Singapore riding high despite Thai setback

IT IS trying just to stay clear minded, objective and rational since the news broke that the military had taken over the running of Thailand.

It has been a roller-coaster ride not only for Thais but also for the international community. In particular, foreign investors are downright jittery about committing funds in a country that has hitherto been renowned for its gentleness, reasonableness and enchanting smiles.

Singapore investments in Thailand plunged a hefty 88 per cent this January, compared to the same period last year. Hard-headed local businessmen and the investing community have signalled the Thai interim government unmistakably: the risk of losing their entire investments is real, given the manner and direction the Shin Corp issue has been pursued.

The sale of this core Thai national asset to Temasek has escalated from initial resentment to jingoistic pronouncements about compromising Thailand's sovereignty and jeopardising its national security. Nationalistic sentiments have been stoked with daily mass-media reports tugging at the Thais' heartstrings.

What do I, an ordinary Singaporean, see in the posturing and chest thumping? How do I view the numerous strong statements emanating from the hierarchy of the present Thai leadership about their intentions to regain control and ownership of Shin Corp from a foreign buyer - Temasek?

I am assured by a number of factors which collectively set my mind and heart at ease in regard to the Little Red Dot's destiny, both in the short and medium terms.

The Political and Economic Risk Consultancy has just released its latest findings. Singapore remains the least risky place in Asia to do business. It is ranked higher than even Japan and the United States.

Foreign direct investment in the Republic has risen a staggering 115 per cent ($14.8 billion to $31.9 billion) from 2004 to 2006, according to Unctad.

Fund managers will continue to give us the thumbs up if our fundamentals stay strong: robust and efficient governance, political stability, outstanding judiciary, excellent workforce, world-

class education system, a communications network second to none, and so on.

Locally, the recent Budget, through the Workfare Scheme, CPF restoration of 1.5 points, corporate-tax cut of two points and the offset package to cushion the GST hike, positions Singapore strategically to meet the challenges of globalisation with a more than fair chance of coming up roses.



Ho Kong Loon