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.