PM Wong on Singapore's challenges: cost of living, AI, and global trade

Caption language: en · Fetched: 2026-10-09

Why don't you just disabuse the rumors that have been going around that with your fellow prime ministers at Aison, you're going to form a band? >> That's President's President Marcos's wish, but I'm not sure if it will come true. We'll see. >> Does that mean your agent's going to negotiate a good deal? >> We'll keep talking. Well, it's a great pleasure to have you here. As you know, uh 25 years ago, we had the first CEO summit conference here thanks to Singapore and EDB and uh came at a very tough time right after 911 and people wondered whether it would come to pass, but thanks to the cooperation of uh the team here, it did come to pass. We were able to fly over just on the day that they removed the banning of flights after a 911.

And we thought it would be a onetime conference, but here we are 25 years later and still trying to add a musical element, but at least we have uh at least we have uh you here tonight. And uh one of the things before we get into some of the subjects, little ones like energy, um explain the unusual way and you keep updating it, Singapore does on attracting high quality people to the government by paying uh very high salaries. >> Wow. >> So uh >> you go you cut right to the chase, Steve. >> No time for warm up. Well, I I offered you the opportunity to play the guitar, but well, our starting point is is government important? Is good government important? And I believe most of us will say yes, good government is important. Then if good government is important, what do you need to do to get good government?

And surely if good government is important, you would want the best, a few of the best in every cohort to be able to serve in government. How do you get them to come? I think you have to identify people with the right character and values and appeal to their sense of purpose and their sense of meaning and calling. So that's what we try very hard to do. But having done so, there is a practical issue because we are talking about people who are successful in their own careers. They could be doctors, lawyers, business people earning easily more than a million dollars a year. And on that basis of their salaries, they would have made their own financial commitments for themselves, their spouses and their children. So what we try to do in Singapore is to have a salary framework for ministers which is competitive.

It will not match their private sector pay but it is broadly competitive. There will still be a discount but at least the burden and the financial loss and the hurdle of entering politics is not so great and on that basis we have been able to attract and retain good people in government these last 60 years. We are now in the fourth generation of leadership renewal. I'm the fourth prime minister. Uh my mission is not only to complete my term as prime minister but to make sure that I can attract and bring in another generation of leaders whom I can pass the baton to in due course. And that's how we keep Singapore going. Well, you would think yes. We're we were discussing at dinner what you've done and your predecessors have done.

Singapore is uniquely successful in a very often very turbulent world year after year and uh I was wondering if you just quickly explain why others don't imitate what you do. Now obviously you're small relatively small entity but principles of success are constant whether small or large and uh you are a living success story. Why don't others say aha this is the way to go? It works. >> We are happy to share our experiences. There is no secret charge right. >> There is no secret formula. We share it's an open book. We invite officials to come. We provide training programs. Um it's for others to decide whether they want to do uh like we have and and we often tell them it's not just a cut and paste exercise because policies and programs have to adapt to local context and circumstances and every country is different.

Every society is different but we are always happy to share. Well, um, we have the ambassador here, so I have to be careful what I say, but perhaps you can visit my country. >> I should not say anything. >> That means you'll be able to come to my country. But uh one of the challenges now and there's no easy answer is uh one of the things about especially in public life but in commerce as well unexpected crisis who a year ago would have thought we'd have an energy crisis >> a crisis with straight of hormuz. >> How how are you coping with it and how are you working with your neighbors through to try to cope with something that uh is extremely difficult especially when it's so unexpected.

It is when it started out when the conflict first broke out, we were all prepared for a worst case scenario where we thought that might be a severe curtailment of energy supplies and we could even end up in a covid-like situation where countries scramble for oil, energy and essential supplies. I think fortunately that worst case scenario has not panned out, has not materialized. Uh it reflects the adaptive and resilient nature of the global economy. um countries and companies have been able to adapt and adjust. And we see that in Singapore. We are an energy hub. We have refineries here. Our refineries were able to source for crude oil from outside the Middle East. It's a different grade of crude. So, they had to retune their operations.

It resulted in lower output, but they were still able to operate and service all their customers in Singapore and beyond. So, these are the kinds of adjustments we have seen. I think the situation now is one where we are prepared not so much for a sudden and severe dislocation. I think that risk has come down but we are prepared for a prolonged conflict situation where energy prices will remain high for longer where there will be higher inflationary pressures not just due to energy but the feed through into food and other materials and supplies and also because there are now greater costs in supply chains due to tariffs and whatnot and all of that may eventually impact on global growth. I think that's something we are prepared for. But in Singapore, our fiscal position is strong and healthy. We are able to take decisive actions if needed.

And so even in the last few months, we have already rolled out two support packages to cushion the impact for households and businesses. And if things get worse, we will be prepared to do more. >> Amazing. And uh one of the things you've uh rightfully I think uh spoken out on uh freedom of navigation in my country the belief in freedom of navigation goes back to Thomas Jefferson fighting the Barbar Pers >> and uh >> what's your outlook now? There's there's still occasional talk about tolls and restrictions. >> Even the straight of Malaa >> Yeah. >> doing the same thing. Uh what's your outlook on freedom of navigation? Do you think >> we are concerned?

>> We are concerned that what hap what's happening in in Homos may set a precedent for elsewhere because if a critical international waterway can be weaponized or arbitrary tolls imposed on shipping through something like Homos then countries may be tempted to do the same elsewhere. And and in our part of the world the critical maritime choke point is the straits of Malaca and Straits of Singapore. uh the lal states the three loral states surrounding the straits uh in Malaysia, Indonesia and Singapore. And so I've discussed this with my counterparts, Prime Minister Anoa in Malaysia, with President Brauo in Indonesia and all of us are fully aligned on the fundamental principle which is that international waterways must remain open. Freedom of navigation and the right of transit passage has to be respected and international law upheld.

So we are fully aligned on that. Even if you may hear rhetoric to the contrary, the leaders are aligned. We will defend these principles strongly and we will work with partners to uphold these principles. >> That's essential because uh when you start putting barriers on waterways, it's like tolls on highways. It interferes with commerce. >> For sure. For sure. And uh one of the things uh subject that uh may be sore with some I've made my views clear on it is uh tariffs. Um that is another word for those who don't know for tax. And as Warren Buffett said, uh the tariff is not paid by the tooth fairy. It's real people have to pay it. >> Yes. And uh what's amazing in the case of uh your country one is you have no tariffs on American imports. >> No, we do not.

>> And >> you have a free trade agreement with America >> and and uh and you have and America has a trade surplus >> on goods with us >> and and yet you got hit with 10% and now it's a under another law 12 a. 5%. >> Yes. We have not been able to understand it. But what to do? Well, we we we have a fellow here tonight. Well, the right tariff should be zero. I I I like that sentiment. And uh tariffs are a barrier. And one of the things that Singapore has uh thrived on and showed how the world you can thrive on it is by reducing barriers is by free trade. Uh looking looking around the world, are we going to be going into a period where we have these trading blocks and uh deals that have commerce that is not natural and end up uh costing or not getting as much as we should?

Unfortunately, how how do you how do you uh see this world out there and how and when and you and your team prepared to adjust to a circumstance that goes against prosperity? Unfortunately, I think the world is heading in that direction. It's not just the tariffs that America has imposed, but other countries are also starting to put up more barriers to trade because increasingly there's concern about competition. There's concern that exports from other countries will impact on local industries will impact on jobs. So you can see the pendulum shifting. Industrial policy is back in a fashion. Countries everywhere are looking to put up more barriers to protect their own industries. So we fear that's the that's the way uh the mood is the countries are moving in that direction.

I don't think it means trade will no longer exist because trade still must flow and trade is growing. We see more trade but the global economy will become more fragmented and fragmented by regions. In such an environment what can Singapore do? Well we are still a trading nation. trade remains three times our GDP. We cannot afford to turn inwards. We will get poor very quickly if we do so. So our strategy is to deepen and diversify our connections. We will do so with Southeast Asia and accelerate the integration in ASEAN and we will have some initiatives to do more on that front when we become chair of ASEAN next year. We will step up our connections with existing partners and I think there are also opportunities with new regions like Latin America, Africa and the Middle East which we hope to do more. So these that's our strategy.

I think in in a fragmented world in a fragmented global economy region by region these different regions still need to connect with one another and we hope to be one of these connectors. Well, you've proven your capacity to be a very prosperous connector. U do you think do you have hopes that in the next few years the pendulum will swing again that uh we should have learned from the 1930s that uh when there's more and more openness, we get more and more prosperity. Do you see or do we have to go through this more before people see the light again? Yeah, I I'm afraid we have to learn the painful lessons before um you you see some enlightenment along the way. This is true throughout human history. >> Well, yes, we'll try to change the course of human history. You're uh >> but but in Singapore, we are very clear. We have to remain open.

We have to keep trade flowing. We have to remain a place that's stable and trusted, a place where businesses can innovate, invest, and plan for the long term with confidence. And we are determined to remain such a place in Singapore. I think in a more unpredictable and messier world, stability and trust matter more than ever. So you'll, not to offend anyone religiously, but you'll be like a monastery in the dark ages. I can say that you but uh we are we hope to be a you know light on the hill shining brightly in a dark world. >> Yes. Well lighthouse in the in the fog but uh on the I'll I'll say it in terms of tariffs there's chatter about transmission. Can you comment that uh if a company when one country sets up a facility in another country, it's not a dodge, it's doing business. Walk us through that.

>> No, we we know that that there are concerns in in in the US administration about circumvention of tariffs. We understand that uh and we've tried to explain also that um yes you may have very concerned about attempts to circumvent but there are also legitimate business reasons why a company would set up operations in a country and then export from that country and there are very clear rules of origin that determine substance. So if you have a com investment in Singapore, investment in Vietnam and investment in Mexico and the substance is there then it's a Mexican export, it's a Vietnamese export, it's a Singapore export, it's not a Chinese export. Um that's what rules of origin make very clear. We'll have to keep explaining and hoping people understand these rules. >> We'll try to help on that.

uh coming coming uh one of the things that uh outsiders may not recognize about uh Singapore is how strong you are in high-tech. You have 10% of the world's semiconductors are made here. About 1/5if of the equipment used to make them are done here. Walk us through an aspect of Singapore that a lot of outsiders don't recognize. >> It's a big part of our economy, the semiconductor industry. We don't make the most advanced AI chips but we have major firms here like global foundry micron and they make memory chips and specialty chips which are in demand now with the AI boom and on top of that we built uh ecosystem for semiconductors. So the precision engineering industry is here.

The equipment suppliers are here and that's why the whole industry is thriving now with demand for uh for AI and our economy has been growing at 5% for the last 3 years including this year which is remarkable given the the where we are in terms of per capita GDP to be able to grow at 5% consecutively for 3 years with productivity at more than 3%. That's considerable. So it's not just that the AI boom has benefited the semiconductor industry and the related industries. We have also seen positive spillovers into other industries like logistics and professional services. And uh do you feel what what are your thoughts on uh how long can this boom last? You're uh you talk about 5% growth. Uh I've seen possibilities you may peak at 6%. >> Yeah.

you >> no no no boom is forever at some point there will be a correction and we don't know when it will happen or how it will happen we don't know who the casualties will be when it happens but no boom is indefinite so we our our approach is to make use make good use of this window of opportunity now where there is external demand capitalize on it build new capabilities and create better jobs for Singaporeans. >> How do you uh see Singapore walking through the transition to AI? There may be a bubble burst, but the technology is real. >> It is real. And uh couple of things on that. How how are you dealing with even though net jobs will be created, there will be displacement. How do you deal with that?

And also then uh another part is uh how you think we might regulate or do rules on AI so that we don't uh end up destroying it because it looks like it uh gets out of hand in terms of the abuses of it. Um on the jobs front, these are still early days. We don't quite know yet what impact work AI will have on the jobs market but clearly some jobs will disappear and many jobs will have to change. So our approach is not to protect the job but to protect every worker and we can do this in Singapore because we are small compact and because of how we are organized and structured. Uh in some countries, businesses and governments will regard unions as obstacles. We don't do that in Singapore. We take a different approach. We do not just tolerate unions. We embrace unions as partners. And our unions also have an enlightened approach.

Do you know that it's better not to >> Can they educate our unions enlightened approach? Yeah. Uh we you know unions know that it's you know better to enlarge the pie. >> Yes. >> Rather than to fight for a bigger share of a smaller pie. So that has brought about a strong compact in Singapore over the decades between the government, employers and unions and we work together for win-win outcomes for everyone. So on that basis um we can roll out AI and make sure that AI is you know the benefits of AI are shared widely. To give a very concrete example we provide government grants to enterprises. The unions are the ones that help to administer these grants. So the unions have empowerment. They go to management. We offer you grants for enterprise transformation.

We offer you grants for it, but you take care of workers and you help workers reskill and upskill. And to be clear, it does not mean that the company cannot lay off workers because with automation, some jobs may be lost. But what we ask is that companies are fair. Go for retrenchments only as a last resort. And if you have to retrench, treat the workers fairly, pay them retrenchment benefits, give them advanced notice and inform the unions so that your unions can work alongside the workers, help them to retrain and eventually get a job. And so that's what we have been doing. And I think we can through that kind of a tripartite approach ensure that AI benefits all workers. >> You mentioned you just mentioned about it early days with AI.

uh you've expressed some uh general thoughts on perhaps uh having some regulation through the UN or something. Uh lay out your preliminary ideas on how we uh make sure people trust it rather than fear it. >> So that's your second question earlier too on a the risk of AI and AI safety. I see AI safety at two levels. First is the risk of um more powerful and autonomous AI systems and the risk there is a potential loss of control of these systems and the risk of rogue agents or rogue actors using these capabilities to do terrible damage at the large scale and we're talking bioteterrorism, cyber attacks, maybe even creating weapons of mass destruction. No country can deal with this risk alone and that kind of a risk is specifically more with the frontier lab.

So it's very good that America has announced an initiative around this and appointed a task force to oversee this this space. But eventually we think the inter the rules and standards for frontier AI development has to be international. It cannot be just confined to a single country. So ideally international safeguards are put in place perhaps under the opices of the United Nations but that will take time. So that's one aspect of AI safety. A second aspect of AI safety would be the safeguards and rules that you put in place when AI is deployed sector by sector.

So there we are not talking about frontier AI we're talking about AI application and I think there the requirements will vary from sector to sector and the decisions every sector regulator will have to make will be what sort of decisions ought to remain within human control where is the human in the loop and you know what kind of uh safeguards do you have for your sector and it will it will vary from healthcare to finance hands to advance manufacturing. So just today the central bank in Singapore the monetary authority of Singapore published risk guidelines for the use of AI in finance in Singapore and and in transport for example we are testing autonomous cars in Singapore. Whimo is doing a pilot here and again we are testing the technology understanding safety requirements.

Eventually we will roll out and expand the deployment of autonomous cars but with some regulatory oversight and we want to make sure that the roll out is not only safe but we will do it progressively so that we can manage the impact of autonomous cars on existing drivers too. So that's our overall approach at a sectoral level focusing on the application of AI but making sure that we do so responsibly and safely and that AI benefits uh a wide segment of the workforce. In uh my country, one of the things people say that uh in terms of making sure companies have safeguards is we have a very vigorous uh litigation uh group in the US and a company knows that if uh something goes wrong, they will get rung out in the courts. So >> yeah, >> you you have a more scientific approach, but maybe this frontier approach works too. We'll we'll see.

But uh one of the uh uh fruits of the stability of Singapore over the years is you attract a lot of uh wealth. You attract a lot of capital. People park it here knowing that uh it's not going to uh go poof the next day because of misgovernment. Um, Hong Kong tried to uh get in the in that uh sphere and uh you responded uh very quickly that uh Singapore is going to remain the premier place. Walk us through that. >> Yeah. Well, we watch Hong Kong. Hong Kong watches us. That is normal. Um we are competitors but Hong Kong is not our only competitor. We have there's London, there's New York, there's Dubai, there are other financial centers. Um, so we compete not just on tax, we compete on our capabilities, we compete on institutional quality, on being a safe and uh stable place for doing business.

So it's it's uh competition in the broader sense and we embrace the competition. I mean, I think competition only motivates us to want to do better and to make sure that Singapore always remains the best place to do business. You did you enact some new incentives to uh keep keep >> Yeah, you have to always make sure your incentives are competitive. That's part of the that's part of staying competitive, but like I said, it's not only about tax incentives. It's a wider range of capabilities as well. And at the end of the day, as we draw in capital, I think we want to make sure that the capital is legitimate. That's very important to us. It is productively used and it adds to our capabilities. It it adds value to Singapore and to Singaporeans. It creates better jobs for our people. You hit on something very important.

Uh reputation is everything. And uh three years ago, you uncovered a $3 billion money launder ring laundering ring. And since then, you've haven't hesitate to find banks or tighten the law, raise the bar for family offices. Work walk us through a few of the things you've done to make sure that reputation doesn't get damaged. If something goes wrong, it's dealt with immediately and decisively. Well, that is so critical for us because I think increasingly when investors look at um where they would put their monies, they are looking at where can I put capital for the long term. Where is a place where the rules are clear and the institutions are sound, stable and strong? And we want Singapore to be one of these places.

So integrity, trust is uppermost on our considerations and so if there's wrongdoing, if there's illicit money, we will take action and we will not hesitate to do so as we have demonstrated three years ago. >> That's that that's critical. Um cost of living is obviously an issue thanks to circumstances beyond your control. You mentioned helping out people who may have be temporarily straightened. Is there any other measures to be taken to deal with the high cost of living? It's a Singapore is not a cheap place to live. >> No, not at all. >> And uh so how how do you cope with that politically? >> Well, we always remind people cost and incomes are two sides of the same coin. You cannot ask for high incomes and low prices because the services that you consume, what you pay forms a salary for the people who provide those services.

So what's critical is rail incomes, incomes after netting of inflation. And so we watch that very carefully and make sure that rail incomes continue to rise across all segments of our population. Not just at the top level, not even at the median, but especially at the lower end. And we want of course income inequalities to continue to come down and so far it has been happening. And our general approach where it comes to cost and affordability is to say look if prices are high we recognize that these are legitimate price signals. We should not artificially have the government intervene to cap prices because that may lead to a lot of unintended consequences. >> Yes. Always. >> Always.

One of the reasons why during the energy crisis we have been able to get supplies of crude oil into Singapore is that we are buying oil at market prices whatever the market price. If we were to say no I should not buy at $120 I will only buy at $80. Who is going to sell to us? Then you will have a supply crunch. So if prices are high, we accept that these are market prices. But what we do instead of intervening to cap the price is to provide targeted support for the households and the groups that need that support. So we do that for utility rebates. We do that for targeted cash uh support for lower income and middle inome families. And uh one of the things uh that faces the this part of the world some other countries more than others is the uh pressure from China on disputed areas in in in this region.

Do you see hope that perhaps a negotiated agreement can be made with Azon to make sure lines are drawn and we can get to the business of exploiting resources instead of having boats bumping into Filipino fishermen? The negotiations are ongoing. We are not one of the claimment states, but there is a ongoing negotiation for a code of conduct between China and ASEAN and perhaps it can be settled within this term with Philippines as chair. If not, then we will take over when Singapore becomes chair and we will continue to facilitate these negotiations. But all parties are uh sincere and focused on uh achieving a an amicable solution when it comes to a code of conduct that will help hopefully minimize the risk of escalations and conflicts going forward. >> Also helps with freedom of navigation >> for sure.

That's our we are not a claimment state but our stance has always been that we want to uphold international law unclos and freedom of navigation. uh nuclear power. What's the future of that in this new environment? >> We are taking some steps to examine the feasibility of civilian nuclear power. We are there's a IAEA process for this phase one, phase two and and so on. So we are embarking on phase one which is a very preliminary stage where you examine whether the country has the ability to even consider civilian nuclear power. So we are undertaking that exercise and we'll see we will um go through the due process. We will publish the results of that study and if there are concerns then it may we may not be able to proceed.

But if the study shows that it can be done in Singapore, especially with newer technologies and the small modular reactors that are surfacing now, then we will consider uh whether or not to take the next stage. >> So we are doing it in a very deliberate and careful manner so that we can continue to get public trust and support behind such an initiative. We don't want to rush this. It is a very important and critical undertaking and we have to get it right. You don't have the chance to do it a second time if you fail to get it right the first time. >> Sensitivities are very high. Uh you uh export pharmaceuticals to uh the US. >> We do. >> And uh where does that stand uh in terms of the future doing more and also uh the tariff issue?

>> Well, whether it's on semiconductors or pharmaceuticals, a lot of American companies are here exporting, doing business, manufacturing, and then exporting back to America. So for now for the pharmaceuticals I think the understanding is that if they have investments back in America they will not be imposed tariffs. So that has settled the matter for pharmaceuticals. For semiconductors, we are still waiting for uh the outcome of discussions on what sort of sectoral tariffs may be imposed on the semiconductor sector and whether similar concessions that were obtained for the pharmaceutical sector would apply to the semiconductor industry. It's still ongoing, but the American MNC's that are here are considerable and we welcome them. They play an important part in our economic ecosystem. We value them.

They create many good jobs and I think it's a win-win partnership between the US and Singapore. >> May May there be more of it. >> For sure. >> Uh one of the uh strengths of Singapore is trust in the currency. Uh so many other countries currency distrust, inflation, instability hurts development. uh walk us through how uh over the years you've maintained a sound monetary policy in good times and in stressful times like what happened in the late 90s. You have to have an independent central bank and we built it up over time with considerable expertise and they are able to exercise monetary policy well uh with the goal of making sure that there stable inflation and also ensuring that the economy grows on a sustained path. Um but capabilities aside on monetary policy, it's really about running your economy well and having sound fundamentals.

And in Singapore, we have been very focused on doing that. Uh not just monetary policy, but fiscal policy. We have been very disciplined on the fiscal front. We run balanced budgets. >> Disciplined fiscal front. I'm going to take those words back to my country. That's why as I mentioned just now and at a time when many advanced economies are facing record high levels of debt we are in a very different position. We have a strong healthy fiscal position. We have investments you know from our reserves which generates investment income that goes into our current revenue and and we have the resources to act if uh things were to get worse. But we maintain strict discipline on balanced budgets. We run the economy as well as we can.

And so if the fundamentals of the economy are strong, that makes it easier for the central bank to exercise judgment and to have sound independent monetary policy. And in Singapore's case, monetary policy is premised on the exchange rate. We use the exchange rate as an instrument of monetary policy not interest rates because we are such an open economy and so on that basis as our economy has grown and strengthened over the years our currency has reflected those strong fundamentals as well. >> Terms of uh trust uh the marketplace has spoken. I told this group a couple of days ago that the 10-year bond in the US is over 5% and the 10-year bond yield in Singapore last I looked was 2. 46%. >> Congratulations. >> Well, thank you. >> Um, one of the aspects of uh Singapore uh is uh the way you treat health care.

Um, you have comprehensive coverage. you have outstanding uh physicians. So the quality here is very high and yet even though we have a aging population which we'll get to in a moment um your overall health care costs are less than half proportionately than the US. Yeah, I think we are overall as a country about 5% of GDP >> and uh I won't even mention what ours is but uh but uh one of the things you do is yes people pay money for the health care but they control the resources. Walk us through that. It's a unique approach where you get the aspects of the coverage but also free market discipline and innovation. It's it's a complex healthcare is very complex. Um and over time we have worked out a financing system which combines individual medical savings accounts for every individual.

It's your money and you can use it as you desire for for selected items. We have insurance for high hospital bills. So that's a national mandatory insurance scheme for high hospital expensive hospital stays. And then a third layer of um a medical uh uh social a security net in case anyone after your savings account is depleted, your insurance coverage is inadequate, you still have high bills to pay, there is a safety net for those who are still unable to pay their bills. So it's it's been a system that has worked well for us. And these three elements of that financing system is coupled with subsidies which are means tested at public hospitals. So that allows us to provide full coverage to every Singaporean. Um those who can afford it pay more.

Those who have lower incomes will have more subsidies and at the same time they still can fall back on their savings as well as insurance coverage. And overall it has worked well for us. Well, it it's amazing you hit on it and uh we should keep it in mind is having the patient or the customer having control of some of the money where you providers have to compete for the money which brings about the benefits of a free market. Um Singapore is uh getting older as many of us are doing elsewhere. Over 65 I think is now over 21% of the population. >> We are considered super age now. >> Not you though. Um but uh but uh >> as a country >> yes so uh how how how do you uh prepare cope? You are always looking to the future for an aging population. I think first of all it's a good thing that we are living longer. That's always a good thing.

So we should be tax. >> Yes. That gets away from that gets away from those who complain we're living longer. It's more expensive. We should die younger. So I like that. >> I like your approach. >> I think it's a blessing. But at the same time we focus on the number of years that our people are in good health. So it's not m simply a matter of lifespan. It's also a matter of health span. The average life expectancy in Singapore is now about 84. If you look at health span, it's 75. So on average, a Singaporean spends about 10 years living in illness or disability, which is not good. So we want to shorten that number of years. Extend health span.

So it's not just a matter of lifespan but extend health span and how to do that that's challenging but it would require a major reorientation of our health care system to focus on promoting health and not just treating illness called prevention. >> Yes, prevention is a big part of it. Uh it sounds very easy to do but it really requires a major realignment of incentives in the entire medical system because the incentives are to treat where there is more profit. Prevention is not quite at the same profit margin. And how do you then realign the system so that everyone within the health care system also has the same incentive to focus upstream on prevention and promoting healthy lifestyles. So it's it's it's something that we have been working on.

It's not easy to do but we are we have been taking very deliberate steps towards it and I think we are starting to see some uh early signs of positive results. uh our recent health survey showed that sugar cons consumption have has come down which is not a bad thing quite good salt consumption is still quite high >> so we shouldn't have so served this dessert tonight we'll remember that in the future but that's a good example do you have another quick example of prevention where people are starting to make changes that prevent illness >> what we do is also to have uh a program to get every Singaporean assigned to their own family doctor um and and to stick to that family doctor. Do not doctor hop just to get that what we call in Singapore in MC medical certificate so that you can declare that you are sick and take time off from work.

Um so stick to one regular family doctor so that he knows your medical history and each time you see the doctor they can tell you it's not just because you are sick but they can advise you on the test that you should be doing on a regular basis. They will they will monitor your weight because they know you. They have seen you all the time and they was they could tell you look you are putting on some weight better to check your lifestyle your diet and they can provide advice. So that's yet another concrete program that we are working on and again it's not simply a matter of assigning the individual to the doctor but aligning incentives. Why would the doctor want to do this?

Again, you have to make sure that there are incentives aligned so that the doctor has some incentives through government program, government funding to pay attention to all of these preventive programs. Well, once again, uh we we'll be following what you're doing on health care, especially prevention. And there once more, Singapore is leading the way rather than following. Prime Minister, thank you so much for being with us. >> Thank you. Thank you. Good talking to you, Steve.