Singapore Economy

A 36-year-old housewife waiting for her three youngsters to return from school glanced at the deluge of newspaper advertisements begging for job applicants. Enticements such as free retraining, premium salaries and opportunities with prestigious international corporations failed to spark even a hint of enthusiasm. "I want to work only on weekends and during school holidays," said Tan Lee Eng, "when the children don't need me at home."

Singapore said Tuesday that its economy contracted in the second quarter, signaling it could become the first Southeast Asian nation to slip into a recession since the 1997-98 Asian economic crisis. Economists say the slowdown is spreading. "We're going to see a string of these, either extremely poor or negative numbers in the near future," said Song Seng Wun, Singapore-based regional economist with G.K. Goh Research. "They're all getting hammered."

Singapore said Tuesday that its economy contracted in the second quarter, signaling it could become the first Southeast Asian nation to slip into a recession since the 1997-98 Asian economic crisis. Economists say the slowdown is spreading. "We're going to see a string of these, either extremely poor or negative numbers in the near future," said Song Seng Wun, Singapore-based regional economist with G.K. Goh Research. "They're all getting hammered."

When Singapore banned a recent television episode of "Ally McBeal" in which she contemplated a homosexual dalliance, the message seemed clear: The government remains firmly in charge of what its people see and hear. But this strong-willed government--known for controlling everything from bubble gum consumption to political dissent--has quietly given up its efforts to control the Internet.

Worldwide Recession Hurts Economy, Leader Says: Singapore's economy is suffering the effects of recession in the developed world and this year will be less successful than 1991, Prime Minister Goh Chok Tong said last week. "Our manufacturing and financial sectors, which depend heavily on external demand, will be affected," Goh said in his message on the eve of Chinese New Year.

The Persian Gulf crisis and downturns in major Western economies are taking a toll on Singapore, one of Asia's economic "tigers." The nation--one of the world's fastest-growing economies with near double-digit growth rates in recent years--on Tuesday forecast sharply lower growth in 1991 because of the Middle Eastern upheaval and economic slowdowns in the United States and other key trading partners.

The Internet is everywhere in Singapore--on billboards, television, in the newspapers, in the mouths and minds of government officials and businesspeople, even in ads on taxis and buses. This country is betting its future on the Internet. Its ambitious plans, and its formidable capabilities, are likely to soon make it the world's most wired nation. Indeed, Singapore is poised to become the world's first true "digital nation."

This prosperous city-state is built on a mountain of insecurity. Surrounded by larger, occasionally hostile neighbors and devoid of natural resources, the Singapore government muzzled political dissent, armed itself with the best weapons money could buy and created a sophisticated trade entrepot backed by $60 billion in foreign reserves.

A ride on a cable-car to the tiny islet of Sentosa reveals a sight that's hard to imagine from the spotless streets and sterile buildings on shore: Stretched out below is a vast container port, and crowding Keppel Harbor are too many ships to be counted. The commercial armada stretches to the horizon beyond Sentosa, lying at anchor in silent parking-lot formation, waiting to refill their holds and set sail.

The Internet is everywhere in Singapore--on billboards, television, in the newspapers, in the mouths and minds of government officials and businesspeople, even in ads on taxis and buses. This country is betting its future on the Internet. Its ambitious plans, and its formidable capabilities, are likely to soon make it the world's most wired nation. Indeed, Singapore is poised to become the world's first true "digital nation."

After two quarters of negative economic growth, Singapore is technically in recession. So what's the response of this city-state that is hardly larger than Zion National Park? Well, you could start with Singapore Airlines, ranked in many polls of business travelers as the world's best carrier. Singapore is spending $300 million to refurbish the fleet's cabins. Then there's the Internet.

This prosperous city-state is built on a mountain of insecurity. Surrounded by larger, occasionally hostile neighbors and devoid of natural resources, the Singapore government muzzled political dissent, armed itself with the best weapons money could buy and created a sophisticated trade entrepot backed by $60 billion in foreign reserves.

For the second year in a row, Singapore remains the world's most competitive economy, ahead of Hong Kong and the United States, according to a report issued Friday. The rankings in the World Economic Forum's Global Competitiveness Report 1998 define which countries have a range of market and factors of production which give them the ability to maintain sustained economic growth.

If you want to find out what Singapore is all about and why it's not rattled by the Asian economic crisis, you might start at the old colonial convent on North Bridge Street that houses the Mass Rapid Transit offices. Inside the dim, ultramodern control room, half a dozen men sit at computers, loading in timetables and commands. A few feet away, a huge digital board tracks 80 rush-hour trains that are speeding under and over Singapore, each relentlessly on schedule.

A country-by-country look at the economic crisis that has swept Asia, and the challenges nations face in restoring growth. (Stock market and currency changes are since Jan. 1. Currency changes versus U.S. dollar). THAILAND * Currency decline: -36% * Stock market decline: -52% * Population: 60 million. During the export boom of the early-90s, Thai banks flush with cheap foreign capital lent heavily to domestic borrowers, fueling a real estate bubble. Imports surged.

A general election scheduled for Saturday in the island republic will be the first test of popularity for Prime Minister Goh Chok Tong, who was appointed to his job last year. But whatever the results of the poll, Goh has a distinct advantage: He has already won. His ruling People's Action Party has been declared the winner of 41 of Parliament's 81 seats because it faces no opposition.

Growth Figures Revised Upward: The economy expanded 9.2% in the third quarter, the Ministry of Trade and Industry said. Gross domestic product grew 5.7% in last year's third quarter and 10.1% in the second quarter of this year. Economists had expected the economy to grow about 9% in the July-to-September period. Estimates were revised upward after the release of strong September trade figures and a continuing boom in business for the financial sector.

It seems symbolic that the Singapore government put its Trade Ministry atop a 50-story building made to look like a stack of gold coins. The view from the offices is of thousands of cargo containers waiting to be loaded aboard ships. Singapore's lifeblood is trade, and perhaps more than any other country, it depends upon the movement of goods for its survival.