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The Straits Times, Friday Matters, 11 Nov 04

Casino decision: A bigger question looms
By Alex Au

AS THE casino question drags on, it is raising questions about the Singapore model. It's been a while since the idea was raised, and we appear no nearer to a decision.

Meanwhile, Macau opened a new Vegas-style casino, and Guam and the Northern Marianas are said to be readying plans for their own. Clearly, others believe that as China liberalises travel for citizens, there will be demand for regional gaming holidays.

An open and shut case, you might think, but in Singapore, it looks like a case of paralysis. For decades, the Government was dead set against a casino. Despite hordes at the Turf Club and Toto booths, we were supposed to be a puritan society that believed in discipline and hard work.

Then, out of the blue, the possibility of a casino was raised. Why? Tourism was in crisis. It was finally admitted, after years of boasting about increasing numbers coming to Singapore, that our dollar share of Asia-Pacific travel had been falling dramatically. Between 1993 and 2002, tourism receipts fell by 21 per cent to $8.8 billion. Singapore's share of East Asia Pacific tourism receipts fell from 8.2 per cent to 5.8 per cent between 1998 and 2002.

For a people fed a steady diet of economic success stories, this was a disgraceful admission. Among remedies suggested was that of a casino. That's where we were a year ago, and that's still about where we are today - an idea.

In the months since, voices were raised against admitting this evil into Singapore. Most focused on the social costs: addiction sets in; families are ruined. Surveying letters in the press, there have perhaps been more anti- than pro-casino letters. Moreover, those opposed to gambling tend to be more ardent in their views than those on the other side.

If left to popular opinion, we're not likely to see a casino approved. Yet there may be a lobby within the Government convinced that we need one. But that lobby appears unable to obtain the necessary consensus to move ahead. It wrong-footed itself at the outset by using the justification of attracting tourist dollars. Although honest, it was a weak argument for public consumption when set against opposition that was emotional, complete with images of social blight and religious damnation.

Then, in an effort to pacify opponents, the idea of denying citizens access, except for the rich, was floated. That way, we earn tourist dollars without low-brow Singaporeans succumbing to temptation. Immediately, the pro-casino bureaucrats lost the support of the tens of thousands of eager punters locally, who might otherwise have helped push forward the plan.

More recently, Prime Minister Lee Hsien Loong tried to appear neutral. He said, yes, there are social costs, but there are economic benefits. Can we find a way to manage the social costs? Can we be convinced the economic benefits will outweigh the costs?

At this point, the casino question mutates into a question about a Singapore model. The PM's musing assumed that costs and benefits are calculable; that a technocratic answer can be found. What if they are not? How will the question ever be resolved?

Equally, I thought the PM's reformulation of the casino question ran counter to the Government's calls for more risk-taking and entrepreneurial adventures. Sometimes, you have to go on a hunch. You can't take your own sweet time to calculate cost-benefit to the nth degree. Nor can you wait until the profitability of a concept is proven by someone else. If so, he's ahead of you in the game.

The external environment is extremely fluid. How fast will China's market open up? How fast will competitors open their casino doors? Do we stop at one? Conversely, how many here will lose self-control? How many families will suffer? How do we have any faith in theoretical projections? If we are fazed by all these risks and unknowns and say 'no' to the idea, what about those budget airlines that make it ever cheaper to fly to a neighbouring country endowed with gambling options? What about Internet gambling? Won't we then still have the social costs of gambling without the economic benefits of such an industry?

That last question hits the nail on the head. It matters not what the cost-benefit ratio is. The cost is coming to us anyway. You don't need a technocrat to see the answer.

The other aspect of the Singapore model being shown up is our decades-long embrace of morality and social order. We had campaigns against yellow culture and hippie-ism. We've been disparaging play, escapism and individualism as antithetical to the discipline and self-sacrifice that have underpinned Singapore's success.

Now we want a casino? We're going to disown four decades of belief to hook more tourists? No wonder the idea's stuck. We've been brought up to believe that the Singapore model - ruthlessly rational and socially puritan - delivers results. But now, it's leading us to paralysis.

So the question may well be bigger than just that of a casino. Does the Singapore model itself need to be re-examined?

Alex Au Wai Pang is a social commentator. Chua Mui Hoong alternates with guest writers in this weekly column.


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