SINGAPORE BRIEFING May 2005

News this month

Macau on the Malacca Strait?

Ending a year of unusually lively and public debate, Prime Minister Lee Hsien Loong announced on April 18th that Singapore would open two casino resorts, one at Marina Bay near the city centre, and another on the resort island of Sentosa. The decision reverses the Singapore government's long-standing opposition to casino gambling, and also marks a personal about-turn for Mr Lee, who initially feared a rise in gambling addiction and money laundering. He was won over by the potential economic benefits to Singapore's tourist industry, which has remained relatively stagnant for a decade, even as the overall number of travellers to Asia has risen. He predicted the two casinos would lure more visitors and create 35,000 jobs.

Investors are already salivating. On April 25th, the government announced a shortlist of 14 companies that have submitted bids to develop the two resorts. These are expected to open in 2009, and will include theme parks, shopping plazas, convention centres, hotels and museums. Prominent bidders include Steve Wynn, a Las Vegas-based casino tycoon, and Stanley Ho, Mr Wynn's Macau-based counterpart.

Waiting for the next one

Singapore's armed forces have spent an extra month delivering aid to earthquake survivors in Indonesia. Just as they were packing their bags, a second earthquake struck the region on March 28th, this time centred on the Sumatran island of Nias. It killed at least 900 people and left thousands homeless. As earlier this year, Singapore's army brought food and medical supplies to those in need.

Tony Tan, Singapore's deputy prime minister, said on April 3rd that the city-state may set up a centre to study earthquakes, bolstering efforts to establish an early-warning system for the Indian Ocean area. Mr Tan cited the two recent earthquakes, as well as a predicted third quake, as justifications for the investment. Though it remains unclear which body would administer the centre, Mr Tan said it should be up and running within a year.

So happy together

Relations between Singapore and Malaysia improved on April 26th when the two sides signed an agreement to end a three-year-old dispute over Singapore's land reclamation in the Strait of Johor, which separates the two countries. In July 2003, Malaysia claimed the reclamation work violated its territorial sovereignty and harmed the environment. Both countries appealed to the International Tribunal of the Law of the Sea, which ruled that work could continue. The new treaty mandates a payout from Singapore to Malaysian fishermen, a promise not to hinder Malaysian ships navigating the strait, and a slight modification of the plans around Pulau Tekong.

Both countries agree that the dispute closed. And the goodwill appears to be spreading to the airwaves: both countries' national broadcasters revived a tradition—dormant for eight years—of jointly produced weekend concerts, and also have agreed to jointly produce a television-drama series. But a clutch of issues have yet to be resolved, notably over the drinking water that Malaysia supplies to its neighbour, sovereignty over the tiny island of Pedra Branca, access to Malaysian airspace by Singapore's military and the development of Malaysian-owned land in Singapore.

Slow growth

Singapore's economy grew by just 2.4% in the first quarter of 2005 year-on-year, according to a government announcement on April 11th. Worse, on a quarter-by-quarter basis, Singapore's GDP actually shrank by 5.8%. Many observers believe this is due to weakness in the manufacturing sector, especially pharmaceuticals. Singapore's central bank said growth in 2005 was likely to be at the low end of the official forecast of 3-5%. However, despite the slowdown, officials said fears of inflation limit their ability to ease monetary policy. Last year, Singapore's trade-dependent economy grew by 8.4%, its best showing in four years. This year won't be quite so rosy.

All for art

Minister Mentor Lee Kuan Yew might be an octogenarian, but his close ties to China's government mean his views on the country remain widely sought. As tensions between Japan and China flared in April, Mr Lee said that China needed to channel its rising power into “cultural revitalisation” rather than “military muscle”. Mr Lee, no slouch in fostering restrictions of all sorts at home, even urged China to relax its tough social strictures in order to “encourage freedom of artistic expression and the free exchange of ideas.” Rumours that China's leader, Hu Jintao, is taking up watercolour painting have yet to be confirmed.

Catch if you can

May 2005

“Madama Butterfly”

May 6th-9th 2005

Puccini's crowd-pleasing love story is the first full-scale opera to be staged at the spiky, durian-shaped performing arts centre that opened with great fanfare in October 2002. Directed by Ivan Heng, one of Singapore's top theatrical talents, the production will feature music from the Singapore Philharmonic Chamber Orchestra. Nancy Yuen, a gifted soprano, will sing the leading role.

Esplanade Theatres on the Bay. Tel: +65 6348-5555. Tickets: S$37-122. For more information, visit Sistic's website.

More from the Singapore cultural calendar