US embassy cable - 05SINGAPORE1197

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