Economist.com Cities Guide: Singapore Briefing - April 2006

News this month

A fine start

Singapore’s trade-dependent economy is apparently in fine fettle. On April 10th the government released figures showing the city-state’s GDP had grown 9.1% in the first three months of 2006. The numbers are in line with private-sector expectations, and come at a time of steady growth in the region. China and India are booming and South-East Asia—including Indonesia, Singapore’s giant southern neighbour—is posting respectable performances.

Given the year's robust start, economists believe the Lion City will comfortably meet the government’s full-year GDP growth projection of between 4% and 6%. Lim Hng Kiang, the trade and industry minister, noted that both manufacturing and services were making headway, growing 16% and 7.6% respectively. The only notable laggard was the construction sector, which continued years of decline by shrinking 0.6%.

Phoney war

Lee Hsien Loong, the prime minister, has not yet called national polls, but an election campaign in all but name has been underway for some time. Mr Lee and his cabinet team have been meeting voters across the island in a slew of community events. They have also introduced more than a dozen new candidates to stand for the long-ruling People’s Action Party (PAP). May 6th is touted as the most likely date for the vote.

The PAP holds all but two of Parliament’s 84 elected seats, and many expect it will handily retain its grip on power come election day. But special attention will be paid to the two opposition wards of Potong Pasir and Hougang. Mr Lee has asked his predecessor, Goh Chok Tong, to help the PAP candidates in these rebel strongholds.

On guard

Singapore’s reputation for a healthy environment is well deserved: clean streets, decent air and drinkable water are all taken for granted. But the city-state is now grappling with two possible scourges—one of them potentially catastrophic. On April 5th Lee Boon Yang, the minister for information, launched a handbook about coping with bird flu in the event of a global pandemic. The book, which will be distributed to all households, includes tips on hygiene and medicine. “We must prepare for the worst, even as we hope for the best,” he said.

Then on April 6th, health officials declared a preventive war against dengue fever. A surge in the mosquito-borne disease infected more than 14,000 people in Singapore last year. The National Environment Agency will spring-clean estates and other public areas from April 17th-19th to try to curb the disease before its peak season.

Racing uncertainty

Singapore tourist chiefs, always looking for ways to boost the country’s appeal, may bid to host a round of the Formula 1 (F1) World Championship. Lim Hng Kiang, the minister for trade and industry, told reporters on April 10th that the Singapore Tourism Board was “actively looking at” courting F1, which wants to add two more races to its 18-venue calendar by 2008.

Singapore considered—and rejected—a bid for F1 many years ago, when Lee Kuan Yew was in office. Mr Lee, the first prime minister of Singapore, admitted last year that rejecting the bid was one of his few regrets. “I think I was dim-witted then,” he lamented. “But I learnt a lesson.”

Turbulence

The world's two big aircraft-manufacturers, America’s Boeing and Europe’s Airbus, court Singapore Airlines (SIA) like few other flag-carriers. Its orders are typically large; it buys only the latest models; and its preferences can set the tone for future sales to rival fliers. So there was a nasty shock for the European outfit on April 7th when the boss of SIA, Chew Choon Seng, said Airbus had work to do on its new, long-range A350. Noting that the company had designed a new wing, tail and cockpit for the model, he suggested Airbus “should have gone the whole hog and designed a new fuselage.” Airbus plans to fly the A350 from 2010 but needs to clock up orders from this year. The plane is meant to compete against Boeing’s 787 Dreamliner.

Catch if you can

April 2006

Singapore Airlines International Cup

May 14th 2006

Three million Singapore dollars ($1.9m) is a fair sum by anyone’s standards and that is the prize money available at the Singapore Airlines International Cup, the biggest pot for any race in the city-state. The venue is the beautiful track at Kranji, 20 kilometres north of the city centre. The main race, now in its sixth year, attracts an international field of 16 runners. The first race gets underway at 3.45pm.

Call +65 6879 1350 or see www.turfclub.com.sg. The course is served by the MRT, the main railway system, but if you come by taxi the address is 1 Turf Club Avenue, Singapore Racecourse, Singapore 738078.

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