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
-
Autumn Budget tax changes: how is your generation affected?The chancellor expects everyone to do their bit to boost the nation's finances but the tax burden is by no means shared equally
-
Revealed: pension savers ditch investment trusts and favour passive fundsDemand for investment trusts is cooling among self-invested personal pension (Sipp) customers, who are increasingly choosing money market funds, passive funds and individual shares
-
Leading European companies offer long-term growth prospectsOpinion Alexander Darwall, lead portfolio manager, European Opportunities Trust, picks three European companies where he'd put his money
-
How to capitalise on the pessimism around Britain's stock marketOpinion There was little in the Budget to prop up Britain's stock market, but opportunities are hiding in plain sight. Investors should take advantage while they can
-
London claims victory in the Brexit warsOpinion JPMorgan Chase's decision to build a new headquarters in London is a huge vote of confidence and a sign that the City will remain Europe's key financial hub
-
The consequences of the Autumn Budget – and what it means for the UK economyOpinion A directionless and floundering government has ducked the hard choices at the Autumn Budget, says Simon Wilson
-
Reinventing the high street – how to invest in the retailers driving the changeThe high street brands that can make shopping and leisure an enjoyable experience will thrive, says Maryam Cockar
-
The global defence boom has moved beyond Europe – here’s how to profitOpinion Tom Bailey, head of research for the Future of Defence Indo-Pac ex-China UCITS ETF, picks three defence stocks where he'd put his money
-
Profit from a return to the office with WorkspaceWorkspace is an unloved play on the real estate investment trust sector as demand for flexible office space rises
-
An “existential crisis” for investment trusts? We’ve heard it all before in the 70sOpinion Those fearing for the future of investment trusts should remember what happened 50 years ago, says Max King
