“The security forces here are very tough,” said Haywood Blakemore, a partner of White and Case International Lawyers based in Singapore. “The emergency runway? A few years ago it was seen as kind of silly; today it makes sense.”

For years, Singapore has been saddled with the reputation of being a superefficient, strictly controlled, somewhat sterile place where law and order are paramount. Ask an outsider what they know about Singapore, and they invariably tell you it’s illegal to chew gum (in fact, you can chew it, you just can’t buy or sell it), and about the tough fines and punishments for jaywalking, or littering pavements. They laugh about the name-and-shame campaign implemented by the government to stop people leaving public toilets unflushed (habits quickly changed when culprits’ photos were printed in newspapers).

They might even go so far as to describe the government as a dictatorship, instilling paranoia among its people and denying them their personal freedom. Famously referred to as “Disneyland with the death penalty” by writer William Gibson, Singapore has had its fair share of criticism.

Now, regardless of whether or not they are justified, such “criticisms” could ironically become Singapore’s virtues as it looks for ways to distance itself from the safety concerns and instability associated with Southeast Asia. In today’s uncertain climate, surely a tightly controlled, law-abiding and highly security-conscious state looks to be a better prospect than an uncontrolled, volatile, vulnerable one.

After the Bali bombing, Australia, North America, the UK and other European countries stepped up travel warnings to the region, not only affecting tourism but also putting doubts into the minds of business visitors and potential investors. Dismissed by the region’s leaders as unnecessary political knee-jerk reactions, these tough travel advisories—and the publicity surrounding them—are taking their toll.

Singapore’s economy, which relies heavily on the United States and Japan, was already feeling the strain. Even before the Bali bombs, growth figures for this trade-dependent state prompted fears that Singapore is heading back into a recession. Although the 3.7- percent growth from July to September 2002 might be respectable by European standards, it was well down on the 7 percent-plus that economists were expecting.

Unemployment, meanwhile, grew to 4.8 percent in September 2002, higher than the levels seen during the Asian crisis. Economists say manufacturers are either cutting back their Singapore operations or pulling out. A survey by the Singapore Confederation of Industries in September found that 44 percent of respondents were considering relocating.

Long adept at wooing investments from Western and Japanese multinationals, Singapore’s Economic Development Board has now turned its attentions to China, hoping to persuade Chinese businesses to use Singapore as a springboard to overseas markets. In October, the government cut the time it takes Chinese nationals to get a business visa from two weeks to three days and introduced multiple-entry passes for Chinese tourists.

The island’s 4 million population are predominantly ethnic Chinese, so firms from mainland China find it culturally comfortable to operate here. They also benefit from free-trade agreements between Singapore and Australia, Japan and New Zealand, and another with the United States, which was expected to be signed in the near future as BT went to press.

Despite the stronger focus on China, Singapore is still keen to attract so-called “foreign talent” (skilled professionals from the West who can share their knowledge and expertise with locals). “There has been a strong push to bring in international people, particularly in IT and other knowledge-based industries, and keep that flow of talented people,” said Ray Bigger, who is setting up a regional hub for Claviga Consulting and Training.

The government has made it easy to relocate to Singapore. In six months you can apply to be a permanent resident, qualifying for certain tax benefits. In Hong Kong, it takes at least seven years. Often compared to Hong Kong, Singapore fares better in many respects for international visitors. The cost of living is relatively cheaper, there is less traffic and the level of English is higher.

When it comes to doing business, Singaporeans are also easier to deal with, according to Bigger, who has worked in both environments. “I find Singaporeans are more flexible and open. In Hong Kong, staff are more respectful of the boss and will not question anything. They tend to say they agree, even if they don’t. But in Singapore, employees participate more and express their opinion, which makes it much easier.

“In Hong Kong there is a strong ‘them and us’ culture, whereas expats in Singapore are more likely to have local friends and will not feel so excluded.” However, even the city’s biggest fans admit that it still lacks the buzz and vibrancy of Hong Kong, and this can sometimes put off young, single professionals.

But the entertainment scene has come a long way, with an influx of top restaurants, funky bars and nightclubs, and, most recently, a major new performing arts complex, Esplanade.

“Singapore has created a culture and arts scene. Some say they bought it, but so what if they did? They are playing catch up, and they’re doing a good job,” said Joanne Blakemore, president of the American Association of Singapore. “They have created a society based on economic success; now they’ve got to create the other part.”

Whatever its current economic problems, the impressive Esplanade is a clear symbol of Singapore’s deep pockets. Under the leadership of its forward-thinking and much-admired prime minister, Goh Chok Tong, if there’s any Southeast Asian nation equipped to ride the storm, it’s Singapore.