Neighbor Leaves Singapore Short of Sand
By WAYNE ARNOLD and THOMAS FULLER
Published: March 16, 2007
Nicky Loh/Reuters
Singapore depends on sand to make concrete for its building boom.
At one construction site last month, a worker rested on a pile
during lunch.
SINGAPORE Some countries have strategic oil reserves; others
stockpile rice or wheat. The island nation of Singapore has
emergency reserves of imported sand.
Singapore depends on sand to make concrete for its building boom.
At one construction site last month, a worker rested on a pile
during lunch.
The sand is there to secure Singapores insatiable demand for
concrete, a reminder of its vulnerability as a nation without a
hinterland to supply it with vital resources.
The government is now being forced to tap its sand hoard after its
usual supplier, Indonesia, abruptly banned exports in February,
citing the impact of a recent Singaporean construction boom on
Indonesian beaches and island environments.
The ban touched off the latest in a string of disputes between
Singapore and its neighbors over water, land reclamation, satellite
concessions, corporate takeovers and the flight patterns of the
Singapore Air Force, just to name a few.
A Malaysian politician has blamed Singapore for worsening floods. A
top politician in Indonesia has sought the recall of Singapores
ambassador there. The general in Thailand who led the coup there
last September has accused Singapore of tapping his phones.
Tiffs between Singapore and its neighbors are nothing new, and
analysts say the latest ones are unlikely to seriously harm
relations. But the analysts say the recent quarrels highlight the
rifts that continue to thwart Southeast Asias ability to compete
collectively against the economies of India and China.
If Singapore and its neighbors cannot agree to share basic
resources like sand and water, they say, the dream of a single
market by 2015 the stated goal of the 10 member countries of the
Association of South East Asian Nations may be illusory.
Theyre more competitive with each other than natural allies,
said Robert Broadfoot, managing director of the Political and
Economic Risk Consultancy in Hong Kong.
The disputes also raise questions about Singapores drive to expand
its investments in the region. Singapores advances appear to be
aggravating what may be described as a personality conflict between
one of the worlds richest countries and its much larger but much
poorer neighbors.
We see Singapore in two ways, said Drajad Wibowo, an Indonesian
legislator. On one hand as a role model for development; on the
other hand, many see Singapore as an arrogant economic giant, which
is prepared to use its financial muscle to undermine neighboring
countries.
Singapores problems with its neighbors are as old as the country
itself, which became independent from Malaysia in 1965.
Singapores leaders took advantage of their citys historic role as
a trading post to lure investment and manufacturing, vaulting it to
the ranks of the worlds most affluent nations within 20 years
and breezing past Malaysia, Indonesia and Thailand along the way.
In his memoirs, Singapores founding prime minister, Lee Kuan Yew,
said his goal was to leapfrog the region, as the Israelis had
done.
With its predominantly Chinese population in a mainly Malay region,
Singapore has become a magnet for ethnic Chinese talent and wealth
from around Southeast Asia.
But while part of the region, it often seems to be apart from it.
In a part of the world where politics are ruled by nuance and
consensus, some people in nearby countries say, Singapore can be
self-servingly rational, legalistic and seemingly tone-deaf to
local sensitivities.
Singapore doesnt really care about the opinion of its neighbors,
Mahathir Mohamad, the former Malaysian prime minister, complained
to a Thai television station in January. Singapore believes the
most important thing is what profits Singapore.
Mr. Broadfoot said, Their values and their efficiency dont export
well.
Singapores officials, for the most part, are not apologetic.
For Singapore, the rule of law and the protection of property are
absolutely important, from the days we were established as a
trading post for the British East India Company, Foreign Minister
George Yeo said in a written response to questions. Why else would
this piece of rock, amidst thousands scattered in the archipelago,
flourish?
In Singapores Parliament, legislators recently complained that the
country was being picked on unfairly. One member blasted efforts by
neighbors to make it a scapegoat for their own domestic
troubles.
But as the disputes accumulate, there are also voices here calling
for a change of approach.
A March 12 editorial in Business Times, which like all Singaporean
newspapers is state controlled, proposed that the governments
investment arm, Temasek, create a charitable foundation. While that
might not eliminate nationalistic responses to Temaseks
activities in the region, the editorial read, giving back rather
than merely extracting profits, legitimate though that may be,
yields a huge payoff for companies in terms of building good will,
respect, networks, and in the end, profitability.
What brought the ban on sand exports from Indonesia is unclear. The
official explanation is damage to the environment there. Indonesia
began restricting exports of sand in 2002 after reports of entire
islands disappearing as Singapore expanded.
But Indonesias maritime affairs minister, Freddy Numberi, later
said the ban was also aimed at pressing Singapore into signing a
longstalled extradition treaty.
Wealthy Indonesians, particularly ethnic Chinese, have long used
Singapore as a haven from their countrys periodic strife.
Indonesians are the leading foreign property owners in Singapore,
and wealthy Indonesians keep as much as $87 billion in Singaporean
banks, according to estimates by Merrill Lynch.
Many Indonesians suspect Singapore of harboring white-collar
criminals, though there have been no publicized cases of fugitives
living here.
Indonesias foreign minister denied the maritime ministers claim,
but Singapore bristled, calling the mixed signals puzzling and
disappointing. Singapore says the two countries have already
agreed that the extradition treaty will be negotiated, together
with a military cooperation pact. Foreign Minister Yeo told
Singapores Parliament recently that an agreement was near.
The confusion over Indonesias policy is only growing, though. In
late February, the Indonesian Navy detained 13 tugboats pulling
barges full of granite, used in concrete, saying it was were
searching for smuggled sand. The speaker of Indonesias Parliament,
Agung Laksono, then urged the recall of Singapores ambassador, in
protest against that countrys unfriendly attitude, according to
Indonesias state news agency, Antara.
Now, with the price of sand nearly triple what it was before the
ban, Singapore is drawing down its sand stockpiles while looking
for new suppliers.
From time to time we must expect other countries will pressure
Singapore in the hope that we will then give way to their demands,
Mr. Yeo told Parliament. Singaporeans know that if we give in to
such pressures we would only invite more such pressures.
Wayne Arnold reported from Singapore, and Thomas Fuller from
Bangkok.
--
http://www.nytimes.com/2007/03/16/world/asia/16singapore.html?_r=1&pagewanted=all
