Tuesday, April 14, 2009

Review of the public sector

Some people think that the recent cases of food poisoning in the markets reflect slackness in enforcement of cleanliness and health by the National Environment Agency.

But, the underlying problem is a deeper one. In recent years, many government agencies have reduced their manpower in the bid to cut cost. We now have insufficient number of people to enforce the law. This applies not only to this Agency but to many other government bodies as well.

It is one thing to cut down cost and manpower on unnecessary activities and red tape. It is a separate matter when the cost cutting lead to cutback in essential services and enforcement of regulations.

Are the reduced manpower put to better use in society? This is hardly the case. Many of the excess manpower find work in the financial and property markets. These financial experts, advisers and agents help to build up a big bubble that has now burst. Many of them have now lost their jobs or face the prospect of being retrenched.

We need to rethink our approach towards the use of manpower in our society. Public service is an essential source of employment. They can do useful work and can be for the good of society.

Does the reduction of manpower in the public sector lead to lower cost for the public? This may not be the case. Too often, the reduction of manpower is followed by huge expenditure on computer systems, management consultants and high salaries for the top people that run the agencies.

We need to reflect on this matter as well. Are we using the public funds properly? Is there a correct balance between employing people to do useful work or replacing them by expensive systems and so-called talents?

Tan Kin Lian

1 comment:

  1. The problem with the Singapore public sector is that no one is ever made redundant. The Admin service has a flow out system but it seems to apply only to the Admin service. The other services pretty much have a service-until-you-withdraw-your-CPF deal.

    As a consequence of these, you have lots of middle aged people hogging the upper and middle management ranks of the civil service. Life is cushy with the attractive pay packages and many people happily bask in the warm sunshine of contentment.

    To say that Singapore would have an incompetent administration if we don't pay their current wages (current the highest in the world) is silly. What usually happens is that when times a good, you will see a few junior or middle level civil servants leave the service. Most of the time, this is due to the lack of advancement as they literally have to wait for their boss to drop dead before they can get promoted.

    When this happens, the bosses hogging the top spots would immediately cite that there is a serious staff retention problem. They would go to PSA armed with statistics of the numer of people that they have lost.

    PSA would then approve a wage increase. By careful management of the benchmarking process, the top bosses would get the bulk of the increases while the middle to junior level staff get a modest increase.

    This spawns some more middle to junior level people quitting as the underlying problem has not been resolved. The cycle merrily continues with the few people at the top of civil service getting increasing fat off the backs of the Singapore people.

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