Singapore

Redazione published in Culture and society, Singapore

Singapore flies with free Wi-Fi for all

As of July 1, Singapore Airlines becomes one of the first international airlines to offer free and unlimited Wi-Fi to all passengers

Article by Tommaso Magrini

Surfing the Internet has become increasingly important, even while in the air. Singapore Airlines, reports the South China Morning Post, has joined the handful of carriers that offer free in-flight Wi-fi to all passengers and, starting July 1, customers will be able to surf without the usual charges or data limits. In-flight Internet has long been an inconvenient and messy add-on cost that is usually more trouble than it is worth, if available at all, and usually remains exclusive to those paying for a first or business class seat. Although time spent online has declined since the Covid-19 pandemic closures, in 2022 the 5 billion regular Internet users still spent more than six hours a day browsing and scrolling, according to We Are Social, a British company that tracks web and social media use. At the same time, air passenger numbers are on the upswing. According to the International Air Transport Association, global passenger traffic is back to 90 percent of its pre-Covid level in April 2023, meaning the world is on track to return to the 4.5 billion passengers carried in 2019, the year before the pandemic began and travel restrictions were imposed.

Hence, carriers like Singapore Airlines are banking on free Wi-fi to persuade passengers to choose the airline to fly with. Air New Zealand is the best airline in the world; Singapore ranks first in first class. "In today's increasingly hyper-connected world, in-flight high-speed Wi-fi connectivity is one of the most important requirements for our customers," said Yeoh Phee Teik, Senior Vice President Customer Experience at the airline. To access Wi-fi, passengers will have to sign up for the airline's free loyalty program, similar to how some of the few other carriers that offer free Wi-fi, such as Qatar Airways and Delta Air Lines, operate. Singapore Airlines said the offer will apply to 129 of its 136 aircraft, with the exception of seven Boeing 737-800 NGs that it says "are not Wi-fi enabled."

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Redazione published in Global Lens, Singapore

No to protectionism and arrogance

We publish here an excerpt from the speech at Chatham House of Tharman Shanmugaratnam, Senior Minister of Singapore

The United States and China should abandon the “hubris” of claiming superiority of their respective political systems and instead should focus on collaborating to advance their self-interests. There are no saints in the relationship between the superpowers. Both of them need to make adjustments. Both of them need to avoid a sense of hubris with regard to the superiority of their own systems. And both of them need to recognise that there’s actually a great deal in common in the way they go about trying to improve lives and grow incomes.Those are huge grounds for seeing eye to eye and developing rules to make sure that trade is fair, investment is fair and intellectual property is protected. These are rules that can be developed. The absence of a strategy of interdependence would not necessarily mean that China gradually withers away. It eventually rises anyway but when it finally gets there it will know who made it extremely difficult for it to get there. That makes for a dangerous world. There was a “step change” in the threat perception about China in the US in 2016. I don’t think that step change in the curve was occasioned by any new strategy on the part of China or any new development in China’s market share or China’s actions in any regard. It was domestic politics. Politics matters, and I think we are trundling down a road where we are in the politics of pessimism and grievance and it has to be redressed. China doesn’t yet feel it is ready to be an equal with the US at the centre stage but wanted to play a more major role in rule setting in the International Monetary Fund, the World Bank, in trade and other areas, On Taiwan, no serious observer, including those who are very close observers and who are engaged in this believes that China wants war with Taiwan. Neither does the US. And it’s extremely important to preserve prior understandings on Taiwan, and preserve the constructive ambiguity on Taiwan that has lasted for decades on the part of both the US and China. About global trade, if we go for a system that is protectionist, that imposes restrictions and where your actions domestically have negative spillovers on the rest of the world, you might be able to preserve relative superiority, at least for some period of time. But it is almost certainly at a cost of absolute performance everywhere.

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Lorenzo published in Economy and trade, Singapore

The fintech race in Singapore

More and more regional and international players look to the city-state to launch digital banks

Singapore gears up on digital banking. Deregulation in the city-state is encouraging large regional tech companies such as Grab (the ubiquitous superapp in Southeast Asia) to enter the market, hoping to attract younger customers and small businesses. Although this is expected to boost banking competition, virtual retail banks have yet to bring their operations fully online due to persistent regulatory restrictions. Meanwhile, incumbents such as Standard Chartered are digitizing their services at an accelerating pace. GXS, a digital bank majority owned by Grab, has expanded services since its opening in September. "We are a bank created by digital natives for digital natives," CEO Charles Wong told Nikkei Asia. GXS targets so-called gig economy workers, such as those who deliver meals or give rides to commuters via the Grab app. The bank also seeks to attract those just starting their careers. There are no minimum balance or account maintenance fees. Meanwhile, Standard Chartered, one of the UK's largest banks, has begun operating a digital bank called Trust Bank, which in four months has attracted more than 400,000 users. Trust Bank was co-founded with FairPrice Group, operator of Singapore's largest supermarket chain. Meanwhile, Ant Group, the fintech affiliate of Chinese tech giant Alibaba Group Holding, has obtained a digital wholesale license, allowing it to conduct transactions for businesses. Ant's Anext Bank, a digital-only bank, allows Singapore-registered companies to open a business account online in an instant, even from abroad, a first for the city-state. The trend looks set to continue. In a survey conducted by Visa, 88 percent of SMEs in Singapore said they plan to conduct at least some of their transactions digitally.

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Redazione published in Politics and strategy, Singapore

Italian military ship Morosini in Singapore

The state-of-the-art military ship Morosini is currently in Singapore. A move that increases Italy's presence in Southeast Asia, an area that is increasingly strategic economically and diplomatically

Article by Tommaso Magrini

Italy is projecting itself into Southeast Asia and the Asia-Pacific. Not only commercially and diplomatically, but also with the state-of-the-art ship Francesco Morosini. The ship arrived in Singapore on Monday, May 1, and remained there until Saturday, May 6. Stopped at Changi Naval Base, she participated in the International Maritime Defense Exhibition-Asia (IMDEX), a prestigious international showcase where global excellence in the defense sector, particularly naval defense, converges.

The Morosini, 143 meters long, 17.5 meters wide, 6400 tons in tonnage, is the second Unit of the Thaon di Ravel Class and the last among the ships delivered to the Navy. It represents the spearhead of the national naval shipbuilding industry, which is known to be at the top of the world. The unit, delivered on Oct. 22, 2022, to the Italian Navy at Fincantieri's Muggiano shipyard, moreover, represents the cutting edge of Italian technology in the naval and electronics sector. 

His presence was also an opportunity to participate in the opening event of the Italian Festival Singapore was the stage to promote Italian excellence in other fields, including culture and scientific research. From May 2 to 5, a jazz concert, tours of local schools and lectures in collaboration with Singaporean universities will give participants a chance to touch on cutting-edge technologies and innovative systems. The Patroller also hosted several promotional and open-to-the-public events, including several shipboard tours.

This is an important step for the Italian presence in Singapore and Southeast Asia in general. On Tuesday, May 2, the Ambassador of Italy in Singapore and the ship's Commander held a press conference on board in which the ship's special features and its commitment to the Indo-Pacific Campaign, in promotion of Italian excellence in the world, were explained. Ambassador Mario Vattani explained the significance of the presence of the ship Morosini in this quadrant, its importance in Italy's relations with Singapore and countries in the area, and presented the events organized by the Embassy on the sidelines of this event.

"The geopolitical and economic relevance of the Indo-Pacific," said Ambassador Vattani, "leads Italy today with foresight to increase its presence in the area. For some time now, Italy-which has been an ASEAN development partner since 2020-has been implementing activities in various coinciding with the seven pillars of the EU Strategy for Cooperation in the Indo-Pacific." Indeed, Italy is engaged in the implementation of the Development Partnership with ASEAN. Within this framework, various capacity building activities have been carried out for ASEAN countries in multiple areas: protection of civilians in UN peacekeeping missions, fight against terrorism and transnational organized crime, cybercrime, protection of cultural heritage, sustainable coastal management, anti-piracy and law of the sea. New initiatives are planned in the areas of environmental protection, agricultural mechanization, training of magistrates, and combating transnational organized crime. "We Italians regarding this region of the world have an inclusive vision," Vattani explained, "which aims to collaborate with all actors in the area and Regional Organizations. Today we are doing this in Singapore by bringing our technological excellence with the Nave Morosini, the Navy's youngest unit that represents an instrument of exceptional operational flexibility, capable of carrying out a multiplicity of tasks both military and civil protection".

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Redazione published in Culture and society, Singapore

Singapore, more and more women in management roles

The number of women in top positions in Singapore's business world continues to increase. According to an annual study by the Council for Board Diversity, 36 percent of appointments to the boards of the 100 largest Singapore-listed companies were women in 2022, a record high and an increase from 23 percent in 2021. The influx of women follows new rules requiring Singapore-listed companies to say more about their board diversity policies. According to the CBD report, 21.5 percent of director roles were held by women at the end of 2022, up from 18.9 percent at the end of 2021. The report notes that Singapore's female "talent pool" is growing. Among all directors appointed to the top 100 companies for the first time, women account for 45 percent, up from 25-30 percent previously. Very relevant and significant numbers, but wide room for improvement nevertheless remains. More than 90% of Singapore's boards are chaired by men. In addition, only 7% of the top 100 companies have gender-balanced boards, defined as having 40-60% men or women. The influx of women on boards shows that Singapore is moving in the right direction, Mak Yuen Teen, a professor of corporate governance at the National University of Singapore, told the South China Morning Post. But the fact that there are still relatively few leadership positions for women on boards "suggests that relatively less experienced female candidates are being appointed to boards at the moment." But certainly the path Singapore and its business community is taking to ensure greater representation for women is the right one.

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Fabrizia Candido published in Economy and trade, Singapore

Singapore, a calm island in turbulent waters

The latest rankings record the advance of the city-state, whose government has introduced new tax breaks. It is the preferred destination for the super-rich, from China to Thailand, for depositing their assets.

For the first time since leading corporate service provider and fund administrator Vistra launched its jurisdiction rankings in 2010 — asking hundreds of business services executives to rate the importance of global financial centres based on creditor-friendliness and rule-of-law risk — Singapore has leapfrogged Hong Kong.

Over the past twelve years, Hong Kong has consistently been the dominant of the two Asian jurisdictions featured in Vistra’s top ten. But in 2022, Singapore qualified third, behind the UK and the US, while Hong Kong claimed fourth place.

This is a marginal advantage: 46 per cent of respondents rated Singapore as a very important financial centre for their organisation, while ‘only’ 43 per cent said the same of Hong Kong. However, conditions do not seem to favour yet another turnaround.

“Singapore is a calm island in very turbulent waters,” said a UK-based private solicitor in response to the Vistra questionnaire. The remark seems to refer to the political turbulence afflicting Hong Kong in recent years and the increasingly invasive erosion of the 'one country, two systems' principle governing its relations with Beijing. 

Indeed, a worrying wind is blowing from the capital of the People's Republic of China (PRC) for the so-called super-rich. Xi Jinping's drive to consolidate his leadership by promoting allies who are known for their tough stance against the private sector, as well as the prospect of possible new inheritance taxes, have prompted some particularly wealthy Chinese citizens to at least partially sever financial ties with their own country, in what could be described as an ‘exodus of wealth’. In fact, Xi's push for "common prosperity" would appear to be driving investors — who once embraced Deng Xiaoping's dictum that ‘getting rich is glorious’ — to flock to more wealth-friendly places, such as Singapore.

Away from China

"The private sector in China is really in decline," notes Drew Thompson, a visiting senior researcher at the National University of Singapore's Lee Kuan Yew School of Public Policy in an interview with Bloomberg. "This accelerates efforts to migrate and secure one's wealth abroad".

It is not clear whether Xi is intent on stopping the outflow of people and capital from China. Investment migration consultancy Henley & Partners estimates that in 2022 alone, a cohort of around 10,000 wealthy residents sought to withdraw USD 48 billion from the PRC, which represents the second-largest outflow of wealth and people worldwide, after Russia.

Anti-Covid regulations also played a key role in Singapore's advance. While the city-state quickly returned to normal in 2022 — including lifting the indoors mask requirements (one of the last remaining restrictions) in August — Hong Kong remains, like the rest of China, one of the territories with the most stringent anti-Covid regulations in the world. This has also led to an ‘exodus’. According to the European Union Office for Hong Kong and Macao, around 10 per cent of EU citizens residing in Hong Kong left the city this year, and a growing number of employees have requested to be relocated elsewhere. Large companies, such as American multinational investment banking and financial services firm Citigroup, as well as the CEOs of JP Morgan, have also quietly moved a string of equity bankers to Singapore and other markets.

However, Singapore's rise should not be entirely attributed to recent turmoil and Covid-related restrictions in other places. The government of the city-state also has merits of its own, for the benefits of the ‘super-rich’.

Singapore's reputation as a bastion of low-tax security and stability has made it a regional hub for the wealthy, from Thailand to Indonesia. The city-state has been effective in establishing itself international in activities such as fund management and estate planning.

For example, in order to increase its attractiveness as an alternative fund venue, Singapore introduced the Variable Capital Company (VCC) in 2020 — a new corporate entity structure under which several collective investment schemes (whether open or closed-ended) can be brought together under the umbrella of a single corporate entity and yet remain separate from each other. The VCC challenges major fund domiciles such as the Cayman Islands or the UK by offering investors greater flexibility, operational cost savings, and tax benefits.

Singapore's favourable legislation

In recent years, Singapore has also been trying to attract a larger share of Asian clients with rising net worth. Its trust laws offer privacy and tax exemptions to settlors and beneficiaries. With its introduction of the Overseas Networks and Expertise (ONE) pass — a visa that will allow its holders and their partners to work in the city-state for five years — Singapore furthermore became a global talent hub.

Singapore does not provide detailed statistics on where its wealth flows come from. However, according to Bloomberg, the explosive rise of ‘family offices’ — service companies that manage the wealth of one or more wealthy families by acting as coordination centres for financial and administrative management — is symptomatic of the arrival of multiple new tycoons, especially Chinese. At the end of 2021, the number of these offices almost doubled compared to the previous year. Michael Marquardt, whose firm IQ-EQ Asia helps set up family offices, said the number of inquiries from Chinese clients had increased by 25 to 50 per cent from before, to after, the last Chinese Communist Party Congress. Vikna Rajah, head of tax and trustee at law firm Rajah and Tann Singapore LLP, said last June that more than 30 per cent of the clients she has supported in applying for tax exemption were from China, including from Hong Kong. These newcomers choose Singapore not just as a base for business but for real relocations. For instance, Sean Shi Yonghong, co-founder of Sichuan hot pot chain Haidilao International, paid USD 50 million for a so-called Good Class Bungalow (GCB) in the city-state last September. His business partner, and CEO of Haidilao International, Zhang Yong already established himself in Singapore a few years ago and took up citizenship in 2018. Sun Tongyu, one of the co-founders of Alibaba, also bought a USD 51 million penthouse in the city-state. Other notable Chinese entrepreneurs who have settled in Singapore include Zhang Yiming, founder of ByteDance Ltd, cryptobillionaire Jihan Wu, and Cindy Mi, the founder of VIPKid (a formerly successful edutech company in China until Beijing cracked down on online tutoring). Such newcomers have generated a variety of knock-on effects, from increased sales of luxury cars to skyrocketing prices for villas, and… golf memberships.

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Lorenzo published in Politics and strategy, Singapore

Interview with Mario Vattani, Ambassador of Italy in Singapore

The Ambassador of Italy in Singapore talks about the activities of the diplomatic office in the city-state, illustrates the results achieved and the potential to be exploited

Interview by Lorenzo Lamperti

Ambassador Vattani, how has the impact with Singapore been and how has the Embassy's activity evolved in these months?

Now that a year has passed since my arrival I can draw a first balance. We took advantage of the first months when, due to the anti-Covid restrictions, it was difficult to have meetings and carry out outward activities to work on structural projects. In particular, we moved headquarters. This is not a simple relocation, but a symbol of Italy's recognition of Singapore's growing importance in the region. South-East Asia will play an increasingly strategic role in the next 20 years and Singapore has a special importance. Previously, this was a small office with few staff, in contrast to the international companies that have long used Singapore as a gateway to the region. The opening of the new Embassy office is part of a dynamic of increased presence in which there has been the opening of the defence office and that of the Bank of Italy.

What are the factors that are making Singapore more and more central?

There are several factors. Certainly, the dynamics of recent years in Hong Kong have also contributed. There is also a constant flow of professionals and companies from China, especially from Shanghai. When I arrived, this process had already started, so we were able to expand. The advantage is that we can now show Singaporeans that there has been a change of pace and the result is that Italy has greater visibility. Both the offices of our representation and the companies themselves. 

What initiatives have been launched since the easing of pandemic restrictions?

We have started a visible action on the ground. For example, the first Italian Festival was organised, a formula I had already used in Japan where I worked as head of the Commercial Office. The basic idea is to multiply a whole series of activities under the same logo without limiting ourselves to the more classic areas of Italy's presence, from food to fashion to tourism. We have also worked on events on science, technology and research. We are trying to make these sides of Italy known as well. Since Singapore is not a manufacturing hub, there is no intimate knowledge of our production system and mechanics, unlike other countries. Japan has been importing high technology made in Italy for decades, while in Singapore they are mostly familiar with our products. Yet here we have large companies present in important infrastructures such as Mapei in the construction of the port. Italian technology is also present in Gardens by the Bay and the underground. We took advantage of the recent Formula One Grand Prix, which really represented Singapore's return to the international scene after the pandemic. We as Italy made a showcase in the Embassy of all the most important companies that are linked to the world of Formula One. Not only Ferrari, but also those who do infrastructure or tires. Even whoever did the lighting was an Italian company. 

How important is it to steer the action on the host country's agenda?

The mistake that is sometimes made in Asia is to arrive here looking at one's navel, instead you have to use the opposite route: look at the other person and adapt to what they do, to make them understand that what I do works for them too. Singapore then is a country with a ruling class that is proud of what it is doing, you have to make them understand that we are the right partner. For example, during design week Italy was the only country present with an exhibition on new materials and Italian start-ups that recycle intelligently. We were the only partner country of the Singapore Design Centre during Design Week. Now thanks to the Farnesina we have the tools to have a more proactive attitude: we have a showroom, the venue is in the centre of the city's Financial District. There is a space called Sala Italia where exhibitions will be held. In fact it is already in operation: Giordano Bruno Guerri just came here for a meeting on D'Annunzio, Pirelli also had its exhibition here. I have signed two decrees making both the residence and the Sala Italia available to companies. 

The bilateral scientific and technological cooperation agreement has also recently come into operation. What benefits can it bring?

The agreement was signed in 2016, but the executive protocol was missing. Since we arrived, we have been scrambling to reactivate it. Now it is finally up and running. There will be several projects also related to startups on which we have ground to make up. The advantage of Singapore is that there is a vast talent hub here and it is a research laboratory with great potential. 

Singapore also plays a significant role politically in the region, as well as economically and financially. 

Absolutely, the ruling class is at a very high level and the local government is listened to and respected everywhere. Singapore plays a very complex game, thanks to its stability and strategic position it plays a role of guarantor for everyone. I would add that there are also interesting lessons for Italy in managing a multi-identity society effectively. Just as one can observe Singapore's experience in the fight against terrorism. These are also issues on which it is good to deepen the bilateral dialogue.

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Annalisa Manzo published in Economy and trade, Singapore

Singapore contends with Hong Kong as global financial hub

Hong Kong's financial role is changing and it looks like Singapore will benefit. 

For the first time, Singapore overtook Hong Kong in Vistra's latest ranking of global jurisdictions. More than 600 business services executives assessed the importance of the major financial centers. Hong Kong and Singapore have long competed as midshore financial hubs, also serving as gateways to Asia. Since 2010, when Vistra started compiling the ranking, Hong Kong has always been predominant. This year, Singapore rose to first place along with the UK and the US, while Hong Kong slipped to fourth. Although this would be a marginal advantage, - 46% of respondents preferred Singapore as the financial center for their organization, compared to 43% who said the same of Hong Kong - it is the reversal in the fortunes of the two rivals that is of paramount importance in understanding the future trajectory of each.

The political turbulence plaguing Hong Kong is certainly one of the most favorable factors for Singapore, but its rise is specifically due to government actions in the financial sphere. Singapore has been proactive in increasing its financial attractiveness, particularly fund management and wealth planning. In 2018, Singapore introduced a new investment fund structure, the Variable Capital Company (VCC), to increase the domicile of alternative funds. The VCC offers more flexibility to investors, operational cost savings and tax advantages, entering into challenges with major fund domiciles such as the Cayman Islands. In recent years, Singapore is also attracting a significant share of Asian clients with growing net worth. Its trust laws offer confidentiality to migrants and beneficiaries, as well as tax exemptions. Attracted by favorable tax rates and a stable regulatory environment, more and more billionaire entrepreneurs are deciding to establish family offices in the city-state. The Monetary Authority of Singapore approved more than a hundred family office applications in the first four months of this year. In addition to the capital brought to Singapore, these investors also demand sophisticated financial services, creating jobs for wealth managers. The accumulation of financial and human capital contributes to Singapore's competitiveness as a financial hub.

Regional economic development is another winning aspect. China's zero-COVID policies have prompted manufacturers to shift supply chains to Southeast Asia. Singapore can facilitate such shifts because of its longstanding business presence in the region and familiarity with Chinese processes. Financial institutions connect customers with investors, law firms support the opening of new branches, and consulting firms provide guidance on sourcing regional suppliers and train staff. 

In addition to finance, Singapore and Hong Kong also vie with each other for the primacy of green commercial property. Both attract significant funding to support the development of environmentally friendly urban projects. The city-state was ranked first in the latest Asia-Pacific Sustainability Index by property consultancy Knight Frank. Shenzhen and Hong Kong were the next best-ranked Asian cities, just below Australia and New Zealand, with the cities of Sydney and Wellington. Tokyo completed the top 10. Knight Frank's ranking considers the number of green buildings and the willingness of local governments to push for sustainable urbanization as major factors, while also looking at the market for investable green assets. Knight Frank's report highlighted Singapore's '80-80-80 in 2030' plan, with the goal of having 80 percent of buildings with eco-friendly features, 80 percent of new buildings energy efficient, and for those that are already leaders in environmental sustainability, further energy efficiency from 65 percent to 80 percent is planned. Singapore, like Hong Kong, is also struggling with green financing in the real estate sector. Last year, real estate companies City Developments and MCL Land announced that they had secured $610 million in green loans to finance two projects in the city-state as part of a joint venture.

The gap between Singapore and Hong Kong as financial hubs is narrowing. The global perception of Hong Kong has undoubtedly been altered and it now has to adapt to a new reality, but as a gateway to China and a historic global financial center, it will continue to play an important role internationally.

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Anna Affranio published in Politics and strategy, Singapore

Singapore's new (controversial) foreign interference law

Some critics are concerned that the new bill may represent a tool to suppress dissent. But what is the Foreign Interference Countermeasure Act really about?

On October 4, after nearly ten hours of debate, the Singaporean parliament passed a new law to limit foreign interference in domestic affairs, known as the Foreign Interference Countermeasure Act.  

This new law gives authorities the permission to intervene in cases of interference in the domestic politics by foreign entities. According to the Ministry of Home Affairs, foreign interference poses a serious threat to Singapore's sovereignty and national security, and this law is an urgent necessity given the increase in cases of foreign interference, especially via the Internet, in local affairs. 

The law allows authorities, for example, to compel Internet service providers and social media platforms to provide information about users, block content, and remove applications used to disseminate content deemed hostile. The law also establishes requirements to identify individuals and entities defined as "politically significant persons," including political parties, political officeholders, parliamentarians, and candidates for election. Such individuals or entities will be required to report donations exceeding 10,000 Singaporean dollars (approximately 6,400 US dollars) and disclose their relationships with foreigners. Civilians may also be designated as politically significant if their activities are directed toward a political end and it is in the public interest to apply countermeasures. However, it is important to remember that this law does not include Singaporeans or other local organizations expressing their views, unless those views are used by foreign entities as agents of interference. 

The process will be as follows: first, authorities identify a suspected foreign-sourced information campaign that is deemed hostile. If they determine that the campaign is directed at a political purpose and it is in the public interest to take countermeasures, guidance is issued to limit the spread of disinformation. Third parties such as online platforms, Internet service providers and website operators may also be forced to block certain accounts or content in the country. Once identified, perpetrators can be arrested and possibly prosecuted, but they cannot be detained without trial. However, the penalties for violating the act are particularly severe and include up to 14 years in prison and 100,000 Singaporean dollars (about 64,000 U.S. dollars) in fines. Parties involved can appeal to the Minister of the Interior or an independent review tribunal led by a Supreme Court judge.

Despite the negative reaction expressed by foreign media and the criticism received by some NGOs, including Human Rights Watch and Reporters Without Borders, passage of the bill was a mere formality given the decades-long legislative majority of the People's Action Party (PAP), which has been in government since 1959. 

Some critics have expressed concern that the bill could pose a threat to legitimate entities, including academics studying controversial issues or foreigners expressing opinions on Singaporean politics. Indeed, there are concerns that terms such as "foreign interference" are defined so broadly as to include "almost any form of expression and association relating to politics," as 11 human rights organizations stated in an open letter. However, the Minister of Internal Affairs reassured that the law will not be applied towards most academic activities, articles written for international journals and the receipt of international funding. The Minister added that the measure is not intended to target foreigners who comment on local issues in an open and transparent manner.

Another critic that has emerged is that this law was brought to Parliament without being subjected to public consultation or scrutiny by a select committee. However, even on this issue, the Government has responded that the issue of foreign interference has been widely discussed for more than three years in various fora. In any case, the government insists that most Singaporeans agree that the threat is serious and that something needs to be done. However, the concern persists among the many foreign companies in the territory about the future impact of such a potentially broad law.

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Michelle Cabula published in Culture and society, Singapore

How Forrest Li (Sea) became the richest in Singapore

On August 31, 2021, Forrest Li, at the age of 43, became the wealthiest man in the city-state, with a fortune exceeding US$20 billion. His story confirms that the demand for digital services has skyrocketed during the pandemic.

Forrest Xiaodong Li, a native of the Chinese port city of Tianjin and later naturalized Singaporean, graduated in Engineering from Jiaotong University of Shanghai and worked in the same city in the HR division of Motorola and Corning city for four years, before deciding to radically change his life and career. With his MBA, "Singapore’s Steve Jobs" began to lay the foundations of his entrepreneurial success: he was among those present when the founder of Apple delivered the famous "Stay Hungry, Stay Foolish" speech to the new graduates at Stanford University in 2005. That became Forrest Li’s life motto, while Jobs’ call to "connect the dots" became the tagline of Sea Limited, the largest company in Southeast Asia by market capitalization (US$185 billion) of which he is President and CEO today.

At a time when so many people are forced to stay at home or to keep social distances, most interactions have inevitably moved online. Li himself, convinced that the pandemic has done nothing but accelerate a transformation already underway, has underlined that the "strong performance in terms of user growth and engagement shows that digital adoption is still rising healthily". Sea Limited, a holding company of which he is co-founder together with Gang Ye and David Chen, operates simultaneously in the flourishing sectors of e-commerce, online gaming and digital payments, which during the pandemic have been growing significantly.

After the debut in the world of videogame development and distribution with the foundation of Garena in 2009, the trio of entrepreneurs launched SeaMoney, provider of digital payments and financial services, and Shopee, an e-commerce site that adopts a mobile-first approach and carries out a policy of low commissions for retailers. The platform is designed to optimize the online shopping experience so as to make it more convenient and functional to navigation from smartphones.

Alongside the ambition to seize the opportunities of accelerated digitisation, Sea Limited also cultivates a sense of responsibility towards those who are less facilitated in accessing technology. Already in April 2020, Shopee announced the introduction of a support package worth 15 million Malaysian ringgit, to the benefit of about 70,000 local small and medium-sized enterprises. The programme includes a series of measures targeted to "help sellers digitalize, reduce expenses and grow sales": not only subsidies in the form of vouchers and significant operating cost cutting for vendors exposed to the challenges of the pandemic, but also a wide range of training courses aimed at providing a step-by-step guide for those who want to relaunch their businesses by starting from e-commerce. The company turns its gaze also outside the ASEAN area, in an effort to intercept the needs of an ever-growing pool of consumers who are focused on embracing the benefits of the new online lifestyle and Shopee is currently working to expand its operations in Latin America, India and Europe.

Li’s vision is in fact a long-term one, in which seizing the opportunities for growth and conquering new market shares is a priority compared to making profits quickly. During the ceremony of the thirty-fifth Singapore Business Awards in November last year, at which he was appointed "Businessman of the Year", the CEO reiterated his confidence in the potential of the conglomerate strategy, based on the synergy between the businesses that make it up. Actually, the same name of the group (Sea) is, at the same time, an acronym that recalls the Southeast Asian region, center of gravity of the activities of the company, and the image of the sea that, connecting between them the countries, makes it possible to keep faith with one of the core values of the tech company led by Forrest Li: "Make the world an even more connected community through innovative products and services."

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Annalisa Manzo published in Economy and trade, Singapore

Anthony Tan: the man behind the success of the unicorn Grab

Among the Singapore’s 50 Richest 2021, Anthony Tan is the CEO and co-founder of Grab, the dominant ride-hailing app in Southeast Asia and the region's first unicorn.

Born in Kuala Lumpur in 1982, Anthony Tan is the heir to one of the Malaysia’s wealthiest families. His father, Tan Heng Chew, is the chief executive of Tan Chong Motor Holdings Bhd, one of the biggest automotive groups in the country. His academic background includes a B.A. in Economics and Public Policy at University of Chicago honors and a prestigious M.B.A at Harvard Business School (HBS), completed in 2011. It all started from there. During an interview for the Financial Times in 2014, Tan said he was heavily influenced by entrepreneurship courses and meetings with personalities like Steve Chen, co-founder of YouTube, and Eric Ries. All this opened his eyes of new opportunities, with much displeasure of his family.

Tan met Tan Hooi Ling, who will become co-founder of Grab, at Harvard Business School in 2009 while they were working on their MBAs. They wrote together a business plan for a mobile app that would connect taxi seekers directly with taxi drivers closest to their location. Both of Malaysian origins, they wanted to find a solution to move into the great urban congestion. The drivers would have been supplied with smartphones so they could communicate directly with potential customers. It was an Uber-like app designed to benefit both taxi drivers, who are continually besieged and always looking for rides, and customers, to make them feel safer.

That project was a runner-up in the HBS New Venture Competition in 2011. Using the $25,000 from the winning and their personal funds, Anthony Tan and Tan Hooi Ling launched the MyTeksi app in June 2012. By giving up his role in the family business, Anthony was able to find various upfront funding from various investors in the US and Asia, strenuously continuing to develop his project, while his relatives struggled to understand what he was doing. Tan never had regrets: “Building something from scratch from just a PowerPoint and seeing the lives we affect is a lot more rewarding”, he said.

After raising the funds to support a regional expansion, in 2016 the startup was moved to Singapore and renamed Grab. Today, in addition to ride-hailing, it includes delivery services (food, shopping, packages), online payments and financial services. It is present in 8 ASEAN countries: Singapore, Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Thailand, Vietnam. Grab's investors include Softbank, Didi Chuxing and Toyota. Uber acquired a stake after Grab bought out its regional operations in 2018. When the Softbank investment was announced, Tan confirmed the willingness to pursue his goal of growing so fast, continuing the “fight for market share”.

“What we’ve built sounds glamorous but if you really want to be hardcore and survive in this race, you need to be hyper paranoid and constantly thinking that the guy on your right is trying to murder you,” Tan said. Tenacious and motivated, the people who work with him say he always wants to be the “number one”. He has a deep spiritual side, and he cites Jesus Christ as one of his leadership examples. He feels his work as a “mission" to serve Southeast Asians’ daily needs. Before the pandemic, he met with many ministers in several cities in the region to support the legalization of ride-hailing.

He is married to Chloe Tong, the daughter of the founder of Phileo Allied Bank, and they are expecting their fourth child. People who know Tan say his strengths are determination and time management skills. He is known for studying business cases or taking calls while running on the treadmill. On the other hand, Tan had clear ideas from an early age: at six he said he wanted to become a businessman. HBS was where his idea was born, but getting out on the streets of Kuala Lumpur, riding in taxis, talking to taxi drivers, and not being afraid to introduce technology in a reluctant environment transformed his plan into a winning business.  

In April 2021, Tan announced Grab's U.S. listing by merging the firm with a special-purpose acquisition company (SPAC) of Altimeter Growth. The deal is expected to close by the end of this year, making the company reach a valuation of $40 billion. Perseverance paid off. With a net worth of $790 million, Tan ranks 47th in the Singapore's 50 Richest 2021 according to Forbes.

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Agnese Ranaldi published in Economy and trade, Singapore, THE ROAD TO DUBAI

Singapore commits to a sustainable solar future

Climate change hardly affects Southeast Asia. Singapore is banking on solar energy for decarbonisation but, despite efforts, the road to sustainability is still uphill

Singapore is one of the Southeast Asian countries most affected by climate change. Amidst the worrying rise in sea levels in the region's climate, the city-state on the Malaysian peninsula has taken the international commitments of the United Nations 2030 Agenda for Sustainable Development very seriously. This is the reason why, recently, various de-carbonization programmes have been implemented, including the construction of a huge solar panel, in the Strait of Johor.

The Sunseap Group - the largest solar energy supplier in Singapore - was responsible for the solar platform’s construction. The installation consists of 13,312 panels, with an area equivalent to about seven football field. It will be able to offset up to 4,000 tons of carbon dioxide per year and power 1,400 residential flats. As a local entrepreneur engaged in the sector pointed out, "after having exhausted the roofs and the available land, which is very scarce, the next great potential is our own water area." The sea is considered the new frontier for solar installations, as global warming and rising water levels pose a serious threat to the coastal populations of Southeast Asia. Sunseap Group's floating panels are designed to withstand changing weather conditions, with a system that keeps both the platform and the operational equipment onboard stable.

According to officials from the Ministry of Sustainability and the Environment, Singapore embraced sustainability many years ago: also known as the "Garden city", it is considered one of the greenest cities in the world. It has implemented virtuous policies in favor of environmental respect, also introducing taxation on carbon emissions. The Minister of Sustainability and the Environment, Grace Fu, launched the new Green Plan 2030 in February. According to the government, indeed, the green economy can be a key competitive advantage, capable of creating new employment and growth opportunities. The Enterprise Sustainability Program (ESG) was launched for companies, with the aim of accompanying them towards more sustainable business models: as an ESG official suggested, "sustainability needs not to be at odds with profitability". Edwin Chow, assistant managing director for innovation and business at ESG, added "As consumers become more aware of corporate sustainability and trade, companies are under pressure to improve business practices as sustainability needs to be embedded in processes, products and services".

However, despite projects on decarbonisation, Singapore is not out of danger yet. The small Asian city-state has been facing extreme climatic phenomena for decades. The so-called "twin challenges” are the main threat: these are coastal floods and severe storms with extreme rainfall that can cause inland flooding. Much of the Singaporean territory is located just 15 meters above the mean sea level, and 30% of the country less than 5 meters.

Meteorological phenomena are not the only climate-related challenge that the authorities are called upon to manage. The city heats up twice as fast as the global average. In fact, in Singapore, there is only one season, which residents have ironically divided into four levels of tolerance: “hot, hotter, hottest and hell”. For decades, citizens have made extensive use of air conditioning, but it is considered an energy-consuming technology. As Bloomber reports, Singapore is also emblematic of the so-called "urban heat island" effect: due to the hard surfaces of buildings and buildings that absorb heat, the temperature of a built-up urban area can be significantly higher than that of surrounding land. The Asian Garden City is unable to compensate for the production of anthropogenic heat with the benefits of greenery, which it has also invested in for a long time.

Singapore faces a tricky dilemma: it needs to make the city’s conditions more liveable for its 6 million inhabitants, without dangerously increasing its carbon emissions. The construction of the huge solar panel platform in the northern strait of the island seems to be going in the right direction, but there is still a long way to go. The city-state is one of Asia's largest per capita carbon dioxide emitters. Local environmental movements accuse the government of not doing enough to address the challenges of anthropogenic climate change since, despite the expansion of the renewables sector, natural gas remains the main source of energy (according to some environmental protection organizations it would still produce 96% of the energy used). According to Climate Action Tracker, even if the country remained faithful to the objectives announced in 2020 to contribute to the reduction of emissions established by the Paris Agreement, these commitments would still be insufficient. Singapore has indeed embarked on the path to sustainability, but the urgency of climate change will require even bolder measures.

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