Singapore can be Asia's global city

Alvin Foo, Straits Times 2 Feb 08;

SINGAPORE has the edge over key regional cities in its drive to become Asia's global city, according to speakers at yesterday's Singapore Perspective 2008 conference.

They identified three key ingredients in winning this crown: being very cosmopolitan, having world-class amenities, and possessing good government support.

One of the speakers, Minister Mentor Lee Kuan Yew, said: 'I am not sure that we can compete with New York or London but in the Asian context, I think we can compete with Tokyo, with Shanghai, with Hong Kong, with Sydney. I'll tell you why.

'First, Sydney's too far away ... it is the antipodes. We are in the middle of Asia, straddling the Indian Ocean and the South China Sea.

'Tokyo is too Japanese. Shanghai is still too Chinese. Shanghai will try very hard to go back to the kind of cosmopolitanism they had when it was a treaty port and I think the Chinese government will say 'Go' because they want it to be a vibrant city.

'But I do not believe they can produce the kind of cosmopolitan atmosphere, a cosmopolitan climate, environment that we have in Singapore.'

Deutsche Bank's regional chief economist Sanjeev Sanyal also cited Singapore's increasingly cosmopolitan nature as a key strength in its push to be a global city.

'There's no doubt that Singapore is Asia's most cosmopolitan city,' he said.

'Just look around you, every nationality, every ethnic group. No other Asian city comes close.'

Another factor: excellent amenities here such as good schools and hospitals - which aid in attracting human talent.

Then, there is good governance fuelled by strong government support, he said.

Another speaker - Dr Gillian Koh, senior research fellow at the Institute of Policy Studies - painted two possible long-term scenarios for Singapore as she touched on the drivers for change.

The first is a market-driven model named 'F1 Singapore', in which the nation aims for 'high octane growth'. This will see the country aiming to be a magnet for talent and having global firms emerge from Singapore.

The second sees Singapore becoming more closely tied to regional neighbours, in which it focuses on building bridges through the region and tapping resources there.

Earlier, scenario-planning guru Peter Schwartz, the Global Business Network chairman, identified several themes and challenges which are likely to affect Singapore in the future. These included the need for sustained innovation, dealing with the issue of climate change, and a regional disease outbreak.

The mix-and-match city
Why mega cities will be the norm and where Singapore's edge is
Loh Chee Kong, Today Online 2 Feb 08;

IF the futurists have read the cards right, come 2030, the New World Order will be one dominated by a few elite mega-cities, rather than by nations.

And Singapore, judging by the Government's policies and pronouncements, wants to be in that select group, mixing with the likes of London and New York at the pinnacle nodes of global cities.

Deutsche Bank's chief economist, Mr Sanjeev Sanyal, believes that Singapore, more than any other Asian city, has what it takes to achieve this "worthy ambition". After all, once a "human cluster" has been assembled in the form of a mega-city, it will become very difficult to "throw off" such a structure. He pointed to London, which has "bad weather, bad infrastructure, terrorist strikes" — yet still well-regarded as a global city.

Speaking at the Singapore Perspectives 2008 seminar organised by the Institute of Policy Studies on Friday, Mr Sanyal said there is room for just one or two global cities in each region.

The model of a global city, he said, "plays to some of Singapore's best strengths". They include good governance, a cosmopolitan environment and well-developed infrastructures and amenities.

Take the integrated resorts, for instance. "If you really want to gamble, this is not the place. You will still go to Macau. But it's the mix and match that really matters. Again, this is an area that Singapore does very well."

But while the payoffs for being a global city are spectacular, there will also be thorny issues for Singapore to navigate: The lack of a hinterland; congestion; social tensions caused by an influx of immigrants and the "biggest risk of over-building".

Said Mr Sanyal: "In the process of creating a more attractive city, you keep building but the problem is that it actually pushes people out. It's much better to have one really lively, swinging bar than have half-a-dozen half-empty ones. So, it's optimal to build just right, or maybe short of just right."

During the Q&A session, Singapore Institute of International Affairs chairman Simon Tay asked if Singapore under such a "global city" model would be a "home or hotel".

Adding that it was a "tricky balance", Mr Sanyal said: "Eventually, all great global cities are part-home and part-hotel because of the nature of how global citizens live. The problem is if you want to create a sense of community, you need a rooted population."

Apart from a "Formula 1 Singapore" going all out to achieve "high octane growth" as a global city, IPS' senior research fellow Dr Gillian Koh painted the other possible scenario where Singapore taps on the hinterland of Asia for resources.

And even in the latter scenario, Singapore needs to create an affiliation — or a "mind share" — among its people.

Said Dr Koh: "If we are unable to coalesce and work together and project ourselves as a community, we will be lost in the rise of China and India."

While Minister Mentor Lee Kuan Yew was confident that Singapore could vie against other prominent Asia-Pacific cities such as Sydney, Tokyo, Shanghai and Hong Kong to be the top regional city, he was "not sure if we can compete with New York or London".

"Sydney is too far away. Tokyo is too Japanese. Shanghai is still too Chinese. Shanghai will try very hard to be cosmopolitan but I do not believe they can produce a cosmopolitan climate we have here," said Mr Lee, who was asked for his views in a subsequent dialogue at the seminar.

But rather than going it alone, Mr Lee told reporters on the sidelines that he wants Malaysian leaders to know that Singapore is ready to work with them to grow together.

He added that Malaysia should view Singapore in the spirit of cooperation and acceptance instead of competition and antipathy.

Singapore's future role remains an 'open question'
Uma Shankari, Business Times 2 Feb 08;

(SINGAPORE) It is difficult enough to say what will happen next week - just ask a weather forecaster or a stock market analyst - but one group has been trying to work out what Singapore might be like 22 years from now, in 2030.

Prospects appear good enough, but there will be problems along the way. The role Singapore will play on the global stage in 2030 remains an 'open question', a conference heard yesterday.

Speakers at the Singapore Perspectives 2008 conference said that Singapore could well succeed in its quest to be a global city but it has challenges aplenty to face. They were discussing scenarios for the next generation.

'Singapore's role is an open question, as is the region's,' said Peter Schwartz, chairman of Global Business Network and a renowned 'futurist' and business strategist.

Singapore could become either a minor or major economic player. It could also become a global capital, a regional capital, or neither.

Sanjeev Sanyal, chief economist for the region at Deutsche Bank, said that there is room for just one or two global cities in Asia. Singapore, he said, could be one such city, but there are issues that need to be addressed.

'Is it reasonable for Singapore to want to be this city? Yes,' Mr Sanyal said. 'I think Singapore has a very good chance of making it.'

But there will not be room for many such cities in one region, he said. For example, the emergence of London as a major global city means that there are no other comparable cities in all of Europe.

Singapore's strengths, Mr Sanyal said, lies in the fact that it is Asia's most cosmopolitan city, has excellent amenities, a financial and business cluster and good communications and transportation links. It also has a government 'that has consciously decided to go for it', he said.

However, Singapore faces challenges such as a small population and the absence of a supporting hinterland. '(Singapore's) hinterland lies in other countries,' Mr Sanyal observed.

In the same vein, Gillian Koh, senior research fellow at Singapore's Institute of Policy Studies, said that Singapore could either become a 'global node in a global economy' or it could choose to increase its ties to the hinterland and tap on South-east Asia's growth. Either way, the country will face stumbling blocks, she said.

To become a 'global node', Singapore will have to take its government-linked companies global and make a political transition, among other things, Dr Koh said. But by increasing its ties to the hinterland, the city-state could see a spillover of the identity politics and governance incapabilities seen in the region.

But change is definitely on the way, driven by factors such as climate change, scientific and technological innovation, the expected decline in the working populations of developed countries and the increased power of Asian countries after they emerge as lenders in the sub-prime fallout, the speakers said.

And there will still be surprises in store for Singapore and challenges such as the 'inevitable' outbreak of disease to be overcome, Mr Schwartz said.

He also said that going forward, other countries in Asia could well catch up with Singapore, whose remarkable success over its first 40 years could be attributed largely to knowledge-driven growth and good government.

But now, others are learning this lesson. Soon, China, India and maybe even Indonesia will be able to undercut Singapore's competitive advantages. Staying ahead of this curve will be critical for Singapore, Mr Schwartz said.

One way to do this is to position Singapore to benefit from the forces of change, such as the climate. 'Singapore could be a winner of climate change if it develops the technology that others need,' Mr Schwartz said.

Singapore should also become a more knowledge-intensive city and expand its external wing to grow its investment income further, said Teh Kok Peng, president of GIC Special Investments.