Hosting a Trump-Kim summit is not any easy feat for a small country like Singapore – and it’s actually not an inexpensive undertaking, all things considered.
During a visit to the International Media Centre on Sunday (June 10), Prime Minister Lee Hsien Loong told Singaporean media that the fee of the summit could be about 20 million Singapore dollars.
Mr Lee also said footing the bill was a part of Singapore’s contribution to a global enterprise that was “in our deepest interest” and that the country was willing to bear the fee.
He added that about half of the multi-million dollar sum could be spent on security, although the precise amount couldn’t be determined because much of the safety consists of existing assets which are already in constant use.
Mr Lee said that given the prestige of the summit and the problems discussed, the bar this time must be set much higher when it comes to security standards in comparison with previous meetings of world leaders.
Noting the potential for recouping among the costs incurred, he said: “If you place a price on the whole lot on this world, you’ll miss what is actually necessary.”
“And in this case, the most important thing is that the summit takes place, and we are organizing it not extravagantly, but with due consideration of costs, while ensuring that operational requirements are met.”
In addition to security costs, a big a part of the fee is the accommodation of some 2,500 journalists who will cover the summit on the international media centre within the F1 Pit Building. According to the Ministry of Communications and Information, it will cost around 5 million Singapore dollars.
Asked why Singapore agreed to host the Trump-Kim summit, Mr Lee explained that the US and North Korea first needed to agree on a venue that met their requirements and was politically and diplomatically acceptable to each side.
He said: “That’s why when each side asked us to arrange a gathering, we couldn’t refuse. We must get entangled. I believe we will do it. We must put some resources into it, but we will do job.”
Moreover, in response to Mr Lee, allowing the summit to happen would profit Singapore’s repute and be useful to the country’s publicity.
“The fact that we were chosen to be the meeting place – we didn’t ask for it, but we were asked and we agreed – says something about Singapore’s relationship with the parties, with America, with North Korea, and also our standing in the international community.”
In an interview with BBC Asia business correspondent Karishma Vaswani, Foreign Minister Dr Vivian Balakrishnan said: “This is an investment in world peace and we can do it without any setbacks… or even if things don’t go exactly to plan, depending on how we respond, the image benefits for Singapore will far outweigh the costs.”
“The foremost point is just not money. It is about ensuring peace, opportunities for development,” he added.
What will he gain?
By hosting the Trump-Kim meeting, Singapore showcased its world-class transportation system, urban hygiene, public safety, quality of services and telecommunications to the world media, thus strengthening its position as a world hub for major international events.
Singapore enjoys an unprecedented status that its competitors reminiscent of Dubai, Doha, Hong Kong and Shanghai cannot achieve, irrespective of how much money their governments are willing to spend.
Some 2,500 reporters have descended on Singapore to cover the meeting between the 2 heads of state. “In terms of direct impact, (it) gives us exposure,” Singapore Prime Minister Lee Hsien Loong told a news conference.
Tourists spend a median of three.5 days in Singapore and contribute about S$1,500, in response to statistics compiled by the Singapore Tourism Board (STB). With 4,000 visitors and a median stay of three.5 days expected during that visit, they may generate S$21 million. That is only a small fraction of the whole of S$27.1 billion generated for the yr, in response to the STB forecast.
Regional peace as the last word prize
“If we think about why Singapore attracts so many global and regional headquarters, it is because CEOs and decision-makers believe that it is not only a good place for them to be, but also a safe and pleasant place for their families,” he said. Lars VoedischManaging Director of PRecious Communications, a PR firm.
The financial community can be keeping a detailed eye on the summit. “A few days of inconvenience for commuters is a small price to pay if the U.S.-North Korea summit can make Asia a safer and therefore more stable economic place,” he said. Simon LintsCEO of Schroders Wealth Management, Singapore in an interview with finews.asia.
Preferred selection
Publicity is commonly hard to measure, but experts have expressed their opinion on the tangible advantages of hosting a significant event in Singapore. Since the 2015 meeting between the Chinese president Xi Jinping and the leader of Taiwan Ma Ying-jeouThe Singapore International Arbitration Centre (SIAC) recorded a 32 per cent increase in recent cases, which amounted to S$5.3 billion. SIAC is the third most preferred arbitration institution on the planet, after London and Paris.
According to figures released by Singapore’s Minister of Trade and Industry, the fee of 20 million Singapore dollars is lower than one-fifth of the fee of hosting a Formula 1 race for a yr. S. IswaranIn “Strait Times» (behind the paywall). The event attracted over 450,000 visitors from all over the world, generating SGD 1.4 billion in tourism revenue.
Source: Business Insider | Finews.asia | ejinsight.com
