Singapore readies next set of leaders

Subject Post-election outlook for Singapore. Significance The September 28 cabinet reshuffle is designed to emphasise policy continuity for markets and Singaporeans. The People's Action Party's (PAP) decisive victory in the September 11 national elections halted the opposition's upwards momentum from the 2011's election. Prime Minister Lee Hsien Loong's focus now is on his legacy and succession. Impacts Greater coordination of government operations and policy could see intra-government spats, potentially complicating policy implementation. Improving transport infrastructure, reducing foreign labour and bolstering the middle class will be government priorities. The opposition may need a more formal agreement, perhaps a coalition, to regain political momentum.

Subject The future of secularism in of Turkey. Significance The speaker of the Grand National Assembly, Ismail Kahraman, provoked uproar on April 25 when he called for secularism to be dropped from the proposed (but as yet unpublished) new constitution. There were instant protests and demonstrations by middle-class opponents and, perhaps more surprisingly, President Recep Tayyip Erdogan and Prime Minister Ahmet Davutoglu. Both rejected the idea that secularism -- which has featured in the Turkish constitution since 1928 -- should be discarded. Impacts Society's pro-Western orientation is being slowly eroded, and latent hostility to the United States and United Kingdom is growing. Turkey's main secular universities -- Bosphorus (Bogazici) and Middle East Technical -- are under increasing pressure to change. Government preference for Middle Eastern, especially Saudi and Qatari, business partners and investors will continue.


Significance The kingdom's Vision 2030 strategy identifies tourism as one of the sectors key to plans to diversify the economy away from oil. Saudi Arabia aims to develop the underdeveloped tourism sector, and increase its contribution to GDP from 2.9% in 2015 to 3.1% by 2020. The focus is primarily on encouraging Saudi citizens to holiday at home, but also targets foreign visitors, particularly the 7 million Muslim pilgrims that visit annually. Impacts Development may be slowed by red tape, lack of sufficient finance and underdeveloped transport infrastructure. The tourism sector will offer opportunities to foreign investors, especially construction, entertainment, transport and consultancy firms. Tourism sector expansion would reduce youth unemployment and dependence on foreign labour.


Subject Belize election outlook. Significance Belize will hold national elections this year, with Prime Minister Dean Barrow set to run for a fourth term in office. The opposition will seek to attack him on issues of crime, migration and weak economic growth. However, his ruling United Democratic Party (UDP) is popular, especially following its victorious campaign in a May 2019 referendum on the country’s territorial dispute with Guatemala. Impacts Increased police funding should bring more officers onto the force in 2020. Migration trends across Central America will impact Belize, as both a destination and transit country. Taiwan will look to increase funding for Belize following the loss of diplomatic support from several other countries in the region.


Subject Tourism outlook. Significance The tourism and leisure sectors are major employers in the Indian economy, accounting for 12.4% of employment and contributing an estimated 7.0% of GDP in 2014. Foreign tourism is the third-largest foreign exchange earner (generating 18.4 billion dollars in 2013) and among the top ten sectors for attracting foreign direct investment (FDI). Accordingly, the 2015-16 budget identified tourism as a key part of Prime Minister Narendra Modi's as yet unclear 'Make in India' campaign, expanded its budget and offered new measures to support it. Impacts The decline of the Russian economy will adversely affect Indian tourism, especially in key destination states such as Goa. Inadequate policy attention to women's safety will deter both domestic and foreign travellers. Domestic tourism will be fostered by the weak rupee and the impact of the financial crisis on Western tourists.


Subject Anti-Dalit violence -- and its impact on politics and Modi's prospects. Significance Cow protection vigilante groups connected with Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) have carried out a slew of violent attacks against Dalits (low castes) in recent months, the latest in Modi's home-state of Gujarat in July. Clumsy handling of the attacks has provoked a backlash on the streets and in parliament, forcing Modi into a public condemnation of these vigilantes and the ouster of Gujarat's BJP Chief Minister Anandi Patel. Impacts Reducing caste discrimination is key to promoting truly inclusive development in India. Losing the Dalit vote-base would harm the BJP's prospects in the 2019 national elections. Anti-Dalit atrocities, now widely publicised through social media, damage India's reputation among investors.


Subject Outlook for Singapore's 2015 general election. Significance Singapore will hold a general election on September 11, its first since the death of the city-state's founding father, Lee Kuan Yew. Prime Minister Lee Hsien Loong has braced his long-incumbent People's Action Party (PAP) for a more difficult contest at the polls than in 2011, with opposition parties expected to better the 10% share of parliamentary seats they held on the dissolution of parliament on August 25. Impacts The People's Action Party will need to define a post-Lee Kuan Yew legacy. The post-September government will need to balance popular concern over foreign workers with Singapore's need for labour. Singaporean electoral politics will become increasingly competitive.


Significance Prime Minister Binyamin Netanyahu formed a new government with a razor thin majority of religious parties on May 6. Under the coalition deal, secured just hours before the expiry of a constitutional deadline, Netanyahu has the support of 61 Knesset members (out of 120), the minimum requirement to form a government. His fourth administration is one of the most religious and nationalist in Israel's history. It includes the Likud breakaway party Kulanu (ten seats), the religious-nationalist Jewish Home party (eight seats) and two ultra-Orthodox parties that had been frozen out of the last coalition. Impacts Netanyahu will seek to pass controversial bills including legislation defining Israel as a Jewish state and laws weakening the high court. A narrow government will lack the consensus and power to govern effectively and will remain hostage to individual party interests. Economic reforms will aim at increasing competition and lowering prices for the middle class. International initiatives to recognise Palestinian statehood and implement boycotts, divestments, and sanctions could accelerate.


Subject Middle-class economic and political aspirations. Significance Prime Minister Narendra Modi's government came to power in 2014 with strong support from middle-class voters, drawn by his development and good governance rhetoric. This promised to move stalled middle-class aspirations forward, after the economy slowed from 2011. Whether Modi can deliver on his promises of a revived economy and middle-class employment opportunities will determine his government's political fortunes in the medium term. A secure middle class able to spend and invest is also key to reviving the economy. Impacts Manufacturing has the greatest job-creation potential, but the government has yet to advance a concrete strategy to achieve this. Growth of middle-class jobs in service industries is likely to become even more regionally skewed. Middle-class voters frustrated with national parties will switch allegiances, scuppering BJP hopes for one-party dominance.


Significance The victories indicate that Prime Minister Najib Razak's recent political troubles, especially surrounding 1Malaysia Development Berhad (1MDB), are not hampering the BN electorally. However, pre-election moves by the United Malays National Organisation (UMNO), one of the BN's leading parties, to advance legislation enhancing the power of Shariah courts are exacerbating tensions between Muslims and non-Muslims. Impacts If the BN gets too close to the PAS, further East Malaysian devolution may be needed, possibly fuelling secession calls. Support for Najib is now more likely to hold ahead of 2018 national elections; early elections are unlikely. Gradual Malaysian Islamisation will see halal commercial opportunities grow, but also socio-political polarisation.


Significance In its wake, the cabinet under Prime Minister Fumio Kishida announced a record JPY55.7tn (USD490bn) economic relief package, billed as a step toward a 'live with corona' world in which the disease is endemic but does not disrupt the economy. Impacts Pent-up demand may increase sales of manufactured consumer goods. Restrictions on foreign labour will be eased, which will increase the foreign workforce once pandemic-related entry restrictions are lifted. Auto industry recovery and manufacturing revival more broadly also support a positive outlook as supply shortages appear to be resolving.


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