By Andrew Loh

Coming on the back of the People's Action Party's worst electoral performance since Independence, the sweeping changes to the Cabinet is a step in the right direction, despite what some PAP critics may say.

Prime Minister Lee Hsien Loong should be congratulated for the " radical" changes he has made. They are indeed much needed, and they bring a breath of fresh air and fresh momentum to his promise of change.

Especially positive is the stepping down of former Minister Mentor Lee Kuan Yew from the Cabinet. While one would not and should not begrudge or dismiss the significant and historical role Mr Lee has played in Singapore's history, in recent years, and even by his own admission, his views have been " out of date" on certain important issues.

To continue to have him in the Cabinet, and Mr Lee wields considerable influence, would be to adhere to his ideas and ideologies which seem to be increasingly stuck in the past. His retirement from the decision-making inner circle of government is thus a welcome move.

Eight other ministers have also relinquished their portfolios and will assume life as backbenchers in the new Parliament.

While these changes of personnel may signal a " fresh clean slate" for PM Lee, they are but only the beginning and for now at least cosmetic changes. Singaporeans, who made their displeasure over government policies loud and clear during the May elections, want to see changes to policies. Anything short of this and the government will continue to be held in contempt and PM Lee's authority and the promise he made during the hustings will be called into question.

Biggest issues

At the top of the list of concerns are the rising cost of living, housing and the government's seeming arrogance in talking down to Singaporeans.

While the government has reiterated that the best way to address the cost of living issue is to create value jobs for citizens and for Singaporeans to continue to upgrade their skills, the government would want to introduce new initiatives which would protect employment for locals. This has been one of the deepest worries of Singaporeans — that their jobs are not secure and that they are paid low wages because of competition from foreign workers. Addressing this concern will be PM Lee's task as it cuts across a whole spectrum of policies, including manpower, public housing, and the Central Provident Fund (CPF).

The very unpopular Mr Mah Bow Tan, who was at the centre of intense criticisms during the elections for his housing policies, has given way to Mr Khaw Boon Wan. Mr Khaw, who helmed the Health Ministry, now has the job of looking into the many grouses Singaporeans have with regards to housing, particularly flats provided by the Housing and Development Board (HDB).

One hopes, however, that Mr Khaw will not repeat the mantra of his predecessor — that HDB flats are " affordable" when they clearly are not.

Needed humility

While different groups of Singaporeans have different issues which they want the government to address, one particular area which many agree the government could do better in is the way the government communicates its policies. Indeed, the term " arrogance" has been uttered frequently in the last few years whenever Singaporeans speak of the ruling People's Action Party (PAP) government.

Some members of the PAP have recognised this and have said that the PAP government should be more humble. Indeed, it must be if it wants to repair the damage done in the last five years. However, serving with humility is but only one aspect which it should look into. What is of more import are the policies themselves.

And in this, it is noteworthy that no minister has thus far admitted the failings of any policy. Neither has the Prime Minister. Singaporeans, while appreciative of the Cabinet reshuffle and the retirement of nine ministers, will expect the PM to announce new committees to gather views from the public or even to make bolder changes to certain policies.

Otherwise, the promise of change will be nothing more than a public relations exercise — and the PAP will pay a heavier price than it did in GE 2011.

If, however, the government follows through with its promise of change in a meaningful and substantial way, come 2016 the PAP will have a more comfortable election campaign than it did the recent one.

So, kudos to PM Lee for having the courage to make such sweeping changes to the make-up of his team. Now, lets see some substance in the coming weeks and months.

Andrew is the co-founder and current editor-in-chief of socio-political website The Online Citizen. He writes frequently on issues which are close to his heart, particularly those affecting the less fortunate, and on politics.

Gold and Gold Miners are a Strong Buy

 

Gold and Gold Miners are a Strong Buy.

Regardless of the Soros theory, the CME manipulation and the bubble talk, Gold remains a strong buy as demand continues to outgrow supply. All of Asia has increased Gold buying, new Gold products to be traded in Asia will further add to demand and prices.

China has become the world’s largest gold buying nation, a fact that will change the nature of the Gold market. While Paul and myself have been saying that this would inevitably happen much of the commentary and most of the public remain completely unaware of the huge implications that Chinese gold demand has for the gold market, instead they have focused on bit players like George Soros.

Indeed, there continues to be a huge level of ignorance regarding the scale and sustainability of Asia’s demand for gold and silver bullion, the new ETF’s for Gold being listed in Shanghai and the new Gold futures being traded in Hong Kong.

Some facts about Gold

• Global gold demand in the first-quarter totalled 981.3 tons, up 11% year-on-year.
• Investment demand grew by 26% to 310.5 tons in Q1.
• Jewellery demand in Q1 registered a gain of 7% from a year earlier.
• In Q1 2011, gold supply declined by 4% year-on-year.
• Central bank purchases jumped to 129 tons in the quarter, exceeding the combined total of net purchases during the initial three quarters of 2010.

Of interest to fund investors, the report found that in Q1 ETFs attracted net outflows of 56 tons valued at around $2.5 billion. Redemptions were concentrated in January, according to the analysis.

And despite the outflows, the collective volume of gold held by global ETFs by the end of the quarter was in excess of 2,100 tons equating to more than $95 billion.

Chinese investors bought 93.5 tonnes of gold coins and bars in the first quarter. China produced 340 metric tons of gold last year and consumption was about 700 tonnes, leaving a gap of nearly 360 tonnes.

Demand is forecast to increase due to the growing wealth of the Chinese middle class and deepening inflation in China.

What is most important and rarely covered is the fact that gold ownership by the Chinese public remains minuscule. Especially when compared to other Asian countries such as Vietnam and India.