Tagged: CME

Every Singaporean a Talent: The Political Economy of Talent, Education, and Companies in Singapore

I’m ready to be wrong on this. To improve it, give links for resources and other arguments.

Turns out just a few things are needed to explain why it is difficult develop enough deep technical talent to have the likes of disruptive companies in Singapore.

1. Domestic conditions. That will be the most difficult constraint to overcome. Any hope of overcoming this constraint will have to come from a deeper economic integration with the region — something that will take a long while more to overcome.

The small domestic market does not encourage the rise of large companies. The companies that have become successful and relatively large companies are either those that were started by the state for developmental purposes, or due to traditional trading skills. Domestic firms cannot pay enough to attract deep technical talent.

2. Large foreign firms. Large foreign firms are here due to Singapore’s policies. These large foreign firms supported economic growth, giving jobs and skills to Singaporeans. These firms, being well-resourced, are far more able in providing a higher wage. These companies can outdo local firms in attracting the same person with more pay. As a result, small local firms cannot attract the talent they need to expand and grow.

3. The presence of a relatively large banking and professional services industry. Talented people have other avenues other than the MNCs. They can also become consultants or bankers. These industries siphon off people who could have gone to MNCs to sharpen technical skills or to build local capabilities.

4. Awkward labour. There are basically a few models of the labour dynamics from the political economy perspective. One of them is the antagonistic relationship in the US — with labour competing with capital over the conditions of work, with the government as a referee of sorts. In many parts of Europe, there are still elements of a labour system that is embedded with capital at various levels of operations. Labour in essence, makes a pact with capital on restraints, but only under conditions of shopfloor autonomy. Overall, this is undergirded by a cultural appreciation for blue-collared workers — which are highly trained and specialised in what they do.

5. Education as a filter. Then, there is the whole notion of ‘talent’ in the first place. What is a talent? How is it defined?

The current model of education is still meant to filter the top few percent as leaders for the administrative elite in the government of this country. This means that resources are concentrated at the top. Some of this is surely desirable; after all this country certainly requires excellent leadership, and starting from young is not a bad idea. Plus, elites occur in every country. However, education as a filter, together with the concentration of resources at the top, means that there is a underemphasis of the rest of the population. This has only changed more recently in the past few years with the revamp of the polytechnics and ITE, and even more recently with the ASPIRE committee.

However, a system of obsessive competition for limited slots for the elite path has been created. This system of obsessive competition creates a lot of waste, visible through the tuition mania. The notion of talent and meritocracy is still seen through the narrow lens of examinations and grades. Maybe an expansion of resources to more schools at all levels of performance might be required. This is not to say that schools should become homogenous — no, but MOE has to give more resources to allow teachers to teach better and to give students more opportunities for all-round development, including in academics.

Education cannot be a filter — it must be a moving escalator that gives and supports people the skills, training and retraining — cohort after cohort after cohort.

What’s possible?

SkillsFuture and the ASPIRE committee together constitute attempts for Singapore’s political economy to move towards a German-lite model — creating a system where workers can find training for providers and go back to the shopfloor. The next piece of this transition could involve a more robust labour that will need to negotiate with companies on giving workers more assurances especially when they go for training.

Yet another piece will involve even greater resources to be expended to improve the quality of polytechnic education, inasmuch as they become the bastions for industry-related training. The universities will have to adjust in this, perhaps moving more strongly into basic research to differentiate their offerings from the polytechnics.

A big elephant here — on the continued emphases on international companies — will likely remain giving longstanding practices. With a labour force that has deeper technical skills, international companies might find it favourable to stay here. A greater pool of deep technical labour could even become the basis of world-beating local companies, though that will remain difficult still without a more deeply-integrated regional economy.

One can tell that its really difficult to talk about one single issue in isolation; I just pulled a thread on talent and the whole rug came out.

What’s possible? 

SkillsFuture and the ASPIRE committee together constitute attempts for Singapore’s political economy to move towards a German-lite model – creating a system where workers can find training for providers and go back to the shopfloor. The next piece of this transition could involve a more robust labour that will need to negotiate with companies on giving workers more assurances especially when they go for training.

Yet another piece will involve even greater resources to be expended to improve the quality of polytechnic education, inasmuch as they become the bastions for industry-related training. The universities will have to adjust in this, either moving more strongly into basic research to differentiate their offerings from the polytechnics. 

A big elephant – on the continued emphases on international companies – will likely remain given longstanding practices. With a labour force that has deeper technical skills, international companies might find it favourable to stay here. A greater pool of deep technical labour could even become the basis of world-beating local companies, though that will remain difficult still without a more deeply-integrated regional economy. 

One can tell that its really difficult to talk about one single issue in isolation; I just pulled a thread on talent and the whole rug came out.

Notes

Bits of the things here are definitely outdated. I don’t know if a ‘German model’ has been able to persist since the 1990s. Comments about the German model(s) on labour-capital relations are much appreciated.

I did not write about immigration policies here, because it is difficult, and it is not the emphasis. But a few things: immigration will be necessary, because even productivity will have limits. Diversity in international experiences/perspectives will still be an important thing to have. However, immigration cannot be the substitute for the difficult reforms for a more productive economy. I apologies for the motherhood statements here, and the model to arrive here is one where immigration policies are a supplement to economic growth, one where the numbers game is not the main consideration. There clearly is more to this, but that will be another essay.

Also, please don’t see this as an end. See this as a start of an journey to see how the different pieces come together. Once again, remember to post counter arguments and links to resources at the side.

I owe intellectual debts to Hall and Soskice — on the LME and CME frameworks.

Thanks!

Advertisements