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4. ASEAN REMAINS THE FOCUS OF FOREIGN POLICY. THE SINGAPOREANS HOSTED THE FOURTH ASEAN SUMMIT IN JANUARY 1992, CURRENTLY CHAIR THE ASEAN STANDING COMMITTEE, AND WILL HOST THE NEXT ASEAN POST MINISTERIAL CONFERENCE (PMC) OF ASEAN AND ITS SEVEN DIALOGUE PARTNERS, IN JULY. THEY ARE KEEN TO DEVELOP THE PMC AS THE APPROPRIATE FRAMEWORK FOR CONSIDERATION OF REGIONAL SECURITY ISSUES AND, AT THE JOINT INITIATIVE OF THE ASEANS, ASEAN/PMC SENIOR OFFICIALS (INCLUDING THE UK AS PART OF THE EC TRIOKA) WILL MEET

HERE IN MAY.

5.

AS A SMALL NATION TOTALLY RELIANT ON TRADE, SINGAPORE NEEDS REGIONAL STABILITY. THEY SEE A STRONG AND CREDIBLE US MILITARY PRESENCE IN THE REGION AS THE GUARANTEE OF THAT. BUT THEY FEAR A REDUCTION OF US COMMITMENT TO THE REGION, CREATING A VACUUM WHICH THE LIKES OF CHINA OR JAPAN MIGHT SEEK TO FILL. THE SINGAPOREAN AGREEMENT TO THE ESTABLISHMENT OF A US LOGISTICS FACILITY AT SEMBAWANG, TO REPLACE SOME OF THE SUBIC BAY CAPABILITY, SHOWED THEIR DETERMINATION TO KEEP THE US HERE.

6. THE SINGAPOREANS CONTINUE TO ATTACH IMPORTANCE TO THE FIVE POWER DEFENCE ARRANGEMENTS (FPDA), AND TO THE UK'S COMMITMENT TO THEM. THE DEPLOYMENT OF THE ORIENT 92 TASK FORCE IN SEPTEMBER 1992 WAS A VALUABLE DEMONSTATION OF THE LATTER.

ECONOMIC

7. MR GOODLAD WILL FIND THE SINGAPOREANS FAIRLY BUOYANT ABOUT THE ECONOMY. GROWTH PICKED UP AGAIN IN THE SECOND HALF OF 1992 AFTER TWO YEARS OF DECELERATION, SO THAT GDP IN 1992 ROSE A HEALTHY 5.8 PERCENT. THE FORECAST FOR THIS YEAR IS 6-7 PERCENT. THE GROWTH IS COMING MAINLY FROM A PICK-UP IN DEMAND (MAINLY FROM THE US) FOR ELECTRONIC PRODUCTS, HIGHER SPENDING ON INFRASTRUCTURE, AND RECORD LEVELS OF FOREIGN INVESTMENT. NOTWITHSTANDING RELATIVELY HIGH BUSINESS COSTS AND TIGHTNESS IN THE LABOUR MARKET, INVESTORS CONTINUE TO BE DRAWN TO SINGAPORE FOR ITS POLITICAL STABILITY, EXCELLENT INFRASTRUCTURE AND COMMUNICATIONS, AVAILABILITY OF A POOL OF WELL-MOTIVATED TRAINED LABOUR, AND CLOSENESS TO OTHER DYNAMIC MARKETS.

8. MR GOODLAD WILL FIND THE SINGAPOREANS VERY CONSCIOUS, HOWEVER, THAT THEY CANNOT REST ON THEIR LAURELS. TYPICALLY SINGAPOREAN CAMPAIGNS ARE CURRENTLY UNDER WAY TO MAKE THEM MORE ENTREPRENEURIAL AND MORE ACTIVE IN DEVELOPING OVERSEAS BUSINESS LINKS, ESPECIALLY IN ASIA.

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