Coldplay, Ed Sheeran, and now Taylor Swift: Singapore is banking on the entertainment economy to attract tourists, but balancing an open economy with national security proves to be a delicate task at times.
The Taylor Swift phenomenon strikes again. The pop star, who allegedly holds the power to influence U.S. elections, will be performing in Singapore this weekend. The country experienced an unexpected gain as hotel bookings surged by 10% after the event announcement, according to data from hotel analytics firm Smith Travel Research. Flight demand to Singapore also skyrocketed, especially from Southeast Asia.
Taylor Swift, whose Eras tour reportedly generated 4.6 billion U.S. dollars in consumer spending in the U.S. last year, is set to perform in only two Asian countries: Japan and Singapore.
The reasons behind this choice? On February 16th, Thai Prime Minister Srettha Thavisin claimed to have been informed that the Singapore government offered the singer subsidies of up to 3 million dollars for each concert. In return, Swift agreed not to perform in any other Southeast Asian country during the Eras tour.
The Singapore Tourism Board (STB) and the Ministry of Culture, Community, and Youth (MCCY) responded in a joint statement, stating that tourism sectors like hospitality, retail, travel, and dining would likely benefit from the event, as observed in other cities where the pop star has performed.
“Assuming that the majority of concertgoers are flying in from other parts of Asia, the tourism receipts related to Taylor Swift’s tour can come in at S$350 million to S$500 million,” explained Erica Tay, research director at Maybank, as reported by local media.
More tourists, less foreign interference
While part of the country celebrates the arrival of tourists (and capital) for the American star’s concert, some view the influx of visitors with skepticism. This is the case for supporters of a law on foreign interference, passed in 2021.
59-year-old naturalized citizen Chan Man Ping Philip became the first victim of this legislation on Monday; he was designated as a “politically significant person” under foreign interference. The Singapore Ministry of Home Affairs stated that Chan, born in Hong Kong, showed “susceptibility to being influenced by foreign actors, and willingness to advance their interests.”
Though the government did not specify which country’s interests Chan allegedly tried to promote in Singapore, the Hong Kong-born businessman is known for advocating China’s viewpoint. As a Singapore resident, he is now required to annually disclose political donations of 10,000 Singaporean dollars (about USD$7,400) or more, foreign affiliations, and immigration-related benefits received. In 2019, he had already received a warning from the police for facilitating a discussion on a controversial Hong Kong bill, in violation of Singapore’s strict restrictions.
Singapore enacted the Foreign Interference (Countermeasures) Act (FICA) three years ago, facing sharp criticism from human rights advocacy groups such as Amnesty International. They feared the legislation could be used for authoritarian purposes, saying that it “constitutes a brutal attack on the rights to freedom of expression and association, creating yet another tool that can be used arbitrarily by authorities to stifle government critics and crush dissent in the country.”
Trade: 300% of GDP
In 2017, authorities expelled Sino-American academic Huang Jing, considering him an “agent of influence from a foreign country.” The Lee Kuan Yew School of Public Policy professor had his permanent residency revoked for allegedly working with intelligence agencies to influence government policy and public opinion. At the time, he denied being a foreign agent, dismissing the claims as “absurd.”
Non-permanent immigrants make up about 30% of the country’s 5.92 million population, with nearly 75.9% being of Chinese descent, designating it Singapore’s largest ethnic group.
Singapore’s total imports and exports value exceeds 300% of its Gross Domestic Product (GDP), the highest ratio globally. Additionally, the country experienced a 115% increase in visitors last year, rising from 6.3 million in 2022 to 13.6 million in 2023, in a nation with fewer than 6 million inhabitants.
This strategy has paid off for decades, with Singapore positioning itself as one of the world’s most open economies to attract tourists and expatriates, compensating for its limited land and lack of natural resources. Today, the Southeast Asian city-state faces a new challenge – balancing the preservation of its hard-earned success with the need to safeguard against potential foreign interference that may arise due to its openness.
