2. Pragmatic and unconventional choices
To achieve that vision, Singapore needs to create an environment that’s possible for investors to operate successfully and profitably in Singapore, despite a lack of domestic market and natural resources. Here are two memorable examples of how Lee tackled these challenges with pragmatic problem-solving:
How to ensure political stability and public order? Homeownership was a cornerstone of Singapore’s stability. Unlike in most countries, where owning a home is a challenge, Lee ensured that every Singaporean had a path to homeownership, linking national stability to personal financial security through the Central Provident Fund (CPF)—a mandatory savings program for retirement, healthcare, and housing.
Unlike many welfare states, Singapore avoided high taxation and extensive social safety nets, which Lee saw as eroding personal drive. Instead, he reinforced Confucian values of family responsibility over government dependency, fostering a high-savings, self-reliant society.
How to attract and retain talent in government? To prevent corruption and maintain a competent, high-performing government, Lee introduced two radical policies:
This first-principles approach challenged the norm that public service should mean low salaries, but it worked—ensuring Singapore was run like a well-managed enterprise.
3. Singapore as a Confucian society
One of the most fundamental differences between East and West lies in their operating ideologies. Singapore is rooted in Confucianism, which places the interests of the community above those of the individual. In Confucian societies, the individual exists within a network of family, extended family, friends, and the wider society. The government is not expected to take over the role of the family, but rather to create an environment where the family unit remains strong.
This philosophy shaped Singapore’s policies, reinforcing:
Thrift and financial discipline through CPF and homeownership.
A culture of hard work and responsibility rather than reliance on government welfare.
Respect for elders and education, ensuring social stability and economic growth.