Q. What do bad times mean for the PAP, which has based its legitimacy on providing the economic goods and asset enhancement? Is its social compact with the people in need of an update?A

Oh yes. And my advice is: Go back to Senior Minister Lee Kuan Yew's old credo, where nobody owes us a living. After I had just taken over as the Housing Board's chairman in 2000, an astute academic asked me: 'Tong Dow, what's your greatest problem at HDB?' Then he diagnosed it himself: 'Initially, you gave peanuts to monkeys so they would dance to your tune. Now you've given them so much by way of peanuts that the monkey has become a gorilla and you have to dance to its tune. That's your greatest problem.' Our people have become over-fed and today's economic realities mean we have to put them on a crash diet. We cannot starve them because there will be a political explosion. So the art of government today is to wean everyone off the dispensable items. We should just concentrate on helping the poorest 5 to 10 per cent of the population, instead of handing out a general largesse. Forget about asset enhancement, Singapore shares and utility rebates. You're dancing to the tune of the gorilla. I don't understand the urgency of raising the Goods and Services Tax. Why tax the lower-income, then return it to them in an aid package? It demeans human dignity and creates a growing supplicant class who habitually hold out their palms. Despite the fact that we say we are not a welfare state, we act like one of the most 'welfarish' states in the world. We should appeal instead to people's sense of pride and self-reliance. I think political courage is needed here. And my instinct is that the Singaporean will respect you for that.

Q. What is the kind of Singapore you hope your grandchildren will inherit?

A. Let's look at Sparta and Athens, two city states in Greek history. Singapore is like Sparta, where the top students are taken away from their parents as children and educated. Cohort by cohort, they each select their own leadership, ultimately electing their own Philosopher King. When I first read Plato's Republic, I was totally dazzled by the great logic of this organisational model where the best selects the best. But when I reached the end of the book, it dawned on me that though the starting point was meritocracy, the end result was dictatorship and elitism. In the end, that was how Sparta crumbled. Yet, Athens, a city of philosophers known for its different schools of thought, survived. What does this tell us about out-of-bounds markers? So SM Lee has to think very hard what legacy he wants to leave for Singapore and the type of society he wants to leave behind. Is it to be a Sparta, a well-organised martial society, but in the end, very brittle; or an untidy Athens which survived because of its diversity of thinking? Personally, I believe that Singaporeans are not so kuai (Hokkien for obedient) as to become a Sparta. This is our saving grace. As a young senior citizen, I very much hope that Singapore will survive for a long time, but as an Athens. It is more interesting and worth living and dying for.