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Sec 4 MYE Study Notes 2011

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chapter two governance in singapore 1. Four Guiding Principles of Governance 1.1. Leadership is Key Good leaders are needed to maintain stability in the government Good leaders will help to make the right decisions for the country Leaders must also be honest and upright If leaders are corrupted, it could lead to disaster For example, good leaders can help to provide opportunities for local talents to collaborate with their international partners This will allow them to learn from their peers and their needs will be taken care of 1.2. Anticipate Change and Stay Relevant The government needs to expect changes to the future, and be forward-looking This will allow them to plan ahead to meet future needs Leaders must have the vision and creativity to come up with the right policies They must also be willing to take risks For example, Newater was introduced to ensure Singapore is self-sufficient Also, Integrated Resorts were established so the tourism sector can remain competitive 1.3. Reward for Work and Work for Reward This policy rewards people based on hard work and talent Meritocracy helps to give everyone an opportunity to achieve their best and be rewarded, regardless of race, language, religion or socio-economic background When people are rewarded based on hard work, they will be motivated to do well For example, Edusave awards are given to students who perform well in their studies Singaporeans also receive rewards in the form of Progress Package if they have helped the economy to do well 1.4. A Stake for Everyone, Opportunities for All This policy allows people to have a say in decision-making Singaporeans will then feel a sense of belonging to the country Every community is treated fairly so the interests of various communities are kept in balance For example, feedback sessions are conducted for Singaporeans to voice their concerns Policy decisions can be made after considering the peoples’ concerns social studies notes | page 1
Transcript
Page 1: Sec 4 MYE Study Notes 2011

chapter twogovernance in singapore

1. Four Guiding Principles of Governance

1.1. Leadership is Key Good leaders are needed to maintain stability in the government Good leaders will help to make the right decisions for the country Leaders must also be honest and upright If leaders are corrupted, it could lead to disaster For example, good leaders can help to provide opportunities for local talents to

collaborate with their international partners This will allow them to learn from their peers and their needs will be taken care of

1.2. Anticipate Change and Stay Relevant The government needs to expect changes to the future, and be forward-looking This will allow them to plan ahead to meet future needs Leaders must have the vision and creativity to come up with the right policies They must also be willing to take risks For example, Newater was introduced to ensure Singapore is self-sufficient Also, Integrated Resorts were established so the tourism sector can remain

competitive

1.3. Reward for Work and Work for Reward This policy rewards people based on hard work and talent Meritocracy helps to give everyone an opportunity to achieve their best and be

rewarded, regardless of race, language, religion or socio-economic background When people are rewarded based on hard work, they will be motivated to do well For example, Edusave awards are given to students who perform well in their studies Singaporeans also receive rewards in the form of Progress Package if they have

helped the economy to do well

1.4. A Stake for Everyone, Opportunities for All This policy allows people to have a say in decision-making Singaporeans will then feel a sense of belonging to the country Every community is treated fairly so the interests of various communities are kept in

balance For example, feedback sessions are conducted for Singaporeans to voice their

concerns Policy decisions can be made after considering the peoples’ concerns

social studies notes | page 1

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2. Measures to control Traffic Flow

2.1. Area Licensing Scheme (ALS) This was introduced to manage traffic flow in the Central Business District (CBD) This scheme ensured that all motorists have to pay to use certain roads in the CBD These areas were marked as Restricted Zones Motorists had to buy ALS labels to enter these Restricted Zones Gantries were set up to monitor traffic flow and ensure motorists have ALS labels This system was expensive and labour-intensive However, it succeeded in decreasing the number of vehicles in the CBD during peak

hours

2.2. Electronic Road Pricing (ERP) This system used up-to-date technology to control traffic flow This enabled the government to stay relevant with the times Motorists have to pay to use certain roads during peak periods This allowed peak hour traffic to be successfully controlled By using technology to monitor and regulate traffic flow, it increased efficiency ERP later replaced ALS as it was also more cost-effective

2.3. Park-and-Ride Scheme This was introduced at the same time as ALS to control traffic flow in the CBD This scheme allowed motorists to park their vehicles at specific car parks outside the

CBD Motorists were then encouraged to use public transport to enter the CBD during peak

hours However, this system was not successful Motorists used the regular bus services instead Some even drove into the CBD before the ALS started Therefore, the government lost a lot of money from the unused car parks Bus companies hired to shuttle these passengers were also unable to survive

2.4. Vehicle Quota System (VQS) This scheme was introduced as there was a sharp increase in the number of car

owners in the 1990s The government saw an urgent need to control the car population in Singapore LTA restricted the number of new motor vehicles allowed for registration The COE system was introduced to ensure the number of new cars does not exceed

the quota set by LTA This limits the number of new cars that can be purchased Car buyers must bid for the COE before purchasing a car COE only entitles the motorist to own the car for 10 years

social studies notes | page 2

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3. How the government promoted Population Growth

3.1. Graduate Mothers Scheme This policy was introduced as it was found that graduates were marrying later Also, graduate women were not having enough children Based on research, it was believed that the education level of parents directly

affected the performance of their children in school The government encouraged marriage among graduates It also encouraged them to have more children, where incentives will be given The less-educated felt this scheme was unfair as it neglected them, and it was also

bias towards them This policy was removed after one year as many people reacted negatively towards it

3.2. Three or More if you can afford it (Three-child Policy) Singapore was experiencing a slow population growth as families were not having

enough children Families were also starting to feel that it was too expensive having many children Parents were encouraged to have three or more children, if they can afford it The government introduced incentives to encourage more births Families were helped financially as government allowed them to use Medisave to pay

for delivery charges However, this policy was not very successful as Singapore still has one of the lowest

birth rates

3.3. Pro-family measure scheme In 2004, the government introduced many measures to help families have more

children There were many concerns with the high cost of raising children, as well as the lack

of suitable childcare arrangements These measures encouraged people to marry early and become parents:

o Equalised medical benefits both parents can now make medical claims for their children from their

employerso Grandparent caregiver relief

families will be given an income tax relief if they live with their parents who can look after their grandchildren

o 5-day work week for the Civil Service families will be able to have a work-life balance, and they can spend

more time with each othero Extended maternity leave

mothers will be able to care for their newborn for a longer period of time

social studies notes | page 3

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3.4. Attracting foreign talent The government wanted to encourage foreigners to work and live in Singapore, and

also to increase its population It hopes that the foreigners will take up permanent residence or citizenship The government relaxed its immigration policy to allow more foreigners to work in

Singapore The government also gave subsidised housing and attractive education packages for

children of these foreigners It was believed that the foreigners would also be able to help Singapore stay

competitive through their skills and talents Singapore has therefore become more cosmopolitan

4. How the government met the Challenges of an Ageing Population

4.1. Senior Citizens as assets to society The government wanted to encourage senior citizens to be more independent It wanted to ensure senior citizens continue to contribute to society Senior Citizens were encouraged to add value to the public and private organisations

by imparting their skills, knowledge, talent and work experience This will enable the senior citizens to be seen as valuable members of the society

4.2. Many Helping Hands Approach This policy encourages everyone to play a part in preparing for an ageing population This ensures that the individual, family and community all play an important role Through shared responsibility, the government does not have to be fully responsible

for looking after the senior citizens People do not have to worry about taxes being increased Government resources can be used more efficiently to meet other needs

4.3. Individual Responsibility Individuals are encouraged to be independent and look after their own needs By maintaining a healthy lifestyle, senior citizens will not fall sick so often This would ensure they are not troubled by high medical fees Singaporeans are also encouraged to have early financial planning This enables them to have enough money for their old age

social studies notes | page 4

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4.4. Family Support Families are encouraged to maintain strong bonds This will help give the ageing population emotional, social and financial support The government also encourages families to appreciate the elderly through

Grandparents’ Day People are also encouraged to have a positive attitude towards ageing and the

elderly

4.5. Community Help The community is encouraged to enhance the well-being of senior citizens It is believed they can give social and emotional support They can also provide healthcare and social services Welfare organisations will receive government support so they can run healthcare

services for the senior citizens Senior citizens can also receive free health checks through these organisations This ensures that senior citizens remain physically, mentally and socially active

4.6. Government Support The government has a responsibility to take care of the senior citizens The introduction of CPF will ensure senior citizens have money for their old age They can also use their savings in these accounts for medical expenses Families looking after their elderly can also claim income tax deduction This enables families to feel less financially burdened First-time buyers of HDB flats are also given a housing subsidy if they apply to stay

near their parents This further ensures the ageing population are cared for

social studies notes | page 5

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chapter threemanaging healthcare

1. Healthcare Approaches in Singapore

1.1. The Role of the IndividualSelf-reliance Singaporeans should not depend on the government for our healthcare Healthcare is a shared responsibility Medisave and Medishield allow us to pay part of the medical expenses Helps us to share the costs of healthcare with the government Also helps to lighten the government’s burden of paying for healthcare Government will not have to raise taxes to pay for rising healthcare costs

Maintain good health Singaporeans need to be personally responsible for their own health Maintaining a well-balanced diet and regular exercise will keep people from falling

sick We spend less on medical expenses if we maintain good health

1.2. The Role of the GovernmentKeep healthcare affordable It is the government’s duty to provide basic healthcare services However, government cannot be fully responsible or healthcare will become a burden Schemes are introduced to help individuals save on medical costs Subsidies are given to government hospitals and polyclinics Especially helpful for lower-income families as they have higher subsidies Medifund also helps needy patients who do not have enough in their Medisave

Promote healthy lifestyle Medical costs are rising Government encourages Singaporeans to maintain good health so they spend less

on medical treatment Programmes in schools and workplaces emphasise the importance of a healthy

lifestyle Bad habits such as smoking and drinking are also discouraged

social studies notes | page 6

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1.3. The Role of the CommunityProvide healthcare and support services It is not possible for government to run all healthcare services Government gives voluntary organizations some money to run community hospitals

and nursing homes Some organizations provide specific healthcare support services to help certain

groups of people, or people with a specific type of illness

2. Managing Healthcare in Britain

2.1. Manage Government Spending British Government was spending too much money on welfare benefits If healthcare costs increase, the government must collect more taxes In the 1980s, the government spending on healthcare decreased People were encouraged to be more responsible for their own welfare In 2000, the government increased spending on healthcare to improve the NHS In 2003, the British public contributed more money to the national insurance to

support the NHS

2.2. Increase Efficiency Britain experienced an increase in demand for healthcare as there were more elderly NHS expanded but there were still insufficient resources to cope with the demand Privatisation was introduced to reduce government subsidies, save costs and make

NHS more efficient Private companies took charge of non-medical services to allow hospitals to focus on

providing good quality medical services Patients were given more choices and hospitals had to improve their services British people were also encouraged be more responsible for their own welfare and

health so they do not abuse the services offered by NHS NHS became more efficient as a result

2.3. Provide Quality Service People felt the NHS had poor service Patients had to wait for a long time before receiving medical treatment People were given more information to help them decide on their own treatment and

care NHS introduced an Improvement Plan so patients can access their own healthcare

records, choose their own healthcare provider and call NHS Direct to get medical advice on minor illnesses

NHS managed to save time and resources and focus on providing quality service

social studies notes | page 7

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chapter fourconflicts in multi-ethnic societies

1. Conflict in Sri Lanka

1.1. Causes of Conflict1.1.1. Citizenship Rights

Sri Lanka only granted citizenship to a few Tamils Many Tamils who had been working in the tea plantations found themselves stateless The Sri Lanka government did not keep to the agreement with India to grant

citizenship to all Tamils Stateless Tamils felt discriminated as they could not vote, even though they had

contributed to the economy

1.1.2. “Sinhala Only” Language Policy The government made Sinhala the official language of administration Tamils found it difficult to get jobs Tamils were upset and felt they were treated unfairly Tamil was declared a national language in 1978 but it was never widely used or

accepted

1.1.3. University Admission Criteria Favoured the Sinhalese and was unfair towards Tamils Tamils had to score higher marks to enter the same course Fewer Tamils were admitted to the university Tamils could not gain better education Tamils became unhappy as they were treated like second-class citizens

1.1.4. Resettlement The government relocated large numbers of Sinhalese to the Tamil areas Government did this to provide land for Sinhalese who had no land Tamils were unhappy because Buddhist monks and Sri Lankan army also moved to

the Tamil areas Tamils had less land for their own use

social studies notes | page 8

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1.2. Consequences of Conflict1.2.1. Political

Armed Conflicto LTTE was formed to demand for a separate stateo They resorted to violence and became terroristso LTTE attacked Sinhalese and Tamils who did not support themo Many lives were lost and property was destroyedo Tamils and Sinhalese started to hate and distrust each other, and even

became hostile towards each other

Foreign Interventiono India tried to help solve the situation but failedo India interfered by sending food and supplies to Tamilso Indian Air Force also violated Sri Lankan airspaceo Indian peacekeepers retreated after fighting with LTTE

1.2.2. Economic Unemployment

o Riots caused people to lose their jobs because it was unsafe to go to worko Jobless people started to vandalise, steal and cause more damage to Sri

Lanka Loss of investors

o Political instability caused companies to stop investingo Investors did not have the confidence in the country

Fall in number of touristso Tourists felt it was too unsafe to visit the countryo There were not enough funds to develop facilities, housing and transport for

peopleo No one wanted to visit, so the economy was affected

1.2.3. Social Large groups of people were driven out of their homes Many Tamils escaped to India and are refugees, living in overcrowded conditions

social studies notes | page 9

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2. Conflict in Northern Ireland

2.1. Causes of Conflict2.1.1. Divided Loyalty

Protestants saw themselves as British, Catholics saw themselves as Irish Both groups do not see themselves as part of the same country Protestants believe a Catholic government will not tolerate their beliefs Catholics want to reunite with Ireland as they cannot stand the way the British

government is treating them Their divided loyalties to different countries caused hatred towards each other

2.1.2. Unequal Housing Allocation City council decides who gets public houses Council is made up of government, who are mostly Protestants Catholics have to wait a long time before they get houses Sometimes, more houses are given to Protestants instead of Catholics Catholics are angry that priority is given to Protestants, as they have to wait very long

before they are given a house

2.1.3. Unequal Employment Opportunity It is more difficult for Catholics to find jobs, especially government jobs Catholics feel they are not getting the same job opportunities even though they have

the same qualifications as Protestants More Protestants hold senior positions, compared to Catholics The discrimination caused the Catholics to be very upset

2.1.4. Lack of Voting Rights Before 1969, Protestants had more votes than Catholics Only those who owned houses and business could vote More Protestants owned houses and businesses, so more Protestants could vote Catholics were upset as the voting rights were unfair and biased against them After 1969, voting became fair because anyone who is a British citizen and above 18

years old was given one vote

2.1.5. Lack of Opportunities for Social Interaction

social studies notes | page 10

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Education Systemo Protestants go to government schools, Catholics go to private schoolso Both schools taught different things to the childreno The children did not get to mix with each other and this caused them to hate

and distrust each other even more Separate Residential Areas

o Protestants and Catholics live in different areaso This caused them to have very few opportunities to mix with each other,

causing more misunderstanding and hatred among each other

2.2. Consequences of Conflict2.2.1. Armed Conflict

IRA was formed to fight for Catholics’ rights, but they used violence This caused a lot of chaos and deaths, and the country became more divided

because of religion and different loyalties

2.2.2. Social Segregation People decided to separate themselves in terms of school and residential areas They became more prejudiced towards each other They blamed each other for the violence They started hating each other more, and did not trust each other

2.2.3. Declining Economy Properties were destroyed because of the conflict Tourists and businesses were afraid to visit and invest in the country The economy became weak as it did not have enough income

2.2.4. Political Reform Northern Ireland kept reorganising the government to improve the system Government became weak as Catholics and Protestants refused to share power However some positive changes occurred (e.g. voting system was improved)

social studies notes | page 11

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chapter fivebonding singapore

1. Challenges of a Multi-Ethnic Society

1.1. Racial Issues Race is a sensitive topic because Singapore is a multi-ethnic society Must promote racial harmony to maintain peace and prevent social and political

chaos E.g. Racial riots in 1964 caused a lot of deaths and destruction

o UMNO provoked Malays in Singapore to fight for their rightso Increased tension between Chinese and Malays caused riots

1.2. Religious Issues Religion is a sensitive topic because Singapore has many religious groups Must promote religious harmony to maintain peace and prevent riots and distrust

among various groups E.g. Maria Hertogh riots in 1950 caused a big conflict between Muslims and

Christianso Maria was raised a Muslim but had to return to her Dutch parentso Muslim community was upset and riots were started

1.3. Threats from External Forces Harder to control because they are external problems, not internal problems like

Racial and Religious issues Terrorism can affect Singapore’s economic progress Tourism industry is affected because people stop traveling for security reasons E.g. Bali bombings

o Hotels were almost empty and tourists took some time before they felt it was safe to travel to Bali again

Terrorism can also affect Singapore’s racial and religious harmony Terrorists can use race and religion to cause fear and create conflict among

Singaporeans E.g. JI almost attacked Singapore but were caught in time

social studies notes | page 12

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2. Managing Ethnic Differences in Singapore

2.1. Building a National Identity Multi-racialism

o Promotes racial harmony and religious freedomo Every community is treated fairly in Singaporeo No community is favoured or at a disadvantageo Recognises and uses four official languages so communities can keep and

develop its own language and culture Bilingualism

o Taught in schoolso Compulsory because English is used for communication while Mother Tongue

is used to impart values and traditionso Helps Singaporeans to develop national identityo Also enhances responsibility and commitment to the family, community and

country Common practices

o Carried out by all Singaporeans to build a sense of belonging and national pride

o Flag raising, pledge taking and singing national anthem encourages loyalty and nation building

2.2. Safeguarding the Interests of Minority Groups Minority representation

o Achieved through Presidential Council of Minority Rights (PCMR) and Groups Representation Constituency (GRC)

o Each GRC must have at least one member of minority groupo Ensures minority groups have a say in governing the nationo Also ensures the government knows the needs of minority groups

Self-help groupso Various races form their own self-help groups to improve education and

employment statuso E.g. MENDAKI (for Malays), SINDA (for Indians), CDAC (for Chinese) and

Eurasian Associationo Give moral support to members of their own communityo Also helps improve social and economic positions

2.3. Developing Common Space Events and programmes organized by grassroots organization

o Caters to the needs and interests of every Singaporeano Allows participants to gain a better understanding of the cultures and customs

of other races Education system

social studies notes | page 13

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o Provides opportunities for Singaporeans to interact with each other and foster better social bonding

o Teaches everyone to respect and appreciate each others’ cultureo National Education was introduced to help students foster stronger bonds

among themselves Common living space (Public Housing)

o More opportunities for races to mix with each other in a common public housing area

o Residents get to know each other when they participate in activities organized by the Resident Committees (RC)

o Singaporeans will become more tolerant and understanding of different races and religions

National Serviceo All 18-year-old males are called up for full-time service so they can be trained

to defend the countryo Young men share experiences that strengthen bonds and creates friendship

with people of all races and religions

social studies notes | page 14

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chapter sixdeterrence and diplomacy

1. Causes of Conflicts

1.1. Competition Over Territory Countries fight for power and resources Having more territory can help countries in terms of defence and increase national

pride E.g. China and India fought over border around Aksai Chin and NEFA

o Border was not clearly drawno Tension increased when China built a road in Aksai Chino India felt the area belonged to themo War broke out in 1962, but did not last longo The border conflict has not been solved, but India and China have signed an

agreement to address the issue in a fair way

1.2. Competition Over Natural/Scarce Resources Some countries have more resources than others Countries fight for survival and economic growth E.g. Iceland and Britain fought over fish

o Iceland had a lot of fish but Britain kept fishing in their areao Both sides blamed each other whenever their ships collidedo Iceland broke off diplomatic ties with Britaino The conflict was settled when they signed an agreement in 1976

1.3. Competition Over Ideological Differences Countries have different values and beliefs They fight when they see their ideological beliefs being threatened E.g. Korean War between North and South Korea

o North Korea is communist, South Korea is democratico Both countries were divided after World War 2o North Korea invaded South Koreao USA and her allies, and the UN helped South Korea as they did not want

communism to spreado A demilitarized zone was created in 1953 and both Koreas signed an

agreement to stop the fighting

social studies notes | page 15

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2. How Singapore practices Deterrence

2.1. Citizen Armed Force Singapore needs our own defence force because Japanese Occupation, Racial Riots

and Indonesian Confrontation taught us we have to fight for ourselves All 18-year-old males will be trained full-time so a trained army force is always ready

to defend Singapore Helps to ensure economic resources and manpower are not wasted

2.2. 3rd Generation SAF Creates an intelligent defence force Uses modern technology to maximize defensive capabilities Equips soldiers with better weapons and technology to fight more effectively Air Force, Navy and Army operate together to provide early intelligence which will

help to destroy the enemy early

2.3. Defence Industry Helps to prevent or resolve conflicts as we have an independent defence industry Set up to ensure we have a supply of arms for our soldiers Also to build our own defence technology Ensures Singapore is self-reliant in defence weapons and equipment This also saves money and we can continue to upgrade our weapon systems

2.4. Total Defence Consists of Military Defence, Social Defence, Economic Defence, Civil Defence and Psychological Defence Engages every Singaporean to defend Singapore Singaporeans can be prepared and self-reliant during emergencies Enemies will face the whole population, not just the armed forces

2.5. Multi-agency Coordination Close networking and coordination of various government agencies Intelligence and resources are shared Helps to strengthen and improve Singapore’s national security Ensures Singapore can prevent, protect and effectively respond to any security

threats

2.6. Military Cooperation with Other Countries We do not have enough training areas Singapore fosters friendly ties with other countries (e.g. Australia, India, New Zealand

and ASEAN countries) Our troops gain military experience by training in jungles, making battle plans and

practicing on the seas during defence exercises

social studies notes | page 16

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2. How Singapore practices Deterrence

2.1. Citizen Armed Force Singapore needs our own defence force because Japanese Occupation, Racial Riots

and Indonesian Confrontation taught us we have to fight for ourselves All 18-year-old males will be trained full-time so a trained army force is always ready

to defend Singapore Helps to ensure economic resources and manpower are not wasted

2.2. 3rd Generation SAF Creates an intelligent defence force Uses modern technology to maximize defensive capabilities Equips soldiers with better weapons and technology to fight more effectively Air Force, Navy and Army operate together to provide early intelligence which will

help to destroy the enemy early

2.3. Defence Industry Helps to prevent or resolve conflicts as we have an independent defence industry Set up to ensure we have a supply of arms for our soldiers Also to build our own defence technology Ensures Singapore is self-reliant in defence weapons and equipment This also saves money and we can continue to upgrade our weapon systems

2.4. Total Defence Consists of Military Defence, Social Defence, Economic Defence, Civil Defence and Psychological Defence Engages every Singaporean to defend Singapore Singaporeans can be prepared and self-reliant during emergencies Enemies will face the whole population, not just the armed forces

2.5. Multi-agency Coordination Close networking and coordination of various government agencies Intelligence and resources are shared Helps to strengthen and improve Singapore’s national security Ensures Singapore can prevent, protect and effectively respond to any security

threats

2.6. Military Cooperation with Other Countries We do not have enough training areas Singapore fosters friendly ties with other countries (e.g. Australia, India, New Zealand

and ASEAN countries) Our troops gain military experience by training in jungles, making battle plans and

practicing on the seas during defence exercises

social studies notes | page 17

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3. How Singapore practices Diplomacy

3.1. Bilateral Relations When two countries form a mutually beneficial relationship with one another Countries in a bilateral relationship will help each other during times of trouble E.g. Singapore is able to gain advanced technological skills from other nations like

Japan, USA and Germany E.g. Singapore is also able to speed up economic and social development after

bilateral ties with China

3.2. Regional Relations Countries within the same region form mutually beneficial relationships with each

other E.g. ASEAN was formed to:

o Promote common interests and establishes friendly relations among memberso Resolve conflicts in a peaceful mannero Help member countries to promote economic, social and cultural development

of the region Trade opportunities and sharing of new technological skills have benefited member

countries Members also enjoy regional peace and stability

3.3. International Relations Countries around the world form mutually beneficial relationships with each other E.g. United Nations was formed in 1945 Ensures world peace and stability Promotes economic and social development of members Provides help such as food and medicine to member countries in need Gives member countries the opportunity to vote on decision that will affect them International Court of Justice helps members to settle their disagreements peacefully

social studies notes | page 18

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chapter twoglobalisation

1. Driving Forces of Globalisation

1.1. Development in Transportation Improvement in transportation technology has made the world seem smaller as

travelling time is reduced Commercial planes, large ships and containerisation allows goods and people to

easily move from one place to another Transportation has also become more efficient with airports, railways and highways This promotes globalisation as people become more connected to the world

1.2. Development in Communication Improvement in technology has made communication easier, faster and more

convenient Satellite technology and optical fibre systems allow messages to be transmitted

quickly and at a very high speed Internet allows businesses to communicate more efficiently, and allows us to obtain

information and purchase goods and services easily This promotes globalisation as people become more interconnected with each other

1.3. Transnational Corporations (TNCs) TNCs are large global firms that operate in many countries Some TNCs have production or service facilities outside the country of their origin They are set up to look for new markets, and to lower the cost of production The business operations are coordinated and controlled by the headquarters This promotes globalisation as economies around the world have become more

integrated

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2. Impact of Globalisation

2.1. Economic Impact Improved standard of living

o More countries are trading with each other and earning more moneyo Governments are able to use the money to make improvements in education,

health, defence, housing and transportationo This allows people to enjoy a better standard of living

Increased competition among nationso Governments compete with each other to make their country more attractive

to TNCs, so they can set up operations thereo E.g. Some cities in China become more well-developed as foreign investors

are allowed to come in and set up production facilities Foreign talent

o Highly-skilled people are in great demand around the worldo They can easily move to other countries to find better job opportunities

Bigger income gap between the rich and pooro Developed countries continue to attract more investors as they have better

resourceso Less developed countries have lower-skilled workers and face trade

restrictionso The rich people continue to prosper as they have better opportunities, while

the poor people face economic uncertainties

2.2. Social Impact Increased awareness of foreign culture

o Through travelling or surfing the Internet, people become more aware of other cultures

o This allows people to become more understanding and help reduce misunderstanding among nations

Loss of local cultureo Global brands like Starbucks and McDonald’s dominate the market in less

developed countrieso Pop music and pop culture has spread around the world, causing youths to

lose interest in local cultureo This has led some to believe that Western societies are forcing their beliefs,

culture and language on to the rest of the world

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2.3. Environmental Impact Deforestation and other related problems

o Less developed countries who have plenty of natural resources are willing to cut down rainforests to develop agriculture and infrastructure

o As a result, environmental problems such as erosion, extinction and flooding occurs

Global warmingo Advances in technology has caused aeroplanes and ships to release

greenhouse gaseso This causes the global average temperature to rise, which may lead to natural

disasters Environmental management

o People are now more aware of the need to preserve the environmento Governments try to come up with alternative energy sources like wind, solar

and geothermal power to preserve the environment

3. Singapore’s strategies to overcome challenges of globalisation

3.1. Diversify the economy Become a centre for technology-intensive, high value-added manufacturing activities

such as chemical engineering and pharmaceuticals Venture into areas like Life Sciences, to develop new medical treatments, new drugs

and food products Attract TNCs to set up operations here so these companies can use Singapore as a

base for their high value-added manufacturing activities (eg. Seagate) Encourage international universities to set up branches in Singapore, to help

establish Singapore as an education hub (eg. University of Chicago Graduate School of Business)

Promote tourism by building 2 IRs in Marina Bay and Sentosa By diversifying the economy, there will be less reliance on one particular industry so

the country can still remain strong if that industry falls, since there will be other industries to continue generating revenue for Singapore

social studies notes | page 21

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3.2. Nurture growth of Small and Medium Enterprises (SMEs) SMEs are important as they make up a large percentage of businesses in the

Singapore economy SMEs also support the operations of TNCs by supplying them with components in the

manufacturing process Schemes to assist SMEs: Banks have various loan schemes catering to the needs of SMEs ASME (Association of Small and Medium Enterprises) was set up to help SMEs (eg.

Conducting seminars and workshops) New companies are granted tax exemption on their first $100,000 income for up to 3

years SMEs are important as they provide employment opportunities and it also helps

attract TNCs, so Singapore can gain more income for development

3.3. Venture abroad Singapore faces the challenge of having limited land and natural resources Achieved through regionalisation – investing in nearby countries that have abundant

land, lower labour costs and new markets (eg. SingTel) Singapore aims to provide the expertise and capital to develop industrial parks in host

countries, who later provide land and labour for Singapore companies (eg. Suzhou Industrial Park)

This helps Singapore to ensure that if our country’s investments do not work out in a region, there will be other regions to rely on

3.4. Expand market reach through economic cooperation Singapore has a small domestic market because of our small population There is a need to establish trade ties with countries around the world to help local

companies sell their goods to a larger market Economic cooperation can be achieved through signing Free Trade Agreements

(FTAs) and setting up Special Economic Zones (SEZs), where goods can be sold cheaper

This allows Singapore to sell our manufactured goods at more competitive prices

social studies notes | page 22

Page 23: Sec 4 MYE Study Notes 2011

3.5. Manage resources efficiently Develop local talent

o Promote local entrepreneurship and technopreneurshipo Inspire more entrepreneurs to achieve greater success by recognising

outstanding local entrepreneurs who have struggled and succeededo Promote continuous learning among the workforceo WDA (Workforce Development Agency) was established to ensure that the

workforce remains competitive Attract foreign talent to meet manpower needs

o Help to create more business opportunities and jobs in Singapore as new skills can be brought in

o Singapore can also become more attractive to foreign investors Careful management of the environment

o Managing limited land resources through proper planning and allocating them appropriately to meet the needs of the country

o Cooperation with regional and international organizations to share knowledge and expertise

o Public education to encourage Singaporeans to become more environment-friendly so the government does not have to spend too much money cleaning up the environment

social studies notes | page 23


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