At one degree north of the equator, tropical Singapore has
become a hotspot known for its efficient infrastructure,
rooftop bars, chilli crab, and host city to the only night race
on the Formula 1 racing calendar.
Often dubbed as the "Monaco of the East", the red dot has beaten a path
to steady economic progress and prosperity since the 1970s.
Much of the city's success can be attributed to the vision of one man - Lee
Kuan Yew, Singapore's first prime minister who died this week . He was
in office from 1959 to 1990.
The tenure made him the world's longest-serving prime minister in history.
Singapore broke away from neighbouring Malaysia and gained independence
in 1965.
About half a century ago, Singapore was an island without any natural
resources to call its own.
Since then, it has pulled off a dramatic transformation - boasting two
casino-integrated resorts and an airport that has frequently topped the
"world's best" list.
In addition, the central business district is crowded with skyscrapers that
rival neighbouring Hong Kong and mid-town Manhattan in far-flung New
York.
Mr Lee was not one to shy away from his achievements for Singapore.
The second volume of his published memoirs carries the title, From Third
World to First: The Singapore Story: 1965-2000.
To help sum up his economic triumphs for the city state, several experts
shared their views on Lee Kuan Yew's economic legacies for Singapore.
THE LEGACY
Attractive destination
Navnita Sarma, Asia editor, Economist Intelligence Unit
Lee Kuan Yew's emphasis on growth, the thrust on making Singapore
attractive as a destination for investment as well as the focus on drawing
world class manpower; building state of the art infrastructure and excellent
air and sea linkages; a low and transparent tax regime; clean and efficient
bureaucracy; a strong regulatory and legal framework; a neutral diplomatic
policy which has ensured it is an ally of the US as well as China; and
developing a clean and green city, have ensured Singapore's stupendous
economic success.
These factors have led to the emergence of Singapore as a powerful and
wealthy financial centre.
Legacy of a luminary
Vishnu Varathan, senior economist, Mizuho Bank
A trained lawyer, this visionary leader was Singapore's chief architect in
harnessing social cohesion despite ethnic and religious diversity; and in
engineering an economic miracle.
His defining economic policy is arguably uncompromising standards for a
universally accessible, top-flight public education system - astutely identifying
human capital as Singapore's key competitive advantage - supplemented with
rigorous application of meritocracy.
This understated principle accelerated economic ascendancy by unleashing the
forces of upward social mobility for all, with little tolerance for complacency
or corruption. Complemented by a fair and transparent judiciary, businesses
thrived.
But above all, Mr Lee's principled approach to nation building forged his
legacy as a luminary.
Unparalleled set-up
Professor Ilian Milhov, dean, INSEAD
Lee Kuan Yew performed a miracle transforming Singapore from one of the
poorest countries in the world in the 1960s to being among the most
advanced today.
His main contribution, and the key to his success, was that he understood
that in order to put Singapore on a sustainable growth trajectory one needs
much more than sound economic policy.
Any policy can be reversed, any incentives for growth can be dismantled.
Mr Lee built a country whose institutional set-up is unparalleled.
This includes the rule of law; efficient government structures; the continuous
fight against corruption; and overall stability.
Immigrant integration
David Kuo, chief executive, The Motley Fool Singapore
Lee Kuan Yew's vision was to build an economically sound country that
would be robust enough for future generations. But he knew Singapore had
limitations.
To achieve his dream, he had to change the mindset of its then population
of around two million people. Singaporeans had to be more welcoming to
immigrants if the country were to grow.
The population needed to expand by continually attracting high-calibre people
who would create employment, bring in much-needed capital and most
importantly, pass on their key skills.
It is thanks to Lee Kuan Yew's vision that Singapore is as welcoming to
immigrants today as it was 50 years ago.
But it is the integration of foreign and home-grown talent that has allowed
the country to enjoy decades of economic growth.
The economic value of every person in Singapore today is as high as that
of the US.
Regional hub
Tony Nash, global vice president, Delta Economics
After the separation from Malaysia, Lee Kuan Yew developed a highly
technocratic government which led to competitive, meritocratic and results-
based economic policies.
Some key decisions were the development of Changi Airport as a regional
transport hub after Singapore outgrew the previous Paya Lebar airport,
which was a state-of-the-art facility when it opened in the 1950s.
The air hub and the aggressive defence of Singapore as a sea freight
trans-shipment hub - as well as the technocratic foundations of
transparency and good governance - led to Singapore's position as a
natural hub for multinational businesses in Asia.
Other key positive economic policies included the Central Provident Fund,
Housing Development Board flat ownership and integrated education, which
all helped Singapore transition from a village setting towards towns and the
highly sophisticated cosmopolitan global city we see today.
THE FUTURE
With such high praises, what does the future hold for Singapore?
Can it sustain the pace of development amid the current economic turbulence
in Europe and while America is still finding its footing for growth?
While some see continued success, others are warning of a changing
landscape.
Bright outlook
Rajiv Biswas, Asia Pacific chief economist, IHS
Singapore is one of the most competitive economies in the world today.
In order to maintain rising wages and improving living standards, Singapore
will continue to transform its economy towards higher-value-added industries
with strong productivity growth.
Key growth drivers for Singapore over the next decade will be Singapore's
role as one of the world's leading financial centres; its competitiveness as a
logistics, shipping and aviation hub; and its role as a regional HQ for global
multinationals.
The long-term outlook for Singapore remains very bright.
Finding balance
Navnita Sarma, Asia editor, Economist Intelligence Unit
There are downside risks to growth which stem from rising income inequality
and restrictions on free speech.
There is an attempt to widen the social security net, which could partially
ease signs of unrest in a local population grappling with the high cost of
living.
The government will have to strike a fine balance between being fiscally
prudent and expanding welfare schemes, in order to retain its high sovereign
ratings.
A population that is social media savvy is also more politically engaged and
this will mean that a higher proportion of younger voters will demand the
right to dissent.
Changing circumstances
Michael Barr, associate professor, Flinders University, Australia
Gradually, the political system and the economic regime put in place by Lee
Kuan Yew will unwind and become less and less effective.
This is partly because of changing circumstances over which Singapore has
no or little control, but also because Lee has left in place a broken system
of elite regeneration.
In short, his system only works with someone as smart and ruthless as Lee
Kuan Yew at the top.
My fear is that his successors might be able to bring themselves to be as
ruthless as Lee, but not as smart. This would be the worst of all worlds.
A better scenario would see a more flexible and open political system that is
less ruthless and has much more public accountability.

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