Singapore PM Lee says international co-operation needed to counter non-traditional threats

Singapore PM Lee says international co-operation needed to counter non-traditional threats

By S. Ramesh,

 
PM Lee says international co-operation needed to counter non-traditional threats

SINGAPORE: Prime Minister Lee Hsien Loong has identified food shortages and natural disasters as non-traditional security threats. In his speech, he said that these can be tackled only if the international community works together.

Mr Lee was speaking at the annual Asia Security Summit, which is also known as the Shangri-La Dialogue, on Friday. The event was also attended by Minister Mentor Lee Kuan Yew.

The Shangri-La Dialogue brings together defence ministers, top military personnel and security analysts from around the globe.

Highlighting food security as an immediate concern, PM Lee said the recent sharp rise in food prices, particularly rice, has led to unrests in several developing countries.

And to avert a serious problem, PM Lee said that a multilateral co-operative effort is needed.

He said: “International agencies like the World Bank and the UN Food and Agriculture Organisation need to promote R&D in agro-technologies, to develop higher-yielding and climate-resistant crop varieties, using the full power of modern bioscience, including genetic modification techniques.”

Another area that needs international co-operation is providing humanitarian aid and disaster relief. This was a point brought out in relation to Myanmar’s Cyclone Nargis and China’s Sichuan earthquake.

PM Lee continued: “This is a China the world has never seen before - a sympathetic view of a country in transition, confronting enormous problems, but also mustering huge energies and unexpected capabilities, as well as displaying a shared humanity.

“The Sichuan earthquake showed how much China has changed and offered a glimpse of its future: a more open and self-confident nation. The political aftershocks from this defining moment in China’s history will be felt long after the ground has ceased to tremble.”

Over in Myanmar, PM Lee said that the government’s response following Cyclone Nargis is regrettable. Till today, the government continues to decline offers by many countries to deploy military equipment and personnel for relief operations.

PM Lee said: “From the humanitarian standpoint, every day lost means more avoidable casualties, more unconscionable human suffering. The frustration of the international community at Myanmar’s refusal to let them act faster and do more is completely understandable.

“But from the perspective of Myanmar’s domestic politics, the actions of the government should come as no surprise. Myanmar’s partners in ASEAN have all been deeply concerned by the massive suffering of the victims, which a more rapid international relief operation could have minimised.”

Prime Minister Lee added that in addressing these global challenges, America’s leadership continues to be indispensable. But a major question is who the next American president will be.

Mr Lee said Asia is following the campaign trail closely. He added that Singapore has no votes but has its wish list. And that includes, having the new US president actively cultivate America’s interests in the Asia Pacific, especially in Southeast Asia. - CNA/vm

 
Source : Channel NewsAsia - 31 May 2008

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No one centre of power will dominate world: Singapore PM

No one centre of power will dominate world: Singapore PM

Asia shifting power balance, but growth of continent is not a zero-sum game
By LEE U-WEN
(SINGAPORE) Powerful as China and India may be today and in the years to come, Prime Minister Lee Hsien Loong believes that the future of the world belongs to neither of them alone.

Addressing global issues: Mr Lee at the opening of the annual Shangri-La Dialogue last night, the largest defence and security dialogue among Asian nations 
Instead, he drove home the point that the world is a big place, and Asia could not be regarded as ‘all of it’, although it is an important part nonetheless.

The best outcome for countries in Asia is to not take sides with either China or India, but rather to also work with the US and Europe as well so that everyone, including smaller countries like Singapore, could prosper in the long run, he said.

Mr Lee was speaking at a question-and-answer session at the annual Shangri-La Dialogue last night, which is the largest defence and security dialogue among Asian nations.

‘The US will play an important role. It is a powerful economy and will continue to be so for decades to come. Europe ought to play an important role, the potential is there, but it depends on how the European enterprise fares in becoming more coherent and in developing a strategic view of its position in the international system,’ he told his audience of nearly 300 delegates from 27 countries.

Earlier in his speech, Mr Lee said that even as the emergence of Asia is shifting the balance of power in the world, the continent’s growth is not a zero-sum game.

Even as the mood among developing countries towards Asia is a defensive one, Asia’s growth over the next 25 years will contribute to ‘a doubling of the world economy’, and open up many opportunities around the world.

‘It’s in the vital interest of the developed world to accommodate a rising Asia, and engage the region constructively. For their part, as Asian countries become more interlinked with the world, they will have bigger stakes in the international system and greater responsibilities in global affairs,’ said Mr Lee.

While calling for the emerging powers in Asia to have ‘greater stakes’ in the existing international order, he said that international cooperation would be key to tackling non-traditional, ‘trans-border’ security threats such as food shortages or natural disasters. Globalisation, however, has its downsides too, especially in developed nations where income inequality is worsening, said the Prime Minister.

‘Even those not personally affected feel uneasy that closer inter-dependence may mean becoming vulnerable to foreign powers that may not be benign, hence the angst and debate about sovereign wealth funds. All this is fuelling deep discontentment with globalisation, and provoking nationalistic and protectionist sentiments around the world,’ he said.

Mr Lee also spoke of how the US would continue to play a crucial role in engaging a rising Asia and integrating it into the global system. This is why the election of the next US President - to be elected this November - has taken on greater prominence, he said. ‘We in Asia are following the campaign closely because the critical issues of war and peace, and of prosperity and scarcity, all hinge on its outcome,’ he said.

While Singapore does not have any votes, Mr Lee shared his ‘wish list’ for the US president, including the hope that he or she would pursue constructive relations with China and other major powers, continue to fight terrorism and take a long-term approach towards Iraq and Afghanistan.

During the question-and-answer segment, a delegate asked Mr Lee about the issues around the world that kept him awake at night.

‘Something could go bump elsewhere in the world, such as in the Middle East. That can certainly affect us . . . Something could go bump within the Asian region, such as in North Korea.’

He also did not rule out problems related to terrorism or globalisation. On the latter, Mr Lee said: ‘If attitudes towards globalisation change, if America becomes inward-looking and protectionist, if Europeans decide they don’t have a stake in rising Asia. Therefore, instead of rising economies integrating peacefully into the Asian system, they force their way in. That’s big trouble.’

The Prime Minister also devoted a significant portion of his address to another global issue - rising food prices and shortages.

‘Over the next year, food prices may moderate with better harvests. In the longer term, the trends towards tighter supplies and higher prices will likely reassert themselves. This has serious security implications,’ he said, warning of how the impact of a chronic food shortage would be most keenly felt by poor countries.

‘The stresses from hunger and famine could result in social upheaval and civil strife, exacerbating conditions that lead to failed states. Between countries, competition for food supplies and displacement of people across borders could deepen tensions, and provoke conflict and wars,’ said Mr Lee.

He called for a multi-lateral cooperative effort where individual countries do their part to boost productivity and infrastructure in their farm sectors.

The three-day dialogue continues until Sunday, with US Secretary of Defence Robert Gates scheduled to make a speech this morning on challenges to stability in the Asia-Pacific region.

Source : Straits Time - 31 May 2008

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Property analysts say muted property market situation is temporary

Property analysts say muted property market situation is temporary
By Ng Baoying,
 
SINGAPORE: Investors have been cautious about the property sector amid expectations that the muted residential property market will weaken further. However, some property consultants are taking a slightly more positive stance, saying that this situation is temporary.

Transaction volumes for private homes have been thin, with developers holding back launches or cutting prices. And recently, there have been a slew of bearish reports from the likes of JP Morgan and Nomura, which are further dampening sentiment.

They said that private home prices could drop by as much as 35 per cent in the upper-end segments of the private residential property market by 2010 due to excess supply and poor sentiment.

They argue that marginal speculative sellers are likely to drive prices lower amid low transaction volumes and higher unsold pre-sale inventories.

Lower rental expectations and a large increase in supply are also seen compounding the situation in the longer term. Some also said the middle and low-end segments will not be spared.

But there are some property consultants who said that while things are slow now, dynamics will change going forward.

While the consensus view is that prices will continue to remain under pressure for the rest of the year and into 2009, some consultants said that the main reasons for falling prices are external.

Chua Chor Hoon, Senior Director, Research, DTZ Debenham Tie Leung, said: “It’s mainly the external factor, because of what’s happening in US, so sentiments are really weak now.

“(It’s also) partly because prices have gone up quite a lot last year - especially after the deferred payment scheme has been removed that made buyers more cautious. It’s a combination of factors, but I believe it’s the US economy that has a greater impact.”

She believes that prices will continue falling for the rest of this year and even into the year ahead, but a glimmer of hope exists.

Ms Chua said: “Prices are likely to fall for the rest of this year and they could continue to fall next year depending on how the US economy pans out.

“But we have a lot of good things coming up in 2010 - Youth Olympics, integrated resorts. So our fundamentals are quite strong. When the US economy picks up, I believe sentiments will follow suit.”

And some point out that the bearish reports are due to an over-estimation of supply numbers.

Ku Swee Yong, Director, Marketing & Business Development, Savills (Singapore), said: “The differences arose because of variance in the interpretation of a very basic set of data - the supply numbers - how many apartments will be completed in the next three years.

“We believe that the supply numbers have been overstated because there have been many projects filed and we know that these projects have been delayed.”

What is clear though is that shares in property developers have been taking a hit amid concerns over the property outlook. Most of them closed lower on Wednesday. - CNA/vm

 
Source : Channel NewsAsia  - 30 May 2008

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Singapore Raffles Hotel won’t be sold after all

Singapore Raffles Hotel won’t be sold after all 

Consortium that inked in-principle deal declines to say why sale fell through
WHAT A PITY: ‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel.’ - SPOKESMAN FOR THE CONSORTIUM, expressing disappointment over the failure to buy Raffles Hotel (above) — ST FILE PHOTO
 
A PLAN to sell the historic Raffles Hotel again has fallen through.
The Business Times (BT) yesterday reported that a consortium led by former Credit Suisse banker Mark Pawley, which had inked an in-principle deal to buy the hotel earlier this month, was ‘very disappointed’ with the outcome.

Its spokesman confirmed that the deal was off.

‘This would have involved an assured distinct identity for Raffles Hotel as a flagship for Singapore in the international hospitality industry and a rejuvenation of the hotel,’ the paper quoted her as saying.

Citing confidentiality clauses, she declined to give reasons why the deal soured.

But she denied that there was any issue with the source of the funding, which is believed to be a family trust linked to a European family.

If the deal had gone through, the 121-year-old historic hotel and its adjoining shopping arcade would have changed hands for the second time in three years.

The agreed price was reportedly about $650 million - more than triple the $200 million paid by its American and Middle Eastern owners in 2005.

This was seen as a reflection of the strong boost in demand for hotel space in Singapore in recent years, with the country’s fast-growing visitor arrivals.

Mr Pawley is the chief executive of Singapore-based Oxley Capital Group, a private investment house focusing on real estate and private equity.

While he was head of the Asian real estate, gaming and lodging business at Credit Suisse Investment Banking in Asia, he was involved with the $1.7 billion sale of the entire Raffles Holdings’ hotel portfolio - including Raffles Hotel in Singapore - to United States-based private equity firm Colony Capital in 2005.

Colony later merged that portfolio with Fairmont Hotels & Resorts’ assets to create Fairmont Raffles Hotels International (FRHI). Colony reportedly holds about a 40 per cent stake in FRHI, while Saudi Prince Alwaleed bin Talal’s Kingdom Hotels International owns the rest.

On May 8, FRHI announced that it had reached an in-principle agreement to sell off Raffles Hotel. But as with its past real estate transactions, any hotels sold would continue to be part of the company’s hotel collection.

FRHI’s hotel management arm, Raffles Hotels & Resorts, also secured a long-term management contract to manage the hotel, reportedly for 40 years.

Market watchers told BT that most existing hotel groups would think twice about buying a hotel with a long-term management contract from the seller. They speculated that this clause might have scuppered the deal.

Source : Straits Time - 31 May 2008

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