Singapore in Deep Recession: Time for expatriates in Singapore to plan their exit

Singapore has always been a darling of the massive hedge funds and of the western capitalistic empire. This tiny island state has always been portrayed as the "beacon of democracy" in the east, with the hope that other Asian countries will 
buy into the false promises of capitalism.

As such, the western world had poured  billions of dollars into Singapore over the last 50 years in order to create this "Singaporean Economic Miracle" that so many westerners and Singaporeans are so arrogant of.

The Singapore government has also served its masters well.

Its docks served as the lifeline for the American convoys during both the Korean and Vietnam war. Desker Road, the "rest and relaxation" center for American sailors and GIs alike.

These events also explains the rapid development of Sinagpore in its early years despite a complete lack of natural resources. In fact, some academicians in Singapore have shown how significant this was in the book below.

The ugly truth is that Singapore "prospered" from the massacre and suffering of  hundreds of thousands of innocent men, women and children in Korea and Vietnam  for decades in the 50s, 60s and 70s by the American and the western  "democracies".

The Singapore government have never acknowledge this fact, always insisting that  the economic "miracle" was their own ingenuity. As such, the young generation of  Singaporean have developed similar arrogance, devoid of any humility and 
gratitude to those of whose suffering and blood they have now benefited from.

The Newly Industrialising Economies of East

Routledge; 1 edition (1997)
Language English
ISBN-10: 0415097495
ISBN-13: 978-0415097499
(http://books.google.co.uk/books?id=DjKBjuj2ktEC&pg=PA40&lpg=PA40&dq=impact+of+vietnam+war+on+singapore&source=web&ots=BNFm6gsbyA&sig=3xigtwWn0a70gJbQ6xkjdzH1A6M&hl=en&sa=X&oi=book_result&resnum=7&ct=result)

As those of us in the finance world knows, it allowed the hedge funds to use its  financial centre in Shenton Way to devastate the other Asian Economics during the attacks by hedge funds on the Asian currencies and stock markets in the 1997 
Asian Financial Crisis. Many older Malaysians will still remember how CLOB was  used to attack the KLSE and the Malaysian ringgit at the height of the crisis as well.

Singapore was also used as the base to attack the Hang Seng index, an  attack that was only defeated in the end when China threw its weight and huge  foreign  reserves firmly behind the Hong Kong dollar. This led to a frosty spell  in relations between China and  Singapore that has never really thawed completely since. That is also why the Olympic flame came to Malaysia and not Singapore.

These attacks caused massive political and social upheavals in the whole of Asia. Suharto was overthrown, Indonesia's financial and political system collapsed and  the Chinese Indonesians were raped and murdered, their beheaded heads tied to  motorcycles and paraded throughout cities, their homes and business torched to  the ground. Those who survived fled to Malaysia and Penang in particular for  refuge.

This was the price paid for "democracy" as prescribed by the International Monetary Fund. One wonders why they don't take their own medicine now, bailing out all their financial institutions and giant companies like General Motors, Chrysler and the lot. Speaks volumes for transparency, "free market" and "accountability".

South Korea suffered hugely as well. Well established "undemocratic" chaebols"  dismantled and once successful Korean industrial giants become bankrupt and was 
taken over by western companies like General Motors. Many Korean men who become unemployed and could no longer support their families were driven to suicide, jumping off buildings and skyscrapers in Seoul.

The same would have happened to Malaysia if not for the decisive and far sighted vision and courage of one man, Mahathir. One man who was willing to be the  "pariah", internationally and domestically, in order to protect his country and  fellow Malaysians. This is the mark of a true statesman, leading the defense of  the country at the fore in full sight of the enemies guns, unlike others who  hides behind the US State Department, IMF, Hindraf and other NGOs like BERSIH and claiming to be the saviour of the people while instigating riots to divide and  rule all at the same time.

Not many Malaysians realised how close we were to the precipice of  economic and political chaos that would have set back our social, political and  economic development by at least 30 years and led to the financial and political 
colonisation of our country and its people via the International Monetary Fund  and their cronies.

We would also have had a puppet leader installed, the likes of  Thaksin Shinawatra that have been ousted for massive corruption in Thailand and  who is now a convicted criminal on the run.

Many countries in South East Asia  still remain under the yoke and control of the IMF today as a result of the Asian Financial Crisis.

Thanks to the hard work, courage and expertise of the Bank Negara staff and the  National Economic Action Council, Malaysia was saved from ruin. The fiscal easing policy implementation and capital controls were described as "suicidal" by IMF  and the world financial gurus like Warren Buffet, George Soros and the lot.

Today, those with enough insight and humility in the financial world have acknowledged  the wisdom of Malaysian leaders and Bank Negara. We see the strength of our  financial system and economy from their hard work 10 years ago even up to today,  as we continue to have positive economic growth in the last three financial  quarters of 2008 of 7.1%, 6.7% and 4.7% respectively while "great" economies like  US, UK and Singapore slides into full recession.

In fact, Malaysia is still  projected to have at least 3% of growth in 2009 by the Malaysian Institute of  Economic Research.
 
Strangely enough, our own "kampung" experts were correct and not only did we got  out of the financial crisis without any external IMF loans, the same policies are now adopted throughout the western world as they seek to escape drowning  themselves in the biggest financial downturn in the history of capitalism, of  their own making from greed and unbridled "creative" financial practices and  creative accounting.

Throughout the turmoil 1997, Singapore was the only country in Asia whose  currency and stock market was never actively attacked in the same manner by the  huge western hedge funds.
 
Unashamedly, the Singapore government have always claimed in the mass media that  their economic "resilience" was due to "sound economic policy" and a "fully  democratic government" which is completely "transparent" and "free from  corruption".

 The truth is that Singapore is nothing more than a puppet to the  "masters of the world", run as a dictatorship by a single family and their  cronies.

What is the evidence?

Well, the evidence is coming. As the masters are struggling to survive  themselves, the  favoured sons are now left to fend for themselves. This includes individuals like Thaksin and Anwar, and countries like Singapore. We will now see truly how good the Singaporean government is in dealing with a REAL financial crisis without any crutches from its masters. 

We will see how transparent and meritocratic the government really is.

We will also see how "great" Singapore really is without the hundreds of  thousands of expatriates that are the actual innovators and drivers of growth for the Singaporean economy, industry and academic excellence, all lured by the 
strong Singapore dollar.

Singapore was the first country in Asia to be in recession with three quarters of negative growth in 2008. In fact, this happened in September 2008 but was not widely  publicised. The government has begun fiscal easing policies and a massive stimulus package is being planned. The exact same copy-cat policies that we  implemented in 1997 by Malaysia.

The Singapore recession is so severe that for the first time in many years, the  Singapore Monetary Authority is now adopting a "weak Singaporean dollar" policy  in order to try to stimulate export in a rapidly deflating global economy.

I will not be surprised to see the Singapore dollar to continue 
depreciating until it reaches a parity with the Malaysian ringgit in 2009, just  like what has happened to the Euro and British pound.

People would have said that you were crazy if you had said that 1 Euro will be  worth 1 British Pound a year ago. However, that is the reality today.

Foreign Exchange Converter
http://finance.yahoo.com/currency-converter

The economic downturn will have a devastating impact for Singapore due to its  unique demographics in its population. The government has remain steadfast to  date in defending the government policy of encouraging immigration of 
professionals from other country. This really is the key of its success.

However, the underlying disaffection of the native Singaporean towards  "foreigners" and "permanent residents" had remain strong throughout these years  of growth, restrained only by the argument of "the wider public good" and "creating a bigger cake" for all Singaporeans to share. However, the general 
sentiment of intense jealousy seeing the expatriates enjoying the good life  remains, especially in the middle and lower classes whom cannot even afford their  own private property or car.

As job loses mount and the unemployment figures balloon, the government owned  businesses and banks in Singapore will come under pressure to lay-off workers. 

There is no doubt that the pragmatic government will start with unskilled workers first and work his way up the ladder.
Eventually, the government will have to choose between employing the expatriate,  the permanent residence and the native Singaporean worker. There is no doubt who 
will be "let-go" first, as we have seen from the sacking of two Malaysian born  pilots in SIA whom have lived most of their adult life in Singapore in 2003 due  to demands for better working conditions, as an example to the rest of the 
Singaporean pilots who were thinking of dissent.

We will then also see how truly "meritocratic" Singapore is when it has to choose between the Singapore permanent residents and the native Singaporeans. Hopefully, the permanent residents would not have burnt all their bridges to their country  of birth when the Singapore government decides to choose the later, as it rightly should, and lead the country into more economic ruin with the inevitable lost of foreign  skilled and professional workers.

Regardless of the outcome, Singaporeans will learn to have some humility and face the reality that its success is heavily dependent on the goodwill and expertise of hundreds of thousands of non-Singaporean citizens as the recession deepens in Singapore.

Hidup Malaysiaku!!!

Saturday January 3, 2009
Singapore’s recession deepens
(http://biz.thestar.com.my/news/story.asp?file=/2009/1/3/business/2933248&sec=business)

Singapore slips further into recession
January 2, 2009 - 2:21PM
(http://business.theage.com.au/business/singapore-slips-further-into-recession-20090102-78wj.html)

Singapore, in Recession, Ends Currency Gain Policy
(http://www.bloomberg.com/apps/news?pid=20601087&sid=aCfJDzdRR1ls&refer=home)

Singapore slides into recession

Economy heavily dependent on exports to developed world is one of the first in 
Asia to be 
hit by global slowdown
Angela Balakrishnan
guardian.co.uk, Friday 10 October 2008 11.35 BST

(http://www.guardian.co.uk/business/2008/oct/10/creditcrunch-marketturmoil1)

 
Singapore’s recession this year may be the worst in its 43- year history
(http://www.bloomberg.com/apps/news?pid=20601087&sid=a1zsowuHX_10&refer=home)

Singapore Asia’s first economy in recession
AFP Published:Oct 10, 2008
(http://www.thetimes.co.za/SpecialReports/USElections/Article.aspx?id=860598)

Singapore officially in recession
(http://news.bbc.co.uk/2/hi/business/7741086.stm)