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Invest in North Korea: Money pit or golden opportunity?

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PYONGYANG: Donald Trump dangled the carrot of foreign investment in front of North Korean leader Kim Jong Un at their nuclear summit, but analysts say few will want to put money into one of the highest-risk business environments in the world.

The US president showed Kim a movie of bright lights, high-speed trains and soaring tower blocks – pitching a future that could be possible if Pyongyang gives up its weapons.

Optimists say that with mineral wealth, cheap labour, and a helpful geographical location, the North has huge potential.

But the history of overseas firms who have tried to set up operations in the isolated, impoverished country is a long and sorry one.

Rules that can change on a whim, bills that are never paid, and the threat of expropriation hang over foreigners who step into the wildest of wild east investment destinations.

For now, dozens of restrictions apply under the various sanctions regimes imposed on the North over its nuclear ambitions.

Joint ventures are banned by the UN Security Council, the European Union blocks financial transfers of more than 5,000 euros, and US regulations mean international banks are loath to enable transactions of any kind – so much so that even humanitarian organisations struggle to fund their activities.

And even if they are lifted, there are major challenges to working in the North.

Infrastructure is poor, and analysts say corruption is widespread.

Crucially, said a diplomatic source in Pyongyang, “legal guarantees for business are very weak”.

“HUGE CULTURAL GAPS”

During the Sunshine Policy, a previous period of warmer ties, South Korean conglomerate Hyundai poured hundreds of millions of dollars into a tourist resort for Southerners to visit the scenic Mount Kumgang.

The most successful foreign firms in North Korea focus on trading activities to avoid having assets

The most successful foreign firms in North Korea focus on trading activities to avoid having assets in the country that are vulnerable to seizure. (Photo: AFP/Ed Jones)

But the trips came to an abrupt halt when a North Korean soldier shot dead a woman from the South who strayed into a forbidden zone.

Many South Korean firms set up operations in the joint-venture Kaesong Industrial Complex where they employed cheap labour from the North, but Seoul closed the project in 2016 over Pyongyang’s weapons programmes.

Egyptian telecom firm Orascom poured hundreds of millions of dollars into setting up the North’s first mobile phone network, Koryolink, only for the government to set up a rival operator of its own.

The company was also unable to get its money out.

“I am taking all the hits,” Orascom’s billionaire owner Naguib Sawiris told Bloomberg last month. “I am being paid in a currency that doesn’t get exchanged very easily, I have put a lot of money and built a hotel and did a lot of good stuff there.”

The history of overseas firms who have tried to set up operations in North Korea is a long and sorry

The history of overseas firms who have tried to set up operations in North Korea is a long and sorry one. (Photo: AFP/Ed Jones)

Construction giant LafargeHolcim last year disposed of its stake in a North Korean cement plant for an undisclosed sum, nursing significant losses.

“Governance is weak, information is lacking and there are huge cultural gaps with local partners,” said Geoffrey See, founder of Choson Exchange, a non-profit that trains entrepreneurs and economic policymakers in the North.

The most successful foreign firms in the North, he added, focus on trading activities to avoid having assets in the country that are vulnerable to seizure.

“FILTHY WIND OF BOURGEOIS LIBERTY”

Kim undoubtedly wants to make his country better off. He declared earlier this year that having completed the development of his nuclear arsenal, “socialist economic construction” was now his top priority.

State media’s coverage of the Singapore summit included extensive pictures of the prosperous city-state, a port, and even Kim’s motorcade passing a Cartier advert – images that would not have been shown in the past.

It was an indication of “permissible aspiration”, said an Asia-based diplomat.

Recent economic changes in North Korea have prompted renewed interest in the country as an

Recent economic changes in North Korea have prompted renewed interest in the country as an investment destination. (Photo: AFP/Ed Jones)

The highly secretive North has been quietly bringing in reforms for several years, allowing private traders to operate in informal markets, giving state-owned enterprises some freedoms to operate, and turning a blind eye to private company operations.

The moves are reminiscent of China’s “reform and opening” under Deng Xiaoping, which propelled the country from a basketcase to the world’s second-largest economy.

Foreign firms are beginning to make inquiries in response, says Michael Spavor of Paektu Consulting, who has been working with the country for 20 years.

“Our organisation has had much interest recently from investors interested in market research as well as face-to-face matchmaking with potential DPRK ministries and future partners,” he told AFP, using the official acronym for North Korea.

But the North has not officially embraced the market. At the last ruling party congress, Kim decried the “filthy wind of bourgeois liberty and ‘reform’ and ‘openness’ blowing in our neighbourhood”.

China has taken North Korean officials on study tours of Beijing, Shanghai and its coal-rich provinces to try to encourage them to follow its example, and diplomats say it is offering detailed development planning.

"It's going to take a very brave investor to venture in again," says one economic

“It’s going to take a very brave investor to venture in again,” says one economic analyst of North Korea. (Photo: AFP/Ed Jones)

But they add that Pyongyang is wary of being too dependent on Beijing, and prefers to look to Vietnam for an example of how a smaller Communist country has been able to adopt capitalism while not weakening the authorities’ hold on power.

North Korea does have some advantages, says Gareth Leather, senior Asia economist for Capital Economics, pointing out natural resources including zinc, magnesite, iron and copper, low-cost labour, and an advantageous location.

But even if sanctions are lifted, he said, “it’s basically a police state and you have a long way to go to North Korea becoming a normal economy”.

“It’s going to take a very brave investor to venture in again.”

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Family in the Force: Children salute inspirational dad in Father’s Day tribute

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SINGAPORE: Some things run in the family. For Senior Station Inspector (SSI) Mohd Fuat, his children took on more than just his genes.

The deputy officer-in-charge of the Community Policing Unit at Nanyang Neighbourhood Police Centre served his National Service in the police force in 1984 and signed up as a regular officer in 1987.

Almost three decades later, his daughter and son joined the profession – in 2012 and 2011 respectively.

Staff Sergeant Nur Adelina and Staff Sergeant (SSGT) Mohd Iraimi are with the Traffic Police Department.

In a fitting tribute in conjunction with Father’s Day, the Singapore Police Force, on its Facebook page, posted their comments about how their father inspired them 

Father's Day 2

(Photo: SPF)

SSGT Iraimi recounted how his father was “very strict” with them.

“I remember we had a 5pm curfew when we were schooling. Being the mischievous one, he paid a great deal of attention on me and made sure that I did not go astray. He also encouraged me to only get a job where my interest lies in. I am glad it all worked out.

“Thank you, Abah. Happy Father’s Day to you,” he said.

Father's Day 3

(Photo: SPF)

SSGT Adelina highlighted the lighter side of their dad as she remembered how he engaged with the community.

“When we were younger, my father would take us to children’s events organised by the SPF, such as colouring contests and exhibitions. Then, I always found Police officers friendly and approachable. 

“I also recalled residents exchanging greetings with him whenever we met them. My father would explain that he knew them due to his work. At times as such, I felt proud of my father who had made a positive impact on the people,” she said.

“I am always proud to be your daughter, Abah. Happy Father’s Day to you,” she added.

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Commentary: For greater social mobility, should the role of privilege in our education system be reassessed?

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SINGAPORE: As Primary One (P1) registration season descends upon us again, heated discussions will likely abound about the admissions process, its fairness, and whether there needs to be a serious relook at the process.

Parents who are concerned about getting their children into popular schools next year are, no doubt, bracing themselves for the exercise.

Those who are alumni of popular schools often feel they can rest easy.

However, the process often invites the opprobrium of those who don’t have connections to such schools. But since 2014, the Ministry of Education (MOE) has been setting aside at least 40 places in every primary school for children without a prior connection.

From 2019, all affiliated secondary schools will have to reserve 20 per cent of their Secondary One places for incoming students who do not have any affiliation priority.

No doubt, this in turn causes some stress for those with connections who might feel like they will have to compete for fewer places. 

As such, perhaps we need to reconsider what constitutes a good school and whether all this stress is warranted. 

Reasonably, we can’t expect public policy to meet the specific desires of each and every citizen. However, it could at least be aligned, in this case, with the larger Singapore narrative of justice, equality and meritocracy. 

PRIVILEGE AND SOCIAL CAPITAL STILL PLAY A PART

In this context, we should note that prior connections remain part of the equation, albeit to a lesser extent. 

P1 registration is taken seriously because the advantages that those with alumni connections have don’t end at the primary school level. The issue arises again if their desired secondary school has an affiliated primary school.

primary school students first day of school 2018 (1)

A primary school student reading in the school hall. (File photo: MOE)

In spite of recent changes, some parents still report losing a place at schools nearest to their homes to those who live much farther away – simply because those children have alumni connections.

Considering the vital discussions Singaporeans have been having lately about inequality, privilege and social mobility, perhaps prior connections should not be a factor in school admissions at any level.

READ: Can education fix inequality in Singapore?

READ: Are we missing the point of education?

THE ALTERNATIVE?

Of course, if changes to the system are made, alternatives would need to be put in place.

So, how should entrance to primary school be determined?

Over the years, we’ve heard suggestions such as a pure ballot-based system or even a pure proximity-based admissions process. 

Schools in wealthier neighbourhoods would generally be populated only by students from wealthier families.

We are already seeing unintended consequences insofar as the high demand for places in top schools can result in rising property prices in the vicinity. Some parents have moved just to be near a school. And others have apparently abused the system by lying about their addresses to help their child get into a popular school. 

In many cases, qualified and deserving students living in less affluent areas may have to travel a longer distance to these schools. Therefore, many end up not going there. 

HDB flats in Toa Payoh file

High demand for places in top schools can result in rising property prices in the vicinity. (Photo: TODAY)

This would not be an issue if every school was seen as a “good” school – and if all of us believed it.

It is the competition for places in particular schools that leads to angst and arguments over admissions criteria. 

Our definition of what is the definition of “good” needs to be broadened as well. It shouldn’t merely be brand-names or schools that accept students who do well in the PSLE, but should constitute well-resourced schools that can bring out the best in every child.

READ:A commentary on parents’ struggle in picking a ‘good school’ for their child.

However, considering the status quo, at least the admissions process needs to be as equitable as possible.

Perhaps the key to greater social mixing and mobility lies in ensuring a healthy residential mix of people from diverse backgrounds – something that the HDB is working on – and relocating popular schools so that everyone – including those from vulnerable backgrounds – have convenient geographical access to them.

In this case, proximity-based admissions may not be tantamount to deepening social stratification.

However, changes could go even deeper.

Even priority admission to top primary and secondary schools for those from diverse socio-economic backgrounds misses part of the point. 

Much has been said about wealthy families’ ability to afford tuition and other extra-curricular classes and courses, and how this gives children a leg up academically, and even when it comes to schemes such as the Direct School Admission programme. 

No system should stop parents from investing in their children. But perhaps there should be greater recognition that kids from families which cannot afford such assistance could be on the backfoot in the classroom, and that any system should attempt to minimise inequalities.

Generic preschool image. Photo: TODAY

A child doing homework. (File photo: TODAY)

Financial assistance and bursary schemes for top secondary schools have been enhanced.

The Government also aims to level the playing field from preschool in order to tackle inequality by doubling its annual spending on the preschool sector to S$1.7 billion in 2022.

BEYOND EDUCATION

But several researchers have pointed out that investment in education alone is insufficient to blunt the impact of privilege. 

This is why the discussion could be widened beyond the narrow sphere of where our kids go to school and who gets to go to the ‘best’ ones.

Family circumstances can affect a student’s performance in school. In the case of low-income families for instance, if parents can’t provide their child with permanent and stable housing, it could affect the child’s study environment and in turn, affect his or her ability to do well in school. 

Therefore, policies need to go beyond education to ensure that such children don’t, in day-to-day living, suffer the effects of vast disparities that could unduly disadvantage them when compared to children from more privileged backgrounds.  

Can the state do even more to diminish the disparities?

Considering recent debates on social mobility and inequality, society might be ready for a deeper discussion on bolder changes to diminish the role that privilege plays in the success of future generations.

Bharati Jagdish is the host of Channel NewsAsia’s On The Record, a weekly interview with thought leaders across Singapore, and The Pulse, Channel NewsAsia’s weekly podcast that discusses the hottest issues of the week.

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Commentary: An over-emphasis on home ownership can come at a cost to society. Time for a review of public housing policy

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SINGAPORE: Singapore is frequently lauded when it comes to housing policy. 

Its home ownership rate of more than 90 per cent of the population is one of the highest in the world and is much higher than the home ownership rates in developed countries. 

Among developed urban centres like Seoul, Tokyo or Hong Kong, Singaporeans occupy a large per square foot per person of living space.

Our public housing programme is well known for its quality of construction and design, including complementary amenities such as community centres, playgrounds, shops, sport facilities and so on. 

While in most countries, public housing is meant for low-income households, in Singapore, it provides options for nearly all socio-economic classes.

FILE PHOTO - Potential buyers look at models of a new public housing estate to be constructed in Si

Potential buyers look at models of a new public housing estate to be constructed in Singapore. (File photo: Reuters/Edgar Su)

FROM THE SLUMS TO A HOME-OWNING SOCIETY

In the 1950s, most of Singapore was living in slum-like, overcrowded conditions, with poor sanitation, safety standards and construction quality. Many lived in squatter settlements of attap, wood and zinc.

Dysentery, tuberculosis, malaria and dengue thrived in these unsanitary and crowded living conditions. The fertility rate of the time was more than five children per woman versus the roughly one child per woman now, exacerbating the misery.

When the People’s Action Party came to power in 1959, it made housing a high priority. Apart from the aforementioned reasons, the Government wanted to build a home-owning society where people felt they had a stake in the country and would work hard to contribute to society.

The social stability it engendered also turned out to be a positive in attracting many multinationals to set up shop in Singapore, improving the economy of Singapore and the lives of people.

The Housing Development Board (HDB) was set up in 1960. Within 10 years, the HDB housed 35 per cent of the population, and by the 1980s, 85 per cent of the population. 

Housing quality also improved over the decades and by this century, many of the newer flats look little different physically from private apartments.

OVER THE YEARS, INCREASING SUPPORT FOR SINGAPOREANS TO OWN A HOME

By the late 1980s, housing security was mostly solved with home ownership hovering at around 90 per cent of the population from 1990 till present.

Yet, policies to encourage home ownership did not let up. 

From the late 1980s to mid 1990s, many policies were introduced to encourage home ownership, including the lifting of income and Central Provident Fund (CPF) restrictions for the purchase of HDB resale flats, allowing CPF savings to be used for private housing, and to pay for mortgage interest payments.

Old HDB flats in Singapore

Old HDB flats in Singapore. (Photo: Marcus Mark Ramos)

During this time, the Selective En Bloc Redevelopment Scheme was introduced, as was the HDB upgrading programme.

RETIREMENT ADEQUACY, PRESSURES ON PRICES, NEW EXPECTATIONS

Commentaries, academic papers and organisations like the OECD and the International Monetary Fund have said that the use of CPF for housing has resulted in retirement inadequacy, with excessive withdrawals for housing at the expense of CPF balances at retirement. 

In response to President Halimah Yacob’s recent call for bold ideas during the recent opening of Parliament, one economist even suggested that the CPF be restricted to no longer be used to pay for housing, seeing that housing prices may not rise indefinitely. 

The high support for home ownership has given rise to expectations, with the Government now unfortunately bearing responsibility for any perceived negatives in our current housing, including housing prices, and receiving little praise for any positives. 

This includes recent concerns around HDB 99-year leases, where many find the idea that a HDB flat value may depreciate as it runs down the lease to be unpalatable, even though the leasehold condition is well publicised.

READ: Singapore’s public housing policy has done its job splendidly, but it’s time for a makeover, a commentary.

READ: 99-year HDB leases a chance to review home ownership and retirement policies, a commentary.

To compound issues, our population is ageing fast. By 2030, as much as one quarter of our resident population may be over 65, many of them living in larger-than-needed flats, as their children leave the nest or as their partner passes away. 

hdb flats

HDB flats in Singapore. (TODAY file photo)

If many choose to fund their retirement by monetising their houses, they may run into an oversupply of flats on the market, lowering resale prices.

Addressing the 99-year leasehold issue or the retirement security issue without a cost to the home owner would effectively need a cross subsidy from future tax payers.

Any changes to housing policy that impact prices would need to consider the fact that most voting Singaporeans have a vested interest in keeping house prices up.

The continuous subsidy of housing in Singapore has been underpinned by the Land Acquisition Act of 1966, which had used historical cost for acquiring land, managing to keep new HDB flat prices low. In 1959, the State owned 44 per cent of all land, and by the mid-2000s, it was 85 per cent.

Effectively, the Government redistributed land wealth from land owners to the rest of the population, aided by a growing economy supporting prices. This, however, cannot continue forever as housing leases start to run out, our economy slows, and our population ages.

The Government had, over the decades since independence, resisted calls to liberally expand the social safety net, in order to avoid the development of an entitlement culture – that once you give someone something, you cannot easily take it back without antagonising that person, and you may end up with an intolerable burden for future generations.

Yet, housing remains one social programme where much resources have been poured into.

OVER-CONSUMPTION OF HOUSING

You over-consume when that consumption is at the expense of something else without significantly increasing the satisfaction from that consumption.

Despite CPF contribution rates hovering between 30 to 50 per cent for most of its existence, some older Singaporeans face retirement security issues. 

Budget 2018 file - elderly 11

File photo of elderly man in Singapore. (Photo: Gaya Chandramohan)

Many say it’s our rising cost of living, but we should also consider what happens when we take out CPF to fund housing.

A house is not just a shelter. It is also a leveraged financial asset. You are taking risk on both property prices and interest rates. Singapore’s rapid growth over the first 50 years from independence has led many people to believe that home ownership is a “sure win”, as house prices also rose from wage and population growth.

Even then, we received a sobering lesson in the late-1990s, when housing prices crashed. We have only recovered to 1996 price levels in the last several years. 

A slowing economy, resistance to immigration and an ageing population suggest that housing prices may not rise as astronomically in the future.

The amount of capital that is not used for housing, can be invested in economic activities. 

Pension funds in other countries invest in stock markets globally, private equity, fixed income, and other diversified investments that preserve wealth, improve retirement security, and encourage economic activity. Singaporeans score highly for assets, but it is mostly tied up in housing, insurance, CPF or bank deposits.

Home ownership means mortgages for most. Having to service a mortgage can discourage risk-taking behaviour needed in entrepreneurship, in changing careers or in finding jobs overseas. 

Man in park near HDB flats

File photo of a man sitting at Bishan-Ang Mo Kio Park. (Photo: TODAY/Christopher Toh)

In the economy of the past, Singapore serviced manufacturing multinationals who needed reliable labour. In the economy of the future, we need to encourage risk-taking and a more fluid, adaptable labour market.

TIME FOR A CHANGE IN HOUSING POLICY

It is wonderful that Singaporeans can take for granted their housing security. We have essentially resolved the housing security problem since the 1990s. 

A major benefit of housing security was social stability, which encouraged foreign investments, mostly in manufacturing.

But do these drivers for our existing housing policy still exist today?

It is my view that we should separate housing security from asset appreciation and recognise that we may be over-consuming housing at the expense of retirement adequacy, allocation of investments into economic activity, and inculcating desirable attitudes needed for a new economy.

Housing policy needs to be reconsidered now while Singapore still has the time and the means to correct course, while catering to a class of existing home owners.

Tan Jin Meng is a postgraduate from the Lee Kuan Yew School of Public Policy with an interest in social policy and economics.

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Trust and respect: Why Muslim women are this home salon owner’s biggest clients

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SINGAPORE: Every two months, Madam Sarlin Ahmad travels about an hour and a half by bus and MRT train from her home in Woodlands to a home salon at Tampines, just to do her hair – even though there are plenty of decent salons near her place.

The salon that she frequents, run by Winnie Lai, accepts only females. And it has found a pretty niche clientele – the more conservative Malay-Muslim women who prefer a private environment without men around.  

“There is a market (for such salons) that are not open to public view. Some people are shy,” said Mdm Sarlin. “When we go to a salon outside, everyone knows what you’re doing. Here, they cannot see.”

The salon is in Mdm Lai’s home, a HDB executive maisonette that looks just like any of the other flats along the quiet corridor.

home salon 6

Neighbours Eliza Erlianna and Radin Siti Syamilah sometimes pop by for her hair services.

During the Hari Raya period, business gets especially brisk. Customers come seeking hair treatments, and many, like Mdm Sarlin, become such close friends that they even bring her their home-made kueh and biscuits to sample.

Mdm Sarlin, for instance, brought the chocolate chip mint cookies she’d made, on a visit a few days before Hari Raya. “As long as it is food, she likes,” she told us, then asked Mdm Lai: “That time I brought the curry puff, nice right? And chicken pie.”

But this time, the goodies came with an extra gift – a tube of slimming cream, which Mdm Sarin presented to an amused Mdm Lai.  “She asks me to slim down, but keeps bringing me food,” the 42-year-old hairstylist laughed.

home salon 10

Sarlin Ahmad and Winnie Lai have become good friends. 

KNOWING WHAT THEY NEED

Mdm Lai opened her home salon 11 years ago, in her then three-room flat. When she moved house, she converted part of her current flat to provide hairdressing services.

A room near the entrance is closed off with a sliding door from the rest of the neat flat, affording both her family and her clients privacy. Inside is a small but professional setup of hairstyling chairs, steam machines and a shampoo chair.

She accepts only female clients as she’s usually alone at home. These factors work out well for her Malay-Muslim customers, who make up half her clientele. “Some allow only female hairdressers to attend to them. The older ones, especially, prefer a salon with no men around,” said Mdm Lai in Mandarin.

home salon 4

The doorway  to her home salon

According to Mdm Sarlin, there are just a handful of women-only commercial salons, typically located in Geylang Serai and Kampong Glam.

Clients who wear the tudung are more comfortable removing it in the privacy of her home salon, than in a commercial salon surrounded by others. Those who try her out end up recommending her to family and friends.

Mdm Lai’s familiarity with the Malay language and culture stems from growing up in Negeri Sembilan, Malaysia. She left home for Singapore when she was 17, determined to learn the hairdressing trade

Her first job at a commercial salon paid just S$500 to S$600 a month. “The working hours were very long, from 9am till 8pm,” she said.

She worked for about 10 years before deciding to strike out on her own when she got pregnant. Her husband, an engineer who has to make business trips, suggested operating a salon at home so that she could be with their child.

“Working at home, I can manage my time schedule. When you have children, it’s quite difficult to work for others,” she said.

home salon 11

She’s even got a shampoo chair.

MEAGRE EARNINGS AT FIRST

Under the Home-Based Small Scale Business Scheme, homeowners like Mdm Lai do not need the housing board’s approval to operate small-scale businesses – such as baking, hairdressing and sewing – in their flat.

Conditions apply: These activities should be small-scale with no hiring of workers, and they should not cause disturbance or inconvenience to their neighbours. (HDB said it received a monthly average of three cases of “feedback” about such activities, from 2014 to 2016.)

Mdm Lai admitted that she did have some reservations about starting a home salon. “Would the type of customers be any danger to me? Would there even be any customers at all?”

Her first set-up in their old three-room flat was tough. The family had to give up one of two bedrooms for the salon, which made only S$600 to S$700 a month.

Husband Steve Choong recalled: “The four of us squeezed into one room. The main sacrifice was space…and we did lose some privacy. The customers would be waiting around in the living room.”

home salon 12

The basic salon in her former three-room flat (Photo: Winnie Lai)

Not to be daunted though, he helped his wife market her business – by learning how to design flyers and personally distributing them.

“Every day he would distribute flyers after work. It was very tough, to go to every block and every storey,” Mdm Lai recalled. “Yet with every 500 pieces of flyers distributed, I received only one or two enquiries.”

Disappointed at the response, Mr Choong learned to design a website for her business. It worked. Soon, she was getting a constant flow of customers.

TRUST AND SENSITIVITY

The couple’s two children grew up accustomed to people coming and going all the time, and they liked it, Mdm Lai said. “I have very nice customers; they play with my children or buy stuff for them.”

home salon 8

When clients come with kids in tow, her own children keep them occupied.

As they grew older, though, “the small space was difficult, they were complaining. So I suggested to my husband to move to a bigger house, where I could continue my salon business and my children would be more comfortable”.

These days, the mother of two charges about S$9 for a haircut and S$60 for a highlight job, which she said is cheaper than a commercial salon’s rates. She makes about S$3,000 a month.

What she did not plan for, was for the Malay-Muslim community to be such a big part of her business.

“I did not expect this to happen. As we are Chinese, to have Malay-Muslims even visit your house is rather difficult. They have to trust you totally, and your house cannot have pet dogs and, for some, men as well,” she said.

WATCH: Winnie and friends (4:46) 

Some of her clients live as far away as Sembawang and Yishun, while others are as close as, well, next door. Her Malay neighbours and their children pop by for hair cuts.

A few customers previously would travel across the Causeway to patronise female-only salons run by Muslims. “But the traffic conditions can be quite bad,” she noted.

Serving Muslim customers requires some sensitivity to their religion. “I was from Malaysia, so I can understand their ways, their thinking and their requirements.”

For example, she said, no touching a customer’s tudung even after she has removed it. A few have even asked if she uses halal-certified hair products (she doesn’t, as they are not so easily found, she says). With more conservative clients, she makes it a point to serve them exclusively, without other customers present.

“They are comfortable within my home environment,” the Singaporean said. “They are willing to pay so long as you give them the best service and they trust you.”

PLAYING AUNT AGONY

Sometimes, clients bring their children along, and Mdm Lai’s kids keep them company.

And some – like Mdm Sarlin – have become firm friends. Here you can eat, you can laugh, you can tell stories everything. All in one,” said the customer service executive, who chanced upon Mdm Lai’s home salon online two years ago.

home salon 9

She now comes every two or three months to do her hair, and sometimes get the Aunt Agony treatment.

“One time I came here, and she could read me. She asked me if I was having problems. I confessed to her and she gave me some advice,” said Mdm Sarlin. “Right after that we became good friends.”

For Mdm Lai, the nature of her home business means trade-offs – such as not having a pet dog and having to give up her weekends, typically her busiest time. During festive periods such as Christmas and Chinese New Year, the house, she said, “doesn’t resemble my home”.

But the greatest satisfaction of running a home salon is the flexibility to be able to contribute financially to the household, and still spend time with her kids.

“My children can see my hardship, they understand how hard you’re working. If you were working outside, they don’t see it,” she said. “But my children understand my tiredness. At times when my husband nags at me, they stand up for me. It is touching, hearing this.”

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Road-testing the Grab&Go service: A marketing gimmick, or a win-win for drivers and passengers?

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SINGAPORE: My Grab driver was clearly a service-oriented person, and it was obvious from the moment I first set foot into his car.

A basket of sweets – for passengers to help themselves to – was attached to the back of the driver’s seat, while a long green USB cord snaked from the plastic box in the car’s centre console, which my driver, Koo Kay Kee, invited me to use to charge my phone.

But it was the large signs stuck on the back of the headrests that couldn’t be missed: It explained how passengers could, with a few taps on their phone, get items like mineral water, canned drinks, snacks or even free face mask samples from the repository of goodies housed in that very same plastic box that also allowed them to charge their phone.

Grab&Go, a new initiative announced by Grab earlier this month, is a tie-up between the ride-hailing company and US-based in-car commerce start-up Cargo. It comes as Grab consolidates its position as the dominant ride-hailing service in Singapore, after announcing its acquisition of Uber’s regional operations in March.

Since then, Grab has also announced the launch of the GrabFood delivery service.

For Grab&Go, drivers of private-hire cars equipped with the box of items will be able to supplement their income by taking a cut of each item sold to passengers from the box.

As for passengers, it’s more or less a convenience store on the go.

HOW DOES IT WORK?

It sounded like a win-win situation for both driver and passenger. But were there kinks to be ironed out, and did it really bring more convenience to passengers? I had to try it out for myself, which is where my ride with Mr Koo came in.

He told me that he makes it a point to observe passengers when they first get into their car. “If they’re not busy staring at their phone, I’ll introduce the service to them,” he said.

“Most of them say it’s quite innovative, and want to try it out because it’s a new experience for them.”

And for the most part, the large, prominent signs did their job in piquing my curiosity. The printed instructions were also clear: Scan a QR code, and you’ll be taken to a site where you can see all the different products in the box that’re up for sale. Alternatively, you could go to a site and key in a unique five-digit code.

Getting to the online menu of items was almost effortless. But the challenge, however, was scanning through the menu on the browser of my mobile phone, as the images shown could not be tapped into or expanded. There was also no description of the item for sale, and I had to rely on looking at only the pictures to make my selections.

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Some of the items up for sale in Mr Koo’s box. 

Nonetheless, I went ahead, selecting a can of Milo for S$1.40 and a Kellogg’s cereal bar that turned out to be a free sample. On Mr Koo’s recommendation, I also picked up a brightening face mask – yet another free sample.

With a few taps on my phone, I confirmed that I would add S$1.40 to my fare. And as we slowed to a stop at a traffic light, Mr Koo’s phone beeped with a confirmation, and he turned around with a smile, opened the box and handed me my items.

TO EAT, OR NOT TO EAT?

But if you’re feeling tempted to dig into your snacks right away, be warned: Grab doesn’t encourage passengers to eat or drink in the cars. And a sign pasted on the window of Mr Koo’s car also makes that clear to passengers.

“No one really questions it,” he told me. “I think most people know that they’re not supposed to eat or drink in the car.”

But in that case, I asked, why offer the sweets? In response, he smiled. “That one, okay lah.”

On further questioning, Mr Koo explained that drivers are meant to hand over the items to passengers only at the end of the ride. “But whenever there’s an opportunity that I can stop the car and it’s safe, I’ll try to pass them the items.”

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A sign pasted on the window of Mr Koo’s Grab car, reminding passengers not to eat or drink in the car. (Photo: Lianne Chia) 

Perhaps instant gratification is just another way Mr Koo tries to make his passengers happy. But drivers who wait still appear to see positive results from passengers – even those with hungry children.  

“There was once I picked up a family of tourists, and there was a young child who was asking his mother for canned Milo and a box of Pocky biscuits,” said another driver, Sheila Koh. “When I dropped them off at their hotel and gave them their items, the child was so happy.”

​​​​​​​HAS IT BEEN WORKING?

Save for the few issues I faced, the box was an ingenious initiative, and a good way for passengers to score free samples of beauty products, or pick up a drink or snack if they know they’ll need it later. 

And the drivers I spoke to all agree that it’s a great way for them to earn some passive income. Drivers earn 20 per cent commission for every paid sale and a S$1 bonus on every transaction, with the remainder going to Grab&Go. ​​​​​​​

Mr Koo, for example, has sold 28 items to passengers ever since he first got the box about three weeks ago. “And it’s still going strong,” he said.

Ms Koh, similarly, says about half of the passengers she ferries daily will buy something from the box. “Customers think it’s really cool, and it’s a novelty for them,” she said. “So sometimes they just pick up a packet of Pocky biscuits, which is only 50 cents, just to see how it works.”

But another driver, Eric Toh, has only made one sale from his box ever since he got it three weeks ago. “Most of my passengers seem to be busy with their phones,” he said with a rueful laugh. “And while some of them ask about the box, they don’t actually go to the website.”

“But some of them are delighted to see there are free face masks available, and one of the passengers actually told me the free samples made their day!”

The box, he stressed, is a “wonderful initiative” to supplement his income. But he said the entire initiative could do with more publicity. “It’s done through the Grab app, and through the signs and decals,” he said. “But I think passengers are either too occupied with their thoughts, or they’re too paiseh (embarrassed).”

Publicity aside, drivers also hope that the variety of items for sale could be increased. And the top request from passengers, they say, is for chilled drinks to be sold.

“I’ve sold mints, the Pocky biscuits and two tubes of Mentos sweets,” said Mr Koo. “But the canned drinks aren’t so popular…because they want chilled drinks.

“Maybe that could be the next step.”

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Commentary: If everyone detests puppy mills, why do they still exist?

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SINGAPORE: It is difficult to resist cute puppies behind window displays in a pet store, their longing eyes begging us to bring them home.

Yet few know that almost every puppy for sale in Singapore comes from a puppy mill, whether local or overseas.

They are products of a multi-million dollar industry that has been exploiting animals for commercial gain for many decades.

HIDDEN FROM THE PUBLIC EYE

Puppy mills are commercial establishments which breed puppies for sale, often intensively, on a large scale, and in appalling, cramped conditions.

Breeding animals suffer a worse fate than their sold-off offspring as mass breeding machines, where they are engineered to push out litter after litter of puppies, with little attention paid to their health, food and care.

In Singapore, most puppy farms are located in farmway areas such as Pasir Ris. Among them, 32 are registered with the Agri-Food and Veterinary Authority of Singapore (AVA).

Puppy mills used to be largely unknown to the public in Singapore. However, a rescue of 85 dogs from a commercial puppy mill in Pasir Ris in April 2010 exposed the horrors which went on behind closed doors.

The dogs were kept in filthy, small cages with little room to move around. Many suffered from severe skin problems, tick fever and pyometra (infection of the womb) and required urgent, extensive and expensive medical care. Some passed away despite rescuers’ best efforts.

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Top Breed pet farm in Singapore did not isolate sick or injured dogs, or confine breeding dogs in individual cages. (Photos: AVA)

RISING AWARENESS AND TIGHTER CONTROLS

There has been greater awareness about the cruelty behind puppy mills since 2010. AVA has also made significant improvements in the licensing and regulation of puppy mills in Singapore, including putting in place higher standards for those who sell animals as pets through a code of conduct for the pet industry.

Pet businesses are expected to comply with higher minimum standards of care and encouraged to adopt stipulated best practices on animal housing, management and care. Failure to meet minimal standards can be used to support prosecution or other enforcement actions to ensure animal welfare.

Since then, more frequent inspections seemed to have been carried out , with errant breeders taken to task and receiving heavier penalties.

In June last year, a breeder of a Pasir Ris pet farm was fined S$180,000 after a surprise inspection by AVA officers found dogs under his care suffering from poor health. One pomeranian was found completely blind, a husky had open wounds and five dogs were found with eye problems, including ulcers and swelling. It was a clear sign that AVA was serious about improving the conditions in puppy mills.

Crackdowns like these may serve as cautionary tales to puppy mills, but enforcement will remain a challenge if AVA manpower continues to be limited. The situation has improved compared to a decade ago, but conditions still vary greatly from puppy mill to puppy mill.

Stories of dogs found in dire conditions are also still commonplace. Just last year, SOSD Singapore rescued eight dogs with severe untreated medical conditions. They had been sick for years and were not given adequate medical care. Clearly, animal abuse and neglect still goes on in puppy mills, behind closed doors.

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AWGs also help rehabilitate stray dogs so that they are ready for adoption. (Photo: SOSD/Facebook)

INCREASED ILLNESSES AND BEHAVIORAL PROBLEMS

Studies have shown that there are increased incidences of distressing behavioural and emotional problems in dogs from puppy mills compared to dogs from more humane sources. They are also more aggressive towards their owners, people around them, and other dogs.

Dogs used for breeding in puppy mills are not spared either.

A 2011 study by the University of Pennsylvania, highlighted that breeding dogs not only had worse health problems, but also exhibited more persistent and extreme behaviour problems including aggressive reactions stemming from various phobia and, learning deficits.

EDUCATION IS KEY

Almost everyone is repulsed by the idea that so many dogs are born into savage conditions. Why then do puppy mills still thrive?

The truth is such heart-breaking conditions will persist despite best efforts from legislators, enforcement officers and animal welfare groups.

The industry is driven by demand. As long as people purchase these puppies, puppy mills will always be in operation, whether locally or overseas. Many pet stores that import puppies from other countries such as Australia obtain their supply of puppies from puppy mills.

The nature of a puppy mill, which is profit-driven, also suggests that owners are incentivised to spend less on space, food and care for these animals, especially those used for breeding. Most will never be able to fully provide the physical and mental stimulation and conditions needed for a dog to be healthy without charging an exorbitant price.

So the key to solving the problem lies not only in legislation, but also in public education.

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A dog looks out from a cage at a dog farm during a rescue event. (Photo: AFP/Jung Yeon-Je) 

Education about alternatives to buying puppy mill dogs have to be more robust. More government-led and public-driven campaigns need to be conducted to further increase public awareness of conditions in the puppy mill industry.

Singapore is maturing into a compassionate society. Once the true nature of puppy mills is laid bare for the public to see, I strongly believe that Singaporeans will not choose to turn a blind eye but will seek out more humane alternatives, where the desire to bring home a dog stems from an inherent love for animals.

Adopting a dog from a shelter not only saves the life of the animal but also helps to address the stray dog situation in Singapore.

People who prefer to buy a dog should do their due diligence to make sure they buy from responsible breeders rather than puppy mills and familiarise themselves with the reputation, track record and breeding practices of the breeder their dog comes from.

Doing so will not only ensure the health and quality of the puppy, but safeguards against pet owners contributing to the expansion of a trade that mistreats animals.

MORE HELP NEEDED TO OVERCOME HUDDLES TO ADOPTION

Singapore is on the right track in terms of animal welfare. The situation here is improving compared to a decade ago and is better than in some neighbouring countries, where animal welfare laws are lacking.

Today, many breeding dogs are rescued and put up for adoption by animal welfare groups such as Voices for Animals. They now have a much better fate than their predecessors, most of which were killed once they outlived their reproductive life.

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AWGs like SOSD also carry out dog adoption drives to encourage the adoption of strays and match them with suitable owners. (Photo: SOSD/Facebook)

However, Singaporeans still face significant roadblocks to adoption.

Archaic HDB rules state that we can only keep one small breed dog per HDB flat.

Most of the 1,500 dogs in animal shelters for adoption, on the other hand, are medium-to large-sized dogs which, according to the law, cannot be kept in HDB flats.

Unless these rules change to give Singaporeans more leeway in adopting dogs, it is always more convenient for prospective pet owners to pop into the nearest pet store, and purchase the next cute puppy they see. 

Dr Siew Tuck Wah is President of SOSD, a Singapore-based organisation dedicated to rescuing, rehabilitating and rehoming stray and abandoned dogs.​​​​​​​

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‘It’s a blessing’: Why a millennial ‘towkay’ fasted with his Muslim migrant workers

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SINGAPORE: For the past 31 days, Nicholas Tai Wei Ming had been waking up at 4.30am to eat, before abstaining from food and drink from dusk to dawn like Muslims around the world observing Ramadan.

But the 28-year-old, whose family owns a small construction company, is Catholic, not Muslim.

This is the second year that Mr Tai has fasted alongside his Muslim employees during Ramadan, and his reason for doing so is simple.

“This is the least I can do to relate to them,” said Mr Tai, who joined the family business in 2015 as a project manager, overseeing reconstruction of residential buildings such as bungalows and terrace houses.

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A bungalow in Sentosa Cove that Mr Tai’s company built. (Photo: Lifestyle Construction)

Other than Muslim workers from Bangladesh, he also enjoys working alongside men from India, Myanmar and Thailand. “Getting to know people from different cultures”, he notes, indulges his “inquisitive character”.

“I always consider it a blessing,” he said.

FROM BANKING, TO CONTRACTOR WORK

Growing up, the Nanyang Technological University graduate in business and finance took scant interest in his parents’ trade. The Tais started out as subcontractors in 1996 installing automated gates for clients.

As the firm grew to become a main contractor, the young Mr Tai and his two siblings would sometimes pop by the construction sites, although their conversations with the workers never went beyond “hi” and “bye”.

That changed after Mr Tai did a six-month internship at an investment firm in the Middle East, and he started having second thoughts about a career in finance. The sedentary job didn’t quite suit his active nature. 

“I decided that I didn’t want to sit down in the office for too long,” he said.

So instead of becoming a banker, after getting his bachelor’s degree in 2015, Mr Tai became a contractor – a job he knew nothing about. 

In order to pick up as much trade knowledge as quickly as he could, he thought the best way was to live among – and learn from – his workers.

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Nicholas Tai and employees from India, Bangladesh, Myanmar and Thailand. (Photo: Nicholas Tai)

The 25 employees from Bangladesh, India, Myanmar and Thailand, most of whom have worked with the Tais for many years, reside in houses the company rents for them. 

Compared to living in workers’ dormitories, as most migrant labourers in Singapore do, the men get more privacy and enjoy the convenience of living near MRT stations.

THE WORKERS’ HOUSEMATE

For a year, Mr Tai was their housemate. In addition to learning about cuisines “from around the world”, he became more than their young ‘towkay’ or boss.

The men, he said, “started out a bit shy”. So to help break down the walls, Mr Tai tried, among other things, to learn simple phrases in their native languages. “‘Have you eaten?’, ‘How are you?’ that kind of thing,” he said.

He would also hang out with them after work, bonding over beers, soccer matches and frequent barbecue sessions at East Coast Park.

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Company BBQ at East Coast Park. (Photo: Nicholas Tai)

“I just want to make them feel as comfortable as they can. And if they’re happy working for us, I will also be happy,” he said.

Mr Tai said that while he got his business acumen from his parents, most of the technical skills he learnt from the “people on the ground”. In particular Gopal, one of their longest-serving site managers from India who has been with them for nine years.

The two – who are only three years apart in age – have become fast friends. Said the young boss:

Whenever I have fights at home, I come and find my manager and we talk and we drink. And when he has stuff he wants to share with me, he does the same.

Mr Tai enjoys such a close relationship with his employees that since 2015, he has attended three of his workers’ weddings back in their hometowns. 

And just last year, he even organised a short holiday to Thailand for the more senior staff to allow them to “see the world a bit more”.

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Mr Tai and senior staff from his company on a trip to Bangkok. (Photo: Nicholas Tai)

THE MILLENNIAL APPROACH

However, when there is work to be done, Mr Tai said he does not let “personal feelings” get in the way of his “duty to deliver” to clients.

Still, that does not mean sticking to the old-time, top-down style of management. As a millennial, Mr Tai prefers a more open-minded and flexible approach.

For example, instead of mandating a fixed number of working hours, he prefers to set his employees benchmarks.

“Let’s say we estimate that construction takes 5.5 days. But if we are able to complete the job in 5 days, then what’s the point of coming in for the sake of coming in?” he said.

I want people to maximise their time at work, and also have some time to relax.

He also thinks it is important to be humble. And by “working from the bottom up” and learning from his workers, Mr Tai hopes that eventually, he will be able to “lead and inspire them in a different way”.

“I can’t come in and act authoritarian because I lack knowledge and experience,” he said. 

He admits that his new, less hierarchical way of managing has yet to “show results” in a concrete manner, but the work culture is definitely changing, he noted. “In the past three years, the mindset of how we approach things has become a lot more positive.”

And this, he believes, will lead employees to “reciprocate with work that helps the company”.

AN EXPERIENCE IN EMPATHY

Last year, Mr Tai decided to fast during Ramadan for the first time.

“In our line of work, you’re in a very strenuous environment, and they still try their best to fast for the month,” he said.

I wanted to know how it felt like.

He got Mr Shaoket Hossen, a employee of 10 years, to serve as his guide. Said the Bangladeshi: “I tell him besides fasting, one month no drinking, no smoking, cannot do bad things – the mind must be clear.”

It was due to his experience last year, that Mr Tai did things differently at work this year. “I tried to arrange for the Bangladeshi workers to do jobs that didn’t take too much from them, so that they could properly carry out their fast and religious duties.”

Just as he spends more time with his Muslim workers during Ramadan, so “on other occasions, such as Deepavali, I spend more time with the Indians,” Mr Tai said.

“They really appreciate it when locals show interest and want to be involved with them.”

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Mr Tai celebrating a Hindu festival with workers from India. (Photo: Nicholas Tai)

Getting to know his multinational employees better has been “a blessing”.

“I get to experience things most Singaporeans won’t get to. Like you can go to India, but do you actually get to go to the village, meet the family, get to know why these workers are here, who they are supporting?

“It’s very rewarding knowing that I’m indirectly helping the people they are helping. Like what Shaokot said – we help each other,” said Mr Tai.

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Nicholas Tai, his parents and some of their staff celebrating Hari Raya Puasa on Jun 15, 2018. (Photo: Nicholas Tai)

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Commentary: Make full use of the last holiday week to prepare your child for the new school term

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SINGAPORE: As we count down to the start of a new academic term, there is a sense of heaviness in the air. 

Kids are not looking forward to the daily grind of early mornings and homework. Adults feel it too, dreading the pre-dawn wakings and endless ferrying from school to tuition and enrichment centres.

For this last week of the holidays, most parents will be busy making logistical arrangements and purchases, from getting new uniforms or shoes to replace old ones, to ensuring the new textbooks are dug out and wrapped.  

But it may be wise to use this time to meet some of your children’s less apparent, but no less essential needs.

It may actually help them to feel more prepared for the new term, and be less anxious over school and homework.

READ: What getting ready for school really means

REMINISCE, TO NURTURE A STRONG SENSE OF SELF

Before the kids start to whine about why the holidays have to end, make a list of the fun things you did together. 

Many of us rush from project to project, and task to task, but it is good practice to slow down and let our minds return to the places of fond memories.

This simple act of reminiscing not only creates positive feelings triggered by happy memories, it also nurtures a strong sense of self in our young, and equips them with socio-emotional skills.

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A child playing in a ball pit. (Photo: Elizabeth Khor)

According to Carol Westby, an expert on the role of play and stories in child development: 

Children’s sense of self and early narratives emerge as they engage with their caregivers in reminiscing about shared experiences.

She asserts that reminiscing and the development of life stories help children develop a strong identity as well as emotional regulation and problem solving skills.

It only takes a few minutes to reminisce; pick a relaxed time for the whole family and use photos to jolt the memory and kickstart the conversation. Talk about the various people you met, what they did for you or vice versa, and the lessons learnt along the way.

You can also walk down memory lane yourself and share your own growing-up stories. Personal stories are a powerful way of passing down values and a sense of identity to the next generation, so if you’ve kept your old year books, albums, or medals, it’s time to dig them out!

If you have a favourite food from yesteryear, why not take the whole family on a spin and re-discover those food items from the past.

If time permits, embark on a family craft project together, such as a holiday scrapbook, using printed photos taken from your favourite overseas trips or local excursions.

We did one for our Melbourne holiday last year, and until this day, my children will pick it up from the bookshelf and talk about the fond memories.

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June Yong suggest embarking on a family craft project together during the last week of school holidays. (Photo: Pixabay)

STRENGTHEN FAMILY BONDS

If you’ve never given much thought to creating family rituals, this is a good time to start.

Parenting author Rebecca Eanes describes: “Traditions give us a shared identity. They strengthen our bond as a family unit. They create structure, stability, a sense of familiarity and safety, all things that are important for children, particularly young children. Traditions help us to nourish one another.”

Family traditions are simple to do, but harder to upkeep as children grow older and have differing schedules. At the heart of it is a shared activity and space that draws everyone together from their individual preoccupations, and builds connections.

It could be an in-house movie and popcorn night this weekend or an inter-generational board games night where you rope in the young-at-heart grandparents. It could also involve an outdoor adventure such as a family camp-out at East Coast or Pasir Ris park.

You can even jazz up a very common family ritual: Telling bedtime stories. Instead of your child choosing a book and you reading it out loud, get everyone to act out a favourite story. Classics such as The Three Little Pigs and We’re Going On A Bear Hunt lend themselves well to dramatisation.

Or take a familiar story and create your family’s own unique ending. It’s a great way to get their creative juices flowing and help them learn that there is no one “correct” way to write a story.  

SET LEARNING AND BEHAVIOURAL GOALS

Having a plan to tackle the academic work ahead can work wonders for a child who’s been struggling to complete her work on time.

My middle schooler has been feeling swamped with work since the year began. She also experiences some mental roadblocks when she encounters a Math question that is very different from what she’s used to.

During the recent parent-teacher conference, I asked her teacher for advice and she suggested letting her work on the usual problem sums, with an added twist. For example, I could throw in an additional variable or change the way the question is framed. 

Generic preschool image. Photo: TODAY

A child doing homework. (File photo: TODAY)

The aim of this exercise isn’t so much to throw her into the deep end; it’s to help expand her repertoire of knowledge, and increase her confidence in tackling a wide range of sums.

For her, as we wind down the summer holidays, I hope to spend time tackling some math sums together while keeping it fun and light-hearted.

She is a visual learner and loves to doodle, so who knows, I may even get her to draw cartoons on the math models to make them more animated and less of a drudgery.

As we enter the new term, we may set some fresh academic goals, such as, “We will work on three new math sums every week.”

I am also trying to build her journal writing skills. One related goal would be: “I will write two journal entries every week to mum, and mum will reply those entries with thoughts of her own.”

LEARNING NOT PERFORMING

Let’s not forget behavioural goals. For her, one area to work on is becoming more aware and in control of her stressed emotions when it comes to school work. Practising some coping strategies, such as pouring an ice-cold drink or standing by a snack on her desk, may help to keep her emotions in check and be more focused on her work.

Remember to set more learning goals than performance goals. The latter focuses heavily on results and grades, while the former emphasises learning, processes and work habits. 

When it comes to making mistakes, the consequence is less dire for the learning-oriented goal than the performance goal. Such a process-oriented approach can help our children be less apprehensive about making mistakes, as they come to view them as part and parcel of learning.

Holidays are meant for rest, and for the restoration of weary bodies and minds. Whether it is reminiscing the good ol’ times, or creating a wacky tradition together, I hope you will make full use of this last leg of the June holidays. It will be time well spent – both for your child and for you.

June Yong is a mother of three, an educational therapist and owner of Mama Wear Papa Shirt, a blog that discusses parenting and education in Singapore.

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Singapore’s government drives country’s tech success

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COME to think of it, there’s a lot of new technology that makes its way to Singapore.

In fact, the government has been very effective in terms of persuading some of the world’s leading companies to set up research facilities in the country and building partnerships that go a long way in terms of sharing a vision for tomorrow’s technology.

Just yesterday, the Lion City’s Finance Minister Heng Swee Keat said that Singapore’s single-layer system of government means it can be more decisive about test-bedding new technology than most other countries, and this makes it an ideal partner for countries to test out innovations.

SEE ALSO: Malaysia scraps innovation centre, risking tech entrepreneurship in Asean

Earlier this year, for example, when other countries were mulling over the repercussions of drones taking on a more commercial role, Singapore declared One North, a 200-hectare business park as the country’s first drone estate.

In turn, Airbus, Singtel, and several other companies have flocked to the country to build and test their drone technology.

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Singapore set-up an designated ‘drone district’ to test this new technology. Source: AP.

Heng is keen to grow the country’s collaboration with Japanese agencies and companies, he told Singaporean media at the end of a six-day working visit to Tokyo.

In the Land of the Rising Sun, Heng met with bankers, technology and robotics companies, politicians, businessmen, and financial regulators.

“We also have regulatory sandboxes where usual rules do not apply, and that allows for innovation to be tested and tried in a proper setting,” Heng said.

SEE ALSO:  Which countries are already employing facial recognition technology?

These sandboxes allow regulators to quickly identify issues and rectify them since the government follows an approach that tries to avoid regulation from impeding development.

However, Heng also highlighted the importance of regulations in building and maintaining a safe environment that supports the ecosystem for development and innovation.

Just prior to the Japan trip, Heng was in China for eight days, visiting ShanghaiTech among other potential partners.

“In a world that is rapidly changing and increasingly interconnected, countries need to collaborate. No country has all the expertise it needs. Collaborations can achieve win-win outcomes,” Heng told China.

This article originally appeared on our sister site Tech Wire Asia

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