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ECONewsNewsletter of the Department of Economics August 2012

CONTENTS Message from OUR NEW HEAD OF DEPARTMENT, PROFESSOR JULIAN WRIGHT

Julian Wright received a BSc (Hons) in Economics (First Class) from the University of Canterbury in 1991 and a Ph.D in Economics from Stanford University in 1996. He joined the Department of Economics at NUS in 2003 and was promoted to a full Professor in January 2012. He has a courtesy appointment with the Department of Strategy & Policy at the NUS Business School since January 2009.

His research and teaching interests are primarily in Industrial Organization, and particularly Network Economics and Competition Policy. His recent work has focused on policy issues arising in multi-sided platforms such as electronic payment networks (e.g. Visa and MasterCard). He has published over 35 journal articles in Economics, including in some of the top Economics journals such as the American Economic Review, Economic Journal, Journal of Monetary Economics, and Rand Journal of Economics. He is the founding editor of the Review of Network Economics, and the Associate Editor of the Journal of Industrial Economics and the International Journal of Industrial Organization.

I am happy to have this opportunity, together with the department’s new EXCO, to update you on recent developments in the department, and let you know some new initiatives that we will be implementing in the year ahead.

The Department of Economics at NUS has seen dramatic improvements in several key dimensions in recent years, especially in research, recruitment, its visitor programs, and the quality of its graduate program. These improvements reflect the university’s shift towards global excellence in the last decade, with continually rising standards over the period. The leadership of our previous Head, Professor Sun Yeneng, helped drive many of the recent improvements. The department is arguably now the strongest economics department in Asia. This is confirmed by rankings in recent years in which the Department appears as the top ranked department in Asia, such as the most recent QS World University Rankings in which we were ranked 16th. Our own more careful evaluation of the publications of our faculty compared to other economics departments reinforces this view that we are the number one economics department in Asia. Since economics is often one of the flagship departments of major research universities, this is a really credible achievement. Being ranked best in Asia raises the value and reputation of our students’ degree and makes it easier for us to attract top students and faculty, thereby further improving the intellectual environment in the department. We hope to cement this standing by becoming internationally recognised as the clear number one in Asia and as one of leading economics departments globally.

Our recently improved reputation for research has probably made it easier for us to hire top faculty, which we did quite successfully last year. Thirteen new faculty members will join this coming academic year. They represent a very diverse group, both in terms of where they are from, and the many different interesting economic topics they work on. Our strong reputation has undoubtedly also been a key factor in our ability to generate so much demand for our revamped “Master of Social Sciences (Applied Economics)” programme. We attracted 430 applications and, after a lengthy selection process, 52 students make up the first intake for this coming academic year. Modules taught this one-year course include: Project & Policy Evaluation, Financial Econometrics, Financial Markets & Portfolio Management, Corporate Finance, Derivative Securities, International Trade and Finance, Public Finance, Economic Growth and Development, The Singapore Economy, The Modern Chinese Economy and the Economic Growth in East Asia.

At the same time as establishing ourselves as a leading economics department globally, we must also remain the top choice for Singaporeans who want the highest quality education in economics. We are known to provide the most rigorous training in economics compared to some other competing departments in Singapore and the region. While this provides a good signal for employers, ensuring them our students are among the smartest and most logical thinkers, we cannot ignore the soft skills they need to do well in the job market. In particular, we need to make sure our students know how to apply their economic knowledge and to present their arguments in the most convincing fashion. There is certainly room for us to improve our teaching in these dimensions, and we are very clearly focused on this aspect as we start the new academic year. We are constantly working on increasing opportunities for our undergraduate students to interact with and

Message from Our New Head of Department, Professor Julian Wright

Notable Alumnus Column

Panel Discussion on the Singapore Government Budget 2012

SCAPE Policy Forum

Newspaper Articles

3rd Asia Summer Institute in Behavioural Economics

Speech by Guest Speaker at Commencement 2012

Speeches by Valedictorians at Commencement 2012

Student Achievements inAcademic Year 2011/2012

Recipients of the NUS Economics Alumni Bursary Award

FASS Open House 2012

Student Exchange Programme Experiences

Internship Experiences

NUS Economics Society

NUS Economics Alumni

Staff Appointments

Staff Activities

Announcements

Bundle of Joy ...!

Seminar Series

Stay in Touch

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Editorial Team OF

Assoc Professor Shin Jang-SupMs Neo Seok Min

All Rights Reserved.The contents of this publication are correct at the time of printing and may be subject to change without prior notice.

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For someone thinking whether to pursue economics at an undergraduate or postgraduate level, the initial considerations may have to do with how much they could possibly earn after graduation, whether economics is applicable in the ‘real world’ and even how much mathematics would they have to work through. In so doing, they are already applying economics to the decision- making process through concepts such as opportunity costs, utility maximization and assumptions of rationality. Other than the fact that these may sound like clever words that one could bandy around (guilty as charged), the notable thing is that these concepts are indeed applicable to most developments around you. And the older you get, the more you seem to ‘get it’, like jigsaws clicking into place.

At NUS, I pursued Economics as a single major from my second year and went on to graduate from the Honours Programme. I remember with fondness my Honours macroeconomics class, under Prof Basant Kapur. It was likely the most challenging course for me then but also the most rewarding. Honours thesis research was spent sifting through the spider-web of Free Trade Agreements (FTAs) ASEAN had embarked on and focusing on an ASEAN plus scenario of what an ASEAN plus China FTA could bring about. It was a timely project (one of the first on the topic then) and more importantly, it instilled in me a disciplined approach of tackling and bringing to fruition a big project which had was real world relevance. That would not be the only interesting thesis I would work on.

Subsequently I went on to pursue an MSc in Economics for Development at the University of Oxford under a scholarship from the Institute of Southeast Asian Studies (ISEAS), where I found myself learning from and working with passionate and brilliant individuals on issues that Singapore generally didn’t have to face, such as the economics of poverty, debt and international aid. My Master’s thesis was on government spending over the economic cycle in developing countries –where I compared the long term spending patterns of governments across Latin America and Emerging Asia using econometric tools and analyses. It was enriching and mind-opening working on developing- economies’ constraints and issues alongside multinational classmates, some of whom went on to join international aid agencies and were deployed to Timor etc. I also returned to ISEAS to serve out a short-

Chiou Yi obtained her First Class Honours in Economics from NUS in 2003, and her Master’s in Economics for Development from Oxford in 2005. She has had varied experience in the public and private sectors, and is currently with CIMB, a well-known investment bank. ECONews is very pleased to bring to readers her reflections on Economics, and its role in her life and career.

If I am to summarise in one sentence how I view the study of Economics, I would say that economics broadens one’s mindset and allows you to better understand the world and your surroundings. I will elaborate upon this: after all it is not very often that one without all that many achievements is invited to write for the Alumnus column of NUS Economics and thus I shall gratefully fill up this page with some honest thoughts of what the study of economics will do for you and share my experiences along the way.

NOTABLE ALUMNUS COLUMNMs Chang Chiou Yi

our training of students who can engage in such work. The Singapore Centre for Applied and Policy Economics (SCAPE) in the Department undertakes research of local and regional relevance. Policy simulations based on the macroeconometric model of the Centre provide valuable inputs for policy evaluation. Since mid 2011, the Centre has also been publishing a detailed housing affordability index based on lifetime income estimates by income deciles. While these research lines will be further strengthened in the coming years, the Centre will also explore initiatives for collaborative policy research with regional universities.

Above all else, we seek to provide an exciting and stimulating intellectual environment, a platform where students, faculty, visiting scholars, alumni and local policymakers and practitioners can interact and share in the latest economic research and its applications. We hope you can all come on board.

EXECUTIVECOMMITTEE (EXCO)

Julian Wright - ChairParimal Bag - Assistant Head (Research)

Albert Hu - Assistant Head (Teaching)Zeng Jinli - Assistant Head (Administration)

Tilak Abeysinghe, EXCO MemberBasant Kapur, EXCO Member

Ivan Png, EXCO Member

do applied work with our world-class faculty, including, for example, by increasing the extent to which our honours students present their research in the department. To improve classroom interactions, class sizes are being reduced. This coming academic year, we will offer 15 new undergraduate lecture groups, with four new modules in semester II and many repeat sections. We will therefore dramatically reduce our class sizes, enabling greater student participation in lectures, as well as providing more choice for students. We also aim to broaden our curriculum to offer student training that encompasses the very latest developments in all areas of economics. One example of this is our new undergraduate sequence in behavioural economics. Other new undergraduate electives we will offer this academic year include “Economic History” and “Topics in Economics: Understanding Government”.

Many other new initiatives aimed at improving the quality of teaching in lectures and tutorials will be introduced this academic year. For example, we have restructured the entire TA system, providing greater incentives for high quality tutoring, providing mentoring and training for new graduate students, and involving our honours students in tutoring 1000-level Economics. We will work closely with the Economics Society of NUS to obtain the feedback of our undergraduate students on these various initiatives. In particular, we plan to set up an Undergraduate Student-Staff Liaison Committee, through which we can engage our undergraduate students in tea sessions and outreach events. A joint Alumni-staff vs. student tennis event is already being organised, with a trophy and cash prizes (donated by Dr Lee Soo Ann, Chairman of the NUS Economics Alumni group).

The Department hopes to contribute to Singapore’s economy and society through our engagement in locally relevant applied policy work and through

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PANEL DISCUSSION ON THE SINGAPORE GOVERNMENT BUDGET 2012

The Department’s Singapore Centre for Applied and Policy Economics (SCAPE) organized a Panel Discussion on the Singapore Government Budget on 20 February 2012, following the presentation of the Budget in Parliament by the Deputy Prime Minister and Minister for Finance, Mr. Tharman Shanmugaratnam, on 17 February. This is the third year that SCAPE has held a Panel Discussion on the Budget.

The panel of experts comprised Mr Song Seng Wun, Regional Economist, CIMB Research Pte Ltd, Prof. Sum Yee Loong, Professor of Accounting, Singapore Management University and former Tax Partner, Deloitte and Touche, and Assoc Prof Chia Ngee Choon, Deputy Head of the Department. The discussion was moderated by Professor Basant Kapur, Director of SCAPE.

Initiating the Discussion, Mr Song said that the Budget this year was more ‘household-centric’, and he welcomed the wide range of measures – including graduated increased CPF contribution rates and enhanced earned income relief for older workers, a newly-introduced Silver Housing Bonus, extended Medishield coverage, reduced education costs to children from lower-income families, and a permanent GST Voucher scheme – designed to provide increased support to the elderly and to low-income workers and their families. Given the ageing of our population, and the fact that low-income workers have not enjoyed significant income gains over the last decade or so, such measures are particularly timely.

Mr Song added that with Singapore’s manufacturing sector being highly capital- and skill- intensive, the service sector will need to generate more employment for Singaporeans. Service-sector enterprises (including construction) will have to raise skills and productivity so as to be able to offer significantly higher wages and attract more Singaporeans, and on their part a mind-set change is called for among Singaporeans so as to make them more receptive to taking on such jobs. Singaporeans will also have to accept paying higher prices for services in future, as in other developed economies.

Prof. Sum focused on the other main objective of the Budget – further promoting the restructuring and upgrading of our economy, and enhancing its competitiveness. Significant assistance has been extended to help companies, particularly small- and medium- scale enterprises,

adjusting them to the reduced dependence on foreign lower-skilled labour. Enhanced Special Employment Credits, of up to 8% of wages, will be provided, for the next 5 years in the first instance, to employers of older Singaporean workers. The Productivity and Innovation Credit scheme has been enhanced, there will be further training support for SME’s, increased grants will be provided to support SME upgrading and productivity, debt instruments issued by a new specialized Project Finance Company will be guaranteed, and additional targeted support to various sectors will be provided.

Prof. Sum also reviewed the corporate and personal income tax rates in Singapore, which were not changed in the Budget. At 17%, our corporate income tax rate is lower than that of many other countries, and our effective tax rates (tax payable divided by the taxable income) are even lower than 17% when the partial tax exemption (applicable to the first $300,000 of taxable income) is taken into account. He felt that a reasonable range for Singapore’s corporate income tax would be 20-25% (Hong Kong, whose corporate tax rate is 16.5%, has higher rental and wage costs than Singapore). Singapore’s personal income tax rates were also lower than that of many other countries (as an illustration, he pointed out that a married employee with two children and earning $200,000 a year pays only 9.44% of his income in tax), and he felt that our highest personal marginal income tax rate located within the 20-30% range would be reasonable. Singapore’s top marginal tax rate for individuals is currently 20%.

Assoc Prof Chia Ngee Choon said that Budget 2012 marked a continuing ‘ideological shift’ in recent years, with Special Transfers rising from $7.18 bn in 2010 to $8.58 bn in 2011 and $8.86 bn (estimated) for Fiscal Year 2012. Included in such transfers are utilities, conservancy, and rental rebates, Workfare, Medisave top-ups, the GST Voucher, and other transfers to seniors and the needy. There was more targeted giving compared to the Growth Dividends in 2011. The emphasis was on balancing the objective of economic growth with that of greater social inclusiveness.

Prof Chia felt that the new Silver Housing Bonus may not be as effective as intended, on account of such factors as elderly persons’ reluctance to leave their existing flats, and the limited scope for further downsizing for those already living in smaller flats. Persons living in rental flats

term bond, helping with editorial work, economic research, contributions to book chapters, as well as helping to draft the ASEAN Charter and participating in the myriad seminars this ASEAN- focused think tank held. Economics by then had become a staple in my life. So it was a natural choice for me to embark on a career as an ASEAN economist at a Swiss investment bank soon after.

At this point, I must say that even the years of studying did not prepare one fully for an economist’s career. Economic and political developments have impacts that we aim to identify and measure, textbook issues come to life often with a twist, data are streaming in all the time. One has to filter the wheat from the chaff, the noise from the fundamentals, the cyclical from the structural and convey it all in a concise, accurate and meaningful manner (usually including cross- asset implications) to the clients, namely the asset managers. I fully enjoyed it and have come to appreciate that learning is an endless process. I have also learnt to read trends well and prepare for the many alternative scenarios that could take place in the world.

Fast forward to the current day. I am now a regional equity strategist

with CIMB. Economic theories, macro-to-micro approach and skill set in analysing trends and inflexion points and hypothesizing on scenarios continue to come into use. Couple that with expertise analyses on the ground from our team of analysts, and a strategy is formed for the markets. There are lots of moving parts and we are often trying to join different views on different industries and markets together for a picture that, with a high probability, makes the most sense.

To date, my experiences at work and in life testify to my initial statement, that economics broadens one’s mindset and allows you to better understand the world and your surroundings. For me, it is like jigsaws clicking into place, a glue to hold the moving pieces together. You also do not need to become an academic or an economist to benefit from the discipline and the wide world-view the study of economics can provide. It is applicable to everyday life.

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SCAPE POLICY FORUM

17 May 2012Policy Forum on “Imperfectly Competitive Market Intermediaries and the Efficacy of the Special Safeguard Mechanism”Associate Professor Donald MacLaren, University of Melbourne

NEWSPAPER ARTICLES

Faculty members of the Department of Economics contributed the following articles to the “ASK: NUS ECONOMISTS” column in the Straits Times.

“Merging for the greater good”, Professor Julian Wright, Straits Times, Review, 8 December 2011

“Crouching bookies, hidden fixers”, Assoc Prof Parimal Bag & Dr Bibhas Saha (University of East Anglia), Straits Times, Review, 23 November 2011

“Does R&D capability justify Microsoft’s monopoly”, Professor Ivan Png, Straits Times, Review, 16 November 2011

The following are further articles in the Straits Times that covered the views and work of faculty members of the Department.

“Tie COE to cost of car, not engine size”, Professor Julian Wright, Straits Times, Review, 4 May 2012

“Inflation-proofing’ CPF savings”, Professor Basant K. Kapur, Straits Times, Review, 23 January 2012

The following is an article in the Straits Times that covered the Panel Discussion on the Singapore Government Budget 2012 that was organized by SCPAE.

“Budget 2012: Good for older workers, the poor, less so for businesses”, Straits Times, 21 February 2012

(From left) Professor Sum Yee Loong, Mr. Song Seng Wun, Assoc Prof Chia Ngee Choon, Professor Basant Kapur and Assoc Prof Tilak Abeysinghe.

would obviously not benefit from the scheme. Lease Buyback and Reverse Mortgage schemes have also not proved to be very popular, with many elderly living with their children and wishing to bequeath their homes to them. Further measures, such as means-tested cash grants to needy elderly, and a more targeted GST Voucher scheme, are thus worthy of consideration.

The Discussion was well-attended, and lively Q&A sessions were followed speakers’ presentations. Issues such as the desirability of a minimum wage scheme, the need for further pump-priming if the economic situation turns adverse, the transitional costs of economic restructuring, and the need to press on with restructuring despite these costs, were discussed. The Discussion was also reported the following day in the Straits Times. On the whole it was a lively and stimulating session, and the Department, including SCAPE, would like to thank all who participated.

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3rd ASIA SUMMER INSTITUTE IN BEHAVIOURAL ECONOMICS

The Department of Economics organized the 3rd Asia Summer Institute in Behavioural Economics, held at the National University of Singapore from July 23 to August 3, 2012. The purpose of the Summer Institute was to introduce graduate students and beginning faculty in economics, business and related disciplines to the findings and methods of behavioural economics.

Students were introduced to the psychological foundations of various economic topics, including decision-making under risk and uncertainty, misprediction of behaviour, biases in judgment, limited self-control, and social preferences. These concepts were applied to topics such as consumption, savings behaviour, household finance, macroeconomics, and welfare economics. Additional sessions explored foundations, experimental approaches, and evidence in behavioural game theory.

The co-organisers of the Summer Institute were Professors Ho Teck Hua, Matthew Rabin, Sun Yeneng and Bernard Yeung. The teaching faculty were Professors Colin Camerer (California Institute of Technology), David Laibson (Harvard University) and Matthew Rabin (University of California, Berkeley). About 70 participants attended the summer institute. They hailed from Australia, Austria, Canada, China, France, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, Netherlands, Philippines, Spain, Switzerland, UK, USA and Singapore.

(1st row 4th from left) Professors Ho Teck Hua, Matthew Rabin, Colin Camerer, David Laibson and Bernard Yeung(2nd row from left) Professor Sun Yeneng

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SPEECH BY GUEST SPEAKER AT COMMENCEMENT 2012

Allow me to begin by congratulating each and every one of the graduates proudly seated here. Congratulations, you’ve made it. Parents, I would also like to extend my heartiest congratulations to all of you. You have provided your children with the best gift in life – education.

Certainly, this is a significant milestone. Graduates, you’ve not only earned a degree from an excellent university; you’ve also earned a degree under FASS, which has produced many of the best and brightest. While you may have found your university days challenging, its end ushers in a new stage in life, filled with even more challenges, risks, and rewards.

This is your new beginning. Yes, yet another new beginning. And at this commencement, with all the promise of a new beginning, I would however, like to speak about the finishing. In a race, it is critical to begin well, but in the end, it is how we finish that matters. Let me give you an example. On the 3rd October 1996, a group of mountaineers began well, trekked well through harsh weather, overcame arduous obstacles, and eventually made it to the top of Mount Everest. However, with their new found success, they did not prepare as well. On their way down, a storm hit them and claimed the lives of all the 8 climbers. Is this the way to finish well?

1. Aim right. Following from the story of mountain-climbing, not many may be familiar with the name of Ed Viesturs. In 1987, when he was a mere 350 feet from the summit, he turned back as he was out of rope for the climb and darkness was approaching. While he did, he defied the mountain, saying “I will return and conquer you. I will grow up but you will always be the same.” Today, he still holds the distinction of having climbed all the 14 peaks of Mount Everest without the aid of an oxygen tank. “In his words, “getting to the top is optional but getting down is mandatory. A lot of people focused on the summit and forget that.” Ed Viesturs has the correct perspective; he aimed right. As you begin your next phase, think about what is important to you, and aim right.

2. Appraise yourself. Let me share a story with you on this. A young couple walked into the restaurant to order dinner. They picked up a box of what they had ordered and left the restaurant. After they had gone, the manager realized that he had made a mistake – instead of the dinner, he has given the box containing the day’s takings. In panic, he rushed to look for the couple but they were gone. Soon after, the couple came back to return the box and requested for their dinner. In appreciation, the manager wanted to offer them a reward but they rejected. Then the manager suggested arranging for the press to take a photo and do a story to promote honesty. In response, the man replied, “I do not think it is a good idea for my wife to see me in the papers with another woman.”

3. Affect the world. Many people will tell you to change the world. That seems like a huge task is not for everyone. What I want to challenge you to do is to affect the world. Affect others. Touch lives. Finishing well involves relationships. To others, it means the value we place on people and the difference we make in their lives. What we accomplished in this world will be measured by the lives we touched, not the tasks achieved.

This is the precious yet scarce value of integrity. Integrity means discharging your responsibilities such that there is no cause for regrets at unresolved grudges, unfulfilled obligations or unkept promises. Constantly appraise yourself to see if you are living the right way, with integrity. Finishing well is important whether it is the close of a relationship or the end of a phase in life. Throughout your phases in life, appraise yourself.

Daniel LoSenior Vice President, Private Banking

Credit & Industrial Bank of France

Then, what is finishing well?

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Let us ask ourselves – how many of us are able to remember the top student for our class, our school/college or for that matter, the top student for Singapore 10 years ago, 7,5,3 or last year. But we will probably not forget the person who had touched us with little acts of kindness, be these simple note of encouragement or some words of comfort during those needful times.

Often, we encounter opportunities to make a difference in someone’s life. However, some may choose to do nothing “if your efforts alone cannot save the world”. Let me encourage you with this wonderful story which is part of my life’s philosophy.

There was this man walking along a beach one morning. This beach was covered by thousands and thousands of starfish which had been washed onto the shore the night before. In a distance, he could see another person bending down to pick a starfish and throwing it back into the sea. That person was doing it again and again. Out of curiosity, he asked that gentleman, “Sir, what are you trying to do with the starfish?” The man replied, “You see, the sun will be up in the next half hour. Then the starfish will soon be dry and die. I am trying to save these starfish.”

This man asked again, “But there are thousands of these starfish. How long will it take you to throw all of them into the waters?” Instead of responding, this man bent down and picked up another starfish saying, “At least, it makes a difference to this one.”

I am in the business of wealth management. This is the business of the “have-nots” helping the “haves” to grow the wealth of these so-called High Net Worth Individuals (HNWIs) who are defined as having at least USD 1 million in investible assets. Over my years in this industry, I am more than convinced that these HNWI are superb with how to make money BUT few really know how to spend. Instead of the money working for them, some are still working for the money. Among the tycoons, Warren Buffett, the richest man in USA donated 95% of his wealth to charity. In contrast, Nina Wang, the wealthy owner of the Hong Kong Emperor Group was reported to live life as a church mouse and paid pittance to her maids. Sadly, after a 5-year battle by her geomancer’s adviser, her USD 12 billon fortune was ruled by the Hong Kong court to be given to charity.

On the other hand, I personally know an ordinary American who was a sales engineer. He was a high-flyer and rose quickly to the position as regional head and was very handsomely rewarded. In 1990, he had to undergo a life-risking operation on his prostrate and promised God to serve the needy if his operation was successful. To cut the story short, since then, he left his job and somehow guided to relocate to Rayong in Thailand where he used his entire savings of USD 1 million to set up an orphanage called the Little Duck Nursery which houses about 50 children between the ages of 2-7 years old. He is currently 68 years old and has even obtained a Thai PR and a Thai name.

When I got to know this person by the name of Stephen, I found much meaning in this saying. “He is no fool to give what he cannot keep and to take what he cannot lose.” Now I have gained a true definition of what is truly a wealthy person – not defined by how much you have but by how much you give away. Like money, love is not love until it is given away. Be wise; use what you have, or what you will have, to affect the world.

4. Acknowledge others. In life, we occasionally may meet up with some benefactors (贵人-gui ren) whose decisions or intervention can change the course of our destiny. For myself, I am always indebted and grateful to the following persons.

a. The coordinator of the FASS Economics honours year class, Dr John Wong for paving my entry into the banking industry

b. My sister-in-law, Priscilla who was instrumental in making my life’s most important decision in spouse search

c. My family and God for the gift of life.

It now leaves me to congratulate you once again for having started well. I know that you will continue well and I am confident that FASS has equipped you with the essentials to finish well. Aim right. Appraise yourself. Affect the world. Acknowledge others. This is my advice to you as you go out and begin your new phase of life. Thanks again for the privilege and honour to share my thoughts with you. Thank you.

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It is indeed a pleasure and a great honour to stand before you today addressing you on behalf of the graduating class of 2012.

As we are about to say goodbye, all the great memories during my last four years of university come to my mind. I am sure that my fellow graduates are as emotional as me right now. I still remember the many nights spent with friends working on group projects, chilling out with friends at the deck during breaks, staying up late in the library revising for exams, chasing bus after class, all the wonderful moments I had and all the amazing people I met.

As we look back on the past four years, it is really amazing how far and how fast we have progressed. Four years ago, we came to NUS feeling rather lost, not knowing what to expect or what was expected of us. We tried to figure out who we were and what we wanted to be. But today, we leave the university with answers to both. Some of my course mates want to continue their pursuits in economics, others have decided to give up economics and venture into a new field.

For those who have found your passion, I am really happy for you. Do all you can to honor it and not be easily intimidated by people or things around you. No matter how hard it can be in striving for your dreams or no matter how unsupportive people around you are, do not give up. Always remind yourself that every single thing that you do is to all prepare you for your future success. These are the words that I always tell myself when things go terribly wrong.

For those who haven’t found your passion, I would like to ask you to continue searching and you will know when you find it one day. Remember that, everyone is born unique. No one else can dance your dance, no one else can sing your song, and no one else can write your story. It is your life and no one else is responsible for it. To understand myself and to find what I truly love are, to me, the greatest gain from my four years spent in the university. Results and everything else are secondary.

University, as I see it, is not only about learning skills or knowledge, but most importantly, it is a place where we are encouraged to engage with others and the world. I realize that it is often through our experience and interaction with others that we get to know ourselves better. This is where education in NUS comes in. Not only does NUS have all the very best parts of a traditional university, it also offers a lot of overseas opportunities and fantastic exchange programs to its students which you cannot possibly get in other universities. Throughout the four years study in NUS, we have seen the university constantly improve itself. Its recent recognition as one of the top two universities in Asia is yet another reason that makes us proud to be part of NUS.

As we gather here celebrating the accomplishments of the graduating class, I would like to take this opportunity to thank all the wonderful people who have directly or indirectly helped each one of us to get here.

As an international student, I am especially grateful for the Singapore government and NUS for their generosity towards foreign students like me. Both my brother and I have benefitted a lot from the financial assistance. Hailing from a modest financial background and considering the economic situation of my parents, I would never expect myself to be standing right here right now without the financial support.

To all the professors, I would like to extend my heartiest gratitude for your guidance, wisdom and relentless dedication which help bring out the best in us, making us what we are today. To my supervisor, Professor Chia Ngee Choon especially, thank you for always being supportive and encouraging

SPEECHES BY VALEDICORIANS AT COMMENCEMENT 2012

Ang MandyLim Tay Boh Memorial Medal (Gold)

throughout the four months preparing for my honors thesis. I truly appreciate every time you take time out of your busy schedules to listen to me and to share your thoughts. Your willingness to go the extra mile, passion for teaching, and selfless love to your students have inspired and touched me in a very profound way.

To our friends, thank you for being there for us through good and bad times. Your presence has certainly made the university life a lot easier and enjoyable.

To our family, your unconditional love and support have been the most powerful sources of strength all these years and they will always be. We can never thank you enough for everything you have done for us. We hope we have made you proud today. To my own parents, “老爸，老妈，辛苦了！”

Lastly, to all my fellow graduates, congratulations. Being here today, we are a lot more fortunate than many of our counterparts. So, be thankful for what we have now, and try to give back to the society with what we now know. The best is yet to be.

Thank you very much.

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Zheng Zhaoqin DesmondEconomic Society of Singapore Gold Medal

I am humbled to have the great honour to speak on behalf of the 2012 graduating cohort for Economics. Please excuse me if I sound nervous because I am more used to sitting down there and listening rather than standing here and talking.

First of all, I would like to extend my congratulations to everyone for making it here. We are all here because we did not give up when faced with various challenges during our time in university,

whether it was trying to appeal for a module through CORS or trying to understand econometric theory. Okay, some of us gave up while trying to do econometrics, but at least we had friends who tried to explain it to us.

We graduate in the face of a challenging and uncertain global economic environment - one where employment opportunities are harder to come by as compared to previous years. The job market is also getting more and more competitive. I urge everyone to stay resilient in the face of these difficulties and stress, and to keep trying.

Many of us have encountered failure at some point in their lives. For me, I was last in class in secondary school, was told that “You would never make it into a polytechnic, much less JC” by my secondary school Chinese teacher. Also, in my first semester in NUS I got a D+ for SE1101E, the Southeast Asian Studies exposure module. After that, for the next 7 semesters, I spent my time studying in school till 10pm everyday including weekends and public holidays, starting from the first weekend of week 1. We are likely to meet even more failures as we move on into the workforce. Instead of giving up, we should use these failures as a motivation to strive even harder to achieve our goals. We should use our D-pluses to motivate us to strive for A-pluses. As Bill Gates once said, “It’s fine to celebrate success but it is more important to heed the lessons of failure.”

We should also be thankful for the people who helped us along our journey, for they are the ones who helped us to persevere when times were tough and provided support when needed. As I honour these people today, I encourage you to do the same for yours as well.

Firstly, I want to thank my parents and my brother, who provided me with unconditional love, support and understanding. I want to apologise for being almost never at home during term time. Thank you very much for your love.

Also, I would like to thank my girlfriend, Icelle for her love and care. I must be very lucky to have found a girlfriend with as little social life as I had, as she camps in the library from Monday to Sunday during term time as well. Thank you for putting up with all my flaws, and I love you very much.

We should also thank our lecturers and tutors, who were undaunted when

faced with countless questions, and for their efforts in helping students in any way possible.

To Professor Chia Ngee Choon, who gave us much valuable advice beyond academic work, and for her excellent teaching.

Professor Wright, whom I learnt much from, and whose exam was so tough I was lucky to escape with a B+. I also had the privilege of having him as one of my thesis assessors, and his insightful comments helped me improve my own knowledge.

Professor Serene Tan, whose dedication and commitment to helping her students learn is much appreciated.

To Professor Jessica Pan, who was kind enough to take me in as my thesis supervisor, I give you my warm thanks for having the patience to explain concepts to your thesis students, despite your busy schedule. Your pointers are much appreciated by your three eager but clueless students.

Last but not least, to my friends, the countless discussions we had in the central library, the honours room and the deck helped me learn much more than studying by myself. Thank you all for the many helpful comments and questions over the years. Unfortunately, I cannot name you all individually here, but you know who you are.

As we move on to face the outside world, we will face many new challenges, such as getting a good job and finding the money to purchase a flat. Thankfully, we do not face these challenges alone - we have the support from our friends and family, people whom we hold dear to us. They give us the strength to stay resilient and not to give up. Who knows what we can achieve when we stay strong in the face of life’s challenges? As Thomas Edison once said, “Many of life’s failures are people who did not realize how close they were to success when they gave up.”

Let us go out and face the outside world with the knowledge that nothing is impossible if we are resilient enough. Let us also be thankful that there are people together with us as we move along life’s journey.

Thank you.

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STUDENT ACHIEVEMENTS IN ACADEMIC YEAR 2011/2012

UNDERGRADUATEEconomic Society of Singapore Gold Medal Zheng Zhaoqin DesmondMAS Academic Excellence Prize Song QiuRongLim Tay Boh Memorial Medal (Gold) Ang MandyMinistry of Trade and Industry (Economist Service) Best Thesis Prize Ang Wee HoweYou Poh Seng Prize in Econometrics Yuan RandongMinistry of Trade and Industry (Economist Service) Prize Toh Ling YanSingapore Economic Review Book Prize Huynh Khanh Ngoc HanNTUC Income Prize Zhang SanqianPaul Sherwood Memorial Book Prize Zhang SanqianShell Silver Medal Cai XinchengOCBC Gold Medal Nguyen Hoang Diem AnGRADUATE Lim Chong Yah Gold Medal Wang Wen

My fourth year in NUS was a fruitful one, with the writing of my Honours Thesis forming the main highlight of the year. As my seniors had advised me not to wait till the last minute to look for a thesis supervisor, I began the search midway into the first semester of the academic year. Even then, I bumped into many obstacles along the way, as I attempted to think of a research topic that a professor would be willing to supervise. Coming up with research topics has never been one of my strengths, and many of my ideas were not able to pass the scrutiny of the professors that agreed to have a consultation session with me. In the end, it took me till nearly the end of the semester before Professor Julian Wright agreed to supervise my Honours thesis.

The thesis presentation was a challenging experience in itself. The two professors who assessed my presentation peppered my presentation with plenty of questions almost right from the start, which was something that I had not expected (I had assumed that I would be able to complete my presentation in the allocated 20 minutes, and the questions would only come after that). As things stood, I found myself tackling the questions as they came, and was not able to deliver my presentation in the way I had rehearsed. Although this might sound like a harrowing experience (where things did not proceed according to expectations), I actually found myself enjoying the presentation very much. It felt like I was having a conversation or discussion with the professors, instead of merely doing a formal presentation to an audience. In fact, I probably picked up more from the professors than they did from me, as they pointed out a few points about my thesis that I had not thought about before.

Song QiuRongMAS Academic Excellence Prize

Awards/Medals Recipients

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When I look back at the time I spent as an undergraduate in NUS, I realize that it has been quite a journey for me. As a Double Degree programme participant, I probably had to cover more distance than the average student since I had to travel between FASS and the Faculty of Engineering on a daily basis. Probably because of this physical hardship and the longer period of completing the degree, my stay with the NUS for four and a half years was more fruitful and this experience has helped me grown as a person.

Being awarded the MTI Best Thesis Prize came as a pleasant surprise since my thesis topic was of a more explorative nature (computational economics) and I had to endeavour to convince my friends many times that it is a proper economics thesis. I would like to take this opportunity to thank my thesis supervisors, Associate Professor Albert Tsui and Professor Wang Qing-Guo (from the Department of Electrical & Computer Engineering) for all the guidance and support that they have shown me during the course of my thesis work. This thesis certainly wouldn’t have been possible without their help!

I am particularly lucky, for the university granted me admission twice. I applied to the university for the first time in 2005 and received the admission letter after a few months. Due to sudden change of circumstances and other personal reasons, I was unable to accept the offer. Instead, I worked for three years. I applied again in early 2008 and NUS gave me another chance. This time everything worked out and my life as a full time student in the university began. Soon after I started the new journey of academic pursuit, the Global Financial Crisis happened, which struck firstly the Wall Street with lightning speed, and then sent repercussions throughout the world with grave impacts. I was shocked by the scale of loss and damages such apparently man-made disaster caused and wondered why on earth it could happen. I decided then to study economics, and especially finance, in both theory and practice, in an attempt to understand the nature and underlying principles of the working of the global economic system.

Besides those elegant theories of macro and micro economics, I find particularly useful a tool commonly used by all economists, namely the technique of econometrics. I dedicated a lot of time reading and contemplating, trying to figure out the meaning of those ostensibly esoteric jargons in econometrics. And I am fortunate enough to be awarded with the You Poh Seng Prize in Econometrics by the Department of Economics of NUS, which is yet another reason why I will always be grateful for my alma mater.

Some people call economics a dismal science, which in my opinion is a quite fair characterization. We are the dismal scientists. We deal with difficult situations. And hopefully, with the knowledge and skills I learnt in the university, I can move on and apply them to help solve some of the real world problems facing us today. I will keep walking, and keep learning, and always remember that I started this whole journey from the Kent Ridge campus of NUS.

Ang Wee HoweMinistry of Trade and Industry (Economist Service) Best Thesis Prize

Yuan RandongYou Poh Seng Prize in Econometrics

Majoring in Economics in NUS has been a challenging yet exciting experience for me in the last three years. It was never a smooth ride; with every new lecture, I struggled to appreciate the economic theories introduced by the professors, and find it hard to cope with the mathematics that comes with it. Nevertheless, it is deeply satisfying whenever I managed to comprehend a new concept. I have never regretted choosing Economics as my major.

One of the best parts of my undergraduate education to date has to be meeting other like-minded individuals who love Economics as much as I do. The thought-provoking, quirky and occasionally random discussions I had with my friends made learning Economics all the more enjoyable and fun. Furthermore, without the help that these friends have rendered me over the years, all this would not have been possible.

Toh Ling YanMinistry of Trade and Industry (Economist Service) Prize

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I like to say that people do not have either time or money; I have neither. These frequent outbursts of self-pity are precisely the reasons why I study economics, the study of scarcity. I study economics because I live in it, desperately wanting to understand what is going on, and perhaps finding some ways to relieve my, and maybe others’, misery. I have always been a mathematics student. I like mathematics which opens the doors to the abstract wilderness. But as I later find out, it is economics that makes my heart ache, that agitates me and that makes me strive to be something bigger than myself.

The past three years in NUS have been a great journey. What I have received has far surpassed my expectation when I just entered as a freshman. I have learnt much from my professors and my friends, not only the class materials but also the economic way of thinking. I greatly appreciate my professors and tutors who have been extremely approachable and helpful. They have made learning more interactive, intuitive and most importantly, more fun. I am also fortunate to have met very wonderful friends who are willing to accommodate my erratic schedule. They and their laughter have made university life a lot more enjoyable.

I never really knew what I wanted to study in university until I first encountered Economics in JC. Miraculously, I knew, from the first lecture on opportunity cost, that I was going to major in Economics. As I progressed through A-levels and university, there wasn’t a moment in time that I doubted my decision then. To me, Economics is a fascinating subject that attempts to explain common actions and interactions in the world we live in, with elegant theories and models.

I’m very grateful for the curriculum structure in NUS, which allows me to pursue a double degree programme in Economics and Statistics without compromising the depth of either subject. As I pleasantly conclude my second year with these awards, I will continue to work hard in both subject areas and take a step closer to the dream of doing graduate school.

One and a half year ago when I first stepped into this Garden City, I was amazed by the beauty and elegance of its environment. From then on I had been dreaming of living and studying in such a country. This is why I quitted from a university in my home country and applied to NUS. Through further research, I got acquainted with the ANU-NUS Joint Degree Programme in Actuarial Studies and Economics. For a person who is good at math but lacks interest in mathematical theories like me, it seemed to be my cup of tea. Without hesitation, I applied to FASS and luckily, I was admitted.

To be enrolled in this JDP, we had to maintain a CAP of at least 4.0, which meant I should work harder than most people in the faculty and give up some CCAs. Apart from the participation in the Economics Society and the Mathematics Society, I did not join any other club or society in case they might pull down my CAP. Calculus and linear algebra were not a huge obstacle for me, while business modules were extremely difficult to attain super-high grades. Economics modules were, of course, the most interesting and rewarding ones. My success of winning Shell Silver Model should all be attributed to my humorous and erudite professors.

Huynh Khanh Ngoc HanSingapore Economic Review Book Prize

Zhang SanqianNTUC Income Prize

Paul Sherwood Memorial Book Prize

Cai XinchengShell Silver Medal

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Economics has struck me as an effective tool to better understand the intricate working of the world and to make linkages of the events happening around me. Why certain products such as cigarettes and petrol are taxed while other products like medicines are subsidized? Why different prices are charged for the same products or services – such as air ticket and MRT fare – to different customers or in different periods of time? How can small firms compete alongside with bigger firms which have much more advantages than them? How do fiscal or monetary policies work to stabilize the economies? Economics has helped me find the answers to various questions I have concerning the complexity of the society.

Furthermore, there are different schools of thought in this field where some might even seem contradicting to others at times. Therefore, Economics teaches me to view things from different perspectives and instils in me critical and analytical skills which I believe would be invaluable for my future career. In addition, it appears to me that the ultimate goal of an economist is to find solutions to various social issues, hence making the world a better place to live in. My journey of Economics in my year 1 has been enjoyable, fulfilling and rewarding so far.

Nguyen Hoang Diem An OCBC Gold Medal

It was a pleasant surprise to receive the Lim Chong Yah Gold Medal, for my part-time study in Master of Social Science (Applied Economics). Looking back at the two and a half years of learning journey with the Department, it was truly a rewarding and enjoyable life experience.

I graduated from NUS Life Science and USP programs in 2007. Since then, I have been working as a regulatory officer at the Ministry of Health. This allows me to experience the real world scenarios of policy-making in the Healthcare sector, in which the government is constantly trying to strike the balance of sustainability and affordability of healthcare services, and grappling with issues of limited resources, soaring medical expenditure, as well as increasing demand for medical services and other problems associated with an ageing population.

The depth and breadth of the curriculum are challenging but rewarding. As my background was in biology and I had no background knowledge in economics, I initially found myself overwhelmed in my fear of failure and uncertainty. I could still vividly recall the first few weeks sitting in the lecture theatre, greeted by both unfamiliar faces and subjects taught at the class, and always juggling between a full-time job and many late nights of studying. I am thankful to all the dedicated and committed lecturers, who explain the profound theories to us with clarity and passion, which makes the learning process much less daunting and more enjoyable. They are also generous with their time to provide guidance or answer all sorts of questions that we raised during lectures, appointments or over emails. I am also grateful to my classmates for helping me with the basic concepts and background knowledge of economics required during the course.

Wang WenLim Chong Yah Gold Medal

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The NUS Economics Alumni Bursary Awards were presented to six undergraduates, with effect from academic year 2012/2013. They are Leong Pik Fern, Melissa Hiang Shu Wen, Lim Wei Han Wilson, Ong Chumei Lynn, Angie Chua An Qi and Lee Hui Chee Patrick.

The award is worth $2,000 per student per year, for a maximum of three years. The aim is to increase the number of bursaries to ten per year. The selection and renewal criteria include that applicants must be Singaporeans, whose per capita monthly household income does not exceed $500. We encourage alumni members to donate to this worthy cause at www.nuseconomicsalumni.org

FASS Open House 2012 was organised by the FASS Dean’s Office in collaboration with the different departments and societies in FASS. It is a day whereby the entire FASS comes together to welcome and address the concerns of prospective freshmen. This year, FASS Open House 2012 was held at the Shaw Foundation Building (AS7) to great success.

The Economics Society was in charge of the publicity materials and the layout of the booth. Our members put in hours of their time to prepare the information panels so to ensure that the Economics Booth was presentable.

Every year, FASS draws a crowd of people enquiring about the different majors they are interested in and this year was no exception. As one of

RECIPIENTS OF THE NUS ECONOMICS ALUMNI BURSARY AWARD

FASS OPEN HOUSE 2012

the most sought-after majors in FASS, the Economics Booth was packed with prospective freshmen throughout the day. Our professors and student helpers acted as advisors and answered the freshmen’s queries about academic matters related to the study of Economics and other non-academic matters.

The Economics Society would like to take this opportunity to thank the Department of Economics for their support. After the success of FASS Open House 2012, the name of NUS Economics has certainly spread.

To the newly matriculated freshmen, welcome to NUS!

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I was admitted into NUS in 2008 very certain on reading Economics. My deep interest in development and public policy had led me to choose Economics over other available courses.

As a student, I pursued the many opportunities that came my way. I went on SEP, and then found myself on NOC. I am also thankful to be part of the USP. These programs have made my thinking more liberal and lateral. They also give rise to my thoughts on two issues that I would like to share: education and choice.

First, I would like to talk about education and teaching pedagogy. I come from an outlook that sees education to have tremendous social value. Increasingly, educational sources are diversifying. Competitive options like Khan Academy are emerging across the internet. Harvard and MIT also recently announced EdX, a collaboration that brings online learning to millions across the world. But these options cannot yet beat the position of a physical institution in generating discussion and in building a close intellectual community. They cannot yet beat the position of a physical institution in providing bespoke foundational and assessment tools.

The value of university education today lies increasingly in community building and heated, passionate debates and discussions.

But economics classes at our university are quieter. I would like to think that the modest participation is symptomatic of the structure and assessment of courses. Greater discussion can arise from examining model assumptions, studying the early fathers of economics, and subjecting theories to practice. Assessment can be done through application questions which demand analysis that is supported by mathematical and graphical tools. We need collective thought, action and attention in this area.

My second point is on choice and of students paving their own path. The opportunities which the university has gathered are extensive. My experience on NOC in Shanghai was very much perspective changing. NOC is an overseas internship and study program that usually takes place for the duration of a year. NOC gave me opportunities to interact and view society through different lens. I saw the differences in the mindset of the entrepreneur and the academic. I learned that business was as important as policy making and as powerful in enacting change. I learned that I was solely responsible for the choices I made.

Travelling is twenty first century reading. NUS has done a brilliant job bringing in opportunities to students. I believe many of us are grateful and thankful to be given the various opportunities.

In my time in NUS, I had the opportunity to be in the company of likeminded peers who felt equally strongly about public policy. I also met people of diverse backgrounds eager to bring about change in their own ways.

I continue to see the importance of economics in evaluating public policy and understanding the macroeconomy. It is a discipline I would choose again, if I had to. Sincere thanks to faculty members who have made their classes challenging, engaging and therefore memorable.

STUDENT EXCHANGE PROGRAMME EXPERIENCES

Dawn Lee Yi Min, Year 4 (Honours) Economics Major @University of California, Los Angeles (SEP) and Fudan University (NOC)

How being in NUS Economics shaped my understanding of the world

Dawn Lee (first from left), Grass plains of Hohhot, Inner Mongolia

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It has truly been an enjoyable and enriching experience having gone to Hong Kong for exchange. Before embarking on this exchange program, my initial impression of Hong Kong was what many would have expected- a densely populated and vibrant city. However, having stayed there for close to half a year, Hong Kong really offers a myriad of possibilities. Boasting of an authentic and exciting city life, you can wander the streets till wee hours of the morning and be sure that you can still find people and things to do. On the other hand, there are many idyllic countryside retreats where you escape the fast pace, hectic city life and get close to nature. During weekends or holidays, we would go on hiking trips, explore caves and visit outlying islands. My personal favorites would have to be the hike up the Feng Huang Shan, a Lantau trail and the visit to Tai O, a fishing village. There is really a wide offering of activities.

If my opinion, the endearing quality about Hong Kong’s culture is how the traditional Eastern culture live in harmony with the Western influences. Traditional shop fronts intersperse with modern skyscrapers and big corporations co-exist with small family businesses. The city’s both random and nonrandom developments ensure that I can find surprises at every turn of the corner. The city really grows on you and I would strongly recommend Hong Kong to anyone who is considering going on exchange.

Of course, Hong Kong is also a food haven. To name a few, local famous items include dim sum, wanton noodles, roasted meat and “tong sui”. Higher-end dining and cuisine- Western and Japanese food- are also much cheaper and highly affordable as compared to Singapore. You can be sure that your exchange would also be a gastronomical delight.

In terms of academics, I went to The University of Hong Kong (HKU). Ranked first in Asia, HKU is a highly established institution. One feature that I appreciate is that the university ensures a balance between theory and application. This is something that is consistent throughout the various

Goh Xin Yun, Year 3 Economics Major @University of Hong Kong

faculties. This is achieved by offering a substantial number of theory and application-based modules, field trips and active discussion between lecturers and students. As Hong Kong is the major gateway to China, there are many application-based modules that focus on the Chinese’s economy. These modules have been highly enriching and eye opening. In addition, there is a high concentration of exchange students in these modules and I have been fortunate to interact with students from various cultures. The lecture and class sizes are relatively small and thus, there is a high level of teacher-student interaction and discussion.

Perhaps the most striking feature about HKU students is their vocalness and expressiveness. Other than actively participating in a wide range of events, students are often seen promoting their passion to the rest of the cohort. As such, there is high level of involvement and engagement throughout the whole school, leading to a vibrant culture. Also, the students strongly believe in democracy. For instance, it is quite common for students to organize demonstrations.

Another plus point is that HKU offers both a bustling and tranquil experience; on one hand, it is located near the city, thus the centre of activities is minutes away. It is also located at the foot of the Peak and near the sea, therefore having the best of both worlds. Overall, I strongly recommend Hong Kong and HKU as a place for exchange, where wonderful friendship and memories will be forged.

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Lim Shunjie, Benjamin, Year 2 Economics Major @University of Oslo, Norway

Blearily stepping out of the plane after a thirteen hour flight to Oslo, I felt something was off that I could not put my finger on - until I realized that all around me were the gentle cadences of Norwegian. It seems so obvious in hindsight, of course Norwegians in Norway speak Norwegian! But there’s something extremely disconcerting about not being able to understand a single word you hear or see around you. It is almost as if one of your senses was taken away without you ever appreciating it existed. Have you ever seen one of those movie scenes of a busy train station, with people rushing in all directions until they merge into one big, disorienting blur? Well, my first few days in Norway passed by like that. Heavy snow swirled outside my dorm window and danced before my eyes as I trudged down the ice-slope that led from the Student Village to the T-bane metro. Then of course there was the social whirl of orientation, the blur of new faces and never-ending introductions.

But soon these faces began to crystallize. I met all my neighbours at a ‘Kitchen Meeting’ at the end of my first week, an appropriate setting for an eclectic Smörgåsbord of personalities and nationalities. Over the next six months, I would taste many unique potluck dishes from Albania, France, Vietnam, and of course Norway, as well as experience many interesting conversations in this kitchen. But I first needed to experience some growing pains. Within the first week, I had exhausted my limited culinary skills with various permutations of instant noodles - with egg, with salmon, with egg and salmon. The next week, I proceeded to deplete my limited financial resources on S$20 McDonald meals. A whopping price-tag for a wimpy Big Mac – welcome to the most expensive city in the world! Another outcome that seems obvious in retrospect: When faced with the unpalatable options of instant noodles for the next half-year - or bankruptcy - you either

starve or learn to cook, fast. While I am still no MasterChef, I am now proud to say that I can cook Norwegian salmon countless ways - baked, pan-fried, poached, stirred and shaken. Salmon is now the new instant noodles - who knew? And of course, as a full-blooded Singaporean, I tried to replicate some of the dishes – curry being the most frequent of choices to counteract the cold wintry conditions that Norway brings – that my grandmother would make at home to cope with the occasional feeling of homesickness. Although the standard of my cooking is still a world apart from that of my grandmother’s, I can now at the very least boast to be an able assistant in the kitchen.

It sometimes seems that countries have personalities. Some are warm and fuzzy and familiar, like slipping your feet into fluffy hotel bedroom slippers and kicking back on those million-thread-count sheets - you’ve tasted their food, recognized their brands, and watched their television shows. Some are exotic but friendly, drawing you in like the gentle lapping of waves beside a private villa on a crystal beach. Norway is a cold and craggy peak, beautiful but distant - it’s not going to be an easy hike, but the view at the top of the mountain is worth every bit of the effort. It’s a country where almost every local disappears each weekend for solitary cross-skiing trips along its isolated slopes. Where you have to fight to understand, and be understood. But its pristine beauty is unparalleled. When I first arrived, all I saw looking out of my window was fields of snow. But as Spring arrived, the snow slowly melted to reveal a sparkling lake. So hold out for the thaw - but before it comes, make angels in the snow.

I had been on a semester long exchange program to Uppsala University in Sweden. Going for an exchange program was one of the best experiences in my life. I got to meet many different people from all over the world. It was really an eye-opener to converse with them and learn more about the different cultures and traditions.

This experience also helped shape me to become a more independent individual. Being thousands of miles away from home for 5 months would force you to manage things all on your own. Everything from simple day-to-day stuff that we take for granted here like having food cooked for us in our homes will not happen there. I had to learn to cook (p.s. though not great) helped me to survive for the 5 months.

As everyone knows, one of the perks of going on an exchange program is that you get to TRAVEL! I went to several countries and I think that I travelled to more countries during that 5 months than I had ever went during my entire life! I personally believe that travelling has taught me a lot. I learnt a lot about the daily lifestyles of people in various countries and conversing with new people who I met along the way helped shed light on things that I would never have found out through textbooks.

On the education front, I took three economics modules over there and it was really interesting to see how economics and lessons in general were taught over there. It was a nice experience engaging in discussions with students from all over the world and sharing different points of view.

On the whole, I would just like to quote from an anonymous source: ‘Exchange is not a year in a life but a life in a year’ p.s. (it applies for 1 semester too!)

Seliyan Silvarajoo, Year 2 Economics Major @Uppsala University

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INTERNSHIP EXPERIENCES

I am an undergrad who just finished my second year. Having secured multiple internships, I was invited by Associate Professor Chia to share with you some of my experiences in sourcing for and securing internships in the private sector.

I feel very strongly about doing internships because I believe being an outstanding applicant for your dream job when you graduate does not happen overnight. Very often, having stellar results is simply not enough in Singapore’s absurdly competitive job market – personal connections and prior job experience dominate the hiring process.

Keep an open mind and be a keen learner. My belief is that as Economics students, we should not be too obsessed on breaking into a particular industry (hello banking) as we might discover areas we may like and be happy working in. I am currently interning at an American multinational, and the international work culture has enticed me so much that I am now questioning whether a career in the banking industry would be right for me.

Try to start as early as possible. I began sending in applications aggressively to multiple firms even before the end of my first semester in NUS. A motivational thought of filling those endless forms is that applying is free in the monetary sense. The only opportunity cost incurred is time, but as undergraduates, we’re in no short supply of it. For my first internship, I was offered a writing position in a private investment firm. This was only after nearly over 50 online applications and phone calls and 10 different interviews at various firms.

There is a Chinese proverb that goes: having read ten thousand books is nothing compared to having walked ten thousand miles. The most effective way to improve on your interview skills is to actually go for them over and over again. Go for every interview you can possibly go to, even ones you know you would not be taking the offer. You get to learn more about the industries at a deeper level, and master answering common interview questions. I asked feedback from interviewers and reflected on things I should or shouldn’t have said or do after each interview. By my 11th interview, I was a totally different person. The marginal returns of going for interviews far outweigh the costs.

I would like to end this piece with some tips. Build an excel sheet of a list of companies and application deadlines to track them. The easiest way to get going is to start talking to your immediate network. No words can describe how effective a referral is. The first internship role you secure can open many doors for you. Leverage on the networks of your colleagues because you never know when you might end up with a referral for your next internship or for future graduate opportunities. Consider taking leave of absence to do internships. You might have a higher chance of getting opportunities that are off-cycle and self-sourced that are not listed in career services because of less competition. Linkedin is an amazing social networking site to develop your professional network and explore career opportunities. Lastly, as economic majors what we can do is to capitalize on our general knowledge and analytical abilities and highlight specific traits that are relevant for the job role that we are applying to. For example, I leveraged on coming from the faculty of Arts to highlight my writing abilities for a fund reporting role which I got. Subsequently, I gave special mention to how Econometrics has given me a strong quantitative background for a financial analytics role which I got. Lastly, don’t give up! Dealing with rejections is perfectly normal at the start and we have to manage our expectations.

Loh Shu Peng

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After two years of waiting, River Valley High School finally walked away with the Championship of the National Economics and Financial Management Quiz (NEFMQ) on 21st July 2012. Other finalists included teams from Raffles Institution and Hwa Chong Institution. NEFMQ is an annual educational event organised by the NUS Economics Society. Each year, the NEFMQ team aims to promote financial literacy and awareness of contemporary economic issues among students from Junior Colleges, Polytechnics and other pre-university institutions. This year, NEFMQ attracted over 260 participants from 16 different educational institutions.

The grand final consisted of 2 components: the buzzer rounds and the presentation round. For both components, participants had to effectively demonstrate their understanding of real-world economic situations and financial literacy knowledge to the panel of judges. During the presentation round, the finalists offered their views on two interesting issues - how teenagers can start their own financial management planning, and what government can do to address the problem of unemployment and low productivity in Singapore. The discussions were in depth and thoughtful. In particular, the team from Hwa Chong Institution offered a very innovative idea of a Lack of Productivity (LOP) tax which drew appraisal from the judges and guests.

This year, we were very honoured to have Mrs Josephine Teo, Minister of State for Finance and Transport to grace our event. Mrs Teo was so inspired by the presentations from finalists that she gave an impromptu speech to reciprocate the discussions. In her speech, Mrs Teo highlighted that we cannot take Singapore’s low unemployment level for granted. She also addressed some challenges facing the Singapore economy and praised the students for their brilliance.

We were also honoured to have had Professor Julian Wright, Associate Professor Albert Hu and Associate Professor Anthony Chin to grace the event. We would also like to extend our thanks to the honourable judges Mrs Tan Say Tin from MOE, Mr Daniel Lo from the NUS Economics Alumni and Mr Para from Association of Financial Advisers for their invaluable presence and help through posing thought-provoking questions to our finalists, and helping us with the judging of the presentation round. The event would also not have been possible without the support of the NUS Economics department, Ms Chee Lee Kuen from the department’s administrative office, NUS Office of Alumni Relations and the NUS Economics Society. We would like to especially thank the sponsors of this event: PUB, Emit Asia, Botak Jones and the Yogurt Place for their kind support and sponsorship.

Finally, as NEFMQ 2012 draws to a close, we would like to congratulate the winners and thank all participants for their efforts. We hope that NEFMQ has helped to build up financial literacy awareness and improve economic knowledge of these pre-university students. Last but not least, we are also very glad to have received strong support from our main sponsor, MoneySENSE, for without which, NEFMQ would not have been successful.

NATIONAL ECONOMICS AND FINANCE MANAGEMENT QUIZ 2012

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It was the grandest event of the year for the NUS Economics Alumni, which is the annual dinner event that was held to great success! This was the 5th annual dinner and the biggest turnout ever of about 100 people came to share in this joyful event. We have the privilege of Professor Julian Wright, the new Head of NUS Economics Department as our Guest of Honor. He graced the event sharing profound information about NUS Economics department success so far in worldwide education rankings and latest insights on happenings undertaken by the department. Dr Lee Soo Ann, Chairman of NUS Economics Alumni also shared the formation of the Alumni and the upcoming events to entice graduating students as well as Alumni to join in the fun. We also have the support of OAR for our event with Mr Wong Peng Meng, Associate Director of OAR who spoke about OAR activities and so graciously donated the goodies for our goodies bags, we especially love the Linus – the NUS Lion! The event was also bittersweet for the graduating economic students as the dinner was a swansong event for them. There were Alumni members from various cohorts, NUS Economics department staff and students as well as guests from SMU Economics Society. We hosted five guests from SMU Economics Society which helped build the relationship among economics cohorts of SMU and NUS. Besides the sumptuous buffet, there were entertaining games such as Bingo & Treasure Hunt which had the crowd entertained. Also, an Economics Quiz to test everyone’s economics knowledge which was quickly answered by the participants! In the end, everyone went home filled up with the good food and wine as well as knowing more about NUS Economics Alumni, the new department head – Professor Wright and future activities. NUS Economics Alumni is one of the most active Alumni – always organizing events, talks and trips to cater to all Alumni. Lastly, we had a final group picture to remember the joyful, entertaining night, full of camaraderie amongst the Economics greats!

NUS ECONOMICS ALUMNI ANNUAL DINNER 201223 June 2012 at 2 Goodwood Hill

AN AUSPICIOUS START FOR ECONOMICS ALUMNI IN 2012

It was a great start for the NUS Economics Alumni when 33 members came for a sumptuous lunch at Bee Heong Palace Restaurant held on 14 January. It was held jointly with NUS Engineering Alumni of about 20 members which is our 1st joint event for the year. Jointly it was a 5 table fine dining of great Hokkien food and lots of camaraderie for all. Aptly, the “lohei” was the first dish and we had a great time tossing the “yu sheng” for good health, prosperity and luck! We had over 10 dishes of famous signature dishes from Bee Heong restaurant – pipa duck, hokkien noodles, steamed pomfret, mango chicken, yam paste – to name a few! Well we certainly had our filled and looking for more fun fill activities in months to come with our members.

On top of that, in view of the past year contribution of Economics Alumni committees, Certificate of Appreciation was given to committees members by Professor Sun Yeneng, Head of Economics Department. We the NUS Economics commi ttee would certainly organize more activities for the Alumni in 2012. Here’s wishing all Alumni members a Happy and Prosperous Chinese New Year in the Dragon year!

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The Economics Alumni organized another trip to the Kukup Village on 10-11 March 2012. This was well attended by Alumni, family and friends and the chalet we booked was fully occupied by 24 of us. There were only 3 bedrooms and this only improves the bonding.

As the event also coincided with the start of the school holidays, there was congestion at the Malaysian checkpoint which took about 75 minutes to clear, compared with the usual 10 minutes. We thus skipped the stopover for tea break as we wanted to be at the Kukup Village for the 8 course lunch and early check in at the chalet.

Although we could walk to the chalet, it was quicker to go by boat and soon we were on our way. The 7 minutes boat ride was refreshing, with a good salty breeze blowing, and scenes of kelongs on the way. This was nice for city dwellers like us.

At the chalet we took time to sort out the sleeping arrangement. Then, it was time to relax, chat and explore. Nobody watched TV preferring to sing instead. The karaoke system had 20,000 songs and it was easy to find what you like. Several of us sang, but no one danced. Some preferred to play mahjong, while others took in the scenes of the village and explore around.

At 4pm, it was tea time. Instead of the usual coffee and tea, we were treated with curry chicken and fried bee hoon. Of course, there was free flow of coffee, tea and milo both during the meals and at the chalet.

After that many took a walk around the village, and several walked all the way to the town centre. On their return, the sun was setting, and some return to singing while others chose to sit and laze around the boardwalk to capture the beauty of the sunset, with cool salty breezes blowing.

At around 8pm, we had a barbecue dinner, but with a difference. The food was barbecued for us. And if we want to, to be refill as many times as we can eat. The satay was popular and we refilled that four times. The sauce was especially good. Although we were outdoors, there were no mosquitoes or other insects to disturb us in our enjoyment.

After dinner, we would watch fireworks and lantern kites as well as fire crackers. Others prefer to sing some more, while others decided to retire early.

The next morning, some did their morning exercises, and were kind enough to teach others how to keep fit. After a breakfast of nasi lemak, fried mee, and otah, it would be time to check out. The nasi lemak deserve a mention for its freshness. Probably, they used fresh coconut milk, unlike in Singapore

THE KUKUP VILLAGE TRIP

where canned coconut milk was used.

Before we checked out, a group photo was taken and then we were off to Kukup Island, a nature reserve run by the Government. And to start off the adventure, we had to walk across a suspended gangway that sways as you walked on it. Only three people should cross at a time and a few meter apart, to prevent any mishaps. The gangway had only two small planks, but relatively safe if you do not look down and ignore the swaying. The trek in the nature reserve took more than an hour and this time a few monkeys were around. There were of course the usual creatures that would be found in marshes.

Another boat ride took us next to the kelong and the water was really murky. Yet they were able to rear fishes of several varieties, including sharks. Shopping was also available.

At the restaurant by the sea, we had another 8 course meal. After that it was last minute local shopping, before the coach took us to the Johor Premium Outlets. As expected, most premium brands had outlets there, but not everyone can afford branded items, even at a discount. Yet a few bought shoes, clothes, bags. Most window shopped.

Surprisingly, the trip across the causeway was very smooth and we were able to reach Singapore before 7pm.

Apart from the activities described above, the trip enabled many of us to know each other better, across different age group. There were good exchanges of information, views and interests. We found new friends and strengthen existing ones.

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They are now working in very different jobs, but they all once studied economics at NUS – on 19th March, three alumni returned to speak about their different career trajectories at “Economists in Action II”, a career and networking session organised by the NUS Economics Society.

The three alumni – Mr Joel Tan, Ms Foo Suan Wee and Mr Cholan Kopparumsolan – gave short speeches about their respective jobs, and then fielded questions from the students who attended the session.

Mr. Tan – who graduated in 2011 and is now working in the Bank of China’s global trade services division – spoke about how experience, rather than qualifications, mattered more in a private sector job like his own. “Whether or not you have a first class or second upper honours, at the end of the day, when you start working, you are starting as a fresh graduate,” he said. “So you have to train from scratch, you have to continue to learn as you get along in your career.” Consequently, when Mr. Tan first started out in the Bank of China, he had to deal with things he had never encountered before in his university life, and had to be proactive in learning more about bank operations.

Ms. Foo – who graduated 10 years ago and is now a senior economist at the Economist Service under the Ministry of Trade and Industry – started out in a job that was not directly related to economics. She received a Singapore Power scholarship and was bonded for four years upon graduation. In 2006, she switched to working in the Economist Service. After working there for three years, she took a year to study for her Masters degree, and has since returned to the Economist Service.

She gave students an idea of her job as a public sector economist, which involved rotating amongst different ministries to provide Economics expertise. She said that public sector economists typically perform three tasks – surveillance of current developments, research into topics relevant to public policy, and evaluation of specific policies. Agreeing with Mr. Tan about work attitudes, she said: “Going into the workplace is a totally different ball game; you really have to be humble and learn because there are so many things you do not know.”

Mr. Cholan also works in the civil service, but in a vastly different area – he is now a polygrapher at the Ministry of Defence. Having worked in the police force and at a bank previously, he emphasized that a graduate with an Economics degree could find work in many diverse areas. “You might not be able to apply the methods, but the principles you learn are useful,” he said. Despite starting off with an Economics degree, he is now working in MINDEF, and was even awarded a scholarship to read a master’s degree in criminal justice in the United States.

“I am now doing something different, but when you integrate all that you’ve done, it’s all the same – it’s about solving problems, maximizing whatever and minimizing something else,” he said, prompting some chuckles in the audience with his reference to economics.

The three panelists then answered several questions from the audience. When asked about how much he knew about bank operations when he first took his job at the Bank of China, Mr. Tan admitted that he did not know much beyond retail banking. Nonetheless, he advised graduates to try to get into a management trainee programme if they were unsure. “Whichever bank offers it, they will allow you to go into as many departments as possible, experience the culture there, the type of transactions there,” he said, so that graduates can make a more informed choice about which departments they want to work in.

When asked about whether non-scholars were at a disadvantage in the civil service, Ms. Foo admitted that returning scholars might have an advantage because they would be in the management associates programme, but she did not feel that there was any discrimination. “As long as you are interested and you have the relevant skill set, I don’t think you should worry about being discriminated against simply because you are not a scholar,” she said. In fact, even junior economists have to defend their own work in the Economist Service, so “if you’re good at your work and you put in your best, you will be recognised fairly quickly,” she said.

Agreeing with Ms. Foo, Mr. Cholan added that “when you show expertise in certain domains, or skill sets relevant to the organization, it gives them a reason to further develop you,” pointing out that he was eventually awarded a scholarship to study in the United States. “The most important thing is to show passion for your job, and they will show passion for you,” he said.

Economics alumni give job tips in career networking session

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STAFF APPOINTMENTS

Dr Roy Chen, who received his PhD from University of Michigan, was appointed as Assistant Professor in the Department of Economics with effect from 27 June 2012. His areas of interest are Behavioral/Experimental Economics, Public Finance, and Microeconomic Theory.

Professor Jeffrey C. Ely joined the Department of Economics as Goh Keng Swee Professor from 27 February to 9 March 2012. Professor Ely is the Charles E. and Emma Morrison Professor at Northwestern University. He was elected Fellow of the Econometric Society in 2009 and is currently on the editorial boards of Econometrica, the Journal of Economic Theory and Theoretical Economics. He is a leading expert in economic theory and game theory.

Dr Elisabetta Gentile, who received her PhD from University of Houston, was appointed as Visiting Fellow in the Department of Economics with effect from 22 June 2012. Her areas of interest are Growth and Development, Economic Policy and Environmental Economics.

Dr Ko Chiu Yu, who received his PhD from Boston College, was appointed as Assistant Professor in the Department of Economics with effect from 3 July 2012. His areas of interest are Applied Game Theory, Microeconomic Theory, Industrial Organization, Public/Political Economics and Financial Economics.

Professor Li Tong joined the Department of Economics as Goh Keng Swee Professor from 30 January to 24 February 2012. Professor Li is the Gertrude Conaway Vanderbilt Professor of Economics at Vanderbilt University and works in the area of microeconometrics and empirical microeconomics.

Dr Liang Meng-Yu was appointed as Visiting Senior Fellow in the Department of Economics from 16 January to 15 April 2012. Dr Liang is an Associate Research Fellow at the Institute of Economics at Academia Sinica.

Dr Liu Chu-An, who received his PhD from University of Wisconsin-Madison, was appointed as Visiting Assistant Professor in the Department of Economics with effect from 4 July 2012. His areas of interest are Econometric Theory and Applied Econometrics.

Dr Chan Mang, who received his PhD from University of California, Los Angeles, was appointed as Visiting Fellow in the Department of Economics with effect from 2 July 2012. His areas of interest are Financial Economics, International Economics, Macroeconomics and Monetary Economics, Economic Development, Technological Change, and Growth.

Dr Sng Tuan Hwee, who received his PhD from Northwestern University, was appointed as Assistant Professor in the Department of Economics with effect from 2 July 2012. His areas of interest are Economic History and Political Economy.

Dr Song Changcheng, who received his PhD from University of California, Berkeley, was appointed as Assistant Professor in the Department of Economics with effect from 16 July 2012. His areas of interest are Development Economics, Psychology and Economics and Experimental Economics.

Associate Professor Satoru Takahashi, who received his PhD from Harvard University, was appointed as Associate Professor in the Department of Economics with effect from 18 June 2012. His areas of interest are Microeconomic Theory and Game Theory.

Dr Denis Tkachenko, who received his PhD from Boston University, was appointed as Assistant Professor in the Department of Economics with effect from 16 July 2012. His areas of interest are Econometrics, Macroeconometrics and Financial Econometrics.

Dr Zhang Yang, who received her PhD from Northwestern University, was appointed as Lecturer in the Department of Economics with effect from 2 July 2012. Her areas of interest are Health Economics, Applied Microeconomics, and Industrial Organization.

Ms Ooi Ean Choon was appointed as Assistant Manager in the Department of Economics with effect from 6 February 2012.

Ms Tan Leng Choo was appointed as Management Assistant Officer in the Department of Economics with effect from 20 February 2012.

Assoc Prof Anthony Chin was awarded the NUS-Global Asia Institute NIHA Research Grant - Reducing TB Incidence through Incentivized Case-Finding Networks: Modelling and Evaluation of a TB Detection Program in Bihar, India and the Neptune Orient Line Fellowship - Hinterland Developments in Asia: Supply Chain Competition and Implications for Ports and Shipping.

Prof Danny Quah, on being awarded the 2011 Best Article Prize by the Global Policy and the Global Public Policy Network (GPPN). His article ‘The Global Economy’s Shifting Centre of Gravity’ (Vol. 2, Issue 1, January 2011), finds that in 1980 the global economy’s centre of gravity was mid-Atlantic yet, by 2008 that centre had drifted to a location east of Helsinki and Bucharest. Extrapolating growth in almost 700 locations worldwide, the article projects the world’s economic centre of gravity to be located between India and China by 2050.

Assoc Prof Julian Wright, promoted to Professor.

Ms Neo Seok Min, promoted to Management Assistant Officer (Grade 3).

STAFF ACTIVITIES ANNOUNCEMENTSCongratulations to...

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BUNDLE OF JOY …!Congratulations to Ms Khatini Binte Anuar and family on the arrival of their baby boy, Muhammad Razin on 26 June 2012.

The Department of Economics’ seminars (http://www.fas.nus.edu.sg/ecs/events/seminar.html) are usually held on Tuesdays and Thursdays, from 4.00 pm – 5.30 pm. All seminars are held at the Lim Tay Boh Seminar Room (AS2 03-12), unless otherwise mentioned.

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Economics Newsletter (ECONews)Department of Economics

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