S'pore prosperity linked to neighbors' health, says PAP

S'pore prosperity linked to neighbors' health, says PAP

SINGAPORE (AFP): Political unrest in Malaysia and Indonesia
could seriously damage Singapore's economic health, the state's
ruling People's Action Party (PAP) has warned.

Singapore's prosperity "will depend not just on its own
efforts but also on the political stability and growth of its
neighbors," The Business Times said, quoting a report by PAP
policy makers.

The report, prepared for a party conference, called for strong
leadership in the face of volatile international and domestic
situations.

It said the Southeast Asian political landscape had become
fluid, with some governments facing grave challenges. Ensuing
instability could reduce the region's attractiveness for
investments and erode business confidence, ultimately affecting
Singapore's prospects, it said.

"Developments in Indonesia and Malaysia, and to a lesser
extent Thailand and the Philippines, will affect the unity and
strength of ASEAN and the prospects for Singapore," the report
said.

In comparison with Southeast Asia, Northeast Asia had
rebounded well from the 1997 regional economic crisis and was
poised to grow strongly, the PAP executive said.

The three dialog partners of the Association of Southeast
Asian Nations (ASEAN), China, Japan and South Korea "are
exploring cooperation amongst themselves," the report said.

"They are also better placed to do well in the new economy.
Their workers are better educated and their population more IT-
literate. The income gap between Northeast Asia and Southeast
Asia will widen."

The PAP central executive, going public for the first time
with a report to the party conference, said Singapore needed
ministers and MPs who could anticipate trends and make sound
decisions.

PAP, in power since Singapore established statehood in 1965,
will continue to look for able Singaporeans to be politicians,
the report said, echoing a theme raised by Prime Minister Goh
Chok Tong and Senior Minister Lee Kuan Yew.

Both Goh and Lee, Singapore's founding father, have complained
recently of a shortage of good leaders and warned of potential
damage to Singapore if they were not found.

Goh, whose speech to the closed-door conference is to be
released later this week, reportedly called for a new vision for
PAP and leaders who can make it a reality, The Straits Times
said.

The weekend meeting was the last ordinary conference for PAP
before the next general election, which has to be held by August
2002.

At the last elections in 1997, PAP won 81 of the 83 seats.