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AsiaOne
17-07-2025
- Automotive
- AsiaOne
What is the best way to meet the people's needs? SM Lee, Jamus Lim debate COE scheme , Singapore News
While they are both keen on addressing the needs of Singaporeans, Senior Minister Lee Hsien Loong and the Workers' Party MP Jamus Lim disagreed on the means of doing so, according to an exchange between the two on Facebook on Wednesday (July 16). SM Lee had said during a dialogue at the Economic Society of Singapore's (ESS) annual dinner on July 15 — where he was also conferred the title of Honorary Fellow — that introducing considerations for different groups' needs and circumstances into the COE system could "make it unworkable". Prof Lim wrote in his Facebook post that while SM Lee had noted during the dialogue that many people had "legitimate claims on an affordable vehicle", he didn't mention a means to adjudicate between these claims. "He then pivoted to how competitive bidding represented the best way to allocate between these claims," said Prof Lim. "What's sorely missing, however, is how those with genuine needs may not have the purchasing power to meet those needs, even if their needs may have more merit." According to Prof Lim, this suggests SM Lee has decided to let the market choose who should receive the certificate — which means that those with more money will have priority. "[This] isn't how many humans wish to live; to have every aspect of their lives determined in a transactional way. Society has values — about compassion, equity, respect, and loyalty — that are poorly valued by impersonal markets," he added. But Prof Lim also wrote that SM Lee did stress the importance of ensuring access to public transport, as opposed to car ownership. "And to be clear, this isn't a character flaw," said Prof Lim. Affordable transportation for all Rebutting Prof Lim on Facebook, SM Lee said that during the dialogue, he made a separate point on how the government has focused on providing affordable and efficient transport options. On Tuesday, SM Lee had stated that he can guarantee every Singaporean "affordable, convenient transportation". "I cannot guarantee every Singaporean an affordable car… Cars, no. Transportation, yes," he had said. He then explained that Singaporeans who have special requirements, such as those with children, can benefit from a larger baby bonus which they can use to defray the cost of a car. "Directly help the group you need to help in cash, rather than make complicated schemes, which then end up with all kinds of contradictions and wrong incentives," SM Lee had pointed out. Reiterating his arguments in his response to Prof Lim, SM Lee wrote: "Where we disagree is not over who cares more for our fellow Singaporeans, but what is the best way to meet people's needs and take care of them." Lim concurred, adding that their disagreement stems from their "differing beliefs about the behaviour of people, and the efficacy of markets". Defining success today At the dialogue, SM Lee tackled other topics such as US tariffs and climate change. He also shared his thoughts on what success means for the youth of Singapore today. Responding to a question from ESS Young Professionals Wing chairman Benjamin Lau, SM Lee commented that "it is for the young Singaporeans to define what they would like success to mean". He explained that youths today are born with advantages their parents did not have, specifically the higher standard of living and education opportunities. "You have a Singapore degree from an AU (Autonomous University), you can go anywhere in the world and find work. We are in Silicon Valley. We are all over China. You go to deepest Africa, you will find Singaporeans there," he said. He also advised youth to not rest on their laurels. "Do not lie flat," SM Lee cautioned. "It is such a waste, that your parents will be disappointed in you… If you lie flat after a while, I hope you are ashamed of yourself. "We did all these for you, make use of it and show us that actually, you are better than us." [[nid:720049]] khooyihang@
The Star
16-07-2025
- Business
- The Star
US tariffs may last well after Trump; crucial for countries to deepen trade ties: SM Lee
SINGAPORE: Countries that support free trade should strengthen cooperation and work together to adapt to evolving global trade dynamics in response to the United States' increasingly protectionist stance. This is crucial, as it may be difficult for the US and the rest of the world to return to the pre-April 2 landscape, when President Donald Trump unveiled his so-called reciprocal trade policy, said Senior Minister Lee Hsien Loong. The former prime minister was speaking at the Economic Society of Singapore's (ESS') annual dinner on July 15. SM Lee noted that once tariffs are in place and new businesses emerge that rely on that protection, it becomes politically unfeasible to remove them, as these businesses, now with vested interests, will push back against any rollback. 'It will not go back to the status quo in trade policy, in economic policy. Once you make a move, you can't take it back.' He noted that former US president Joe Biden did not overturn earlier tariffs that Trump imposed on China in his first term. SM Lee said that it is unclear if the US will in the future abandon its protectionist stance, but that should not stop other countries from strengthening international cooperation among one another. He noted that the US has taken a more narrow, bilateral and transactional view of international trade, and, while not perfect, the World Trade Organisation (WTO) framework has nonetheless enabled extensive free trade among many countries. 'We will have to see whether that is (still) possible, because when you have the biggest economy in the world taking a radically different approach and really not just withdrawing from, but expressing its disapproval of, the WTO system, that will have repercussions.' Acting in defiance of economic laws and the interests of other countries will be very hard to sustain for the US, SM Lee said. 'One thing I have learnt in government is that you can fail to follow economic principles, but you cannot repeal an economic law, whether you follow (it) or not, the economic law exists. 'That's just the way the world works. That's just the way human society works, and if you don't follow it, you may have your reasons and you want to override it and do something different, but market forces, incentives for people to act in certain ways in their own interests are very powerful,' he said. He noted that the Americans still have to trade with the rest of the world, such as in rare earths. 'Maybe at some point you (the US) can come back and participate again in a more open and constructive way, but that's the best possible scenario. It may or may not happen.' Asked what other countries should do in the meantime, SM Lee said they can build partnerships with like-minded economies within a region such as Asean, a broader grouping like the Regional Comprehensive Economic Partnership, or through wider trade pacts such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. 'And I think we can also work together on the WTO framework... how to make the WTO work without being paralysed by consensus gridlock.' He said countries should also diversify their trade relationships by exploring new markets in regions like Latin America and Africa. SM Lee's dialogue with ESS president Euston Quah also touched on domestic economics and policies, such as on Singapore's certificate of entitlement (COE) system. A preferential system where COEs are offered at a lower cost to certain groups is not feasible for Singapore, SM Lee said. He was responding to a question by Professor Quah that made reference to calls for COEs to be made more affordable to some drivers based on need, such as families with young children. This cannot work in tandem with the current COE system, which is meant to allocate scarce space on the road according to economic principles, SM Lee said. 'It becomes very difficult for the Government to design a system which takes into account how many kids you have, how young they are, whether you've got somebody disabled in the family, whether you have an old folk, whether your job requires you to go place to place, delivering supplies, meeting customers, or whether you are driving to a place of work very far away,' he said. 'I think if you want to design a scheme which worries about all those things, it would fail.' He likened the COE to a proxy for road space, with prices fluctuating depending on demand from prospective car buyers. This system is working quite well, SM Lee said, adding that the Government has issued additional COEs to give more people the right to own vehicles. 'If you want the price to be lower, then you must put out more COEs, which is what the Government is now doing. We took from the future. We are putting out 5 per cent, 10 per cent more, and therefore the supply is higher,' he added. 'There's really no easy way to make something which is valuable be distributed fairly, and at the same time, very cheap.' The Land Transport Authority has said it would add up to 20,000 additional COEs across all five vehicle categories over several years from February 2025. SM Lee also cited the Chinese city of Beijing, which adopted lotteries to determine which drivers could own licence plates. He said he did not believe this was the right solution for Singapore. 'I can guarantee every Singaporean affordable, convenient transportation. I cannot guarantee every Singaporean an affordable car.' He added that cars differ from Housing Board flats, where 'every Singaporean can get one, maybe three-room, maybe five-room, maybe two-room, but every Singaporean household can get one. But cars, no'. SM Lee said it is better to provide direct cash assistance to the group in need, instead of creating complicated schemes to help them. 'You have a special need, for example, you have a kid. Rather than I give you a cheaper COE, I give you a bigger baby bonus, and if you want, you can use that to... help to pay for a little bit of a car,' he said. - The Straits Times/ANN
Online Citizen
16-07-2025
- Automotive
- Online Citizen
SM Lee defends market approach for COE while Jamus Lim urges more empathy and social fairness
SINGAPORE: On 15 July 2025, Senior Minister Lee Hsien Loong staunchly defended Singapore's Certificate of Entitlement (COE) system during a dialogue at the 69th Annual Dinner of the Economic Society of Singapore (ESS). Responding to public concerns over affordability and fairness, Lee reiterated that the COE system remains a vital mechanism to allocate Singapore's scarce road space through market pricing. During the event, moderator and ESS President Euston Quah raised the question of whether COEs should be made more affordable for those who may have greater need for a car. Lee replied that while he understood the desire to tailor COE prices to individual circumstances, but any attempt to engineer it too finely to meet individual needs would fail. 'There's really no easy way to make something which is valuable be distributed fairly, and at the same time, very cheap,' Lee explained, adding that trying to factor in individual needs such as family size or disability would make the system contradictory and unmanageable. Lee reiterated the purpose of the COE system: to use market forces to manage limited road space and control car ownership. He noted that the Government had already brought forward future quotas to increase COE supply and ease upward price pressure, but cautioned that managing demand remained the core challenge. Lee rejected alternatives like Beijing's licence plate lottery, arguing it would not be suited to Singapore's context. Pressed again by Quah on whether special groups should receive concessions, Lee maintained that while Singaporeans are entitled to reliable, affordable public transport, car ownership was not a guaranteed right. 'I can guarantee every Singaporean affordable, convenient transportation. I cannot guarantee every Singaporean an affordable car,' Lee stated. 'It is different from HDB houses. Every Singaporean household can get one. But cars, no.' Lee suggested that instead of adjusting the COE system, the Government could provide direct financial assistance to those in need. 'For example, if you have a child, it is better that I give you a bigger baby bonus rather than a cheaper COE,' he said, arguing that such an approach is more transparent and less prone to loopholes. Jamus Lim calls for deeper social values in policymaking In a Facebook post on 16 July 2025, Workers' Party Member of Parliament Associate Professor Jamus Lim acknowledged Lee's 'masterclass' in economic reasoning but expressed concern about over-reliance on market mechanisms. The Sengkang MP stressed that values such as compassion, equity, and loyalty cannot be captured by prices alone. 'What's sorely missing… is how those with genuine needs may not have the purchasing power to meet those needs, even if their needs may have more merit,' Lim wrote. Lim contended that when Lee defaults to an auction-based mechanism, he is not merely saying, 'I don't have the wisdom to decide. Let the market choose.' Rather, he is conceding the fulfilment of needs to those who are better positioned financially — those with more money. While acknowledging that Lee had rightly underscored the importance of access to public transport, Lim argued that not every facet of life should be governed by market logic. 'Society has values—about compassion, equity, respect, and loyalty—that's are poorly valued by impersonal markets,' Lim wrote, drawing parallels to family and civic life where altruism prevails over transaction. Lim called on Singaporeans to view existing policies not as immutable structures, but as systems open to reform. 'We are not mindless slaves to the prevailing structures… If we want to head toward a more empathetic and just society, then it is on us to seize that vision and make it real,' he stated. SM Lee responds to Lim's post publicly in rare gesture In a rare gesture, Lee's official Facebook account commented directly on Lim's post, reiterating key points from his dialogue remarks. Lee clarified that the Government's approach was to (1) ensure access to efficient public transport, and (2) directly assist groups in need, such as by increasing financial grants to families with young children. Rather than complicate the COE system, these targeted interventions better address social needs, Lee maintained. 'Therefore where we disagree is not over who cares more for our fellow Singaporeans, but what is the best way to meet people's needs and take care of them,' added Lee. Lim calls for more targeted measures In response, Lim thanked Lee for elaborating on his position, acknowledging the clarity on the two points raised. He agreed with the focus on accessible public transport and recognised the rationale behind financial grants, but argued for a more direct mechanism to signal support for specific social groups. 'I, however, favour a more targeted mechanism, ' Lim explained. 'It would not only better channel behavior toward a specific social objective, but also signal more directly as to how the government is helping certain groups out (while also blunting the transactional nature of the system).' Lim concluded by emphasising that the disagreement was not about who cares more for Singaporeans, but about different philosophies on how best to help them. ' And that, in turn, hinges on our differing beliefs about the behavior of people, and the efficacy of markets,' Lim wrote. Calls grow for needs-based tweaks to COE system amid fairness concerns A Netizen commented on Jamus Lim's post agreed that while the COE system is efficient, it can be unfair to those with genuine needs who cannot outbid wealthier buyers. The comment suggested ideas like reserving a portion of COEs for people with special needs, offering targeted subsidies, or creating separate COE categories for essential use vehicles. Others proposed measures such as instalment payments or capped bids to protect vulnerable groups from price spikes. Some pointed to international examples like Beijing's licence lottery, arguing it shows how non-market allocation can reduce inequality and traffic. Others noted that Singapore's own public housing and education subsidies prove needs-based systems can work. A comment criticised past governance for being overly profit-driven and for letting market forces dominate basic social goods like housing. Assoc Prof Lim himself replied that modern economics offers practical tools—like better auction designs and exemptions—that could balance efficiency with fairness if society chooses to act.
Straits Times
15-07-2025
- Business
- Straits Times
US tariffs may last well after Trump; crucial for countries to deepen trade ties: SM Lee
SINGAPORE - Countries that support free trade should strengthen cooperation and work together to adapt to evolving global trade dynamics in response to the United States' increasingly protectionist stance. This is crucial, as it may be difficult for the US and the rest of the world to return to the pre-April 2 landscape, when President Donald Trump unveiled his so-called reciprocal trade policy, said Senior Minister Lee Hsien Loong. The former prime minister was speaking at the Economic Society of Singapore's (ESS) annual dinner on July 15. SM Lee noted that once tariffs are in place and new businesses emerge that rely on that protection, it becomes politically unfeasible to remove them, as these businesses, now with vested interests, will push back against any rollback. 'It will not go back to the status quo in trade policy, in economic policy. Once you make a move, you can't take it back.' He noted that former US president Joe Biden did not overturn earlier tariffs that Mr Trump imposed on China in his first term. SM Lee said that it is unclear if the US will in the future abandon its protectionist stance, but that should not stop other countries from strengthening international cooperation among one another. He noted that the US has taken a more narrow, bilateral and transactional view of international trade, and, while not perfect, the World Trade Organisation (WTO) framework has nonetheless enabled extensive free trade among many countries. 'We will have to see whether that is (still) possible, because when you have the biggest economy in the world taking a radically different approach and really not just withdrawing from, but expressing its disapproval of the WTO system, that will have repercussions.' Acting in defiance of economic laws and the interests of other countries will be very hard to sustain for the US, SM Lee said. 'One thing I have learned in government is that you can fail to follow economic principles, but you cannot repeal an economic law, whether you follow (it) or not, the economic law exists. 'That's just the way the world works. That's just the way human society works, and if you don't follow it, you may have your reasons and you want to override it and do something different, but market forces, incentives for people to act in certain ways in their own interests are very powerful,' he said. He noted that the Americans still have to trade with the rest of the world, such as in rare earths. 'Maybe at some point you (the US) can come back and participate again in a more open and constructive way, but that's the best possible scenario. It may or may not happen.' Asked what other countries should do in the meantime, SM Lee said they can build partnerships with like-minded economies within a region such as Asean, a broader grouping like the Regional Comprehensive Economic Partnership, or through wider trade pacts such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. 'And I think we can also work together on the WTO to make the WTO work without being paralysed by consensus gridlock.' He said countries should also diversify their trade relationships by exploring new markets in regions like Latin America and Africa. SM Lee's dialogue with ESS president Euston Quah also touched on domestic economics and policies, such as on Singapore's certificate of entitlement (COE) system. A preferential system where COEs are offered at a lower cost to certain groups is not feasible for Singapore, SM Lee said. He was responding to a question by Prof Quah which made reference to calls for COEs to be made more affordable to some drivers, based on need, such as families with young children. This cannot work in tandem with the current COE system, which is meant to allocate scarce space on the road according to economic principles, SM Lee said. 'It becomes very difficult for the government to design a system which takes into account how many kids you have, how young they are, whether you've got somebody disabled in the family, whether you have an old folk, whether your job requires you to go place to place, delivering supplies, meeting customers, or whether you are driving to a place of work very far away,' he said. 'I think if you want to design a scheme which worries about all those things, it would fail.' He likened the COE to a proxy for road space, with prices fluctuating depending on demand from prospective car buyers. This system is working quite well, SM Lee said, adding that the government has issued additional COEs to give more people the right to own vehicles. 'If you want the price to be lower, then you must put out more COEs, which is what the government is now doing. We took from the future. We are putting out five, 10 per cent more, and therefore the supply is higher,' he added. 'There's really no easy way to make something which is valuable be distributed fairly, and at the same time, very cheap.' The Land Transport Authority has said it would add up to 20,000 additional COEs across all five vehicle categories over several years from this February. SM Lee also cited the Chinese city of Beijing, which adopted lotteries to determine which drivers could own licence plates. He said he did not believe this was the right solution for Singapore. 'I can guarantee every Singaporean affordable, convenient transportation. I cannot guarantee every Singaporean an affordable car.' He added that cars differ from Housing Board flats, where 'every Singaporean can get one, maybe three-room, maybe five-room, maybe two-room, but every Singaporean household can get one. But cars, no'. SM Lee noted that it is better to provide direct cash assistance to the group in need instead of creating complicated schemes to help them. 'You have a special need, for example, you have a kid. Rather than I give you a cheaper COE, I give you a bigger baby bonus, and if you want, you can use that to... help to pay for a little bit of a car,' he said.
Business Times
15-07-2025
- Business
- Business Times
Impact of US tariffs will outlast Trump: SM Lee
[SINGAPORE] The impact of US tariffs will last beyond US President Donald Trump, as economic policies cannot be easily reversed, said Senior Minister Lee Hsien Loong on Tuesday (Jul 15). Asked if the impact of US tariffs might be temporary, SM Lee replied firmly: 'I do not believe that. 'It will not remain like this, but it will not go back to the status quo ante,' he said in a dialogue at the Economic Society of Singapore's annual dinner. 'In trade policy, economic policy, once you make a move, you can't take it back. There are consequences.' If future US leaders try to roll back the tariffs, they will face objections from businesses that relied on those protections and have vested interests, he said. He noted that former US president Joe Biden did not overturn earlier tariffs that Trump imposed on China in his first term. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'It's politically not possible because then you will be attacked: 'You know, your predecessor did this to protect us. Why are you unilaterally giving away a chip? You must bargain for something.'' As for what the new framework for the global economy might be, SM Lee said: 'I suppose the best framework is the world temporarily minus one.' This means the framework 'mostly remains', but the US is trying to change the rules – even as it 'still has to do business with the world'. But he referred to it as 'temporary', because the US may eventually return and 'participate again in a more open and constructive way'. Meanwhile, like-minded countries can collaborate through platforms such as the Regional Comprehensive Economic Partnership and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, he said. 'We should try to make the multilateral framework less bad, rather than write it off.' The economics of climate change and policymaking Geopolitics was one of three themes in the dialogue, alongside climate change and domestic policy issues such as healthcare costs and the Certificate of Entitlement (COE) system. On climate change, SM Lee said that Singapore aims to be 'a good global citizen' and do its part, even though it does not contribute much to global emissions. Singapore should try to do this in a 'rational way', he added, pointing to its carbon tax. This may cause some businesses to reconsider their plans if they cannot cut emissions, he noted. 'But if we are serious about wanting to peak before 2030 and to decline progressively after that, then there's really no alternative,' he said, referring to Singapore's emission targets. 'If everybody can do it without pain, then you probably haven't done very much,' he quipped. On domestic policy, SM Lee stressed that many ministries – not just economic ones – must understand economic forces such as incentives. At the same time, there are areas where the government must intervene so that market forces do not diminish social outcomes, such as healthcare. The healthcare system must be structured with enough intervention to prevent the private sector from 'running off on its own', yet enough 'costing and pricing' to encourage efficiency and discourage overuse, he said. 'I think that we have a balance which works not badly now, although this is a continuing challenge because healthcare technology and costs keep on moving year by year.' For instance, integrated shield plans mean patients do not have to pay at the point of use – but this is causing market failure and something must be done, he noted. On COEs, SM Lee acknowledged that there are 'many good arguments' on making these cheaper for some users, such as those with young children. Yet a system that takes in all these concerns will be too complicated, and may end up with contradictions and the wrong incentives. 'There is really no easy way to make something which is valuable be distributed fairly, and at the same time, very cheap,' he said. The government can guarantee every Singaporean affordable transport, but cannot guarantee that every Singaporean can easily afford a car, he added.
