Thursday, May 17, 2012
Ngiam Tong Dow: wealth creation or management
In recent years with tumultuous change, often in fire fighting mode, the government had been talking the long term but acting short term.
Wealth creation strategies are like investing in durian trees the old fashioned way. It takes years to bear fruit. Wealth management, that's is much easier.
Wealth creation ask for heroic faith. Rationality will lead you to choose wealth management instead. To be fair, NTD unlike the government does not need to face the voters.
Sometimes I think we can't help but suffer the Dutch disease (the link is for my kids). Our economic story is a succession of Dutch diseases whenever we spot a big winning industry, and creating wealth through innovation and entrepreneurship will never become a Dutch disease we can catch.
Nevertheless there is no law against anyone trying to create wealth. If schools here do not foster habits leading to entrepreneurship, those who on the steam of their own passion go ahead an begin their enterprises, many will likely roll forward like a juggernaut. We try not to put unnecessary obstacles in their way.
Entrepreneurs are in short supply everywhere and nobody knows how to make them. They are fascinating to watch especially in America, but we are clueless on how to reproduce them. Therefore in the end, NTD thesis is very interesting but could largely be academic.