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
-
The UK cities where it’s cheaper to buy a house than rentFor people in some areas of the country, home ownership is a distant dream. But for others it can be surprisingly affordable.
-
Review: The Grill at the DorchesterThe Grill at the Dorchester has a new, easy-going atmosphere, but the food is serious: from punchy beef wellington to grown-up tarte tatin, says Dan McEvoy
-
Global investors have overlooked the top innovators in emerging marketsOpinion Carlos Hardenberg, portfolio manager, Mobius Investment Trust, highlights three emerging market stocks where he’d put his money
-
Investors should cheer the coming nuclear summerThe US and UK have agreed a groundbreaking deal on nuclear power, and the sector is seeing a surge in interest from around the world. Here's how you can profit
-
Healthcare stocks look cheap, but tread carefullyShares in healthcare companies could get a shot in the arm if uncertainty over policy in the US wanes, but are they worth the risk?
-
The Palace of Westminster is falling downThe Palace of Westminster is in need of repair, but the bill is prohibitive, says Simon Wilson
-
'Gen Z is facing an AI jobs bloodbath'Opinion It has always been tough to get your first job, but this year, it's proving tougher than ever. AI is to blame, says Matthew Lynn
-
Should the Online Safety Act survive?The Online Safety Act, a measure to safeguard children, is having unintended consequences
-
The secret behind Sweden’s successOpinion Sweden's stock market is in rude health, says Max King. Why can't Britain follow suit?
-
Prabowo Subianto: Indonesia’s Deng XiaopingPrabowo Subianto, like his Chinese hero, is taking power in his 70s with big ambitions for his country. Yet many view his return to politics with dread
