BEYOND SG

Replies by Minister George Yeo to Questions (on Myanmar) in Parliamnt on 22 Oct 2007

Transcript of reply by Minister George Yeo to Questions in Parliament on 22 October 2007

PARLIAMENTARY QUESTIONS

Ms Irene Ng Phek Hoong: To ask the Minister for Foreign Affairs for his assessment of the political situation in Myanmar and on whether ASEAN can take bolder steps to press for a peaceful resolution to the problems in Myanmar.

Ms Irene Ng Phek Hoong: To ask the Minister for Foreign Affairs on Singapore's stand on continuing trade and investment in Myanmar, and on calls to use economic sanctions against the country.

Dr Lily Neo: To ask the Minister for Foreign Affairs whether the recent reaction by ASEAN members on the Myanmar issue heralds the beginning of the end of the policy of non-interference long treasured by ASEAN member countries and how will this change the ASEAN dynamics.

Mr Charles Chong: To ask the Minister for Foreign Affairs (a) what measures will be considered by ASEAN in support of UN efforts to bring about reform in Myanmar; and (b) whether ASEAN will consider the imposition of targeted sanctions, restriction of non-humanitarian aid and even a review of Myanmar's membership of ASEAN should they fail to comply with the resolutions set by the UN and ASEAN.

Er Lee Bee Wah: To ask the Minister for Foreign Affairs in view of Myanmar’s recent show of disregard for human rights and its use of force against peaceful demonstrators (a) what is the military junta’s explanation to ASEAN on its recent actions against its citizens; (b) what is the impact of the incident on Singapore; (c) what is the impact on Singapore’s investments in Myanmar; and (d) what is the impact on the annual trade between Myanmar and Singapore.

Mr Siew Kum Hong: To ask the Minister for Foreign Affairs (a) whether Singapore has supplied arms and weapons to Myanmar; (b) what is the total value of investments by Government-linked companies in Myanmar; (c) what is the total value of remittances from Myanmar into Singapore over the past 5 years; and (d) whether the Government intends to take any action, either by itself or as ASEAN chair, in addition to making statements and writing letters to the junta.

Ms Sylvia Lim: To ask the Minister for Foreign Affairs whether the Singapore Government had anticipated the political developments in Myanmar in September 2007.

Ms Sylvia Lim: To ask the Minister for Foreign Affairs whether and to what extent Singapore businesses are or have been engaged with the Myanmar authorities in trade and consulting in the field of military hardware and surveillance equipment.

Ms Sylvia Lim: To ask the Minister for Foreign Affairs whether and to what extent there are arrangements in place for military cooperation between Singapore and Myanmar.

Ms Eunice Elizabeth Olsen: To ask the Minister for Foreign Affairs whether the Government will consider granting humanitarian assistance and aid to the Myanmar people.

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REPLY

Minister: Mr Speaker Sir, please allow me to take questions 1 to 10 together as they are related.

2 Ms Sylvia Lim asked whether the Singapore Government had anticipated the recent developments in Myanmar. The short answer is no. We knew social discontent was building up but we could not imagine the Myanmar Government suddenly increasing fuel prices five-fold. That ignited the protests which took the authorities by surprise.

3 Mr Speaker Sir, to answer Dr Lily Neo, ASEAN had decided more than a year ago that since Myanmar preferred dealing with the UN over ASEAN, ASEAN would no longer defend Myanmar at international forums. We were as astonished as anyone else when the leadership suddenly shifted the country's capital to Nay Pyi Taw and were embarrassed when asked about it by others. We were relieved when Myanmar decided to skip its turn as Chair of ASEAN last year. But we refrained from criticising Myanmar openly because it was part of the ASEAN family.

4 However, we could not stay silent when the Government violently cracked down on peaceful demonstrators including Buddhist monks. ASEAN would have lost all credibility otherwise. Developments in Myanmar cast a pall on the entire region and have been raised at the UN Security Council. ASEAN's policy of non-interference cannot be rigidly applied when internal developments in a member country affect the rest of us. This is not the first time that ASEAN is addressing the situation in Myanmar. At the Summit in Singapore in 2000, ASEAN leaders met privately with Myanmar leader Senior General Than Shwe to express their concerns. In 2003, ASEAN Foreign Ministers publicly called on Myanmar to release Aung San Suu Kyi.

5 The violent suppression of dissent in Myanmar recently has evoked outrage in ASEAN and around the world. As ASEAN Chair, Singapore had to discharge its responsibility. The Prime Minister called all his ASEAN counterparts who agreed with him that ASEAN should issue a strong statement. PM also wrote to Senior General Than Shwe. I was at the United Nations in New York when the situation broke. After settling the ASEAN Charter, the ASEAN Foreign Ministers confronted our Myanmar counterpart. They agreed for me to issue the statement that I read out to the international media in their presence.

6 To answer Ms Irene Ng on the present situation, a semblance of normal life appears to have returned but we continue to receive reports of arrests and raids taking place which UN Special Envoy Ibrahim Gambari described as 'extremely disturbing'. We hope that the Myanmar authorities will cease these arrests and release those detained quickly. The Myanmar government has offered talks with Aung San Suu Kyi and appointed a liaison officer. However, the offer comes with conditions. Aung San Suu Kyi's National League for Democracy has expressed a desire for talks but rejected preconditions. These are just opening moves by both sides. From Singapore's perspective, the only precondition should be a commitment by both sides to work for national reconciliation and to serve the interest of the Myanmar people.

7 Mr Speaker Sir, there is no quick and easy solution. All parties in Myanmar need to take a fresh approach because it is clear that the old way led to nowhere. The present lull cannot last if the process towards national reconciliation does not gather momentum. However, we must be prepared for negotiations to be long and complicated. There is a limit to the influence of the outside world. Myanmar is a resource-rich country and the Government has long been inclined to self-isolation since the days of General Ne Win. The Western embargo has not been effective because Myanmar's giant neighbours, China and India, have kept the back and side gates open. ASEAN's economic leverage is not significant but ASEAN does wield moral influence. Myanmar would rather remain a part of the ASEAN family than be by itself a buffer state sandwiched between two rising powers.

8 Mr Charles Chong, Mr Siew Kum Hong and Ms Irene Ng asked if we would consider putting more pressure on the Myanmar government, such as sanctions, or withdrawal of aid, or even a review of Myanmar’s ASEAN membership. Indeed there have been strident calls to bring down the military regime. The key consideration here is to help the process of national reconciliation not make it more difficult. Some external pressure can be helpful. But, as Malaysia's Foreign Minister Syed Hamid said recently, talking about sanctions or expulsion now would make national reconciliation harder not easier to achieve. Aung San Suu Kyi herself acknowledges the need to involve the military. Without the military, Myanmar can dissolve into civil war. The country has many ethnic groups, a number of which are still armed and can easily restart rebellions in the border regions. The last thing we want is a Yugoslavia or an Iraqi situation at our doorstep. In this regard, ASEAN shares a common position with China and India. Thant Myint-U, the grandson of the third Secretary General of the UN U Thant, who's no apologist for the regime, has wisely cautioned that "We don't want Myanmar to be a parallel of Iraq, where we said it's good Saddam Hussein is no longer there, but then did not know how to handle the insurgency that went on after he was gone."

9 Our priority now must be to support the UN Special Envoy Ibrahim Gambari in his mediation efforts. Acting on the authority of the UN Security Council, Mr Gambari plays a critical role as a catalyst. Somehow he has managed to earn the trust of both the military and Aung San Suu Kyi. The Myanmar authorities have made it clear they prefer to deal with him rather than with ASEAN. A year and a half ago, the Myanmar authorities rebuffed the Chairman of ASEAN at that time, Syed Hamid, but they have received Mr Gambari three times and allowed him on all three occasions to meet Aung San Suu Kyi. It is important that whatever actions we take strengthen his hand and not make his already complicated task more difficult. Different countries have different roles to play in accordance with their values and their geopolitical interests. The US and EU have stepped up sanctions and expressed strong views. China has quietly played a very helpful role in facilitating Mr Gambari's last visit to Myanmar. Although Japan has cut aid, it has taken a position closer to ASEAN.

10 I know a number of Members in this House would like ASEAN to cut off all links with Myanmar. But this would only give us short-term satisfaction. On our own, our economic influence is not significant. If we in ASEAN boycott Myanmar, we would lose our moral influence which is not insignificant. Such an approach would only worsen the long-term position for us. In any case, the preference of all the ASEAN countries is to continue engaging Myanmar and keeping it in the family. This is certainly Singapore's preference.

11 Ms Irene Ng, Mr Siew Kum Hong, and Ms Sylvia Lim have asked about Singapore’s economic and military links with Myanmar. Singapore has limited economic links with Myanmar. Before the Asian financial crisis, we did encourage our businessmen to invest and to do more in Myanmar. At that time, there was hope that the Government was taking the Indonesian road from an authoritarian military government to constitutional democracy. But when Suharto fell in 1998, the Government in Yangon froze and the economy slid backwards. Generally speaking, our businessmen are not doing well in Myanmar and many regret having invested there. Singapore companies' cumulative total direct investments in Myanmar for the year ending 2005 was only S$742 million. MTI does not keep track of how much of this is by GLCs, because the Government is not involved in the individual investment decisions of GLCs.

12 Overall, our total trade with Myanmar last year was S$1 billion, which represents only 0.1% of Singapore’s total trade. Myanmar ranked 50th among our trading partners. Therefore, our policy on Myanmar does not hinge on this. Instead, our actions are guided by what is best for the long-term interests of ASEAN.

13 As for remittances, MAS does not track the amount of money remitted into or out of Singapore by any country. For an international business and financial centre like Singapore, funds can be transferred for various purposes including payments for goods and services, trades on the stock exchange, even for school fees. But MAS operates a strict and rigorous regime against money laundering, like all other leading financial centres. Banks and financial institutions in Singapore are required to institute strict procedures, including the need to identify and know their customers, and monitor and report any suspicious transactions. Our rules are vigorously enforced. Should there be links with illicit activity, MAS will not hesitate to take necessary action.

14 If there are UN mandated sanctions against Myanmar, we will of course comply with them. Whatever policy we adopt must apply to all companies operating in Singapore, not just owned by Singaporeans.

15 Singapore has very few defence interactions with Myanmar. But we have to maintain links with the military because it is a key institution. These are largely limited to interactions at multilateral events such as ASEAN-related meetings, international defence exhibitions, and sports activities like the Army Half Marathon. As far as defence sales are concerned, it is established policy of the Government not to divulge details publicly. Myanmar is not subject to any UN arms embargo. If there is any UN sanction against Myanmar, Singapore will of course abide by it. Nevertheless, I can say that over the years defence sales to Myanmar have not been substantial, and have always been carefully limited to items that are not suitable for countering civilian unrest. There have not been any defence sales to Myanmar in recent years and, going forward, we will continue to behave in a responsible manner.

16 Ms Eunice Olsen asked whether the Government would consider granting humanitarian assistance to the Myanmar people. We would certainly do so if there is a request from Myanmar. Singapore has provided significant technical assistance to Myanmar for human resource development over the years. To date, we have trained more than 6,000 Myanmar officials in several areas, including English language, tourism, IT, civil aviation and telecommunications. We do not intend to stop such assistance. Under the Initiative for ASEAN Integration, we have established a training centre in Yangon. Should one day the Myanmar Government open up and request further assistance from us, we will certainly do all we can.

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SUPPLEMENTARY QUESTIONS

Charles Chong: Mr Speaker Sir, the UN Envoy Gambari was reported to have asked ASEAN to go beyond just rhetorical support for his mission. I would like to ask Minister if ASEAN is willing to consider trying influence China, India and Japan to bring about change in Myanmar.

REPLY

Minister: China, Japan and India have stated their positions on Myanmar publicly, so these are on the record. Next month, we are having the ASEAN Summit, during which Myanmar is bound to be discussed. We fully expect Myanmar to be present, and to sign the ASEAN Charter, the legal scrubbing of which, was happily completed at midnight on Saturday. Professor Tommy Koh reported this to me this morning. After that, we will have the East Asian Summit, where the leaders of ASEAN will meet the leaders of China, Korea, Japan, India, Australia and New Zealand. I am quite sure at that Summit, Myanmar will be discussed again. In fact I have received phone calls from some of the Foreign Ministers who informed me that they intend to raise Myanmar during the Summit. Then after that, on 22 November, the leaders of ASEAN will be meeting the leaders of Europe, during the Commemorative Summit, and no doubt Myanmar will again be an issue on the agenda.

To facilitate our work, I will be visiting Beijing this Friday, to have consultations with the Chinese Foreign Minister, and with the Japanese Foreign Minister the day after in Tokyo. I have also asked to visit New Delhi to consult the Indian Foreign Minister. I will go in my capacity as Singapore Foreign Minister, in order that we can play a more effective role as the Chair of ASEAN. I believe that if we coordinate some of our actions, we can help create a more conducive environment for there to be national reconciliation in Myanmar. That will help, of course, the Special Envoy Ibrahim Gambari.

Irene Ng: Sir, Myanmar seemed to be in a state of denial, and they are quite impervious to moral censure or economic sanctions. Given that Myanmar has rebuffed ASEAN's approach of constructive engagement for over ten years, how confident can the Minister be that we can reap any moral influence over Myanmar? And given that we expect Myanmar to sign the ASEAN Charter, will it not tarnish our image and our credibility as a grouping? Should we not ask Myanmar to stay home until they can shape up and come to Singapore to sign the ASEAN Charter?

REPLY

Minister: Mr Speaker Sir, Ms Irene Ng has expressed views that are shared by some members in this Chamber. There are only bad alternatives. Let us say we decide to ostracise Myanmar, to dis-invite them, if we could, from the Summit. Then what happens? Then Myanmar, on its own, will be an isolated buffer state sandwiched between China and India, each of which eyes the other very carefully. India is very concerned to maintain its links with Myanmar because it sees China having influence over Myanmar. And if there is civil strife there, I believe both would be forced to take bets in their own self defence. If Myanmar is divided, and there is external interference by the big powers, then we'll be dragged in. It won't be in our interest for Myanmar to be balkanised. It cannot be. So we decided to bite our tongue to keep Myanmar in the family because it serves our long-term strategic self interest. But of course, if Myanmar decides on its own to claim that what happens in the country is its domestic affairs, and if they are not prepared to accept the fact that we have every intention in ASEAN to discuss their domestic affairs at our meetings, they can object to this and decide not to attend the meetings. Then we will have to respect their wish. But I do not believe that that would happen because they do know that it is better for them to remain in ASEAN and to stay in the family, than to be left alone outside.

Dr Lily Neo: Mr Speaker Sir, MM had said that an unstable Myanmar is a "time bomb" for Southeast Asia. Could Minister elaborate on it? Are ASEAN countries in agreement with this view? Should such scenarios be discussed in ASEAN countries so that all can be better prepared to mitigate such eventualities?

REPLY

Minister: It is true that Myanmar is a ticking time bomb. For the time being, because of the way the government has been able to arrest ‘trouble-makers’ and intimidate the population, there is an apparent return to normalcy. So the curfew has been withdrawn, some people have been released. But how long can this position remain? There is a lot of anger in Myanmar and among the Myanmar people in Singapore - there are tens of thousands of them here. I met some of them two days ago at the Burmese temple here. There is great frustration. They readily admitted that the recent crackdown was much less than what had happened in 1988, which was a really brutal crackdown. But that was the period before the Internet and handphone cameras, and today whatever happens will be quickly spread worldwide. And the Myanmar diaspora is over 2 million, not only in neighbouring countries, but also in Europe, Australia and America. So there is no way the current situation can go on like this for a long time. There has to be a genuine dialogue. It cannot be a case where the leaders just goes through the motion so that things will calm down, and then back to status quo ante. I just had a conversation with Thai Foreign Minister Nitya Pibulsonggram three days ago. We were exchanging views and he said, "There can be no going back to status quo ante". I told him, "I fully agree with you and that must be ASEAN's position". I believe that the leaders, when they meet in Singapore, will take that position.

Mr Siew Kum Hong: Sir, I have two supplemental questions. Firstly, President George Bush of the US has categorically stated that business as usual is unacceptable. Does the Minister agree and if so, what is the Government doing that goes beyond business as usual? Are there measures short of sanctions that target the Generals specifically? My second question Sir, the Minister has stated that ASEAN's economic leverage over Myanmar is limited. But as I understand it. Thailand and Singapore are the second and third largest investors in Myanmar. I then like to ask the Minister why he considers ASEAN's economic leverage limited.

REPLY

Minister: Mr Speaker Sir, ASEAN's limited economic leverage is a matter of fact. Statistics bear out and for as long as China and India keep the back gate and the side gate open, there is very little which a trade embargo can do. It is a resource-rich country. It has got rice, it has got fish, it has got minerals aplenty, it's got oil and gas. And it is already a country predisposed towards isolationism and doesn't need very much encouragement in that direction. China supplies it consumer products. Can we take the Western position? The position of America and Europe. It sounds tempting and perhaps emotionally we feel justified to do so. But if we do so, and China and India maintain their present policies the result will be what I said earlier, Myanmar de facto no longer being a part of ASEAN and becoming a buffer state in between China and India, tempting both to interfere in its domestic politics. And one day, giving us more trouble because of this. So for these reasons, it would be better if we take our own position. The Chinese do not want to take an open position because they cling on to a principle of non-interference because they do not want other countries to interfere in their domestic affairs. Therefore they cannot be seen to be interfering in other people's domestic affairs and they will never want to say that they are. To a certain extent, we have to give them cover. If they do things because ASEAN wants them to do certain things, they can say that, no, we are not interfering because we are doing it at ASEAN's request. The Japanese have been an important aid giver to Myanmar. You know when the Japanese journalist was killed, I met Foreign Minister Koumura the day after. They were very affected. Later on when I saw the news reporting of the funeral, the Buddhist monks in Japan wept. Buddhist monks are not supposed to weep at funerals, but they felt it so strongly. I told Foreign Minister Koumura you cannot take the Western position, you have to do something because not doing anything would be wrong. So they've cut off some aid but they will keep closer to the ASEAN position. Each country must respond according to its own interests and its own value system. For their own domestic politics, the US and Europe have got to take the positions that they are taking. That's fine. We cannot take the US position. We cannot take the European position. Neither can we take the Chinese or Indian position. We take our own position and so long as we loosely coordinate, I think we can improve the chances of there being national conciliation. To be sure we are not optimistic. It is going to be difficult. It is going to be troubled, but what's the alternative? The alternative would be much worse. And we may yet to come to that, but for now this is our best bet. It is the only game in town for the time being and we have to go along with it.

Ms Sylvia Lim: Mr Speaker Sir, what concerns me is to what extent Singapore might be implicated in somehow propping up the military authorities in Burma or Myanmar in their oppressive tactics. And the reason I ask this, there have been some press reports recently as well as in the past. Just to cite one example, a Melbourne newspaper called The Age last month came up with an article called "Web of Cash, Power and Cronies" which reiterated in fact, soft contents from earlier articles in Jane's Intelligence Review in 1998. And the content of those articles basically is to say that Singapore has in fact been much involved in shipping ammunitions and other military equipment to Myanmar and also been instrumental in helping to set up a cyber centre where intelligence equipment was subsequently used to monitor activists. So, I would like to ask the Minister to comment on these articles, whether there have been some activities as such, in the past, to what extent it has minimised now. Such clarity I think would be very important for us.

REPLY

Minister: On the question of military sales, I've given a full answer earlier. It's been insubstantial. We've always made sure they were items which could not be used against civilians and there has been no sales in recent years. I shouldn't go on beyond that because it is our established policy not to divulge details of military sales. We have replied to the Australian newspaper. As for the reports about helping them establish a listening facility to monitor civilian dissidents, there's no truth in that. We have made repeated clarifications to Australian newspapers. They have printed our replies, but somehow the journalists who wrote subsequently ignored those replies we've made. As for their accusations about us being involved in drug money laundering, it goes back quite a long time to Dr Chee Soon Juan. We've clarified again and again but they keep being recycled and that article you've referred to contains some of that recycled hash.

Minister George Yeo's Speech at the 2nd Global Public Policy Network Conferene at the Lee Kuan Yew School of Public Policy

SPEECH BY GEORGE YEO, MINISTER FOR FOREIGN AFFAIRS,
AT THE 2ND GLOBAL PUBLIC POLICY NETWORK CONFERENCE AT THE LEE KUAN YEW SCHOOL
OF PUBLIC POLICY ON 22 OCT 07 AT 9.00am

Asia and the World

1. I visited the Pearl River Delta last week after many years. My last time was in April 1992, three months after Deng Xiaoping's famous southern tour which put China back on its path of reform and opening up.

2. The transformation has been truly dramatic. Guangzhou has become a major metropolis and will become one of Asia's great cities. Near the beach at Hu Men where the Qing Commissioner Lin Zexu destroyed opium belonging to the East India Company in 1839, which led to the Opium War, a beautiful new bridge now connects Nansha on the right bank to Dongguan on the left bank. Shenzhen is no longer a jungle of skyscrapers. Learning from Singapore, by the open acknowledgement of its city leaders, Shenzhen is now lush with tropical vegetation, comparable to what you see in Singapore. Recently, the Mayor led a big delegation on a visit here. They studied what we have done at Sungei Buloh mangrove reserve and will no doubt do better than us in the conservation of their wetlands. This new Chinese city how become an attractive living habitat.

3. From Shenzhen, I crossed over by ferry to Macao which has grown so remarkably, it has already overtaken Las Vegas in gambling revenues. In 10 years, it will be much larger than Las Vegas. Sheldon Adelson of Sands is building 20,000 hotel rooms in Macao. The first casino on the mainland was such a hit, the cost was recovered in nine months. At the Venetian which has 3000 suites, I was told that the market value of the retail area alone will cover the cost of the entire development. To ensure easy passage to and from Hongkong, Sands is building a fleet of 11 ferries. There is a plan to build a long bridge linking Hongkong to both Shenzhen and Macao. In Hongkong, the economy is revving away fuelled by the tourism flow from China. A friend told me that one watch shop ran out of Rolex watches.

4. The Pearl River Delta is a major growth pole in Asia. It is but one of many. The Yangtze Delta is an even larger phenomenon and will probably become the greatest centre of economic activity in the world. Further north, the Bohai Gulf is abuzz with development. Inland, Chengdu, Chongqing and Xian are all exploding.

5. It is not only China. Vietnam's trot has become a canter. In 5 to 10 years, it will be galloping away like China.

6. India is beginning to look very interesting. Although less homogeneous than China, poles of development are also emerging centred on Delhi, Mumbai, Calcutta, Chennai, Bangalore and Hyderabad. Despite relatively poor infrastructure and complicated domestic politics, the Indian economy is growing easily at 8-9% a year. Once the bottlenecks are decongested, India's growth will also be in double digits.

7. Further West, the Gulf states are flushed with money from oil and gas. Just Abu Dhabi alone has more than a trillion dollars in reserve. With the growth of Asia keeping world energy prices high, the Middle East has become both an important market and an important source of finance. Mega-developments have become commonplace. Anything project less than a billion dollars is small beer.

8. In between these growth poles are countries and regions which lag behind for reasons of politics or culture. Sooner or later, they will be dragged along. In Northeast Asia, it is important to hold out hope to North Korea of rapid economic development once it changes policy. It is the increasing economic integration of the Taiwanese economy to the Mainland's that will gradually bring about reunification. In Southeast Asia, it is absurd that while everyone is powering forward, Myanmar has moved into reverse gear. In India, even states like Uttar Pradesh will eventually be brought into the 21st century. Bihar is already stirring. India's growth in turn puts pressure on other countries in South Asia to adopt similar economic policies.

9. The Middle East, however, faces political problems that the tide of economic development may not be able to overcome. With its long history and its great wealth of human and natural resources, Iran ought to be a centre of growth. But it has become a source of instability which can plunge that region into war. The problems of Iran, Iraq, Afghanistan and Palestine are all unfortunately intertwined making a simultaneous solution fiendishly difficult.

10. From a long-term perspective, we can be optimistic about the prospects for East, Southeast and South Asia. But over the short to medium term, we face important challenges in North Korea, the Taiwan Straits and Myanmar. Things can still go badly wrong and derail our progress. We must work at them and progressively build structures which promote cooperation and enable conflicts to be peacefully resolved or managed.

11. North Korea and the Taiwan Straits are two problems which I do not need to go into. The key is keeping Sino-US relations on an even keel. The Chinese are completely hardheaded in their assessment. They say that Sino-US relations can never be very good but neither can they go very bad. The interdependence has become too great. The only regional institution where these two big powers come together is APEC which must remain the most important regional organisation for us. When problems suddenly arise, such as during the US spyplane incident over Hainan in the spring of 2001, it was APEC which provided a ready forum for them to meet.

12. The problem of Myanmar has deep roots in its history. U Thant's granson, Thant Myint-U reminds us of this in his excellent book 'The River of Lost Footsteps'. The Western embargo cannot work so long as Myanmar's giant neighbours China and India do not go along. For them, Myanmar is a buffer state which neither side wants to see destabilized. ASEAN has moral influence but little economic leverage. At the coming East Asia Summit, which brings China, India and ASEAN together around the same table, together with Japan, Korea, Australia and New Zealand, the Leaders will be discussing how we in the region can support UN Special Envoy Ibrahim Gambari in his mission. The East Asia Summit is another important regional organisation because it brings China and India together.

13. For us in Southeast Asia, ASEAN is our best hope for the future. If we are divided, the region will eventually be balkanized. It is a strategic part of the world through which pass the world's most important sea lanes. If we are not united, the major powers will all be forced to interfere in their own self-defence. For this reason, expelling Myanmar from ASEAN is not an option. Next month, at their summit in Singapore, ASEAN Leaders will sign the ASEAN Charter which will provide the constitutional basis for our future integration. It is a major milestone which the problem in Myanmar will not stop us from crossing. We fully expect Myanmar to sign the Charter as well.

14. In all this, what is Europe's role? It is mainly for Europe to decide. A stronger European presence, in political, economic and cultural terms, is welcome by everyone in Asia because it gives us more room to play. ASEM (Asia Europe Meeting) was started precisely to encourage closer links between Europe and Asia. Unfortunately, Europe is too often preoccupied with its own integration. Externally, relations with the US, Russia, China and the Middle East consume most of its remaining energies with not very much left for us in Southeast Asia. Europe's interest in us tends to be issues-based. After the Boxing Day tsunami, the generosity which flowed from Europe was heartwarming. On Myanmar, there is an idealism which we admire but cannot afford. It is not good for Europeans to see ASEAN through the lens of Myanmar. We hope that the coming ASEAN-EU Summit will begin a process of greater European involvement in ASEAN including speedy negotiations for an ASEAN-EU Free Trade Agreement.

15. If we can maintain the peace in Asia for another generation, large parts of Asia will enter the First World, and it will become a very different world. But it is in the nature of human beings to be contentious even when they cooperate. We need to improve existing institutions and establish new ones to govern our common affairs so that global challenges like climate change, pandemics, terrorism and financial instability can be effectively addressed. How Asia changes the world will be a major theme of this century.

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George Yeo

MINISTER GEORGE YEO'S SPEECH AT INSEAD INTERNATIONAL LEADERSHIP SUMMIT

SPEECH BY GEORGE YEO, MINISTER FOR FOREIGN AFFAIRS, AT INSEAD INTERNATIONAL LEADERSHIP SUMMIT ON FRIDAY,
19 OCTOBER 2007 AT 7.00 PM AT THE INSEAD ASIA CAMPUS

Mr Cees van Lede, Chairman, INSEAD Board,
Mr Claude Janssen, Honorary Chairman, INSEAD Board,
Mr Frank Brown, Dean, INSEAD,
Distinguished guests,
Ladies and Gentlemen,

1 I am delighted to join all of you this evening for the concluding event of the international leadership summit. The theme of your summit is Asia. Asia is indeed going through an exciting transformation. If we can keep the peace for another generation, the growth here will surely change the world.

2. INSEAD Asia has been part of this transformation. The decision to establish the Singapore campus was not without risk. I remember the doubts faculty members had before the decision was made. I was Minister for Trade and Industry then. One day, EDB insisted that I meet some 20 professors. It was an intimidating experience for me as they put me through a viva voce. We are fortunate that INSEAD decided on Singapore in 1999 when we were not yet fully recovered from the Asian Financial Crisis. I believe it was the right decision. In some ways, INSEAD has grown together with Singapore, like us responding to the challenges of the future. The “one school, two campuses” concept has worked well.

4. INSEAD is now a pioneer in higher education. Today, INSEAD has 150 full-time students and over 3,000 executives from more than 50 countries in this campus. In fact, there are more applicants than the school can accommodate. With the campus here as a base, INSEAD has established links to many parts of Asia through its research centres and its partnerships with other institutions. One recent example is the tie-up with Tsinghua University on a joint executive MBA programme. I am not sure who is learning from whom, but both INSEAD and Singapore are globalizing in similar ways to seize new opportunities in the world.

5. The Singapore Government is committed to INSEAD’s success. We share INSEAD’s vision and we see a bright future for INSEAD Asia. INSEAD’s presence has enhanced our Global Schoolhouse programme, which vision is for Singapore to become an international education hub. Under the Global Schoolhouse initiative, we have attracted 16 internationally renowned institutions including the University of Chicago Graduate School of Business, S P Jain and the University of Nevada Las Vegas. For many of these schools, their campus in Singapore is their only one in Asia. Some of these schools, no doubt, learnt from the experience of INSEAD. These institutions help Singapore attract talent from all over the world to learn, play, work and live here.

6. We thank INSEAD for your contribution to our society and wish you continuing success as you near your tenth year in Singapore. As you train successive batches of business leaders, your influence in 21st century Asia will grow in tandem.

George Yeo

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Minister George Yeo's Speech a the China Development Forum, Guangzhou on 12 Oct 2007

SPEECH BY GEORGE YEO, MINISTER FOR FOREIGN AFFAIRS,
SINGAPORE, AT THE CHINA DEVELOPMENT FORUM IN GUANGZHOU ON 12 OCTOBER 2007

WILL CHINA BE ABLE TO EMERGE PEACEFULLY?

1. China's economic development in the last twenty years has been dramatic, raising hundreds of millions of people out of poverty and creating a significant middle class. However, the progress has been uneven with the coastal provinces doing much better than the inland areas. There are still many poor people living in the rural countryside. In the cities, income disparity is also growing. Land acquisition has created considerable social tension. In many places, the environment has been badly damaged.

2. All these problems can be tackled provided there is continuing peace and stability. China has the resources. Its infrastructure has improved beyond recognition. But China needs time to reform its social systems and modernise its culture.

3. The objective of China's foreign policy today is to have as favourable an external environment as possible so that the internal challenges can be gradually overcome. Following the instruction of Deng Xiaoping, China's approach is to keep a low profile internationally and abjure hegemony. In fact, Deng Xiaoping put this point across starkly when he said should one day China seek hegemony, the countries of the world should unite to bring down China.

4. However, China is not a world by itself. In fact, China's rapid development began only after it embarked on a post-Mao reform policy of opening up in 1978. It was only by plugging into the global network that China was able to transform itself, in the process transforming the world. China has become a great trading nation, exporting a large part of its output and importing huge amounts of raw material, beyond anything which Deng Xiaoping could have foreseen and this has created new external problems for China.

5. At one level, there is mercantilist fear – quite widespread - that China is too competitive. It is exporting too much; its trade surplus is excessive; its demand for raw material has raised commodity prices for everyone; it is grabbing energy resources in Africa and elsewhere; its currency is undervalued; and so on.

6. At a higher level, there is a strategic fear that China will become too powerful and eventually threaten other countries. The US as the sole superpower today sees China in that light, even though its public statements say otherwise. Russia, Japan and India worry too. China's neighbours are also concerned that, in their bilateral relations with China, each is too weak to deal with China on any basis of equality. China's centralised system is another source of apprehension because it allows Beijing to mobilise resources and pursue policies in ways which democratic countries find much harder to do. One cannot imagine China having a huge public debate over a major policy issue like the one the US is now having over Iraqi policy.

7. From China's perspective, the picture looks very different. It sees the major powers wanting to slow China down. It sees US and Japanese policies on Taiwan as deliberately postponing reunification as much as possible. It sees the US willingness to bend nuclear rules for India as a move to enlist India into its efforts to contain China. It sees pushing democracy in China as a means to undermine China, complicating both its internal governance and its foreign policy. In the trade field, problems are often politicised and blown out of proportion. The response to CNOOC's attempt at purchasing UNOCAL was alarmist. Lead paint and magnets have overnight cast a shadow not only on China’s toy industry but on all other Chinese products as well.

8. Thus, whether China wishes it or not, it has no choice but to engage the rest of the world and help manage these contradictions. Former US Deputy Secretary of State, now World Bank President, Robert Zoellick, made the case that China has to become 'a responsible stakeholder' in the global system. Indeed, unless China plays this game well, its economic development will be adversely affected. China has become too big to keep a low profile.

9. To the great credit of the Chinese Government, it has maintained admirable strategic discipline, particularly in the maintenance of Sino-American relations. For example, when each new US administration tries to shift its China policy especially on Taiwan, China's response has always been to stay firm but not escalate, gradually forcing the new administration to go back to its old position and we are likely to see a repeat of this in 2009.

10. China was dogged in pursuing its entry into the WTO. The negotiations were very tough but China persisted, never allowing its long-term objective to be deflected. When reports appeared in 2002 of President Jiang Zemin's newly-ordered Boeing 747 being bugged, China kept quiet, at least in public. When the Chinese embassy in Belgrade was destroyed by US missiles in 1999, the Government allowed controlled public demonstrations for about a week so that the Chinese people could vent their anger, and then wound it down.

11. By participating in regional and international organisations like WTO, China creates a better external environment for itself and contributes to global peace. It is better to have endless arguments in the UN and WTO than to settle disputes by force. Both China and small countries like Singapore have a vested interest in a rules-based world where conflicts are resolved in a civilized way.

12. In China's strategic thinking, stabilising the border regions is always a most important priority. In the Nanyang, China went out of its way to build good relations with ASEAN. Premier Zhu Rongji's proposal for a China-ASEAN FTA in the year 2000 was a brilliant move. In the subsequent negotiations, China took a strategic approach and won the goodwill of ASEAN countries. In the South China Sea, China and ASEAN have agreed to resolve boundary problems peacefully and concentrate on joint economic development although Vietnam remains deeply suspicious.

13. In Central Asia, China initiated the Shanghai Cooperation Organisation (SCO) in 2001, acknowledging the strategic position of Russia. The SCO has been quite successful in promoting economic integration in Central Asia and combating the three evils of 'terrorism, separatism and religious extremism'. This year, a huge combined military exercise was conducted with great fanfare and publicity.

14. Northeast Asia is more complicated because of the Korean Peninsula. China has played a key role in the Six-Party Talks. Although the problem of North Korea will take time to resolve, the situation there has become more relaxed in recent months and prospects for peace are much better. China's relations with Japan improved significantly after Shinzo Abe took over as Prime Minister. Reciprocating Prime Minister Abe's gesture of visiting China first, PM Wen Jiabao turned on his charm when he visited Japan a few months ago and under Prime Minister Fukuda, bilateral relations will get better. Both China and South Korea see ASEAN+3, which is ASEAN plus Japan, South Korea and China, as being very important for improved cooperation in Northeast Asia. Japan is however concerned that it should not be confined to ASEAN+3 and wants to promote parallel tracks in APEC (Asia Pacific Economic Cooperation), which includes the US, and the EAS (East Asia Summit), which includes India and Australia as well.

15. In fact, ASEAN, China, Japan and Korea are all happy to pursue these three tracks simultaneously - APEC, EAS and ASEAN+3 - at the same time. The difference is one of emphasis which we can live with.

16. APEC is important because it brings the two sides of the Pacific together. After three terrible wars, the US is completely engaged in our part of the world and should one day the US disengage, it will be a darker and more dangerous world for all of us. APEC is developing well. We had a good meeting in Sydney recently and agreed to consider the possibility of a Free Trade Area Asia-Pacific as a long-tem possibility. The habit of meeting helps us to overcome problems which can suddenly arise.

17. I remember clearly the events after the EP3 spyplane incident over Hainan in April 2001 when Sino-US relations took a sudden plunge and became very tense. Fortunately, there was an APEC Trade Ministers' Meeting scheduled in Shanghai in June. Amb Zoellick was the first US cabinet secretary as USTR to visit China after the incident. He made friendly remarks which were immediately reported back to Beijing. Bilateral relations got better after that and Chinese Commerce Minister Shi Guangsheng and Amb Zoellick reached agreement on China's entry to the WTO after a late-night session. After September 11, the US and China became allies in the war against terrorism. When President Bush flew into Shanghai for the APEC Summit in October 2001, Chinese fighter airplanes escorted Air Force One into Chinese airspace. From April to October, positions turned 180 degrees. Because no relationship in the world is more important than Sino-US relationship, APEC must remain the premier organisation in our region. However, we have to be clear that both Hong Kong and Taiwan participate in APEC as economies and not as countries.

18. Sino-Indian relations will become more important in the coming decades. Historically, there was little political contact between these two great civilizations because of the Himalayas. There was only war between them, in 1962, a war which India lost, which remains a scar in India's psyche today. But bilateral relations have since gotten much better. Last year, the Nathu La Pass between Tibet and Sikkim was reopened after 44 years. The countries of Southeast Asia which are in between China and India, and greatly influenced by them over the centuries, have a strong interest in seeing good relations between these two giants. The East Asia Summit is a forum which brings them together. Both China and India are improving their road and rail links to Southeast Asia which also link them to each other and the present situation in Myanmar is one which concerns both of them.

19. In order to create better conditions for Asia’s integration, India has decided to rebuild the ancient Buddhist university of Nalanda and offer it as a project to improve inter-civilisational understanding and cooperation. Prime Minister Manmohan Singh has proposed this to the East Asia Summit leaders. For hundreds of years, Nalanda attracted students from all over Asia including the great Chinese monks, Fa Xian, Xuan Zang and Yi Jing and the university taught not only Buddhism but also science, mathematics, philosophy and astronomy and other subjects and this project has earned the support of India, Japan and China and the other Southeast Asia countries.

20. Beyond regional organisations, however, China has to play a bigger role in international organisations like the UN and WTO. So far, China's general approach has been to play defence. In the coming years, however, China needs to play a responsible leadership role together with the US, EU and others. Developing countries expect this of China as a leading developing country. If the Doha Round cannot be concluded in the coming months, China must work with the other major trading nations to keep the multilateral trading system going. After all, China is a major beneficiary of the multilateral trading system. On energy security and climate change, China should also play a positive role. At the APEC Business Summit in Sydney recently, President Hu Jintao assured everyone that China will be ‘a responsible country'. This is important because, without the full participation of the US, China and India, there can be no effective action to slow down global warming.

21. There is one other area where China's involvement in global coordination is vital and that is the financial field. Exchange rates, trade surpluses and official reserves are not the only problems. Among the G8 countries, coordination of macro-economic policy and financial management is well-established. Without China's participation, however, many issues cannot be properly addressed. As a stakeholder in the global system, China has both rights and responsibilities. As the stakes are considerable, China should be brought into the G8 earlier rather than later.

22. The wise management of China's external relations will help create favourable conditions for China's economic development and for global peace. As China gains in strategic weight, it is important for the Chinese people to remain mindful of Deng Xiaoping’s advice. Excessive nationalism will add to the fear of China and conscribe China's policy options. For example, how Chinese spectators behave during the coming Olympic Games where billions of eyeballs will be on Beijing will set international views of China for years to come. China is not the sole arbiter of its strategic environment. The other major powers, especially the US, must also be prepared to accommodate China's legitimate interests. So long as these two big players – China and the US - remain on the same table, the game is on for the rest of us. The day when one or the other leaves the table, it will be much more difficult. Keeping the game going is the challenge of China's peaceful emergence in this century.

George Yeo

The Only Game in Town

The Only Game In Town
By George Yeo

1. It was a sad day, that morning at the United Nations, when the ASEAN Foreign Ministers confronted the Myanmar Foreign Minister over the brutal crackdown of demonstrators in Yangon. We had just received reports of automatic weapons being used. The Thai Foreign Minister said to me with great sadness that the killing of Buddhist monks was particularly opprobrius.

2. ASEAN issued a strong statement expressing our horror and our anger. We had been reluctant to do so because Myanmar is a member of the ASEAN family. For some time now, we had stopped trying to defend Myanmar internationally because it became no longer credible. But we refrained from publicly castigating its government. This time, we had no choice. The honour of the family was at stake and the people of Myanmar would not forgive us if we kept silent.

3. When Western countries cheered us for speaking out, it worried us. Strident calls to bring down the regime showed a lack of understanding of the problem. It cannot be assumed that out of the ashes, a new resplendent Myanmar will automatically rise. That the old way persisted in by the military government since 1988 cannot work is clear. But the way forward is not so clear.

4. Like in Indonesia, the Myanmar army played a major role in the founding of the state. It was Aung San Suu Kyi's father, Aung San, who founded that army. He remains a national icon and part of his prestige has passed on to his daughter. Ironically, the institution which her father established became her tormentor.

5. This emotional entanglement is part of the complexity in the Myanmar situation today. After he stepped down, the old leader Ne Win, often suspected of being still a power behind the scenes, would occasionally visit Singapore for medical treatment. Sometimes, he would meet former Prime Ministers Lee Kuan Yew and Goh Chok Tong. Whenever they discussed Aung San Suu Kyi, Ne Win always referred to her as 'my leader's daughter', never in a pejorative way, despite her being an implacable opponent of the military government’s policies. The military leaders know she retains a certain moral authority because of her father and her landslide victory in the 1990 elections. They have to accord her a certain respect. She in turn knows that national reconciliation must involve the military.

6. Achieving national conciliation will not be easy. The military government has been trying to marginalise her and the National League for Democracy without success. The recent demonstrations, especially the large scale involvement of Buddhist monks, have strengthened her hand. Attempts by the government to intimidate the population can only succeed in the short term. However, if either side takes brinksmanship too far, the result will be a great tragedy for the people of Myanmar.

7. The role of United Nations Special Envoy Ibrahim Gambari is crucial. A gifted Nigerian diplomat, he has somehow managed to earn the trust of both sides. That the military leaders allowed him access to Aung San Suu Kyi on two occasions in the past was a sign that they wanted to negotiate, albeit on their terms. That she asked him to continue playing that role showed that she too is prepared to negotiate provided the military leaders are serious. The negotiation will be tough and protracted but it is our best hope for the country. If Gambari fails, the future will be bleak. There are some observers who believe that the issue must be forced now. That point may yet come but we should give peaceful negotiation our best shot. If the Chileans had tried to force the issue with Pinochet, their transition to democracy would have been bathed in blood.

8. The alternative cannot but be violent. Many ethnic groups in Myanmar resent majority Burman rule. While their peace agreement with the Yangon government still holds, a number of these groups are still armed and can easily return to insurgency. The border regions remain largely unpacified. The fact is that without the army playing a major role in any future solution, Myanmar cannot hold together. Historian Thant Myint-U, the grandson of the third UN Secretary General U Thant and no apologist of the regime, warned recently that sudden change in Myanmar can lead to Iraq-type anarchy. It is precisely to win over the minorities that the military government changed the country's name from Burma to Myanmar some years ago. It is however a change that western countries refused to accept in order not to confer legitimacy on the government.

9. Myanmar is a buffer state between China and India. If the country dissolves into civil war, both these giant neighbours will be dragged in willynilly. For this reason, keeping Myanmar in the ASEAN family is in everyone’s best interest including the West’s. When Gambari was dispatched by the UN Secretary General to Myanmar last week with the full authority of the Security Council, we in ASEAN gave him our full support. He is our best bet and the only game in town. China played a helpful role in helping secure the meetings he had. Japan has decided to cut aid but is keeping close to the ASEAN position. The US and Europe are stepping up sanctions against Myanmar. Skilfully done, concerted international action can strengthen Gambari's hand and help bring about a happy outcome.

(c) Global Viewpoint copyright
Los Angeles Times

Singapore - from a foreigner's perspective

My mentor and friend Hock just got back from China and we decided to meet at Westin (Swiss Hotel) last week for a drink.

We met a well-traveled British expatriate, let's call him Peter or Paul, and he was sharing with us his perspective of Singapore. I am often curious what a foreigner really think about us? A Disney-like police state? A safe teletubby land with death sentences? A pseudo micro China? A sterile techno-country runs by bureaucrats trying hard to be cool? A city undergoing a new renaissance? Apart from their amused smile and friendly conversation, what is really inside their heads?

The answer is awfully boring as it turns out. They want a safe place where their kids can grow up, play and learn safely. They want good schools. They want fresh air. They want good food. They want efficient transportation. They want a place where they can access information and the people speak their language. In other words, the foreigners are like you and me.
Peter explained to me why he likes Singapore. He has lived in many cities all over the world and there are many places he would like to visit, party and explore but there are very few places he would like to stay. Singapore is that rare exception. Here is the list of things that he likes/dislikes about Singapore:

1. Food is good and fairly priced here. Sure, you get many exotic varieties in other countries but do you dare to eat street side hawker food? He hardly gets food poisoning here.

2. The physical environment. The air is clean (usually, apart from the annual haze triggered by forest fires in Indonesia) and the sight is beautiful. He asked me when was the last time I stared outside the office’s window. It was a long time ago. My office is at Gateway East which offers a spectacular view of the Marina Bay and yet I have stopped looking out of the window. I have taken the beautiful skyline for granted.

3. Police State. He heard about all the scary tales about Singapore being a POLICE state. He said he hardly sees a police and was actually quite pleased when he spotted one at the MRT after a few days. I joked with him that some of our police officers are Cambridge and Harvard trained and he was not the least surprised. He told me that they are so smartly dressed, speaks well and are polite.

4. Transportation. Sure, it takes 30 minutes to work (compared to 15 minutes a few years ago) in such a small island and he often hears Singaporeans bemoaning about jams and 40-minute car journeys to the office. But hey, have they lived elsewhere in which it takes 1-2 hour just to reach the office and every car slows to an ant-crawl?

5. Language. He has no problem fitting in because he is a British and nearly everyone he meets speak English. Even the cab drivers speaks reasonably good English which is globally rare.

6. Night life. It is there and again, safe. No trouble with the triads, drug lords or skinheads. They hardly exist here. Sure, it is less “fun” than Bangkok and more expensive than Vietnam or even China (ex-Shanghai) but you feel protected.

7. And finally, he hates the non-smoking laws in hotels, pubs and discos, this is one increasingly global rule we need not follow. New York and London have similar restrictions.
It was a fascinating conversation and he was not saying good things about Singapore out of politeness. He also said that increasingly, word got out among his friends and colleagues that Singapore is “like that” and it has become a very attractive proposition to the global citizens.

As a city, Singapore is not without its flaws.  Of course, it helps tremendously if you get a handsome expatriate pay package to stay here. But in Singapore, without really being very special, you can live, work and play comfortably with access to world class infrastructure.
If Douglas Adams is still alive and he were to compile the fictional Hitch Hiker’s Guide to the Galaxy (Special Planet Edition), I think Singapore’s entry will be changed from “Mostly Boring and Always Harmless” to “Pretty Cool and Thankfully Safe”.  That is the kind of attributes that will enable us to become the London of Asia.

As for real estate prices…. bargain housing will be hard to find if this is a trend. You can’t win it all.

Harold Fock

Doing Business in China Version 2.0

Years ago, remember all the horror stories of how the "sacrificial" batch of businessmen pioneers lost money investing in China? (These are all unsubstantiated stories and probably grossly exaggerated.) They were led by the noses, met officials after officials, threw expensive dinners, poured thousands of dollars at the notorious KTV joints and came back with a meaningless MOUs. Just when everything was supposedly in order, they found out that the right approving authority has changed and the "kwan xi" cycle repeats...

That was Business China Version 1.0.

My mentor and business partner just got back from China and he told me the New Business Culture in China,Version 2.0. China big businesses and SMEs have gotten rich so fast, now, they are WORRIED the foreigners are scamming them! As China still lacks a class of ready-made MBAs, CPAs, CFAs (give them 5 years' time and the gap will be filled but there is still a gap now) and lacking a benchmark for returns and profitability (is ROE 20% reasonable when your revenue grow is multifold?), the business class in China now becomes very conservative when dealing with foreigners. Instead of being "burnt in China", now they fear you will be there to burn them. The tables have turned.

Lacking the above local expertise (oh, there is no lack of foreign consultants) and benchmarks, the only way a Chinese businessman trusts you these days is to play for time. They wait for you to show your real intention and core values. They wear you down with meetings after meetings. The meeting topics can range from Eastern philosophy, their family interests, babes, film stars, technologies, politics, gossips and after hours of digression, they suddenly jump back to the business issues. And just when you think you are at the trigger sales point, they "startrek" jump out of the serious topics and talk something irrelevant. It is absolutely crazy but the idea is to see your true colours.

Secondly, there is no lack of investments. Each profitable Chinese company has at least 6-7 term sheets (a term sheet is a one/two-page document listing the financial terms for acquiring the company) on the table. The big US VC, hedge funds, private equities are there. The bigger Chinese firms themselves are buying up smaller firms for consolidation. So there is no lack of offer and deal.

Like any good businessmen, ultimately, the Chinese are looking for ethical, dependable and knowledgeable business partners and investors. And they have to be careful and sharp as the world is full of con-artists with a powerpoint and a crisp business accent. The Chinese way is the slow filtration way and right now - time, resources, connectivity, market and money are on their side. You just have to play their games. That is the new reality. Nothing wrong with that.

I am sure there are netters out there who have different experiences and I welcome them to share on this blog.

Harold Fock

Minister George Yeo's Address at the Confederation of Indian Industries (CII) Dinner

Minister George Yeo's Address at the Confederation of Indian Industries (CII) Dinner

YouTube.com link:

The Future of Play - Random Thoughts at Halo 3 Launch

The Future of Play

As a computer gaming fan, I was at it since the days your could play Space Invaders on the ZX-81 by Sinclair. This is BEFORE Apple II plus. The software was stored in a Cassette Tape (yes, it is true) and you play the Cassette Tape into the computer for 10-15 Minutes (download). And then you start to play some very elementary games on your TV. It was an amazing machine and I knew this is how humans will play in the future. Historically, the first “proper” computer game is Pong but my fondest memory is still the ZX-81, followed by the colour ZX-Spectrum. If you buy computer magazines, the hobbyist magazines will have Commodore, Radio Shack and gaming is never taken seriously in computerdom.

So it is with bittersweet feeling that I attended the launch of Microsoft Xbox360 “Halo 3” at Sun Tec City. Master Chief, the hero of the computer game was there in full battle gear. There were at least 50 LCD panels, plasma screens and gamers queued for hours to get the special edition launch day package. It has become a media blitz event and analysts were reporting US$200 million sales on the first day. Beat any blockbuster movie. It is how humans will want to play and interact in the future.

Two years ago, I had the opportunity to evaluate the potential listing of a gaming company based in Hong Kong. They produce Massive Online Games with Chinese titles. One of their top selling games is based on the Hong Kong Mafia movies. The joke was one day; a few tough guys went into the office and request an audience with the boss. Trembling in fear, the boss went out to meet these real Mafia gangsters. To his surprise the Mafia lieutenant asked the boss if he could PURCHASE a special weapon through the publisher without going thru the levels of character upgrade and quests. As a real Mafia gangster, he could not deal with the fact that he was not really winning the gaming territories in the virtual world! Hence, he decided to do what Mafia does best – he pays and cheats. The boss happily sold the prized virtual weapon to him and so the story goes.

I told my parents that I would list the company on very little fees because this is truly my first love. The deal did not happen as the owners were not ready psychologically to list the company but I enjoyed every minute of it. My parents, being middle-income, were not very supportive of me playing computer games when I should be mugging for my exams and becoming a top scholar. I wanted to score the hat trick, be a scholar and then list a gaming company and laugh my way to the bank but hey, you don’t win all the time.

Hence, it is pretty cool that Singapore now encourages computer gaming developments and IDA/MDA/EDB are all helping to attract global talents to build gaming companies here and encourage local start-ups. Just a few months back, I met an ex-officer and he shared with me this story. He was one of those who made a trip to Korea to see the gaming industry there. He spotted opportunity and came back and told his bosses that this is THE WAY to go. But his weathervaned bosses, lacking foresight, just treated him as an over-excited kid. And now, he shared with me that it is almost with wicked fun to see these same folks scrambling over each other to be part of the pro-gaming industry advocates. But alas, how many humans, particularly desk-bound, paper pushing civil servants, have the kind of vision and foresight, especially when it comes to FUN and COMPUTERS! Nevertheless, it is not too late and I talk to young Singaporeans and they are a creative bunch. Left to their own devices, they will figure something out. The bureaucrats just stay out of their way and don’t be conned by those “hallmark” figures in this industry, and everything would be fine. Encourage free flow of ideas and talents, bring gaming events to Singapore, and there will be a Halo potential somewhere.

For those old enough, amusement parks offering coin-operated arcade machines were at one point banned in Singapore because some officials felt kids playing in arcade shops will turn out to be monsters. Yup, I am sure a few did. But you will end up with a few kids obsessed about designing some kickass characters like SHODAN, MASTER CHIEF etc. And that is how the industry is born. Half-Life, the iconic groundbreaking game was temporarily banned in Singapore because it was considered too violent. Well, my answer to all these pathetic missteps is "Forgive them for they do not know what they are doing". When I interviewed the proprietor of the gaming company, he said this, “You think I am good in school ah.. I spend all my time in the arcade and my school work sucks but that was how I got my ideas to produce online games. If I am good in my school work, think I would be in this industry hahaha…”

Not advocating school dropout behaviour in Beyond SG but it is time we embrace and celebrate diversity. And I am happy to say that this very moment, Singapore finally GOT IT.

Harold Fock