Economist.com Cities Guide: Singapore Briefing - January 2006

News this month

On the alert

In a well-planned terror drill on January 8th, “terrorists” exploded bombs at four underground railway stations and on a double-decker bus. Ministers said Singapore’s civil-defence teams coped well with the assault, designed to test the country’s emergency services. The drama was notable for its reach. Although the test was held early on a Sunday morning, thousands of travellers were affected as many stations on the subway network were shut down. Lee Hsien Loong, the prime minister, said more large-scale drills would be organised.

The exercise was conceived after the train bombings in Madrid in March 2003 and the attack on London’s transport system last July. Singapore’s government has often speculated that the city-state is a tempting terrorist target, in part because of its alliance with America. While local forces have in the past simulated single bomb blasts, this was the first exercise involving multiple strikes and the use of a chemical attack.

Rational exuberance

These are good times to be an investor in Singapore: the stockmarket may reach a record high in the coming months. In January, the Straits Times Index, the market’s main benchmark, was pushed to a series of six-year highs amid a surge in trading volumes.

Brokers point to several factors behind the rise. Singapore’s economic growth is buoyant, reaching 5.7% last year, and analysts expect a similar performance this year. A general election is expected soon (probably after February's budget announcement), which usually gives the market a boost. Finally, markets elsewhere in Asia, Europe and America are also doing well. On January 17th, the market peaked at 2,425.99 points, and then backtracked slightly. Citigroup, an American investment bank, has forecast that the index may soon reach 2,600 points, a record high.

Not an open society?

George Soros, a well-known financier and philanthropist, is respected in Singapore for his commercial savvy and charitable works. But the man himself does not think much of the city-state’s tightly run political system. During a visit on January 11th, he was asked whether Singapore was an “open society”, a concept emphasising democracy and transparency long-championed by the Hungarian-born billionaire. “Obviously Singapore does not qualify,” he replied. Mr Soros added that the frequent use by senior politicians of libel suits against the opposition could be “a tremendous hindrance to freedom of expression.”

The government's response was curt. “If we are not an open society, George Soros would hardly be able to make the comments at an open forum in Singapore, and be reported in the Singapore media,” a spokesman told the press.

Poll fever

Will Lee Hsien Loong, the prime minister, call an early general election? The Straits Times, the city-state’s main newspaper, speculated in January that an election could be held as early as March (the 18th is cited as a possibility). Singapore’s annual budget, an event that is often used to generate electoral energy for the long-ruling People’s Action Party (PAP), will be announced on February 17th.

It is possible that Mr Lee will choose to wait until 2007 before going to the ballot box. But with Singapore's strong economic growth and rising stockmarket, analysts predict he will move sooner. The election, whenever it comes, will be Mr Lee’s first as Singapore's leader. The result is expected to show voters’ happiness with his administration. But few expect the enfeebled opposition to make much headway. The PAP holds all but two elected seats in the city-state's parliament.

Budget terminal

Changi Airport will open a new terminal dedicated to budget airlines on March 26th. Work on the S$45m ($28m) facility began in 2004, when no-frills flying first became very popular. The city-state now boasts three home-grown discount carriers: Tiger Airways, JetStar Asia and Valuair. It also receives flights from low-cost carriers around the region. The sector accounts for one in ten passenger flights at Changi.

The new building sits alongside Changi’s Terminal 2 and will be connected to the rest of the airport by shuttle bus. It will contain shops and free internet access, but only limited seating and no carpets. There will also be no aerobridges, so passengers will have to climb steps to board aircraft. Somewhat prosaically, the latest addition will be known as “Budget Terminal”, a name chosen in a contest that attracted 12,000 entries.

Catch if you can

January 2006

The Chingay Parade

February 3rd-4th 2006

This colourful annual street procession, which marks the end of Chinese New Year, dates back more than a century. Held all over Asia, the celebration is perhaps at its most spectacular in Singapore, where huge floats, jugglers, dragon dancers and acrobats parade down Orchard Road (Singapore's shopping Mecca). A host of artists from around the world will take part: look out for Bui Bolg, an Irish theatre group, and ballet dancers from Angola. Last year the event attracted 200,000 spectators over the two days; this year should be busier still. The action starts at 7pm.

To get to Orchard Road take an MRT to Orchard Station or Somerset Station. The official website of the parade publishes full details.

More from the Singapore cultural calendar