Yesterday, we reported that Dubai is relooking its growth model (under Blame GKS?), sumething that the S’pore govmin is complacently not doing.
But let’s to fair to the S’pore government by pointing out that S’pore doesn’t have the debt problems of Dubai.
According to FT: [T]he state-owned DW [Dubai World] is close to sealing an agreement on restructuring $23.5bn in debts.
Dubai’s state-backed companies face annual debt repayments of $15bn-$20bn. Analysts say the limited ability to raise funds suggests that further debt restructurings, causing pain to domestic and international lenders, are likely …
The government is set to turn its attention next to Dubai Holding, a conglomerate owned by the ruler, which has around $12bn in debts. Its investment companies, say analysts, could receive government support and are already in talks with banks for a rescheduling of debt.
The moral of the story: The PAP government is no different from other governments; radical change will only come when things go badly wrong. One LKY is still around from 1959. The youngest cabinet ministers are three generations his junior. GCT has been around since the 1970s and the PM since the mid 1980s. In 1959, Eisenhower was the US president, in the early 70s Nixon, and in the mid-80s the president was Reagan. All three presidents are dead.