Source: bloomberg.com<\/p>\n\n\n\n
Singapore\u2019s Minister of Law and Home Affairs doesn\u2019t believe the island city-state stands to benefit from any instability in Hong Kong, as protests stretch into a third month.<\/p>\n\n\n\n
The rival financial centers are widely seen as investor-friendly havens from which to tap into fast-growing Asian markets. Since\u00a0protests\u00a0started in June, sparked by a proposal to ease extraditions to the mainland, the idea has been mooted that business leaders wary of increased Chinese meddling in Hong Kong could move their money and operations to Singapore.<\/p>\n\n\n\n
\u201cThere\u2019s no profit in seeing instability,\u201d K Shanmugam said in an interview with the South China Morning Post, according to a transcript published on the Ministry of Law\u2019s\u00a0website.<\/p>\n\n\n\n
Singapore benefits from stability across the Asia-Pacific region, including in Hong Kong and China, he said. \u201cAnd if Hong Kong is at odds with China, it\u2019s a problem for everyone, including us.\u201d<\/p>\n\n\n\n
Long competitors for foreign investment, the economic outlooks for both Hong Kong and Singapore have dimmed in tandem amid an ongoing trade war between the U.S. and China, with Hong Kong additionally buffered by the continued unrest. Hong Kong Financial Secretary Paul Chan\u00a0warned\u00a0the Asian financial hub is entering \u201ca very difficult economic environment\u201d as trade declines and growth slows.<\/p>\n\n\n\n
Meanwhile in Singapore, Prime Minister Lee Hsien Loong in his National Day address August 8\u00a0said\u00a0the government would be willing to stimulate the economy if necessary amid a trade-induced slowdown.<\/p>\n\n\n\n
Shanmugam said it would take a lot more than the current protests to make serious investors leave Hong Kong.<\/p>\n\n\n\n
\u201cUnless people become pessimistic about China, I don\u2019t see immediate calculations being made by serious investors,\u201d he said. \u201cPeople with easy ability to transfer money, may do different things. But I think other serious investors understand Hong Kong\u2019s position.\u201d<\/p>\n\n\n\n
China\u2019s ultimate support of Hong Kong will help the city weather the situation, Shanmugam said, an advantage that Singapore doesn\u2019t have.<\/p>\n\n\n\n
\u201cThe general impression that Singaporeans would have is that we are glad this is not happening here, because we are different from Hong Kong,\u201d he said. \u201cWe are different from Hong Kong because we don\u2019t have the same advantages that Hong Kong has. Hong Kong can weather it. Singapore may not be able to weather it.”<\/p>\n