Jardin at Bukit Timah - Singapore - District 21

Jardin at Bukit Timah - Singapore - District 21

Location : Jalan Anak Bukit / Dunearn Road
• Former Yeo Hiap Seng Site;
• Infront of Garden Vista-A 99yrs
• Within 1km from Methodist Girl’s School & Pei Hwa Presby Pri Sch
• Cold Storage (King Albert Park) & NTUC (Bukit Timah Plaza) just across the street
• Proposed Future Bukit Timah MRT Station @ King Albert Park
Developer : Far East Organization

Land Area : 78,000-81000 sqft Tenure : FreeHold
Carpark Lots : 145
Car park are located at Basement 1 and Basement 2

Number of units : 140 units (Single Level/Loft units) in a 10 Storeys building with roof terrace facilities @ 11th Flr

With Front Overlooking Gardenvista Pool

• 90 LOFT units of Sky Houses with Pte Lift & Communal Garden at the back
-1Bedroom - 893–963 (5 units)
-2Bedroom - 1,008–1,157 (5 units)
-2+1Bedroom - 1,098–1,270 (20 units)
-3+1Bedroom - 1,646–1,741 (30 units)
-4+1Bedroom - 1,736–1,898 (30 units)
For the Sky Houses, each floor will have their own unique themes of Garden

• 50 tower cluster units (Single Level)
-2Bedroom - 978-1,113 (10 units)
-2+1Bedroom - 1,112-1,283 (30 units)
-3Bedroom - 1,234-1327 (10 units)

Facing : NE Facing

Maintenance : $280-300+/-

Facilities (Roof Terrace)

-24 Hours Security
-Swimming Pool
-Aqua Gym
-Pavilion
-BBQ pits
-Elemental Spa
-Carparks
-BBQ Area
-Alfresco Lounge
Real Estate Properties of Singapore buy , sell, rent, invest,

MINDY YONG

( +65 ) 91002985

mindy@mindyyong.com ( email me )

http://www.hotvictory.com

Singapore URA sets aside more land for offices

Singapore URA sets aside more land for offices
(SINGAPORE) Singapore will provide more land for offices as part of a strategy to strengthen its position as an Asian financial centre, the government’s real estate planning agency said yesterday.
‘The new growth area set aside for the seamless extension of the existing financial district … will be more than twice the size of London’s Canary Wharf,’ the city-state’s Urban Redevelopment Authority (URA) said in a statement.

‘Over a span of more than 15 years, the development of the 85-hectare site identified for extension of the existing financial district will see the addition of around 2.82 million square metres of office space,’ it added.

Demand for office space in Singapore has grown strongly in the past three years, spurred by the growth in financial services, in particular private banking.

According to URA data, office rents soared 56 per cent last year as demand for office space rose by an average of 260,000 square metres per annum over the last three years - a 60 per cent increase from the historical average of 160,000 square metres a year.

Foreign direct investment in Singapore’s real estate was S$14.4 billion in 2007, compared to S$6.7 billion in 2006, the agency said.
 
Singapore is currently developing the Marina Bay Financial Centre on reclaimed land south of the existing central business district. It has also offered sites to the east and west of the business district.

The city-state, with a population of 4.6 million, has expanded its land area by more than 10 per cent since independence in 1965 through reclamation from the sea.

Developers involved in the Marina Bay project include Hong Kong developers Cheung Kong and Hongkong Land, as well as Singapore-based Keppel Land. — Reuters
Source : Business Times - 11 March 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

All eyes on Singapore govt land tenders this month

All eyes on Singapore govt land tenders this month

$500m site above Serangoon MRT, 3 suburban housing plots on offer
By KALPANA RASHIWALA
AMID the current quiet market, all eyes will be on four 99-year leasehold suburban Government Land Sale site tenders that close this month.
 
 
They comprise three private residential sites including one for landed housing, and a ‘white’ site above the Serangoon Circle Line MRT station that could potentially be worth more than $500 million.

The action kicks off today, with the closing of a tender for a landed housing parcel in Westwood Avenue, Jurong West, big enough for about 50-60 landed homes.

Cushman & Wakefield managing director Donald Han reckons the 151,759 sq ft plot could fetch about $200-250 psf of land area. The plot is next to the landed housing area at Westville.

Those looking for clues on how developers read the suburban mass-market residential sector will have to train their eyes on tender closings for two plots this month, both boasting scenic locations.

One is at West Coast Crescent next to Blue Horizon condo and faces West Coast Park and overlooks the sea. The other is in Yishun, fronting Lower Seletar Reservoir and close to Singapore Orchid Country Club/Golf Course. It is also near Khatib MRT station.

Property consultants polled by BT in January, when the tenders for the two sites were launched, indicated bids of about $200-300 psf per plot ratio (ppr) for the Yishun plot.

Mr Han reckons the winning bid will be closer to $300 psf ppr, reflecting a breakeven cost of about $550-600 psf and a possible average selling price of $700-800 psf for the new condo.

As for the West Coast plot, consultants earlier indicated a wide range of bids - $260-400 psf ppr.

Mr Han estimates the plot’s value at the higher end of that range, around $380-400 psf ppr as ‘it is near parks, recreational facilities and the sea’, translating to selling prices of about $850-950 psf for a new condo on the site, on a project-average basis.

He expects the Yishun and West Coast condo sites to attract at least five bids each, while the landed housing plot at Westwood Avenue could draw more bids, about five to eight.

‘Developers may be willing to look at smaller profit margins because these are sure-sell markets, given pent-up demand in the mass market. However, buyers are still price-sensitive,’ he said.

While some analysts and consultants still feel the mass-market will be relatively resilient this year, City Developments executive chairman Kwek Leng Beng recently offered a different perspective.

‘The mass market will do well, but selectively. It’s not going to be what you’ve seen before. . . people queuing up,’ he said, noting that the Housing & Development Board provides a credible alternative to mass- market private housing.

The Serangoon Central site was quietly launched in December by the Land Transport Authority.

The 269,180 sq ft plot can be developed into an estimated maximum potential gross floor area (GFA) of about 850,000 sq ft excluding a bus interchange that the successful bidder will have to build. The developer will be reimbursed the cost of building the interchange.

The site can be developed into any combination of commercial, hotel, residential, and sports and recreational use.

Cushman’s Mr Han said that assuming 30-40 per cent of the GFA is for retail use and the rest for residential, the plot could be worth about $400-450 psf ppr, or a total of around $340-380 million.

‘So the breakeven cost would be about $700 psf for the residential component and the developer might be able to achieve selling prices of say $900-1,000 psf on average. The retail component will break even at about $1,200-1,400 psf,’ he reckons.

However, other property insiders say that assuming an all-retail development, which would be the ‘highest and best use’ of the site, land bids could come in closer to the $600-700 psf ppr mark (about $500 million to $600 million in total).

‘Suburban malls are generally valued at about $1,800-2,000 psf of net lettable area currently,’ one player pointed out.

However, another major player countered that sentiment today is subdued, and said the challenge of securing bank finance for such a big project with a likely total investment of about $1 billion or more will put a dampener on bullish bidding for this site.

The action and market watching continues next month, with at least two interesting offerings at state land tenders - a private condo site at Toa Payoh Lorong2/3, and a 1.56-hectare site in Choa Chu Kang for residential development that comes with the existing Ten Mile Junction mall.
Source : Business Times - 10 March 2008

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Mindy Yong

(+65)91002985

mindy@mindyyong.com

Singapore cannot afford foreign policy complacency

Singapore cannot afford foreign policy complacency
Diplomacy has not lost its relevance: President Nathan
By LEE U-WEN
EVEN as Singapore’s foreign policy has served the country well and withstood numerous tests since Independence, it would be ‘a serious mistake’ to allow complacency to set in.
 
The challenges: President Nathan sees four trends that would drive international relations in the coming years
This was President SR Nathan’s assessment, as he addressed over 600 people - including senior Cabinet ministers and diplomats - at the inaugural S Rajaratnam Lecture yesterday.

The annual series, organised by the Ministry of Foreign Affairs (MFA), is named after the Republic’s first and longest-serving foreign minister, who spent 29 years in public office before passing away in February 2006, at almost 91.

In a 50-minute speech, Mr Nathan (who himself worked closely with Mr Rajaratnam in the 1960s) described how MFA - where he served three stints - had ‘come a long way’ since its humble beginnings 43 years ago. ‘We had independence thrust upon us, building from scratch and surviving on improvisations,’ he said, noting how many of Singapore’s founding fathers - himself included - had little or no training in diplomacy, being forced to learn on the job instead.

‘It would be a serious mistake to believe that we have already ‘arrived’ - or, indeed, ever can ‘arrive’. This is a journey with no end, a constant process of adaptation and striving for new capabilities to deal with new challenges,’ said the president.

He noted how analysts have argued that diplomacy ‘has lost its relevance’ today, where leaders of countries meet frequently and deal directly with the business of foreign policy.

‘Diplomacy is indeed being conducted in new ways and it must balance new, complex and diverse interests. But it is an extravagant claim that diplomacy has lost its relevance. We must continue to adapt the practice of diplomacy and find new ways to create value,’ Mr Nathan said.

He urged all foreign service officers to be mindful of the fact that ‘diplomacy is not just about being nice’.

‘Diplomatic niceties are means to an end. Often, other countries will attempt to cajole us through appeals and urge us to take into account special relationships and historical links.

‘Many will couch their efforts to advance their national agendas in high- sounding principles and moralistic terms. We should not be beguiled,’ warned President Nathan.

In today’s increasingly complex and evolving world, he listed four trends that he believed would drive international relations in coming years.

Besides the first three - globalisation, the strategic framework in Asia, and terrorism - Mr Nathan also highlighted non-traditional security challenges such as climate change and competition for scarce resources like energy and water.

After his speech, Mr Nathan launched the new MFA Diplomatic Academy, a training body for diplomats and senior civil servants to learn about international relations. Set up in early 2007, about 120 officers go through training in different courses each year.
Source : Business Times - 10 March 2008

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Mindy Yong

(+65)91002985

mindy@mindyyong.com

More bosses see new hires in Q2 - Singapore

More bosses see new hires in Q2 - Singapore

Latest Manpower survey shows strongest reading, 60%, since debut in Q303
By OH BOON PING

A BIGGER proportion of employers in Singapore expect to make fresh hires in the next quarter, according to a survey by employment services firm Manpower. In the company’s latest Manpower Employment Outlook Survey - which interviewed over 55,000 employers worldwide, 650 of which were in Singapore - 65 per cent of respondents here said that they expect to take on more people in the second quarter.
By comparison, 45 per cent of respondents in the previous survey expected to hire in the first quarter, and 51 per cent in the fourth quarter of last year. For 2008, just 3 per cent of respondents expect a fall in staffing levels and 28 per cent report no change in their hiring intentions.

The seasonally adjusted net employment outlook - measured as the difference between the proportion of employers that anticipate total employment to rise and the proportion expecting a fall - came to 60 per cent, a 14 percentage point rise over the previous quarter, and a nine percentage point year-on-year increase.

This is the strongest reading since the survey started in Q3 of 2003.

In the Asia-Pacific, Singapore had the highest seasonally adjusted net employment outlook, followed by India at 36 per cent; Hong Kong, 30 per cent; and Australia, 28 per cent.

‘With increasing demand for qualified talent, Manpower Singapore is expecting the influx of foreign talent to become even more evident . . . We are seeing more qualified job seekers from Vietnam, Indonesia and other nearby countries who are venturing into cross-border jobs,’ said Rosa Goh, country manager of Manpower Singapore.
 
At a sectoral level, employers in the public administration and education segment are the most optimistic with a reading of 81 per cent, while the weakest figure came from employers in the manufacturing sector at 46 per cent.

Quarter-on-quarter, employers in the manufacturing sector report the weakest improvement - up two percentage points - while their counterparts from the transportation and utilities and wholesale and retail trade sectors report the strongest improvements - both up a considerable 31 percentage points.

On an annual basis, weaker hiring activity is seen in the manufacturing sector - down two percentage points. In contrast, employers in the transportation and utilities sector report the strongest improvement in hiring activity - up 35 percentage points.

Year-on-year, increases in outlook are seen across six of the seven industry sectors, the report said.
Source : Business Times - 10 March 2008

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Mindy Yong

(+65)91002985

mindy@mindyyong.com

Property investors set sights on market trough in US, Europe - HONG KONG

Property investors set sights on market trough in US, Europe  - HONG KONG
HEADING WEST: Property prices in Hong Kong (above) are still on the up, though private equity firms are now more likely to buy buildings on the cheap in the West. — PHOTO: BLOOMBERG NEWS
 
HONG KONG - OPPORTUNISTIC investors are pulling back from Asian property because they see more scope for picking up distressed assets in the United States and Europe.
Hedge funds have stopped dabbling in property in the region, fund managers say.

Although private equity firms will continue to develop property in India and China, they are more likely to buy buildings on the cheap in the West than in Asia.

In the wake of the economic crisis from 1997- 1998, Asia, in particular Japan and South Korea, drew a raft of investment from funds run by the likes of Morgan Stanley, General Electric and private equity firms such as the Carlyle Group.

Many have made fat profits on a revival by Asian property markets, which are now mostly strong.

Researchers at Jones Lang LaSalle forecast Tokyo office prices will steady this year after a 28 per cent jump last year, while Seoul, Hong Kong, Singapore and Shanghai are still on the up.

Better opportunities, however, now lie elsewhere for investors who think they can spot a market trough.

Because of tight credit and a worsening economy, US commercial real estate values could fall by 20 per cent in the next five years from their peak last year.

London office values have dropped 12 per cent from a peak in the middle of last year, and they will be pressured further by forecasts of a 10 per cent decline in rental values through next year.

‘I think a lot of investors will return to home markets,’ said Mr Bart Coenraads, head of real estate at Fortis Investments.

‘Some will try to buy distressed core and refinance it. They could make good returns.’

Last year, total direct investment in the Asia-Pacific region jumped 27 per cent to US$121 billion (S$167.8 billion) - a sixth of the global total - with about half invested in Japan, which has been popular for its rock-bottom interest rates.

However, Japanese banks are getting cold feet on property, only giving loans worth 60 per cent to 70 per cent of a building’s value, compared to 80 per cent to 90 per cent years earlier.

But having spent years setting up teams, private equity funds are unlikely to withdraw completely from Asia.

‘Funds have been raised and platforms are set up, and they don’t want to unwind them overnight,’ said Mr Tim Bellman, global head of strategy for ING Real Estate.

‘But at the margin, opportunistic investors who looked at Asia are finding those opportunities back home.’

REUTERS
 
Source : Straits Times - 10 March 2008

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Mindy Yong

(+65)91002985

mindy@mindyyong.com

Singapore URA to market Ophir-Rochor site at global property fair

Singapore URA to market Ophir-Rochor site at global property fair 

By Jessica Cheam 
SINGAPORE’S urban planner is going international to market the Ophir-Rochor district - touted as the nation’s next development hot spot.
The Urban Redevelopment Authority (URA) said yesterday that it will market a major site in this ‘new growth area’ at a renowned annual global property event in Cannes, from today till Friday. The 2.74ha site for office, hotel and other uses could fetch up to $1.4 billion, a property analyst estimates.

A URA-led team of local agencies and companies such as the Housing Board, Singapore Tourism Board and property developer City Developments (CDL) will exhibit and showcase property investment opportunities at the fair - the Marche International des Professionnels de L’Immobilier.

The Government last year unveiled plans to rejuvenate the hotchpotch Ophir-Rochor area with its mix of commercial buildings and old shophouses.

This is part of a masterplan to double the size of Singapore’s financial district to that of Hong Kong at about 2.82 million sq m of office space, National Development Minister Mah Bow Tan said in Parliament last month.

The Ophir-Rochor corridor will complement the financial district at Marina Bay and Raffles Place, surrounded by a vibrant arts and entertainment scene, said the URA.

The site, between Rochor and Ophir roads and surrounding Parkview Square, will go on sale in June, and is expected to yield 495 hotel rooms and 139,740 sq m of commercial space.

The URA said the site will have a minimum requirement for office and hotel use, and is the second to be released in the district.

Last September, a CDL-led consortium that included Middle East investors won the tender for a 3.5ha site at $1.689 billion to build an eco-friendly mixed-use project - South Beach - designed by world- renowned British architect Norman Foster and his partners.

Property analysts say the upcoming site is likely to garner international interest.

Savills Singapore’s director, Mr Ku Swee Yong, said the site is the ‘best piece this year’ - likely to get at least five bids. He estimates the land cost, based on certain assumptions, to be up to $1.4 billion, or $700 to $800 per sq ft per plot ratio.

Chesterton International head of research and consultancy Colin Tan said the property fair will keep Singapore’s property scene on the global radar, but he expressed concerns about big projects adding to the current strain on resources.

The URA has been participating in the French fair since 2002. It is one of the world’s largest real estate exhibitions, attracting about 26,000 delegates from 74 countries each year.
Source : Straits Times - 10 March 2008

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Mindy Yong

(+65)91002985

mindy@mindyyong.com

Economists cut growth forecast for full year to 5.6% - Singapore

Economists cut growth forecast for full year to 5.6%  - Singapore

They expect US recession woes to hit the Republic, according to survey

By Nicholas Fang 
BETTER OUTLOOK: The financial services sector is now forecast to grow 9.5 per cent this year, an improvement from 9 per cent earlier.
 
ECONOMISTS are already counting the costs of the worse- ning United States economic downturn for Asian economies - Singapore, in particular.
Investment bank Goldman Sachs has projected that a 1 percentage point decline in US consumption could hit Singapore economic growth by close to 0.6 of a percentage point.

And a survey by the Singapore central bank has shown that economists and analysts have lowered their expectations for local economic growth this year to 5.6 per cent, from 6.3 per cent in December.

Goldman Sachs’ managing director and chief economist for Asia, excluding Japan, Mr Michael Buchanan, said economic modelling showed a direct correlation between US consumption patterns and economic growth in the region.

Goldman’s US research team has forecast a mild recession, with US gross domestic product (GDP) expected to fall by an annualised 1 percentage point in the second and third quarters and for consumption to shrink.

‘We forecast Asia’s GDP growth to slow to 8.3 per cent from 9.5 per cent last year. In 2009, we look for growth to slow a touch further to 8.2 per cent,’ Mr Buchanan said at a press conference yesterday.

However, he felt that the tipping point at which the US slowdown would have a more significant impact on Asia is currently just a downside risk to Goldman’s lower forecasts and not a reason to ratchet down its expectations even further.

But a survey of 25 economists and analysts by the Monetary Authority of Singapore (MAS) showed that they have already downgraded their expectations for the Republic’s economic growth this year.

An earlier survey in December reflected expected GDP growth of 6.3 per cent this year. This was lowered to 5.6 per cent in the MAS’ Survey of Professional Forecasters released yesterday.

The survey showed that financial services, construction, and hotels and restaurants are expected to perform better than originally thought, with forecasts all revised upwards in the latest poll.

In particular, the construction sector is expected to grow 15.9 per cent, instead of 13.5 per cent as reflected in the December survey. But manufacturing, wholesale and retail trade and non-oil domestic exports saw lowered growth forecasts.

Based on mean probability distribution, the most likely outcome for the Singapore economy is growth of between 5 and 5.9 per cent, said the MAS. This is at the higher end of the Government’s forecast range of between 4 and 6 per cent growth made earlier this year.

The forecast for the consumer price index inflation indicator also rose to 5 per cent from 3.7 per cent, while the year-end unemployment rate is expected to fall marginally to 2 per cent from 2.1 per cent.

Economists The Straits Times spoke to said the results of the latest survey contained no surprises.

OCBC economist Selena Ling said the downward revisions took into account growing concerns over the risk of a US recession in the past few months. ‘But this is largely in line with forecasts made earlier this year,’ she said.

United Overseas Bank economist Ho Woei Chen agreed, saying that the market had largely lowered its expectations already. ‘But we have to bear in mind that 5.6 per cent growth is not bad, given the uncertainties in the world now’.

Merrill Lynch chief Asian economist Timothy Bond has said that there are few signs of a credit crunch in Asia despite troubled global credit markets.

In a weekly note, he wrote that a global credit contraction would affect US and European demand. This would, in turn, slow Asian exports.

However, he does not believe that domestic bank credit markets in the region are prone to contagion as the US credit cycle turns down.

‘The market for domestic bank credit…is denominated in local currencies. Both volume and price are responsive to trends in domestic monetary policy, and bank credit is the most important source of funds for Asian consumers and firms.

‘As domestic borrowing costs fall in real terms, this supports our view that Asia stands at a very different point in its investment and credit cycle compared to the US,’ he said.
 
Source : Straits Times - 10 March 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

MPs seek steps to prevent ‘magic dollars’ Singapore HDB flat scam

MPs seek steps to prevent ‘magic dollars’ Singapore HDB flat scam 

Greater flexibility in HDB loan rules for downgraders may help, say some

By Jessica Cheam 
 
THE emergence of a new scam by HDB flat sellers has prompted calls by some MPs for a review of loan rules for flat downgrading.
Housing agents say sellers who resort to the so-called ‘magic dollars’ scam often face financial difficulties and may be having a hard time in downgrading to cheaper flats.

Some MPs noted that greater flexibility in downgrading rules could help these people.

Property agents have recently seen an increase in deals where the seller and buyer collude to under-declare the sale price to the Housing Board.

The buyer pays the difference between this and the real price to the seller in cash, often in return for a discount.

These sellers are likely to have bought their homes at the previous market peak, leaving the flat in negative equity, where the mortgage is more than the property’s value.
This means that any sales proceeds will go towards repaying the seller’s loan and the money taken from the Central Provident Fund (CPF).

This would leave him with no cash in hand.

The scam provides vital extra cash - indirectly from the seller’s CPF monies - in a buoyant HDB market with high resale prices.

Some families struggle to fork out the cash-over-valuation amount for a new flat.

Several MPs told The Straits Times that help could be given to such sellers so they do not flout the law.

Those caught in the scam could face jail and/or fines.

One agent said he has spoken to sellers seeking such deals. They are desperate for cash and stuck with a large flat they can no longer afford.

C&H Realty’s managing director Albert Lu added that sellers are unlikely to put themselves at risk of a jail term unless they have a strong motivation to do so, such as a need to avoid financial trouble.

A recent HDB market recovery - with prices up 17.5 per cent last year - has prompted sellers to offload properties.

But many who wish to downgrade are unable to get HDB loans which are less risky and have lower interest rates than bank loans. HDB does not give loans for downgrading.

Some MPs raised the issue in Parliament two weeks ago.

Mr Teo Ser Luck (Pasir-Ris Punggol GRC) said some families do not qualify for bank loans and are not eligible for rental flats.

‘If these families genuinely need help, could we then consider making the policy for downgrading more flexible?’ he asked.

Mr Charles Chong (Pasir Ris-Punggol GRC), chairman of the Government Parliamentary Committee for National Development, also supported a policy review.

Mr Masagos Zulkifli (Tampines GRC), however, said he felt the Government should not bail out those who had made mistakes. ‘That’s not the right thing to do,’ he said.

Ms Indranee Rajah (Tanjong Pagar GRC) said there is a need to distinguish between those who resort to the scam for extra cash and those driven to it by real need.

Ms Irene Ng (Tampines GRC) said one possible solution is to allow downgraders to take out HDB loans, especially if they have previously had only one housing subsidy.

The current policy is a ‘disincentive’ for families to downgrade, she said.

National Development Minister Mah Bow Tan had explained in Parliament that the HDB does not offer concessionary loans to downgraders as most would have benefited from selling their flats.

Mr Mah added, however, that ‘those who downgrade because of genuine financial difficulties do get special consideration from HDB. For such cases…HDB will continue to be flexible’.

Mr Teo said many families who approach him are in a dilemma. ‘Perhaps it’s desperation that makes them resort to such scams,’ he said.

‘The question is: Is it the strictness of our policy that has caused them to do that?’

Still, he noted that current policies are made for the majority’s benefit and ‘we have to work out the genuine cases and not let the exception become the rule’.

 How the scam works
THE seller gets the buyer to agree to declare to the Housing Board that the flat was sold for a much lower price.

The buyer then pays the seller the difference between the actual price and the declared price in cash.

The seller gives the buyer a discount on the market value of the flat.
Source : Straits Times - 10 March 2008

Singapore Property - Buy , Sell , Rent , Invest

Mindy Yong

(+65)91002985

mindy@mindyyong.com

S’pore’s size shaped its foreign policy, says Singapore Nathan

S’pore’s size shaped its foreign policy, says Singapore Nathan 

Republic transcended its size and limits with a pragmatic approach that sees the world as it is

By Lee Siew Hua, Senior Political Correspondent 
 
AS A small state, Singapore cannot ignore the dangers to its sovereignty and must view the world clearly, even clinically, President S R Nathan said.
‘It is critical to have a clear and clinical assessment of the world, seeing the world as it is and not as we hope or think it ought to be,’ he said at the launch of the Ministry of Foreign Affairs’ (MFA) Diplomatic Academy yesterday.

His speech focused often on the way Singapore’s size and vulnerability had shaped its foreign policy: for instance, in its distinct pragmatism and search for international space.

Pragmatism had allowed the 640 sq km island to transcend its size and limits, he noted. ‘We knew very well that we had very little influence over our external environment, immediate and beyond,’ he said.

‘We dealt with the business of foreign relations without sentiment, ideology or illusion.’

In parallel, Singapore chose ‘to wrap ourselves in something larger’, be it in Asean, the United Nations or under international legal regimes.

He was speaking before 600 foreign service officers, diplomats and guests at the inaugural S. Rajaratnam Lecture, named after Singapore’s first foreign minister, who laid the foundations of the nation’s foreign diplomacy.

Mr Nathan said: ‘We cannot ignore the dangers we face to our sovereignty and territorial integrity. History is littered with examples of small states which have succumbed after brief lifetimes.’

Singapore’s size determined policy from the start. ‘As a newly independent small country located in a then-politically volatile region, our foreign policy, made on the run, was directed at coping with this vulnerability.’

He was candid in describing how policy had been made on the run by an untrained foreign service, resulting in ‘mistakes and improvisations’.

He had joined the foreign service in 1965 as a ‘young and illprepared civil servant’, the year Mr Rajaratnam set up the MFA in Singapore’s turbulent post-independence days.

Mr Nathan had three spells at the ministry. His roles included the positions of permanent secretary, high commissioner to Malaysia and ambassador to the United States.

He recalled that the late South-east Asia expert Michael Leifer had labelled the ministry ‘a collection of information gatherers and messenger boys’.

He said: ‘This was not inaccurate.’

Mr Nathan shared an account of a protocol gaffe committed when a former North Korean vice-president arrived on a visit. Singapore gave the official a gun salute and all the frills of a state visit. Years later, he learnt that there were 30 to 40 vice-presidents in Pyongyang.

Singapore survived its days of ‘flying blind’ and transcended its size as its founding envoys gave the Foreign Ministry a robust start, Mr Nathan indicated.

He saluted four of them, saying that the late Mr Lien Ying Chow’s ‘close friendship’ with Malaysia’s late Tunku Abdul Rahman cooled political temperatures.

The late Mr Chi Owyang enjoyed ‘legendary’ access to the Palace in Thailand. He also named the late Mr P.S. Raman and Professor Maurice Baker.

He highlighted the policy influence of Minister Mentor Lee Kuan Yew. Then prime minister, Mr Lee had personal relations with the British leaders, knew Afro-Asian freedom fighters and was friendly with Asian luminaries such as Sukarno and Jawaharlal Nehru.

Mr Nathan pinpointed four current trends: terrorism, globalisation, non-traditional security challenges such as climate change, and Asia’s changing strategic framework.

Terrorism, he said, was far more complex than the struggle against communism. ‘Terrorism must be fought with both ideas and armies,’ he said.
 
Source : Straits Times - 10 March 2008

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Mindy Yong

(+65)91002985

mindy@mindyyong.com