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File photo: While Singapore's mercantilism appears the epitome of success, it is an economy unable to re-generate itself, writes Dr Chee Soon Juan.

STORY HIGHLIGHTS

Editor's note: Dr. Chee Soon Juan is the secretary-general of the Singapore Democratic Party. The opinions expressed in this commentary are solely those of the author.

(CNN) -- Hong Kong's democracy movement has raised issues such as income inequality and an increasing cheerless economic outlook, especially for the younger generation. Not coincidentally, these are the same issues that are causing Singaporeans to despair over their future.

Despite the fact that, according to the Economic Intelligence Unit, Singapore lays claim to the dubious honor of being the most expensive city in the world, there is no minimum wage in Singapore. Is it any wonder then, that amongst comparable economies, the island-state has one of the highest levels of income inequality? Singapore has the highest proportion of millionaires in the world but nearly 5% of the workforce have an annual income of less than U.S. $5,000, according to a 2011 report by The Straits Times.

And it's not just the lower-income workers who are getting pounded. The middle-class squeeze is as prevalent as ever. Nearly 50% of Singaporeans subsist from paycheck to paycheck, saving less than 10% of their monthly incomes. An alarming 14% have no savings at all. If and when an economic whirlwind visits, many will be left unable to cope.

Working conditions have also deteriorated. For years, Singaporean workers have worked more hours than in most countries, and, perhaps unsurprisingly it has resulted in an extremely unhappy workforce.

The death of innovation

What facilitated such a dismal outcome? One major factor is the lack of dissenting views. The ranks of the opposition, civil society and labor movement have been decimated in the last 50 years through imprisonment without trial and criminal prosecution, and nearly every newspaper, TV channel and radio station is owned and run by the state. Without an opposing voice, the echo chamber in government simply grew louder.

Singapore's first prime minister Lee Kuan Yew has argued that the practice of democracy serves only to undermine political stability and, therefore, economic progress. The strategy that Lee articulates, what might be called the Singapore model, bifurcates the economics of a community from its politics, the goal being to maintain absolute power while pursuing economic growth.

Excerpt from:
'Singapore needs democracy'