Crowding out

In economics, there is this concept of crowding out when government spending drives out private sector spending because it soaks up available financial capital and drives up interest rates.

In Singapore, I think there is some kind of political and psychological crowding out. We have grown to be a hyper-meritocratic society and we are proud of it, believing that it is the best way of organising ourselves and our systems. And we rarely talk about the injustice perpetuated by the system because we don’t want to undermine this part of the cultural fabric.

Yet we are confronted with the reality of inequality in the society, where students from underprivileged families are expected to be measured and assessed equally before an examination in school with their peers who had better backgrounds and well-resourced parents, tutors and even siblings. How do we respond to that? Do we just say, the system will take care of it?

In many other societies, private charities, foundations and many other organisations step in to help. In Singapore, we almost think that it should be the government’s role. How many of us would think it is a gap worth bridging? How many of us, would think it’s the problem of school teachers, and try to load it on to the public service?

During PM Wong’s National Day Rally speech this year, he talked about some ground-up initiatives and community organisations, giving great examples of how we want to nurture the Singapore Spirit and encourage Singaporeans to step forward to shape the character of our society. He acknowledged that the government cannot force or direct this, but to encourage, recognise and celebrate.

And then he talked about this tension between the government and the people sector:

In many countries, you see such ground-up collective actions because the governments are not working, the governments are ineffective. So people are frustrated at the lack of action and progress. And they step forward to take matters into their own hands.

Singapore is in a different position. No one wants the government to do less. No one wants the government to become ineffective. Instead, we strive to be more efficient and responsive. And there are areas where we believe the government can and should do more – especially to provide stronger social support for those in need.

But it is not just about what the government does – and we certainly do not want to end up as a society where people rely solely on the government. It is about all of us – government, businesses, workers and unions, community groups and civil society – doing our part. All coming together for the good of Singapore and our fellow citizens. And moving forward together as one.

I think there will never be a straightforward way to demarcate, ‘this is the government’s job, this is private organisations’ job, this is the community’s role’. In many societies, cooperatives and community organisations provide many services – especially in more rural regions.

These organisational forms and structures could supplant and take up ‘market space’ (as new businesses may not be able to compete or provide similar services commercially since these organisations are already providing them effectively), or even ‘political space’ because government cannot claim credit for having achieved some of those social outcomes.

As a society, thinking about the sort of soft cultural institutions and the hard organisations, we might have to decide what kind of mix we want to form a society where we all have a stake in it and not just rely on a formal government structure. The way we have developed, where people are constantly moving around, uprooting themselves to get on the property ladder, not having a particular sense of belonging to a geographical community has made it harder to foster a sense of ownership or belonging to a group. It has also encourage a lot of selfish-thinking where people are just figuring out what rules or tricks they could follow on the path to prosperity and self-enrichment.

How can we help our citizens reclaim that responsibility and stakeholdership towards the Singapore society? How can we do that in a manner that continues to maintain our unity as a nation, and strengthen our identity as Singaporeans?

Carbon capture

I think there is a place for carbon capture and utilisation. But just not the way we have been thinking or approaching it. Carbon capture and storage in some kind of cavern or project and expecting it to hold on to the carbon dioxide does not make sense. But many other carbon sequestration approaches do: applying biochar to ground, injecting carbon dioxide into cement to strengthen the concrete, or any processes that somehow mineralises carbon dioxide into some kind of other compounds including carbonates.

All of the approaches where carbon dioxide is somehow transform into some other form which is more permanent and serves a function make sense. The technologies involve in terms of filtering the carbon dioxide to a certain level of purity, conveying it and handling it, will play important role in the low-carbon economy.

The reason is that carbon dioxide is still an essential part of many industrial production processes. In any case, the main challenge of climate change isn’t really the presence of carbon dioxide – it is the fact that we are taking out fossil carbon and then turning it into carbon dioxide, releasing it into the atmosphere faster than it can be cycled back into other parts of nature. This build-up of carbon dioxide, strengthens the greenhouse effect, making things really nutty for the climate.

But when we are taking biogenic carbon dioxide and using it, there is nothing wrong because the carbon was sequestered from present carbon dioxide in the atmosphere. Using it merely ‘recycles’ the carbon around. Human systems that does carbon capture can play that same recycling role. Take for example the capture of biogas from the anaerobic breakdown of organic matter. That is a mix of methane and carbon dioxide gas; the carbon dioxide gas can be filtered out and then used for industrial processes, while the pure methane (or biomethane as we call it) can be used for energy purposes – combustion to produce heat and drive turbines to produce electricity.

Moreover, the carbon dioxide produced from combustion can be captured, purified, and utilised just like the carbon dioxide filtered out from the biogas. This carbon dioxide can actually be combined with green hydrogen to form many other hydrocarbon molecules that act as our more familiar fuels that are compatible with many of the engines and systems we have. Not just that, the combusted fuel will emit that same ‘biogenic’ carbon dioxide, which would not count as greenhouse emissions because they are in the short-term cycle. Nevertheless, we can still capture that carbon dioxide and then return it to those uses we talked about.

To me, that’s the role of carbon capture in the future – it is really to recycle the carbon just as nature already does it. It is not to erase the carbon dioxide that has already been emitted. It is really naive to think that spending more energy trying to capture the emitted carbon dioxide can be more worthwhile than using alternative forms of energy that do not emit so much carbon dioxide in the process. That would be the role of these technologies in the future.

Decarbonising Singapore’s power sector

Singapore’s power sector is responsible for about 40% of the total emissions of Singapore (NCCS, 2022) and in 2024, almost 95% of the power produced in Singapore was generated using Natural gas (EMA, 2025). I estimated that we consume about 300 PJ of natural gas just for power production alone, assuming that gas power generation on average is at about 60% efficiency. And from that same dataset you’d also realise we have 0.9% of coal-fired power in the mix.

The recent EMA announcement about the 300MW biomethane pilot for power plants (EMA, 2025) implies a 3% reduction in fossil natural gas use, replaced by biogenic carbon dioxide from the combustion of biomethane, which is not considered a greenhouse gas (GHG) emission. Assuming this quota and capacity is used in full, it should lead to about 740 ktCO2e of GHG emissions abated.

Another news was about Tuas Power replacing all of its coal with biomass for power generation by 2028 (Tuas Power, 2025). This implies that the 0.9% of coal contributes to the fuel mix will no longer be emitting carbon dioxide. I did some back of envelope calculation on the emissions from the coal power generation and estimated it to be at around 300tCO2e per annum only. This is likely because the plant’s capacity factor isn’t very high. If the 133 MW capacity was firing in full all the time, they should be emitting around 700tCO2e.

Now if we follow the 2022 emission profile figures, the power sector is responsible for about 21MtCO2e of emissions from Singapore. Those reductions of about 0.75MtCO2e of emissions seem relatively insignificant. Indeed, it looks like only 3.5% of the total emissions will be reduced in the grand scheme of things.

Sure, we are going to import more renewable energy and as a proportion of total power generated, we will increase the percentage figure. The grid emissions factor will probably decrease especially since we are going to have more MWh of green electricity. But for the existing power generation capacity to decarbonise in the short term, biomass and biomethane remain the more readily available solution. Those pilots and announcements may herald the beginning of greater ambitions.

Blunomy & bioenergy

My blog has always been relatively free of direct stuff on my work but here’s just a post where I wanted to document some of the work that the Blunomy/Enea team had worked on over the past couple of years.

Moreover, it has been over a year since I stepped up to take care of our Renewable Fuels practice at Blunomy for the Asia Pacific. Things have been really challenging and tough on the energy transition front for the world, and for the business of consulting but when I look at these analysis and work we’ve put out, I’m reminded of how far the industry and market has come.

Some of these materials I’m putting links to are available as ‘publications’ on our website, but some of them have been put out by our clients who have decided to make some of our work public.

This corpus of work followed public sentiments and appreciation of biogas and biomethane as a source of energy across Europe, Australia and New Zealand. Starting with awareness-building and education on this source of green energy that contributes also to circularity, we went on to develop analytical pieces focusing on feedstocks, understanding feedstock value chains, as well as more advocacy pieces that cuts through the challenges in the industry to recommend suitable policy intervention should the government determine this was a worthy cause to pursue.

Blunomy continues to build upon our experience and expertise. During this period, we also performed due diligence on more than 50 projects across different parts of Europe, looked into impact assessment as well as the help clients develop relevant investment cases for this business. Until biomethane becomes a more mainstream form of green energy, the work will not end. Even at that point, there will be new challenges and issues to overcome.

Media and narratives

I used to love The Economist, and I even used to collect various articles to prescribe them to read for my students whilst I was teaching Economics at A Levels. It’s been a great influence on the way I write and approach sharing my opinion on things, and I enjoyed the dry wit and British humour, but these days I find the anti-China slant a bit uncalled for.

Take the recent report on China’s dominance in renewables. One of the article that talked about the improvement of air quality in China has the headline, ‘China’s air-quality improvements have hastened global warming’. I used to laugh at The Economist’s self-deprecating humour and when they lambasted silly but political manoeuvres of US presidents. When they try to criticise illiberal practices in China, I get it and understand the Western liberal lens that drives those considerations. However, this is a blatant low blow, a stark contrast to the highbrow approach that I would usually associate with The Economist.

The article isn’t even so much about China’s air quality but the science behind how some of the aerosols emitted by coal plants could have helped with cooling the atmosphere and how geo-engineering techniques based on that could play a role in climate change. Though latest studies suggest this will probably not be enough to cope with challenges in the shifting agriculture landscape as a result of climate change.

We are entering a new era where narratives are being distorted by English-language media, and it doesn’t help the rest of the world understand China any better.

I recall in 2018, when The Economist started a new column on China called ‘Chaguan’ (which really means Tea House in Chinese), they wanted to understand China better and to help the world do that. That hadn’t quite work.

Place of the Arts

When I watched Secondary the Musical last year by Checkpoint Theatre, there was so much that resonated with me, with the teachers around me about the Singapore education system. It stirred me to feel something about teachers, students, inequality, and even though there was something moving about the end where the teacher chose to stay and continue to live her passion for teaching, I could not but feel a sense of unease for the character.

I had thought and understood that this was what art was to do for us. And this was why there was such a time when the artists seemed as though they were critical of government all the time. Artists’ role in society is ultimately to bring out the subjects, topics and matters worth the attention of society. They could be overlooked groups in society, or matters that still need to be deliberated and discussed, rather than considered a “sacred cow”.

Arts is also a way to cry out in a deeply human way the causes that are worth attention not because of commercial numbers or tangible metrics but that they touches deeper aspect of being human. Whether it is our relationship with nature, or heritage and history, minority culture, there are just things that our marketised, industrialised modernity do not capture though we as humans ought to.

The place of the arts is also for aesthetics and beauty, but one that has identity and soul in the society from which it blossoms. Yet what is the business model for the arts? In a capitalistic society, what are we to do to feed our artists? Whose responsibility is it to ensure they are not exploited by commercial interests to support unworthy causes? What alternative systems are available to fund, to protect them?

Political culture

Woke Salaryman recently posted this comic article in response to comments towards a previous post about workplace ‘politics’. I really like the realism, the clarity and conviction behind their work. I think it is great that they call out the naivety of those who thinks that they can be ‘above’ politics at work but I’m writing this post because I want to add a more nuance layer to the conversation.

I think Singapore, by and large, have always been sensitive to overt kinds of politicking because of the way politics have been portrayed in our history. We take a more superficial view of what politics mean, as though it is all bad and about behaving in deceptive or conniving, self-serving ways.

And in the workplace, we default to thinking that the virtuous approach is simply to bury head and work hard. That can be a great start in a small working team or organisation where visibility isn’t really a problem. It also works well when productivity, key work metrics are not contentious. Then politicking can seem like it’s all about bootlicking, gossiping and acting in the worse, socially destructive ways.

Politics, which is derived from greek words meaning ‘affairs of a city’ is fundamentally relating to governance and interactions between fellow beings living in the same environment, subject to different constraints and influences that are interdependent on one another in the community. The relationship-building, social interactions, tussle for power, influence or mind-share are all part of it. In a workplace, where we are all coming together to achieve something together, it takes effort and the meta-layer of ‘work’ to organise everyone together.

Work today has evolved and become increasingly complex; it is hard to measure individual effort easily, and particularly challenging to identify precisely what the right skillsets are to progress to the next level. It is ultimately the ability to organise others and persuade them to work together that produces value as opposed to working and contributing directly.

There is a role for politics in all of lives, and maybe Singapore needs to build a culture of politcal-awareness and also encourage citizens to appreciate the positive role it can play in society, workplaces. And we may all also learn the right social, emotional intellect needed to handle tricky situations. With the geopolitical climate of the world today, Singapore needs to cultivate more brilliant diplomats than ever before. How else to do so than to help our people recognise the value of such work to the survival and success of a city state nation.

Driven by inspiration

If you think that Singaporeans were motivated by fear to build up our country in early days of nationhood, think again. There wasn’t really all that much to fear because we didn’t have much to begin with. This narrative that we had no resources, we had to rely on our manpower, and our ingenuity, that’s all true but it wasn’t translating into fear for our forefathers. We had it wrong to think that Lee Kuan Yew fearmongered two generations of Singaporeans into the building up a metropolis we have today.

I believe the early Singaporeans were driven by inspiration – the ‘against all odds’ was possible because it was well worth a shot. We didn’t have much to lose; and there was everything to gain on the table. We had institutions to build, and a new identity. How exciting! And of course, we do not slacken, we are not complacent, because we were not there yet – we were limited only by our ability to envision the future and inspire our countrymen towards it.

Fast-forward today, we seem to think that we managed to achieve all that we did out of fear. We think it was ‘kiasuism’ (fear of losing) that drove us. Probably not. What was there to lose anyways; and yes we are competitive because we want to win, not because we are afraid of losing. Being afraid of losing only happens when you have won at least once. And we did win, more than once, and we begin to hold on to our victories and achievements more than our vision of the future. And in fact, this vision of the future morph, and then slipped.

Consider this press release by the Singapore government in November 1988, there seem to be a clear policy and longer term strategy underpinned by a theoretical framework of the economy. There was a deep understanding of what it means for our economy to grow and the structure by which it is expected to grow with. But without a clear sense of vision for what we want to build Singapore into, we will fall into the trap of just trying to push certain figures up indefinitely.

Ten years ago, in 2015, Ravi Menon sketched out some kind of economic vision for the future framed in a retrospective 100th year anniversary speech for Singapore in 2065. It is brilliant and perhaps reflects Ravi’s aptitude for such high level strategic thinking and visioning. If we look at the decade of performance that took place after the speech was made, I’d say things have not been kind to the world and Singapore in terms of geopolitics. That’s perhaps something Ravi did not anticipate and would not have been expected to identify as a challenge for Singapore.

In the next five decades, our nation will be confronted with lots of geopolitical challenges and turmoil in the world; our economy will require more radical thinking and transformation than the country has ever had to go through. But we can only get through it with inspiration, not fear. We can only be driven by the desire to create a future we want to live in, rather than to react to the world’s situation with the classic ‘bo-pian’ attitude that we might find more common amongst our people.

Startup dreams

I listened to a couple of episodes of the Founders podcast, and also to a few episodes of The Knowledge Project podcast where Shane talks about the stories of different business leaders, founders and icons. There are some hallmark traits that recur in some of these people that I find are difficult to exists in many cultures and societies, and particularly challenging in Singapore.

And I particularly wonder if Singapore as a culture really celebrate the attributes that will really allow us to accommodate and nurture the sort of personality who will build the next unicorn or silent business giant that dominates entire sectors quietly. Or maybe Singapoeans are just going to be the sort of people who goes out to build the dreams of someone else who have taken the risks and put together that safe structure for them to navigate within and expend their energy and life into that other dream.

Honestly, I think it matters for us to learn to dream and to make mistakes on our way to getting there. The way our education system and culture are structured to accentuate mistaken avoidance rather than cultivate mistake management. The latter, I believe, is more important than the former, but never quite gets celebrated in our sensitivity, thin-skinned, conflict-avoidant culture here in Singapore.

In DBS’ latest report projecting the growth for Singapore up to 2040, they noted that a “culture of risk-taking” will be needed for the next phase of growth. What is going to drive that, I’m still unsure.