Lee Kuan Yew. (Munshi Ahmed / Bloomberg)
Lee Kuan Yew. (Munshi Ahmed / Bloomberg)
Lee Kuan Yew. (Munshi Ahmed / Bloomberg)
Lee Kuan Yew. (Munshi Ahmed / Bloomberg)

Lee Kuan Yew’s place in history is guaranteed


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Some years ago I reviewed the third in a curious series of books called Giants of Asia for this newspaper. The interviewing style of the author, US academic Tom Plate, was certainly unusual, by being unremittingly sycophantic. But he was right about the status of his subjects, former leaders of East Asian states. They were indeed “giants”, and none more so than Lee Kuan Yew, Singapore’s founding father.

It has been necessary this past week to contemplate life without Mr Lee, as he has been on life support in hospital (his death was also erroneously reported). And it has been hard.

Mr Lee was one of the very last of the post-independence leaders whose dominant personalities transcended the countries they ruled. One thinks of the “big men” of Africa – Kwame Nkrumah of Ghana, Kenneth Kaunda of Zambia or Jomo Kenyatta of Kenya. In Asia, Indonesia’s Sukarno, Ne Win in Burma (as it still was during his time) and Ferdinand Marcos in the Philippines come to mind.

But Lee Kuan Yew differed from them in two crucial aspects. First, he outlasted them in office and in life. Mr Lee led Singapore as prime minister from 1959 to 1990, and went on to play an influential role as senior minister (1990-2004) under his successor, Goh Chok Tong, and then minister mentor (2004-2011) under the state’s third premier, his son Lee Hsieng Loong.

Second, he was prodigiously successful, which most of his contemporaries were not. Too many came to power as nationalist independence heroes, fully committed to socialism and the ballot box, but within a few years had managed to become “presidents for life”, while their friends and family had accumulated assets not entirely consistent with their professions of left wing beliefs. Their economies, sadly, also too often ended up ruined, while a plutocratic elite still found the dollars for Cadillacs, mansions and expensive western educations for their children.

Mr Lee, on the other hand, unlike those leaders who trumpeted the virtues of democracy while mysteriously winning around 99 per cent in the polls, long made his contempt for one man, one vote clear.

There have always been parliamentary elections in Singapore, but Mr Lee made his doubts plain about the whole system, declaring in a 1990 speech: “With few exceptions, democracy has not brought good government to new developing countries ... westerners value the freedoms and liberties of the individual. As an Asian of Chinese cultural background, my values are for a government which is honest, effective and efficient.”

The great difference with Lee Kuan Yew was that he was astonishingly successful. This, despite the fact that he became a national leader by mishap, or certainly not by his own intention. British rule ended in Singapore when it joined with the already independent Federation of Malaya and the North Borneo states of Sarawak and Sabah in 1963. Two years later, Singapore had been kicked out of Malaysia, and the circumstances were not propitious.

The economy, wrote Mr Lee in his autobiography, was one of his biggest headaches. “We had to make extraordinary efforts to become a tightly knit, rugged and adaptable people who could do things better and cheaper than our neighbours, because they wanted to bypass us.”

What he managed to achieve in Singapore is justly reflected in the title of the second volume of his memoirs: From Third World to First.

Mr Lee’s Singapore was always business-friendly and pragmatic, and he has been consistently unapologetic about the constraints on individual liberty and free speech he considered necessary for the country to progress. Questioned by a BBC reporter about the infamous ban on chewing gum, he replied: “If you can’t think because you can’t chew, try a banana.”

For those brave enough to come out as opponents, life has not been comfortable. And a Singaporean joke concerning an engineer named Lingam suggests that the populace is well aware of the pact they have apparently made over freedom versus development.

Lingam, so the joke goes, applies to move to Malaysia permanently. The Singaporean cabinet is shocked and sets up a task force to investigate. They ask him a series of questions: Why does he want to leave? Does he have any complaints about his job, his salary, his housing, or his children’s schooling?

“No,” Lingam says. “I have no complaints.”

So why, they ask, is he migrating to Malaysia?

“Ah,” he replies, “there I can complain.”

Fair enough. But to older generations of Singaporeans, the transformation they have witnessed conquers all. “If you knew what the country was like when we became independent,” is a familiar refrain. Few will hear anything said against Mr Lee.

Singapore is changing. Mr Lee himself has predicted a time when his ruling PAP will not be in power and the country may well loosen up eventually in all sorts of ways, including allowing the unfettered chewing of gum (although one may well ask what kind of advance that would constitute). But his place in history is assured.

Many others of his era eschewed democracy and tried to become Platonic benevolent despots, but their despotism always ended up exceeding their benevolence and their economic plans ended as dust. Lee Kuan Yew was unique in combining both qualities. If I say we will not see his like again, some may be glad – but modern Singapore is his legacy, his epitaph. I suspect that will suffice.

Sholto Byrnes is a senior fellow at the Institute of Strategic and International Studies, Malaysia

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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