Public Sector Professionals Should Be Sent Into the Private Sector to Become Entrepreneurs

Producer: Bharati Jagdish
First broadcast: 9 June 04, Radio Singapore International

According to Singapore's Senior Minister Lee Kuan Yew, Singapore's public sector is too talent-heavy and up to half of its scholars should be released into the private sector after about six years to become entrepreneurs.

Mr Lee cited global competitive rankings which show that while Singapore scores very highly on its public sector systems, it does not fare well in other criteria such as the level of entrepreneurship and venture capital.

Mr Lee said that right now, too many of Singapore's able are professionals when the country actually needs more business people.

For more on this, Bharati Jagdish (BJ) spoke to George Abraham (GA), Chairman of the Feedback Group on Economic Development in Singapore.

GA: "There certainly is a lot of untapped talent in the public sector which could be channeled into the entrepreneurial side."

BJ: But can our able professionals in the public sector necessarily excel in the world of business and entrepreneurship?

GA: "I think we have to look into those government departments and statutory bodies that have shown an innovative approach to the way they manage public affairs and the way they manage their divisions and the units that look into specific areas of public management. You will find that there are pockets of what we would call "in-trepreneurs" - people who function like entrepreneurs within the system."

BJ: Would you say that being a scholarship holder is indicative of that person's aptitude in the world of business and entrepreneurship?

GA: "I think academic excellence is indicative of a mind that is disciplined, a mind that is taught to think and a mind that can and should adapt to changing situations. The scholars have demonstrated the fact that they are focussed, they are able to concentrate on whatever it is that they are doing and to excel in that. Also, in those situations and posts that they have been placed, they have been in a position to adapt to the changing circumstances in most cases. In the case of younger scholars who are in the public sector, quite a few of them may have innovative ideas which probably because of the hierarchical system that exists within the bureaucracy, would prevent them from being able to try out some of their ideas. It might be a good idea for such people to move into the private sector."

BJ: Some analysts have said that professionals in the public sector may not want to leave their comfortable jobs to venture into business in the private sector. What's your perspective on this? It will be quite a change for them, wouldn't it?

GA: "Yes, I think there are a couple of ways to look at this. One is that if you have people who have a fixed income, who have regular hours and a job that they like and they have prioritised how they want to spend their time, the life of an entrepreneur may not be for them. The entrepreneur's job has no set limits. The other aspect is income. As a professional in the public sector, you would have a guaranteed income, but as an entrepreneur, you never know when you're going to make a lot of money or if you're going to make nothing. So for some people, it can be quite a struggle if they cannot or do not want to cope with these uncertainties."

BJ: Mr Lee pointed out that Singapore does not fare well in terms of entrepreneurship. What are the factors underlying this problem?

GA: "I think we have a very efficient government that has functioned, for all practical purposes, as an entrepreneur and the risks have always been taken by the government who has gone into various business areas. We lacked that entrepreneurial base when we first started industrialising the country and the government did a good job of filling the gaps. The number of jobs that have been created offer opportunities for people to avoid risk-taking and go straight into a job. The government took the risks for us. The system itself has created a safe haven for people not to be entrepreneurs. But today, the situation has changed and I think this is where opportunities lie for individuals who are willing to take risks. But if you have a generation that is risk-averse, it would be very difficult to recondition them, so it really requires a change in mindset."

BJ: Besides a mindset change, what do you think needs to be done to nurture our young talents for this purpose?

GA: "I think the recent changes that have been announced with regards to the education system are a good start because this is something that starts from an early age. The whole curriculum itself is being re-examined to promote a risk-taking culture and the tertiary institutions - polytechnics and universities - encouraging entrepreneurship and setting up incubator cells that allow students to try out some of their ideas. These are all good starts, whether or not they succeed, because it gives them the confidence to start something on their own."