NOT YOUR FATHER'S SINGAPORE: THE CASINO DECISION

UNCLAS SINGAPORE 001197

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: PGOV ECON EFIN SN
SUBJECT: NOT YOUR FATHER'S SINGAPORE: THE CASINO DECISION



1. (U) Summary. Singapore announced today that it will build
two casinos, one downtown and one on Sentosa island. The
long-expected decision caps off a year of public discussion
in which the government has permitted more dissent than
usual, though still with limits. End Summary.


2. (U) Prime Minister Lee Hsien Loong announced today in
Parliament that the government will allow the construction of
two integrated resort complexes that will include casinos --
one in the downtown Marina Bay area and another on Sentosa
island. The two projects are expected to be worth a total of
US$3 billion, according to the Prime Minister. PM Lee's
45-minute explanation of the decision, which came after more
than a year of public discussion, focused on Singapore's need
to reclaim market share in the tourist industry. Stating
that the resorts may create more than 35,000 jobs throughout
the economy, he said that the question had not been whether
to build a casino in Singapore but rather whether the island
nation could afford to turn down a multi-billion dollar
investment simply because it contained a gaming component.


3. (U) PM Lee stressed his respect for many of the arguments
against a casino and announced a number of measures to
minimize potential negative social consequences. One such
step is that Singaporean citizens and permanent residents
will have to pay S$100 (US$60.28) each time they visit.
"Garish" displays on the outside of the casinos will not be
allowed, and a portion of casino profits will be channeled
into charities and efforts to treat gambling addiction.

4.(SBU) The casino debate has been unusual in that the
government has allowed dissenting views to be aired to an
extent that is uncommon here. Senior leaders were frank
about the division of views among cabinet ministers.
Religious groups and opposition parties all announced their
opposition, although many admitted privately that they knew
the government would lift the ban on casinos. Most internet
and talk radio commentary has also been against the idea.


5. (SBU) Comment: The casino is the first high-profile policy
decision clearly identified with Lee Hsien Loong and his new
cabinet. Additionally, it represents a shift in tone from
the more austere approach associated with previous leaders,
including Lee's father, Lee Kuan Yew. Thus, despite the
government's tolerance for more public debate on this issue,
it has also been careful to manage the discussion. Early
calls for a national referendum or a free parliamentary vote
were quickly rejected. A TV special on a
government-controlled channel highlighted the non-gambling
aspects of an integrated resort in Malaysia. Several
prominent political leaders have made their opposition to
casinos public, but each such revelation has been accompanied
by statements of support from other leaders. End comment.
LAVIN