SINGAPORE BRIEFING

January 2005
News this month

Storm woes

Although Singapore escaped the earthquake and resulting tsunamis that devastated parts of South-East Asia in late December, thousands of foreign workers in the city-state anxiously awaited news of their families back home. Two Singaporeans abroad—one in Sri Lanka and one in Phuket, Thailand—were reported dead, and the city-state's hospitals received and treated injured people from around the region.

Singapore reported no structural damage to its ports, tourist resorts or industrial areas. The Strait of Malacca sea-lane, through which about one quarter of the world's maritime trade passes, was also unaffected. But the impact on Singapore's tourist industry remains unclear. Singapore could benefit if holidaymakers choose the city-state over its storm-damaged neighbours. But travellers may now avoid the region altogether.

January 4th 2005
Corporate scandal

Chen Jiulin, the head of China Aviation Oil, a Singapore-listed subsidiary of China's monopoly supplier of jet fuel, was once feted for his business acumen and rags-to-riches background. But his star faded on November 30th, when he admitted that his firm had run up $550m in losses while trading derivatives—a risky venture outside the company's principal activities. Mr Chen, who was arrested and freed on bail, admitted in an affidavit that he had informed the firm's parent company of the debacle weeks before the news was made public. Singapore’s white-collar crime squad is probing the affair.

China Aviation Oil meanwhile sought court protection from creditors. On December 10th Singapore's high court granted the company six weeks to come up with a rescue plan. The scandal has evoked memories of Nick Leeson, a Singapore-based trader who in 1995 brought down Barings, a venerable British bank, when his derivatives trades went awry.

A growing problem

Singapore's health officials have proposed new ways to prevent the spread of HIV and AIDS. On November 26th, Balaji Sadasivan, senior minister of state for health, suggested compulsory testing for all pregnant women, to prevent infected mothers from passing the virus to their infants. And in early December, Khaw Boon Wan, Singapore's health minister, proposed mandatory testing for couples intending to wed. “I have three daughters, and you do not know what their boyfriends will be like”, the worried Mr Khaw told reporters.

Official figures show that 257 people tested positive for the HIV virus in the first ten months of 2004—a 36% increase over the same period in 2003. Hospitals reportedly started offering pregnant women HIV tests from December 8th, but one in five declined.

Taking off

Another airline has joined South-East Asia's rapidly expanding stable of low-cost carriers. Singapore-based Jetstar Asia, an offshoot of Australia’s Qantas Airways, made its first flight to Hong Kong on December 13th. By the end of December, it will run services to Taipei and to the Thai resort of Pattaya. Flights to the Philippines, China and Indonesia are set to be introduced in 2005.

The newcomer can expect stiff competition from Tiger Airways, a budget operator backed by Singapore Airlines, and Singapore-based Valuair, both of which launched in 2004. Pressure will also come from AirAsia, Malaysia’s fast-growing discount carrier, which has already spawned offshoots in Thailand and Indonesia.

No party

Singapore's police banned a Christmas party organised by fridae.com, a gay website. The police said on December 9th that they could not approve an event which “goes against the moral values of a large majority of Singaporeans.” Fridae.com appealed the ruling. The ban comes after a recent softening in official attitudes towards homosexuality, which is undermined in Singapore as gay sex is illegal. In a widely reported speech in August 2003, Goh Chok Tong, a former prime minister, urged his audience to “accept [gay people] as fellow human beings, and as fellow Singaporeans”.

Not so fast

Lee Kuan Yew, Singapore's venerable founder, has quashed rumours of an impending national election. Mr Lee, now a mentor to ministers in his elder son’s cabinet, reminded reporters in early December that the new government had only been in office for three-and-a-half months.
Speculation about an election has persisted since August 12th, when Lee Hsien Loong was sworn in as leader of the long-ruling People's Action Party government, replacing Goh Chok Tong. The younger Lee does not need to call an election until 2007, but observers suggested he was keen to win his own mandate.

Catch if you can

January 2005
Thaipusam

January 24th-25th 2005

It may not be for the faint-hearted, but Thaipusam, a Hindu festival, is a unique spectacle. During the annual celebration, devotees display their piety by driving hooks, spikes and metal frames known as “kavadis” through their flesh. They then march through the streets of Little India in a grisly procession, accompanied by drums and rhythmic chanting.

The four-kilometre walk starts at 10pm on January 24th at the Sri Srinivasa Perumal Temple on Serangoon Road, and winds its way to Sri Thandayuthapani Temple on Tank Road. The procession is open until midday on the 25th, but most participants tend to take part in just the first few hours of the walk.

Sri Srinivasa Perumal Temple, 397 Serangoon Road. Tel: +65 6298-5771. Farrer Park MRT. Sri Thandayuthapani Temple, 15 Tank Road. Tel: +65 6737 9393. Dhoby Ghaut MRT.