vice Mayor Beijing is a city in a hurry. With the 2008 Lu Hao, has promised to tackle other Beijing Olympics around the corner, challenges facing the city: clearing the city construction of a new national stadium of its pollutive industries, investing in new that resembles a giant “bird’s nest” is well public infrastructure, creating more jobs, underway. On another site, workers are improving social security and raising public busy installing panels to the “water cube”, health standards. In short, Beijing — the new aquatics centre that looks more symbolising the new face of China — aspires like a space-age museum than a swimming to join the ranks of other major pool. Meanwhile, a third airport terminal international cities. with a 3,800 metre-long runway will soon In Mumbai, a different buzz fills the

ETHOS | Issue 2 | APR 2007 Positioning Singapore in a New Asia | Andrew Tan 71 air. Cars, buses and people jostle for space join the ranks of the middle class across as they wind their way through the noon China and India — the numbers of day traffic. Businessmen in their ubiquitous billionaires in China, Hong Kong and India Ambassador cars close deals on their have already overtaken Japan’s — the region handphones in the sweltering heat. Better will experience a new wave of growth. known for its Bollywood stars, Mumbai is Underpinning much of this growth is the financial capital of India: the stock a new mood of economic pragmatism. In exchange is the primary exchange of the India, Nehruvian socialism has given way country and most large businesses have to what Gucharan Das calls the quiet their corporate offices in this city. Mumbai, triumph of “democratic capitalism”. A too, has plans to transform itself. It does billboard at the recent World Economic not have the deep pockets of the Beijing Forum meeting in Davos read: “15 Years, Municipal Government, but that has not 6 Governments, 5 Prime Ministers, ONE deterred Dr D. K. Sankaran, the Chief DIRECTION”. Even China’s communism Secretary of Maharashtra, from having big has taken on a new face. China’s dreams for the city. Mumbai international communist party has been quick to induct airport is being modernised. Mumbai will entrepreneurs and business leaders into also be linked to the Golden Quadrilateral — its ranks. Party apparatchiks have given over 5,000 kilometres of four- and six-lane way to MBAs on the factory floor. expressways connecting Mumbai, Delhi, Of course, it would be over-simplistic Kolkata and Chennai. Mumbai has come to compare China and India in one broad to symbolise the city of golden dreams sweep, although such comparisons are where everyone hopes to be rich. inevitable. China has a headstart over India, having invested billions of dollars to ASIA’S NEWFOUND PRAGMATISM improve its infrastructure over the last Mumbai and Beijing may be very different, decade; India has much to catch up on, but but they are the future of Asia. China has the spirit of Indian enterprise is alive and been posting staggering growth rates of well. Cash-rich Indian companies have also 9% to 10%, while India’s growth has been been making overseas acquisitions in no less spectacular at 7% to 8%. Japan, too, Europe and the US. China’s predominantly is staging a comeback after more than a state-driven enterprise stands in stark decade of malaise. The simultaneous contrast to India’s private sector-driven renaissance of these three powers is approach. Both countries are still grappling unprecedented. Barring unforeseen with extreme poverty. Growth remains circumstances, Asia will be the most unbalanced across sectors and between dynamic region in the world. As millions regions. Income disparities are widening.

ETHOS | Issue 2 | APR 2007 72 Positioning Singapore in a New Asia | Andrew Tan

Although these two giants are taking ensure it remains well-connected with the unequal steps forward, they are marching region. to the same tune. Next, with regional economies seeking to integrate with the global economy, we SINGAPORE’S PROSPECTS AND can expect these countries to move towards CHALLENGES more rule-based systems, greater rule of Singapore’s prospects have never been law and the adoption of international better. Growing interest in Asia has led to standards. Leveraging on our own a flow of new investments, particularly experience, Singapore can help these into China and India, from Europe, the countries to plug into the global economy. United States, and the Middle East. In turn, Chinese and Several trends work in our favour, Indian companies seeking to expand their presence overseas namely increasing connectivity, the are looking to the region. The harmonisation of standards, and the long-term outlook for the growing ties between Asia and the region remains favourable, rest of the world. notwithstanding short-term fluctuations. How can Singapore position itself to partake in Asia’s Likewise, the growing interest of the growth? I believe we can pursue three key Middle East, Russia, Europe and Latin thrusts. America to engage with China, India, Japan and Southeast Asia allows us to pursue new Redefining Geography as Destiny — tie-ups and partnerships in the areas of Expanding Singapore’s Regional Reach trade, commerce, arts and culture. As their First, we should increase our stakes in Asia’s partners, we are unlikely to pose a threat growth. Several trends work in our favour, as a challenger. This is the advantage of namely increasing connectivity, the being small. harmonisation of standards, and the growing ties between Asia and the rest of Attracting the Next Wave of Chinese and the world. Indian Multinational Corporations (MNCs) — To elaborate: direct air links within the Harnessing Singapore’s Brand Name region are growing and new roads and Although some have questioned the railways are being constructed. In a matter continued relevance of Singapore’s MNC- of time, the whole of mainland Southeast led growth, I believe this model remains Asia, China and India will be connected in relevant. Following the earlier waves of some way or the other. Singapore should European, Japanese and American MNCs

ETHOS | Issue 2 | APR 2007 Positioning Singapore in a New Asia | Andrew Tan 73 to Singapore, we should now attract the Technology. It has several proprietary food so-called coming “fourth wave” of Chinese preparation technologies which it intends and Indian companies seeking to become to patent in Singapore. the next MNCs. Taking advantage of this Bilcare and Meiweizhen are just two trend requires us to better understand the examples of aspiring global companies who business needs of Indian and Chinese see advantage in leveraging Singapore’s companies as they expand overseas. trust, reliability and connectivity. Their Bilcare is a good example of how an investment amounts may be small Indian pharmaceutical packaging company compared to the more established Western sees value in setting up its operations in MNCs. However, if we can attract them to Singapore. It has invested US$25 million Singapore and help them grow their global in a new plant in Singapore with the latest operations, both sides will stand to benefit polymer barrier film technology for in the long-term. Our local small and pharma packaging. This plant is 10 years medium enterprises (SMEs) will also stand more advanced than what the company to benefit from a more vibrant business has in Pune, India, and uses much less landscape. space and manpower. Singapore will act as its main logistic and distribution base Building National Globally Competitive for global distribution. For example, it takes Companies? We still need our Temasek- seven days for Bilcare to ship its product Linked Companies (TLCs)! to the US from India, while it only takes In our renewed efforts to attract MNCs, we two from Singapore. Bilcare also hopes to should, of course, not neglect our own undertake clinical trials for drug businesses and SMEs. We should continue companies, thus providing total solutions to groom them. However, these efforts will to the pharma industry, encompassing the take time to bear fruit. Our lack of critical manufacturing, packaging, storage, mass and small domestic market constrain distribution, and disposal of clinical our ability to develop our own Bilcares and supplies for clinical trials. Meiweizhens in the short to medium term. Chinese food manufacturer, Royal Meanwhile, TLCs such as DBS Bank, Meiweizhen, has invested US$10 million SembCorp Industries, SingTel, CapitaLand to set up a holding company in Singapore. and PSA International, have grown stronger Through Singapore, it hopes to formalise and could develop into multinationals. its franchise structure and market Few, if any, of our SMEs will have similar worldwide. It is bringing under its umbrella resources to undertake large-scale projects three companies: Beijing Royal Food or stay the course in many of the newly Industrial, Beijing Royal Science and emerging markets. Fewer still can muster Technology, and North Green Royal Food the talent.

ETHOS | Issue 2 | APR 2007 74 Positioning Singapore in a New Asia | Andrew Tan

Any decision to divest these companies there is a danger that each of these pursues at this stage should be considered carefully. its own interests, and sub-optimises the Once divested, their main priority will be national well-being. to maximise shareholder value, rather than However, it will not be realistic to building up Singapore’s brand name and undertake a massive restructuring of overall capabilities. Government. Better we forge a clearer consensus of our national priorities ANTICIPATING CHANGE: and implement mechanisms to promote NO SILVER BULLET closer collaboration among our agencies. As policymakers, we sometimes The establishment of the Singapore overestimate our ability to influence events, Cooperation Enterprise (SCE) to look into but the problem is that we cannot predict the export of public sector and governance the future in today’s more complex expertise is a good start, but much more environment. The best way forward is to needs to be done to promote inter-agency seize opportunities and adapt as we go coordination. The way we assess and reward along. This will require an experimental our people must reflect these priorities. mindset and a greater appetite for risk, but In this regard, the Public Service should in our quest for “Blue Ocean” strategies, seek to promote a common understanding we should not neglect existing strategies of the challenges confronting Singapore and markets. We may need to redefine while identifying new opportunities for what we are currently doing. After all, Singapore. The process should be just as Starbucks reinvented the cup of “kopi-o”. important as the outcome. Rather than Who would have imagined that Starbucks tinker at the edges, it should call for bold would be as ubiquitous as our “kopi-tiams” changes. Executed well, this effort should in our HDB heartlands? harness the collective energies of the public sector in repositioning Singapore in the IMPLICATIONS FOR THE PUBLIC SECTOR New Asia. Asia’s resurgence will bring forth new challenges for the public sector. For the Government, the most pressing issue today Andrew Tan is Deputy Secretary (International) in the Ministry of Foreign Affairs. This article is how we organise ourselves to thrive in was written following study trips to India this increasingly competitive environment and China, under the Institute of Policy and seize new opportunities more Development’s 6th Leaders in Administration systematically. With the proliferation of Programme (9 October to 17 November 2006). government departments, statutory The views reflected herein are his own. agencies and even inter-agency committees,

ETHOS | Issue 2 | APR 2007 Strengthening the Centre in Government | Ng Chee Khern 75

Ng Chee Khern Strategic in Outlook, Nimble in Execution: Strengthening the Centre in Government

To stay strategic in outlook and nimble in execution, the Singapore Armed Forces restructured its chain of command. Should the rest of the public sector follow suit?

BARRIERS TO A NIMBLE GOVERNMENT review of Civil Service planning and The Singapore Government has been highly strategy formulation processes may be effective in conceptualising and necessary to preserve our competitive edge implementing strategic ideas — a strength as a forward-looking, nimble Government. that has played a major role in Singapore’s First, the Civil Service needs to identify success. Concerns have been raised, new economic opportunities as they arise however, that our edge for swift, decisive and be quick to exploit them. This is action may be at risk of erosion as the especially vital since Singapore is essentially public sector becomes structurally more a price-taker in the international economic complex. In particular, there appears to be and technological spheres. However, some three structural bottlenecks in our current senior leaders in Government have policy formulation and implementation cautioned that as our bureaucracy has process. These suggest that a thorough thickened, we may not be as bold and

ETHOS | Issue 2 | APR 2007 76 Strengthening the Centre in Government | Ng Chee Khern entrepreneurial as we used to be in communications or information operations identifying and following through with were handled during the International new ideas. This inertia in Government Monetary Fund/World Bank meeting. The could be the result of policymakers capacity to make effective trade-offs is considering issues only from the limited further hindered by the proliferation of perspective of individual Ministries, or it statutory boards — each with its own could be the consequence of endless priorities and timelines. consultations, negotiations and compromises across too many agencies before action can be taken, by which The capacity to make effective time the impetus would have been lost. trade-offs is hindered by the Another recurring dilemma is that proliferation of agencies — many national objectives have to be each with its own priorities traded off against one another. For and timelines. instance, economic policies need to be balanced against social goals (e.g., deeper integration with the global economy A review of governmental structures at the expense of a higher level of structural and processes should address these three unemployment) or security concerns (e.g., bottlenecks. To rediscover our strategic loosening of visa requirements for certain effectiveness, we will need to look at issues nationals). At present, such trade-offs can holistically beyond the concerns of only be arbitrated by the Prime Minister individual Ministries; we must also have and his Cabinet since staff at the lower the capacity to implement developmental levels of Government do not currently have policies and execute operations nimbly the mandate to make the necessary across the whole of Government. judgement calls between conflicting Some existing initiatives and structures priorities. go some way towards addressing these This leads to a third problem: trade-offs issues. For example, the Strategy Policy are better managed if there is sufficient Office (SPO) anticipates changes on the lead time, which is only possible in the horizon and supports the Government in developmental arena. In other words, the articulating a vision of Singapore’s possible capacity to make optimal trade-offs is more and desired futures. The Ministry of Finance likely to fail when events are already (MOF) arbitrates trade-offs between various unfolding by the hour, such as during the Ministries through the budget allocation SARS crisis, or in the way public process. The Public Service Division (PSD)

ETHOS | Issue 2 | APR 2007 Strengthening the Centre in Government | Ng Chee Khern 77 influences postings of Administrative Services. In a large and complex Officers and Management Associates, and organisation, locally optimal solutions were therefore affects distribution of talent in the quickest way to build baseline the public sector to some extent. The capabilities, but decentralisation also led National Security Coordination Secretariat to paralysis, because decisions in the and the National Research Foundation are interest of one agency may be at the two bodies that have also strengthened the expense of the larger organisation. decisive “centre” of the Civil Service. In its transformed role, Joint Staff now Despite these efforts, the three structural actively directs the Services in both barriers to nimble strategic action persist. development and operations. Optimisation in planning and execution can now be SAF AS ROLE MODEL FOR achieved at the level of the entire SAF rather ORGANISATIONAL NIMBLENESS than at the level of individual Services. By How might the Civil Service overcome its adopting a more integrated approach, the structural bottlenecks? The Singapore SAF is better able to make trade-offs with Armed Forces (SAF), which has transformed a holistic view of strategic priorities for the its organisational structure over the past entire organisation. two and a half years, may provide useful The success of the strengthened role lessons. for Joint Staff was demonstrated in recent The main premise of the SAF operations. For example, in the relief reorganisation effort is that a strong centre operations in Aceh in Indonesia, there was is critical in ensuring that we take a only one chain of command from the visionary approach to issues; make the best troops via the Head of Joint Ops, Director trade-offs in achieving our strategic of Joint Ops and Planning Directorate to priorities; and make decisions effectively the Chief Defence Force for day-to-day and swiftly on operational matters. operations, and further to the Minister From 1982 to 2004, the role of the Joint overseeing strategic decisions. All assets — Staff designation in the SAF was to whether from the Army, Navy or Air coordinate between the three SAF Services Force — came under a single chain of (Army, Navy and Air Force) in their command. All issues were handled through respective development and operations. this single chain of command without Prior to the SAF’s organisational review, having to be cleared through respective planning and operations were commanders in the Army, Air Force and decentralised to facilitate the rapid build- Navy, as was previously done. up of basic capacity in each of the three Development in the SAF has also

ETHOS | Issue 2 | APR 2007 78 Strengthening the Centre in Government | Ng Chee Khern benefited from the strengthened role of order to make the Civil Service more the Joint Staff office. Previously, the three strategic and nimble in an era where issues SAF Services would come up with their increasingly cut across agency jurisdictions, own operational requirements and it is clear that its centre needs to be development plans with only very broad strengthened. central guidelines. The role of Joint Staff Under our present system, issues can was mainly a “residual” one — to resolve only be centrally directed to a limited conflicts between the needs of the three degree, for instance, through MOF when a Services — rather than to ensure integration project comes up for reinvestment funding. and extract synergies across the SAF. The This arrangement is reactive, rather than final budget needed to build up the SAF, one where a central authority can for instance, was a simple summation of proactively direct the system towards the requirements from the individual strategic ends. Our situation is akin to the Services, rather than one based on overall legal process, where a case has to be put strategic priorities for the entire SAF. Under before the authorities before a guiding this system, strategic capabilities that cut precedent can be established. across the three Services were less likely to Singapore’s Civil Service could benefit be built, because these Service-wide from a strong central directorate, with initiatives did not have a clear owner. The Head, Civil Service (HCS) playing a role risk of over-building, especially of analogous to the Chief-of-Staff, Joint Staff peripheral capabilities, was also greater. (COS-JS) in the SAF. The SAF Service Chiefs In contrast, today’s strengthened Joint currently direct developmental policy for Staff has the mandate to originate and their respective Services. The COS-JS, prioritise the strategic requirements of the however, has the mandate and executive Services through a series of medium- and capacity to direct the work of the three long-term plans. The Joint Staff also actively Services so that all issues are managed from participates in the Services’ Operational a holistic, SAF-wide perspective. Applying Masterplanning, ensuring that these this analogy to the Civil Service, the requirements are transformed into actual Permanent Secretaries would remain projects and capabilities. primarily responsible to their Ministers but there would be a greater degree of LESSONS FOR THE CIVIL SERVICE: coordination and direction executed by HEAD, CIVIL SERVICE AS CHIEF-OF-STAFF, HCS. Without this level of coordination, JOINT STAFF? issues surfaced to the Cabinet would be The experience of the SAF suggests that in largely filtered through the agency-centric

ETHOS | Issue 2 | APR 2007 Strengthening the Centre in Government | Ng Chee Khern 79 views of individual Ministries. To facilitate not be achieved at the expense of the the required level of coordination, it would Ministries’ core competencies. also be ideal if the Prime Minister’s Office Individual Ministries will need to be as (PMO) (specifically, PSD and SPO) and MOF strong as ever in their functional could come under the direct supervision competencies. Otherwise, they run the of HCS. danger of not having sufficient specialist Processes would have to be modified to expertise to take strategic action. However, allow HCS to discharge his increased Ministries will have to be convinced of the responsibilities. HCS would only be able to value of giving up some of their decision- exercise his mandate if he is able to utilise, making prerogative in the interest of a mobilise, and emplace people of the stronger and more holistic perspective on appropriate calibre and experience, and strategic issues that cut across the whole deploy appropriate resources to make of Government. If they can be persuaded, things happen. We may wish to consider the Civil Service has the potential to take strengthening SPO and the overall planning on a far more strategic orientation and processes so as to allow HCS and his staff become a lot quicker and more nimble in to prioritise the work of the Civil Service execution. as a whole. To add teeth to this mandate, the authority of MOF to allocate funds should also come under HCS and his office. Brigadier-General Ng Chee Khern is Chief of Air HCS should also be given greater powers Force. A pilot by vocation, he previously served in initiating and recommending manpower as Director, Joint Operations and Planning postings. The HCS position should, Directorate and Chief of Staff (Air Staff). This therefore, be a full-time appointment and article was written while he was attending the Institute of Policy Development’s 6th Leaders his office would oversee both PMO and in Administration Programme (9 October to 17 MOF. November 2006). The SAF experience suggests that wide- ranging reforms to organisational structure need to be adopted with sufficient ambition and scope to be truly effective — this may well be true for the Civil Service as well. It might be argued that by strengthening the centre, we run the risk of emasculating the individual Ministries. However, while the centre needs strengthening, this should

ETHOS | Issue 2 | APR 2007 80 The Globalisation Game | Martin Wolf

Interview with Martin Wolf The Globalisation Game

The award-winning financial journalist and author of Why Globalization Works discusses the role of government in a globalised world, and the impact of China’s rapid growth.

In your book Why Globalization Works, you do these things is very variable. One of the argue that the world needs more global markets. reasons is because many governments try What do you think is the proper role of to do more than possible and things governments in pursuing economic integration on the one hand and, on the other, ameliorating become worse as a result. the negative effects of economic liberalisation? Third, it really does depend very much There are tremendous economic gains to on the opportunity a country has. In an be had from integration with the world export-led growth pattern which starts with economy. In the post-Second World War labour-intensive manufacturers, the period, every successful economy has had, involvement of government does not need as part of its success, the exploitation of to be very extensive. Trade only has to be international economic opportunities. This allowed to proceed and it will, to some has been dramatically true of the Asian extent, evolve naturally. When you start success stories, including Singapore. thinking about financial integration or the First, it is quite clear that the necessary successful exploitation of mineral wealth, condition for successful exploitation of much more is demanded of government. these opportunities is a supportive Financial integration demands a high government. Government support is quality regulatory regime or the ability to required in a whole range of dimensions. import such a regime from abroad through Success clearly requires a sensible policy; foreign direct investment (FDI) in the sector. it requires the provision of basic rule of In the case of minerals, there are huge law and property rights, security, dangers of corruption, waste and so forth. infrastructure, education, as well as So again, a very high quality of government support for the productive and investment is required. sectors. There is a whole range of things Finally, it is obvious that globalisation that governments have to do. creates great opportunities for some in Second, the ability of governments to society and not for others. Yet there is a

ETHOS | Issue 2 | APR 2007 The Globalisation Game | Martin Wolf 81 need to preserve a degree of social should liberalise and integrate into the harmony. You want people to feel they are world system. So eventually everybody did, all potentially part of the economic project including the Chinese, the Russians, and of society. That means that governments the Indians. In my view, this was do have to think about the education and incomparably the most successful foreign training of the young, so that they can policy project of the US and, indeed, of any participate. They have to find ways to great power. compensate the losers in the system. That means raising taxes for that purpose, which becomes more difficult as tax The argument for globalisation revenue itself comes under competition. is not an argument against However, a well-run country can still raise government. It is an argument enough money to do this if its policies for sensible and good are targeted. government. The underlying point is that markets need governments and governments need markets. There is a very profound relationship between the two and the argument for There are many, many American globalisation is certainly not an argument winners from globalisation. The United against government. It is an argument for States continues to possess and is likely to sensible and good government. continue to possess for quite some time the world’s most innovative companies, In the post-Cold War era, the US has been the the world’s centres for innovation. For this most forceful advocate of trade liberalisation reason, it attracts many of the brightest and the globalisation agenda. But now there is people from all over the world, and it has pressure in the US to become protectionist, many of the world’s most successful with more inward-looking measures. How do you see the role of the US evolving over time multinational companies, financial centres as the chief advocate of globalisation? and businesses. All these winners have a In a very deep sense, modern globalisation huge interest in making globalisation work was ultimately a US project that goes back in the US, and they are very influential in to the years after the Second World War. politics. It is a logical consequence, if not an Of course, there are also some losers. intended one, of the post-war system. Those who used to work in relatively high- Throughout the 1960s and 1970s, they waged unionised basic industries, such as pushed the idea that developing countries steel and auto-production, are relative

ETHOS | Issue 2 | APR 2007 82 The Globalisation Game | Martin Wolf losers in the current situation. The trade What do you think are the implications of unions mostly represent them. They are China’s entry into the global world? Do only about 7% to 8% of the labour force but you think it strengthens globalisation or they are very important for the Democratic undermines it? Party. By and large, China has been a responsible The right way of thinking about what player at the globalisation game. It has is happening in the US — which is also liberalised its imports dramatically, more happening in the UK and most other effectively than Japan ever did, in fact. This Western countries — is to ask: are there has been crucial to its growth, integration aggregate gains? In the US case, there is no with the world system and global doubt that there are aggregate gains. The engagement in China’s development. It economy’s growth is partly a reflection of liberalised access to FDI in China. So FDI the large gains from globalisation. I do not in China is enormous, in relationship to expect the role of the US corporate sector, gross domestic product (GDP), whereas in university sector, innovation machine to Japan and Korea, for instance, it remains disappear in my lifetime; I expect it to very small. remain dominant in these areas. So China has chosen to be much more So the US is a divided community. There open to the world economy than, say Japan are very big winners in the US, permanent or Korea. I sometimes joke that if you look winners. Of course there are also some at the statistics, China looks like a gigantic losers. How will this play out? Up to now, Hong Kong, since it is so open. It has a the winners have consistently been more much larger trade now than Japan in gross powerful than the losers. In all probability, terms, even though its GDP remains only that will remain the case. half of Japan’s. This is remarkable and the One of the most important things that decisions to open China in this way were has happened in this respect is that as very bold and have established broad vested companies increasingly become interest in China’s success from corporate multinational, their interest is no longer sectors globally. This is a source of great with their domestic workforces. They have stability for the world. a global workforce, that is how they think Now, has China been fully sensitive to of themselves, so they are not going to go the recent emergence of these large current for protection against imports. Therefore account surpluses and their associated there will tend to be friction. Globalisation dangers? I think this explosive increase in divides societies. The tensions will exist foreign currency reserves and surpluses but I think they will be managed. happened quite suddenly, rather than as

ETHOS | Issue 2 | APR 2007 The Globalisation Game | Martin Wolf 83 a matter of policy. Up to now, the surpluses (over the last two to three thousand years) have been manageable. The problem is that and its contemporary political system they are already very big and may get much makes it very different from the US on bigger. Challenging adjustments to this questions like democracy, human rights new problem will then have to be made in and the way foreign policy should be future. They are aware of it and I think conducted. The potential for friction as a they will try to resolve it over the next four result of these different attitudes and to five years. values is also very deep. The world can accommodate China’s You can now see this emerging quite rise economically — provided China significantly in China’s foreign relations: remains open, its imports grow as fast as China and Sudan, China and Zimbabwe, its exports and its policies are seen to be China and Iran — these are all potential fair and reasonable. But since it is such a trouble spots. Add to these differences a huge shift in global economic power, natural power rivalry, and the fact that adjustments are not going to be perfectly culturally the US and China have little smooth. On the whole, however, the sympathy for each other. The US really Chinese have handled all these challenges dislikes the way China is run. The way the pretty well. US is run is clearly not the one the Chinese have chosen for themselves. So presumably How do you see this geo-political and economic they are rather doubtful about it. These relationship between US and China play out in the long term? How will it affect other differences are profound. Here is the largest regional players? rising power in the world and it is not This is the biggest single question about anything even close to a democracy. This the future of the world geo-politically. All is another source of conflict. you can say is, big shifts in relative power Third, China is imposing economic have always created problems — new changes upon the world and upon the US relationships have to be formed and that which are very difficult to cope with. So is difficult. there is plenty of potential for trouble. Second, China and the US are very The upside is that the Chinese different civilisations and different particularly, but the Americans too, as Bob countries in a deep sense. The US has a Zoellick1 pointed out very well in a speech tremendous influence on contemporary about a year ago, have invested in a mutual China — culturally and in terms of economic relationship which has become economic thought, for instance. The reverse so deep, and engaged the interests of so obviously is not true. The history of China many important players on both sides, that

ETHOS | Issue 2 | APR 2007 84 The Globalisation Game | Martin Wolf clearly both would suffer enormous This article was extracted from a discussion between Donald Low, Director of the Institute of Policy Development and Mr damage if it broke down. Martin Wolf on 14 September 2006, after Mr Wolf delivered his At this stage in China’s history, New Insights Lecture on “Global Imbalances: Why They Matter” challenging the US head-on is pointless. at the Civil Service College in Singapore. China will rise and naturally change the balance of power, so they do not need to Mr Martin Wolf is Associate Editor and Chief push it. It is not as if this is a temporary Economics Commentator at The Financial Times, window of opportunity. China has more to London. He was awarded the Commander of lose in the breakdown of relationships now the British Empire (CBE) in 2000 for services than the US has. They are certainly not a to financial journalism. He is a visiting fellow of military rival in any way. They need Nuffield College, Oxford University, and a Special American technology; the reverse is not Professor at the University of Nottingham. He true. They need access to American has been a Forum Fellow at the annual meeting markets. They have a poor relationship of the World Economic Forum in Davos, since with Japan already and certainly don’t want 1999. Mr Wolf was joint winner of the Wincott the US using Japan against them. So I think Foundation senior prize for excellence in financial the basic Chinese solution to this problem journalism for 1989 and again for 1997 and won is to lie low and to be cooperative as far as the RTZ David Watt memorial prize for 1994, a they can. In most issues, they are. prize granted annually “to a writer judged to I think that given all the problems the have made an outstanding contribution in the US has in the world and given the mutual English language towards the clarification of interest and also Chinese policy, this will national, international and political issues and probably be a manageable relationship. the promotion of their greater understanding”. However, there are factions in the United

States that would quite like it to break NOTE down — people who are either suspicious 1. Zoellick, Robert, "Whither China: From Membership to Responsibility?" (Remarks to the National Committee on United of China or just feel that the US could do States-China Relations, September 21, 2005, New York City), with an enemy. http://www.ncuscr.org/articlesandspeeches/Zoellick.htm (accessed 29 March 2007). At the moment, however, the US has enough enemies, which is another factor. Attention is diverted to the Middle East. What would have happened without Al Qaeda is quite an interesting question. The enemy of one’s enemy is one’s friend. On that principle, the Jihadists have brought some very unlikely countries together.

ETHOS | Issue 2 | APR 2007

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