Investors unlikely to be rattled by DPM Heng's decision

Singapore

INVESTORS are unlikely to be rattled by Deputy Prime Minister Heng Swee Keat's surprise withdrawal from the running as Singapore's next Prime Minister, watchers believe.

"In terms of instability, there will be none," political analyst Felix Tan told The Business Times. "The country will run as per normal, business will run as usual."

The confidence was in line with reassurances by Singapore's political leadership on Thursday, as Minister for Trade and Industry Chan Chun Sing suggested that investors can continue to expect coherence, continuity and stability in the country.

"Notwithstanding the latest developments, the team, the system, the plans, the processes, the policies are all still in place to provide that continuity and stability," Mr Chan told a press conference at the Istana, after a question on how the leadership succession shake-up might affect foreign investment and relations.

He added that Singapore will continue its efforts as a "safe harbour" for investors to mobilise capital, pool talent and protect intellectual property.

Even as Singapore International Chamber of Commerce chief executive Victor Mills called Mr Heng's plans surprising, he still told BT: "Businesses do not need reassurance. They know the political team is in place."

Indeed, Mr Chan noted that Singapore's top leaders - the Prime Minister, senior ministers and other Cabinet members - "are all still around".

"Because we have developed those plans collectively, I think the investors can continue to expect coherence and continuity in our approach," he said, while adding that investors will be convinced by both the leadership's teamwork and its "laser-sharp focus on delivery of our promises".

Chris Humphrey, executive director of the EU-Asean Business Council, called the government "strong with a clear agenda which the whole of the ministerial team buys into".

"The rest of the 4G (fourth-generation) team knows what is needed, and there will be little concern about future direction for the business community," he said.

Though he described Mr Heng's inability to become Singapore's fourth prime minister as "a loss for the country", Mr Humphrey added: "If he remains a minister, his knowledge and skills will not be lost, and the other 4G leaders are more than capable to lead Singapore forward."

Mr Heng will remain Deputy Prime Minister and Coordinating Minister for Economic Policies, but will relinquish the post of Minister for Finance at the next Cabinet reshuffle, which is expected to take place in two weeks.

Prime Minister Lee Hsien Loong also stressed that the national leadership team remains unchanged, with his foreign counterparts still "dealing with the same people".

Foreign players will look "not so much whether there is what we would call a relief in place... but what are the outcomes in terms of persons in charge, quality and the direction for the country," Mr Lee added.

Said the Prime Minister: "That is what we must make sure we can maintain and keep stable, while working through the succession process."

Meanwhile, Mr Chan named clear succession planning and policy coherence and consistency as "hallmarks of our system" that have attracted long-term investors. His team has chosen to be upfront with investors and foreign counterparts to "minimise any unwarranted speculation" about Singapore's circumstances, he said.

But Dr Tan, who is currently based at the Nanyang Technological University, noted that questions of "long-term sustainability" remain, as the 4G team faces pressure to choose a new frontrunner before the next general election.

Mr Heng's replacement must have both domestic support and international recognition, "not just to push through policies but also to sustain existing policies", he said.

"Who among the 4G leaders has that sort of presence?"

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