Westwood Secondary Lends an Invisible Hand to ‘O’ Level Economics

They are just 16. But already they know all about models and curves, booms and busts, and take a special interest in crashes and depressions.

A bunch of emotionally disturbed kids with runaway hormones? Far from that, it’s actually a class discussion on the causes of economic cycles and how the recent subprime credit crisis could have come about.

From economic concepts like inflation and fiscal policy to knowing what makes a small firm tick, students at Westwood Secondary School would be handy companions to help make sense of the business and financial pages. All thanks to the school being one of the first three in Singapore to offer Economics as an “O” level subject.

Since 2006, MOE has allowed 12 secondary schools to offer new ‘O’ level subjects such as Drama, Economics and Computer Studies. Economics, which is taught from Sec 3 onwards, was introduced at Westwood Secondary three years ago. The first batch who sat for their ‘O’ levels in Economics in 2007 consisted of just 19 students. But this year, the lure of the invisible hand (economist-speak for market forces) proved irresistible to about fifty Sec 3 Express students, who signed up for the subject.

A subject of growing fascination

According to Mdm Choo Siew Hong, head of Business Studies, the school decided to offer Economics to create an edge for the students should they intend to pursue the subject in junior college or the polytechnics. A foundation in economics also helps if one opts to study finance or business administration, and with rising interest in these fields, Mdm Choo expects the 2010 intake to rise to three classes with a total of 95 students.

Students keen to study Economics can apply for the subject after receiving their Sec 2 Express year-end exam results. To qualify, they have to score at least a 65% pass for English and a pass in Geography.

Economics is a totally new subject for many. Some students may find its concepts and theories challenging, so teachers go the extra mile to make lessons engaging and meaningful. Classes regularly feature discussions on current economic developments in newspaper headlines, group work and presentations to help students make the connection between theory and real life.

Beyond the classroom, learning journeys and workshops bring to life the models outlined in textbook. The students have visited companies like shoemaker Charles and Keith and financial organisations such as the Inland Revenue Authority of Singapore, where they enjoy firsthand accounts of the organisations’ history, operation and business. After a tour of the premises, they are encouraged to pose questions about the company’s business strategies and its economic environment to better understand how these two forces affect each other.

The spirit of enterprise

But what seems to excite the students most is an Entrepreneurship Education Programme (EEP) introduced in 2008. The EEP gives students a chance to try their hands on running a push-cart business in partnership with an external vendor.

For a start, students attend a one-day workshop conducted by the vendor to learn about business planning, sales and marketing, product selection, sourcing for suppliers and budgeting. Working in teams, students have two weeks to come out with a business proposal. During this stage, each group is supported by regular sessions with their teacher-in-charge, who helps them brainstorm ideas, look for suppliers and develop marketing strategies.

“The business proposals are then submitted to the school to assess the feasibility of the business, effectiveness of marketing strategies and relevance of products in the context of the pushcart venue,” explains Mdm Choo. Some of the business ideas generated by the students include balloon sculpturing, sale of pre-packed food items, custom-design T-shirts, handmade accessories and personalised gifts.

The teams whose proposals made the short list were also responsible for the design and setup of the push-cart, product display, sales and finances. When everything was ready, the push-carts opened for business at prominent locations, at the National Library in 2008 and at Republic Polytechnic in 2009.

“To instil an element of social responsibility, each pushcart business is subject to a ‘tax’ based on their net profit,” adds Mdm Choo. “The amount would be channelled to a special fund for students who are on financial assistance.”

The experience of actually running a business setup subject to the laws of economics left a deep impression on a number of students. Daniel Ser, for one, shared that he got “a feel of how the economic theories work in reality when we ran the push-cart business at Republic Polytechnic.” Adds the Sec 3 student, “We encountered some problems and tried to solve them by applying relevant methods as suggested in the textbook. For example, we had to cut costs to attract customers.”

For others, studying Economics has help them better grasp some everyday phenomena. Sec 3 student Chua Jia Yi enthuses, “In the past, when I read the newspaper, every term seems so foreign. But after learning more about Economics, I finally understand topics like inflation better!”