Mega projects
Keeping Singapore humming.
They explain why ministers not overly worried about being too hard hit by a global recession. By Seah Chiang Nee.
Feb 2, 2008

THE shadow of global recession lengthens, but Singaporean leaders seem much less infected by the general gloom, which is unlike their traditional sense of exaggerated worries.

In previous crises, the practice had generally been to talk up the problem as a means of gearing the people to prepare for the worst. And if it turned out to be less severe, it wouldn’t have mattered, anyway.

But this time the government appears to be doing more reassuring than hitting the pessimistic button.

In recent comments, ministers have been telling their citizens that Singapore will survive a US recession to achieve its targeted 4.5%-6% growth rate this year.

Lee Kuan Yew, Singapore’s elder statesman, even predicted that the nation was poised for “a golden age” over the next 5-10 years – in contrast to the general mood of anxiety.

Why is there such a wide gap in sentiments?

The reason could be found in the seven or eight mega projects and investments worth tens of billions of dollars that are in the pipeline, and due for completion between now and 2011.

The construction should keep things humming for years, and thereafter – with some luck – herald a new phase of growth.

This energetic spurt has earned some credits for the government at a time when it needs them most.

At no time in Singapore’s modern history has there been so many large projects being built or invested in within such a short span of time.

“Even bigger countries with a larger bureaucracy would be hard put to achieve such a feat, especially when faced with a sand ban from its neighbours,” exclaimed a blogger.

Amid the reverberations of construction work on Singapore’s two casino resorts – Sands at Marina Bay (US$3.65bil) and Genting on Sentosa (US$3.2bil), due to open in 2010 – the government last week announced another huge project.

This was a S$20bil plan to double Singapore’s MRT or mass rapid transit track length from 138km to 278km by 2020 by building two more lines, one of which will run underground.

This followed the opening of Changi Airport’s new S$1.22bil Terminal 3 and arrival of the second super-jumbo A380 (cost: US$320mil) last month.

Several major events will take place this year, including: -

* February – The launch of the world’s largest Ferris wheel in downtown Singapore, towering 42-storeys high and costing S$240mil.

* February – Sentosa’s Flowers Festival that will feature a million blooms from all over the world.

* September – Singapore Grand Prix Formula One, the world’s first street race at night, will be staged in the Marina Bay area.

Among the mega projects in the pipeline are: -

* The S$1bil Gardens by the Bay, a planned 94ha development of three big parks in downtown Singapore.

* A S$1.8bil Sports Hub new stadium on a 35ha site in Kallang (by 1911) and a Water Sports Centre.

* Youth Olympics 2011 - Singapore is vying with Moscow to host the 2011 Youth Olympics.

* A floating island in Sengkang the size of a football field to be built by 2010 as a natural habitat for fishes and birds. This is one of 20 projects over the next five years to transform reservoirs and canals into clean streams, rivers and lakes for leisure.

In two years’ time, the two casinos should be up and running together with Universal Studios in Sentosa.

Within the next five years, the 101ha garden that will be a new Singapore landmark will rise in Marina Bay, next to the new financial district.

National Development Minister Mah Bow Tan said: “Imagine you are coming in from the airport? you are driving down East Coast Parkway and then, if you climb over (Benjamin) Sheares Bridge, you will see the city.

“And as you go on, you see the beautiful gardens opening up, especially at night. What a magical scene that will be.”

These projects are neither for image building nor aimed at fending off possible recession since they were in the planning stage long before America’s sub-prime crisis started.

It was done out of necessity, a long-term preparation to improve the state’s tourism and business attractiveness to compete against countries like China and India.

There is another compelling reason.

Singapore, with more than a million newly arrived foreign residents, is becoming overcrowded, its public housing and transport bursting at the seams.

The current 4.68-million population will likely grow by another 2 million in 30 years' time, which requires an expanded infrastructure. This will only be possible with economic growth.

Opportunistic state investors Temasek Holdings and GIC (Government Investment Corporation) have just put in US$22bil in three Western banks.

The investments in UBS, the largest bank in Switzerland, America’s Citigroup and Merrill Lynch – all sub-prime victims – are the costliest in Singapore’s history.

These huge investments at home and abroad are carried out with hard-earned savings built up – virtually brick by brick – over four decades.

They should bear fruit in 10 years.

(This article was published in The Star this morning).