MM Lee: If Singapore disappears, the world will feel its absence

The Straits Times, April 28, 2007
By Lynn Lee


It stays relevant to the world, and this is how it survives and remains competitive, he says

LIVELY SESSION: MM Lee, seen here with moderator Najla Al-Awadhi, addressed an audience of around 150 government, business and civil society leaders at the Young Arab Leaders Global Action Forum: Arab and Asian Dialogue yesterday.





IF A volcanic eruption buries Singapore tomorrow, its absence will be felt across the financial hubs of London, New York and Tokyo.

In contrast, if it sank underwater 40 years ago, only traders who did business with it would be affected, said Minister Mentor Lee Kuan Yew yesterday.

He made these comments at a forum of Arab and Asian leaders, to illustrate how Singapore has become relevant to the world.

It is a key player in financial services, telecommunications and pharmaceuticals, with billions in investments.

'If we go under the ocean tomorrow', assets belonging to foreigners worth between $300 billion and $500 billion 'will go under the ocean', said Mr Lee.

Indeed, staying relevant has been Singapore's way of surviving and remaining competitive, right from Independence on Aug 9, 1965, he said.

It has done this through a process of 'non-stop learning', he told the 150 forum participants, some of whom had asked how Singapore had achieved success.

Early government leaders like himself travelled and read widely, consulting advisers from developed countries on how to industrialise.

'So we learned very quickly about how Western companies, how CEOs and their governments make decisions. So we adjusted our policies to make ourselves attractive to them. That's how we got started in a practical, pragmatic way.'

Since then, through this process of learning, Singapore has also solved its problem of a lack of water by recycling every drop, even water in sewage.

In manufacturing, it has shifted its focus to 'higher value-added products', as it cannot compete with neighbours who offer investors cheaper labour and land.

Today, Singapore is a First World country relevant to the world. It is attractive to foreign investors such as oil giant ExxonMobil, which has $7 billion in investments locked in here, said Mr Lee.

But the situation will not stay the same forever, he said, citing Middle Eastern airports as an example of how fast trends change.

Bahrain, for instance, was a major stopover in the 1960s for Qantas' route from Singapore to London.

Today, it is Dubai. But already, Abu Dhabi and Qatar are building up their airports.

'So if I were Bahrain, I would not compete in airports because you are space-limited. What I would compete on are things which you can do, small, valuable, subtle.'

This was what Singapore was trying to do, to compete.

'In other words, the logistical hub must work seamlessly. And the key is: Are we relevant? Is there another place which is more relevant than us? If there is, then we lost it.'

Already, parts of China and India are surfacing as attractive manufacturing locations for investors. Singapore has to develop niche areas these countries cannot catch up with just yet.

One example is the pharmaceutical industry. Firms that take their new discoveries into China and India might find generic products in their markets in a few months. But not in Singapore, where intellectual property rights are protected, said Mr Lee.

It will take China and India another 20 to 40 years before they invent their own pharmaceuticals. By then, 'they will come here and manufacture, we hope'.

He added: 'So it is a constant process of making ourselves relevant to an ever-changing world. The world is not static.'