Tuesday, July 31, 2007

WebQuest Report: Banning of Chewing Gum

"If you can't think because you can't chew, try a banana."

1. What are the governmental ministry and agencies that oversee the policy?

The chewing gum ban was initiated in January 1992 by Goh Chok Tong, who had just taken over as Prime Minister. The restriction on the distribution of chewing gum was enacted in Singapore Statute Chapter 57, the Control of Manufacture Act, which also governs the restriction of alcohol and tobacco. The ban includes importation and sale of chewing gum in Singapore. Chewing gum is banned in Singapore under the "Regulation of Imports and Exports (Chewing Gum) Regulations." Except for chewing gum of therapeutic value, the "importing" of chewing gum into Singapore is absolutely banned.

The proposal to ban chewing gum was brought up to the prime minister then, Mr Lee Kuan Yew, by the Minister for National Development as chewing gum contirbuted to serious maintanance problems such as disruption of train services. This was the main factor for the policy and ban as it had huge economic repercussions to the infrastructure.

The ban was seen as the only solution to the problem since the cost of cleaning and damaged cleaning equipment is expensive to the 5 million infrastructure.

2. Who are the direct parties involved in the transaction? Are there any indirect (external) parties that are involved or affected by the transaction?

The direct parties involved would be the government and citizens of Singapore. Generally, the citizens are affected as they are not allowed to consume the chewing gum. Those who were in the chewing gum manufacturing industry are also adversely affected due to the coercive closing down of the industry. This has also led to the loss of jobs and a certain amount of unemployment.

Indirectly, Singapore has lost one avenue of exportation and revenue. As a result of the ban, the government also received less tax revenue. Jobs then need to be created to cater to who lost their jobs due to the ban.

However, by carrying out the ban, the government was able to save the money which was previously used for maintenance of public infrastructure. Thus, money could then be directed and used elsewhere. For example, the money could be channeled to Research and Development instead.

Applying economic theories, the banning of this demerit good was implemented as the revenue earned from exportation and the chewing gum industry was not able to cover the cost of maintenance incurred by the consumption of chewing gum

3. Are there any other supporters or critics of the policy? Examine their views.

Before our citizens adapted to the ban, they often would travel to neighbouring countries such as Malaysia to purchase their gum. However, Singaporeans gradually got accustomed to the absence of chewing gum as time passed. Surprisingly, no black market for chewing gum in Singapore ever emerged.

International attention
However, it was not the case for other countries. Singapore received intense international coverage and attention from civil rights activists. This was one of the many other factors that created Singapore's "nanny image".

Singapore leaders did not give in and simply defended our own rights to making policies and stated that this would achieve greater benefits in return.

Credits: Germaine Goh, Lim Yong Ern, Chuah Peiyi and Veronica Lee

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