Singapore
In a global village
Whether Singaporeans live well or not depends more on foreign than local events; that's why they have the world's most-travelled leaders. By Seah Chiang Nee
Jan 27, 1995

A small nation so dependent on what happens abroad, Singapore has always demanded something of its leaders: They've got to be die-hard travellers.

I know because I used to travel with them. Prime minister, cabinet delegations, etc. What are the reasons for it? Take your pick.

1) To forge personal friendship that comes in handy when there's trouble when they can just pick up the phone.

2) To promote trade and investment. Before foreign MNCs plunk in their billions into a country they want to hear from the horses' mouths, how safe their money is.

3) And to pick good lessons to follow or identify bad ones to avoid from economic trends to education systems; no need to re-invent the wheel.

4) As a small nation, Singapore has a greater need than other countries to make more friends and forge strategic alliances than others.

But in recent years, there's a new one - the Republic's move regional. As it's economy sprouts a new pair of wings, PM Goh, too, finds himself flying more often.

How much so is becoming more evident these days.

Two days after January 1, Mr Goh Chok Tong, already one of the world's most travelled prime ministers, was once again packing his bags for another trip - for India.

Hardly three weeks on his return, Goh was off again, this time to Switzerland to deliver a speech in a global economic forum.

They look set to herald in another busy year for him. In between, DPM Lee Hsien Loong, who had just recovered from Cancer, headed for Malaysia.

This was followed by Senior Minister Lee Kuan Yew's three-day official visit to Brunei.

Last year, for instance, Goh visited 13 countries, with some trips made within days of each other. This was almost double the seven journeys he made in 1993.

During the same time, Senior Minister Lee visited 12 countries, compared to 10 in 1993.

Foreign Minister S Jayakumar accompanied Goh on seven trips and did nine more on his own. Other ministers did a total of 78 official journeys last year, up from 40 in 1993.

When he was prime minister, SM Lee had spent a lot of time developing ties with politicians and businessmen.

In America, he would rub shoulders with multi-national CEOs and Congressmen - then swing around to Europe and Japan for a similar purpose and, of course, Asia.

His successors are today carrying on the tradition - but with a great emphasis on Asia these days.

This high-level economic diplomacy is unmatched by few other countries east or west, except possibly Malaysia.

As a city state, Singapore's fortunes are often decided by event outside its borders. For this reason, Singapore's newspapers cover foreign news more than perhaps any others in the world.

Past leaders, including economic and financial czars like Mr Goh Keng Swee and the late Hon Sui Sen and former foreign minister S Rajaratnam, had also been frequent travellers.

Their trips in the past were aimed mostly at attracting foreign investors here.

As a rule, foreign executives often want to meet with the prime minister or senior minister before risking their investments in an Asian country.

"They want to gauge the calibre of the leader and hear from him assurances they needed," explained a senior investment-promotion officer.

With Goh, this need has obviously not disappeared, but it has changed.

Most of the trips made by Goh and Lee are today in Asia, among emerging countries where Singapore is seeking investment opportunities, rather than capital or skill.

The shoe is on the other foot. Since as an investor, Singaporean leaders now need to assess risks and opportunities.

These journeys have been rising in proportion to Singapore's investments abroad. In 1990, it reached S$13.6 billion rising to $28.8 billion in 1993.

It is only the beginning. About 55% goes into Asia. The government itself has about US$50 billion to invest. It intends to buy into Asia's high growth nations where prices are still at basement levels.

"Singaporeans would become like the British were before the Second World War or the Swiss today - owners of vast, high yielding assets abroad," he said.

It has a long way to catch up with Switzerland, whose net income from overseas investments totals about 2.1% of its GNP at last count. Singapore's is only 1%.

That it wants to make haste slowly is aimed at minimising risks. It would invest 2% to 3% of its reserves into Asia and increase that stake to 35% over the next 10-15 years.

"The trick", Lee said "is to guess which country has the better people and the better government for economic growth."

The emphasis is on Asia. Of Goh's 13 trips, only four were to the West, namely to Germany, Britain, France and Switzerland.

The rest are to Asian countries - India, China, Vietnam, Myanmar, Malaysia, Australia, Indonesia (twice) and New Zealand.

Singapore, being a small nation that exists largely without any ideology and whose existence depends on its trade, has relatively few foreign policy options.

They remain subservient, like 30 years ago, to its economic needs. Foreign policy here is low-profile by choice, dictated by a need to make as many friends as possible and avoid stepping on regional sensitivities.

Its record of voting in the United Nations during the past dozen years or so has been influenced by horse-trading.

It has supported nations or causes in return for support given to itself or to Asean,

The second generation in post-independence in Singapore, however, does not rank foreign affairs as a major item of interest.

Foreign affairs - No interest

In his book "The Prophetic and the Political" its first foreign minister Mr S Rajaratnam said that Singaporeans were largely parochial.

Less than 1% of Parliamentary discussions centered on foreign issues, he said.

"This sort of indifference makes for a dangerous kind of blindness about the far frp, reassuring hazards that lurk outside," he said.

The people, he exhorted, should take a greater interest on foreign issues rather than leave it to the government or the Foreign Ministry bureacrats

Others like Professor Chan Heng Chee, former Ambassador to the UN, believe it is time for Singapore to be more assertive in the world.

Singapore, she said, should not be apologetic about its success but should asset its sovereignty and right to a place in the world system.

To some, this is already taking place.

With US$100 billion in assets to invest, Foreign Minister Wong Kan Seng is luckier than Mr Rajaratnam three decades ago when projecting Singapore's foreign policies.

Singapore is, in fact, providing the economic spark for the Asia-Pacific region. This will contribute not only to its own prosperity but its security as well.
By Seah Chiang Nee