Daily Lesson from Life 17 December 2008

"MM optimistic on China but next phase harder -Wed, Dec 17, 2008 The Straits Times

THIRTY years after the Middle Kingdom threw open its gates and embarked on economic reforms, it will enter a tougher phase of progress, predicts Minister Mentor Lee Kuan Yew.

As China moves into the second stage of its economic development, it needs to upgrade workers' skills and attract more capital- and skills-intensive foreign investments, he said yesterday.


Eventually, it will have to look at inventing its own products just as the Japanese did. But Mr Lee is sanguine about its ability to do so, saying China is 'on the right track'.

Needed: People who can engage China S'pore needs to co-opt 50 Chinese steeped in the culture each year

PRIVATE banker Leiny Tan was born in Wuhan city, grew up in Guangdong province and got her university degree in the United States.


But she eventually decided to make Singapore her home after arriving here as a student in 1991.

Now a citizen, the 40-year-old is in charge of the China market for US banking giant Citigroup, responsible for managing the finances of super-rich Chinese nationals based here and in China.


How China succeeded in getting ahead
Key factors: Bold reforms, embracing globalisation, gradual implementation

THE recipe for China's phenomenal success story lies in three main ingredients, says its ambassador to Singapore, Madam Zhang Xiaokang.


They are: being bold in pushing through reforms, brave in opening up but cautious in implementing change, doing it one step at a time.

Madam Zhang was speaking at an event yesterday to mark 30 years of reforms, which have propelled the once-isolated regime into a global economic power."

A string of headlines by MM Lee. A most studied and revered thinker of his time.

Lessons for me are:

1. the 2nd or even 3rd phase is always the most difficult part. Especially with a country as vast as populated as PRC. In another headline not seen here, the Chinese government is worried about the current financial tsunami impact creating loss of old jobs and devastating any hope of new jobs for it's people - peasants looking to the good life in the urban cities and graduates by the millions coming out of it's universities!

The rule of getting everyone rich is not going to work. As not everyone are rich in a capitalist society! Just look at the so-called modelled capitalistic country like the USA!

The challenge is really how to keep the 700-800m non-urbane folks happy and contended to remain in their villages and townships without wanting to cram into over-crowded and merciless cities!;

2. Singaporean Chinese - they make good money from servicing the Chinese based here and in China. That is the simple rule. Chinese who are rich who are based here still make their money from China. So, engaging them here is just not good enough. Singaporeans need to engage the Chinese in CHINA! There is no substitution for it in my opinion!;

3. Recipe for success - so far so good. The challenges as I mentioned in point 1 above is how to balance the rural and the urban, how to create a 'good life' in the villages and townships without projecting to the people that 'all good life can only be had in the mega cities' message to the 700-800m people. Also, without jobs, there will be instability as the state increasingly try to let the people take care of themselves - much like Singapore government's policy of 'help yourself first and exhaust your last dollar and your children's last dollar before the government will use the public money to help you'. This will be disastrous as the people in this trap has very little to start with!

May PRC be prosperous and stable forever - with lots of careful steering and educating and NOT wasting the huge reserves on propping up over-price real estates!!