When Lee Hsien Loong collapsed during the National Day Rally speech on 21 August 2016, it shocked not only many Singaporeans, but also leaders from around the world. Although he recovered quickly and was able to finish his speech after a short break, the incident drew attention to the issue of leadership succession in a country that has long experienced predictable politics with little change.
In the wake of the infamous “Panama Papers,” nations around the world have felt extraordinary political pressure, both from within and from international economic organizations, to reform tax laws. These reforms are generally aimed at providing better transparency while closing loopholes that allow foreign organizations and individuals to funnel cash in an effort to avoid taxes in their home nations.
The International Chamber of Commerce (ICC) Court of Arbitration released a list of its top destinations for international arbitration. With the growing economic importance of Asia, it is no wonder that an Asian nation has risen to the top of the rankings. Singapore has taken the fourth seat on the list of most chosen arbitration venues overall, and first in Asia. This is the tenth consecutive year the nation has been in the top five.
Let there be no doubt about who is the main winner from the Australia–Singapore Comprehensive Strategic Partnership (CSP) signed on 6 May. It is Singapore. This tiny country is a quarter the size of the Australian city of Melbourne by land mass and it lacks space more than anything else.
Singaporean authorities have increased military expenditures to upgrade its military while presenting a strong front during the South China Sea territorial dispute, according to Reuters. Contractors, such as Boeing and Lockheed Martin, value Singapore’s business due to the city-state’s lucrative economic growth and timely payment history. Many nations in Asia have increased military spending because of higher economic growth and increased nationalism.
Singapore has regularly reported considerable surpluses in its annual fiscal budget. Budget surpluses have been an essential part of the country’s growth strategy (Asher et al. 2015) as they are perceived to provide a signal of sound public sector financial management to foreign investors, key stakeholders in Singapore’s development planning. Budget surpluses also enable the corporate income tax rate to be kept among the lowest in the world, at 17%.
According to government figures, Singapore’s economy grew 2.0% in 2015, a shortfall from 3.3% seen from 2014, according to CNBC. Retail trade and wholesale added the most growth, but failed to offset the city-state’s fall in manufacturing output. Analysts expect the economy to expand anywhere from 1.0% to 3.0% in 2016.
Singapore’s ruling party, the People’s Action Party (PAP), enters 2016 enjoying the comfort of a magnificent electoral victory in the 2015 general elections. In that election — the first since the death of patriarch Lee Kuan Yew — the PAP won almost 70 percent of the popular vote. It was not the ruling party’s highest-ever vote, but coming off the back of the 2011 general election, in which the party scored its lowest vote since independence (60 percent), it was a tremendous relief.
Last year was a year of retrospection and affirmation for Singapore. Marking the country’s 50th year of independence, 2015 saw a yearlong series of state-sponsored events and projects to celebrate the nation’s achievements.
The effect was a carefully choreographed campaign — known as SG50 — that indulged in widespread nostalgia, popular heritage and the re-telling of the country’s journey from a developing to a developed nation.
The haze enveloping Singapore since June 2015 highlights the significance of its bilateral relationship with Indonesia. Just as Singaporeans cannot escape the devastating health impact of ‘slash-and-burn’ deforestation in Sumatra, emerging trends in Indonesia will have an impact on Singapore.
