By Singapore standards, last Friday’s election delivered a surprising result, writes Hannah Beech in The New York Times. The ruling People’s Action Party won again, but by a “narrower margin than usual”. With only 27 deaths for a population of 5.8 million, the virus is not the problem, says William Pesek in Nikkei Asian Review. But as one of the world’s “most cosmopolitan city-states”, Singapore looks vulnerable to the rising forces of deglobalisation. The electorate is dissatisfied with high living costs, while an economic model supported by “cheap, imported labour” has stoked social tensions. With neighbours Indonesia and Vietnam developing fast, Singapore is starting to look like “an expensive enclave in a more affordable neighbourhood”.
A small and open economy, Singapore has been battered by the collapse of global trade. GDP plummeted by 41.2% on an annualised basis during the second quarter. The Straits Times index has lost a fifth this year. Still, analysts are feeling positive, says Abhishek Vishnoi on Bloomberg. The election has yielded a parliament with more opposition MPs, mitigating the usual problems of “groupthink”, says Justin Tang of United First Partners. The boost to Singapore’s democratic credentials from a more credible opposition will enhance its bid to supplant Hong Kong as Asia’s top financial centre, adds economist Prasenjit Basu.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Could your family be at risk of an unexpected tax bill? How to keep your loved ones in the loopMany families are out of the loop when it comes to planning the financial aspects of both retirement and inheritance
-
Rightmove: Glut of homes for sale in southern England drives asking price dropAsking prices are 0.1% lower than a year ago, according to the property website, driven by challenges in affordability-stretched London and the south
-
'Ride the recovery in emerging markets': Gustavo Medeiros of Ashmore Group tells MoneyWeekInterview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
'The City's big bet on green finance fails to pay out'Opinion Insurers and banks are backing away from “green finance”, and there is not much sign of the green boom we were promised. That’s a problem for the City
-
Why is English football thriving – and can it last?What has gone so right for English football? The national team has found its feet; the Premier League is swimming in money and profits are soaring
-
Should you invest in Pakistan – the Vietnam of South Asia?Opinion If Pakistan is now serious about reform, it’s time for investors to buy, says Maryam Cockar
-
'Why you must own gold and Bitcoin'Opinion The world is dedollarising, and gold and Bitcoin are the only alternatives. Buy now, says Dominic Frisby
-
'Britain is on the road to nowhere under Labour'Opinion Britain's economy will shake off its torpor and grow robustly, but not under Keir Starmer's leadership, says Max King
-
What are wealth taxes and would they work in Britain?The Treasury is short of cash and mulling over how it can get its hands on more money to plug the gap. Could wealth taxes do the trick?
-
UK bank stocks are no bargain – here's a safer alternativeOpinion Britain's banking sector faces severe political risks. Switch into this global financials trust instead, says Max King
