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Go beyond the headlines with insights into one of Asia's most dynamic economies. Delivered weekly.
Go beyond the headlines with insights into one of Asia's most dynamic economies. Delivered weekly.
Go beyond the headlines with insights into one of Asia's most dynamic economies. Delivered weekly.
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This week, Alfred Cang and Rthvika Suvarna detail how Singapore has been impacted by what's happening in the Middle East, Andrea Tan explores the country's obsession with AI, and Josh Xiao visits Joong San for some tofu stew and barley rice.
Costs of a Faraway War
The war in the Middle East is thousands of miles from Singapore's shores. The economic consequences are not.
As fighting escalated and the Strait of Hormuz all but closed to tanker traffic last weekend, Singapore once again felt the limits of its small, deeply globalized economy. The city-state is exposed along nearly every axis that matters: energy, trade, aviation, and financial markets. Deputy Prime Minister Gan Kim Yong signaled the government may revise its economic outlook should the conflict deepen. Senior Minister Lee Hsien Loong was also grim about having a quick end to the crisis. "You can see how the war starts," he said at an event in Singapore, "but it is very hard to tell how the war will end."
Already during the week, petrol prices have risen, stirring angst among taxi and private-hire drivers who'll get less to take home. Homes and businesses are bracing for higher power bills. For travel-loving citizens, a one-way economy ticket flying Singapore Airlines from Heathrow to Singapore has skyrocketed to more than $8,000, a 900% rise compared to fares later in the month amid a scramble for flights. The benchmark STI Index that recently soared to record levels has wobbled along with other bourses as markets worldwide churned, though its move was relatively less drastic.
One of the most direct blows is in Singapore's power sector. The country generates more than 90% of its electricity from liquefied natural gas and last year sourced roughly half of that supply from Qatar. That dependency became acutely visible when Iranian drone strikes hit QatarEnergy's Ras Laffan facility, prompting the world's largest LNG producer to suspend output.
Asian spot prices have already more than doubled to their highest since 2023 after the shutdown, and Singapore will need to compete for a limited amount of gas with buyers elsewhere in Asia and Europe. Some oil refineries in the country may have to cut production.
Oil tanker rates have also surged. Singapore is one of the world's busiest maritime and bunkering hubs, which means rising insurance premiums and vessel rerouting could weigh on port activity and lengthen supply chains. Still, for bunker service providers and brokers in the city, they might sense an opportunity to make money from the upheaval.
When wars ignite, the economic pain they unleash rarely respects geography, especially not for this tiny city-state.
Weekend Catch-Up
A selection of the best of Bloomberg storytelling, from podcasts and video to explainers and feature stories.
- 'OK, time to go': cabs, cash and twisted routes to escape Dubai
- Singapore taps JPMorgan, UBS to push regional gold hub ambition
- Global instability is fueling climate risks, Singapore warns
- Goldman junior banker fashion shoot sets off blame game
- Weekend Essay: China's AI nightmare is an out-of-control welfare state
- Opinion: The Dubai Dream just shattered for South Asians
Watch
- Goldman's David Solomon on Iran, AI and private credit
- Opinion: Can Dubai's status survive the Iran war?
Listen
- Lots more on seaborne chaos around the Persian Gulf
- Bernard Haykel on the three futures for Iran after the strikes
All In on AI
Singapore is locked in on its latest mission. The country unveiled one of the world's first national AI strategies back in 2019. Since then, scores of countries including Ethiopia and Australia have followed suit. While Singapore had a head start, Prime Minister Lawrence Wong is keenly aware that "every leading city in the world today wants to be an AI hub."
Wong has made AI his pet project and is helming a new national council. During his budget speech last month, the premier espoused how AI promises to "raise productivity, unlock new discoveries and transform lives." The premier also addressed concerns over job displacement.
Earlier this week, his ministers took turns to flesh out details of how Singapore plans to equip its population with AI know-how. As Minister for Digital Development and Information Josephine Teo said, "Often, the technology is ready but the people are not." Its efforts run the gamut: exposing students to AI-learning; training professionals such as lawyers and accountants how to be AI-fluent; selectively giving free premium AI subscriptions. The country is even taking the extra step to make sure those in jail aren't left behind.
Training aside, Singapore is conscious it may not have enough top talent in this field to meet the demands of the multitude of international companies with AI operations here. The country—where two in five of its population are non-citizens—is introducing a visa track from 2027 to attract top talent in critical areas such as AI and quantum computing. The criteria to qualify? A salary of at least S$30,000 ($23,500) a month in the past year. It’ll have to compete with the likes of Hong Kong—which has its fast-track tech talent admission scheme—and the UK—which has a similar plan.
Wong has brought up the Greek god Prometheus, who bestowed humanity with the gift of fire, likening it to AI as a similar tool that must be successfully mastered to survive and thrive in a hostile world.
State investor Temasek’s CEO Dilhan Pillay this week told the Bloomberg Invest summit, “Today the reality is that disruption will come sooner than expected before. Therefore, to what extent are companies prepared for that?” Or for that matter, countries and their people.
The Review: Joong San
From the best spots for a business lunch to drinks with the boss, we sample the city's eateries, bars and new experiences.
Singapore doesn't have a shortage of Korean restaurants and the trend is now going into more specialized cuisines. Joong San, a new concept by popular Korean restaurant Um Yong Baek, focuses on tofu stew and buckwheat noodles.
I have been a fan of Um Yong Baek and its other concept Sodeng, so I decided to give Joong San a try, too. Long story short, it was OK.
The vibe.
Consistent with other Um Yong Baek stores, Joong San features a wooden interior look. Once you step in, you are greeted by an open kitchen with steaming stoves and a pancake frying station. Deeper in, a sky window allows natural light to filter in and gives everything a bright look.
Can you conduct a meeting here?
Yes. While there are no private rooms, the tables are seated spaciously apart and cubicles are also available. You can easily do a team dinner or business meeting here, but maybe save your spiciest gossip for another place.
What about a romantic dinner?
Possible. It's a place that you'd take your regular date to, chugging down soju along with barbequed beef, provided you don't mind your clothes smelling a bit smoky afterwards.
What we'd order again.
For lunch, my guest and I had the soft tofu stew (S$24), the soft tofu stew with shrimp (S$24), and the yeontan bulgogi (S$17). They also served complimentary barley rice with vegetables, sesame oil and seaweed before the main dishes arrived. We thought the basic tofu stew was good enough, with the right degree of silkiness, though I personally hoped for a stronger soy taste. The barley rice was fun; you could wrap it in seaweed and chew it down like a rice ball. The grilled pork was decent too, but some might find it a tad too sweet and not smoky enough.
Need to know.
Joong San is located at 28 Stanley St, #01-01, and is open for lunch and dinner except on Sundays. Dinner features Korean BBQ, while lunch is mainly limited to tofu stews and buckwheat noodles. Reservations are welcomed for dinner; while for lunch be sure to get a queue number online first (the queuing starts at 10:30 a.m.). Our lunch was about S$39 per person without alcohol.