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Singapore Gambles on Casinos

Singapore, which fines chewing-gum importers as much as S$200,000 ($122,740) and bans Playboy magazine, is relaxing its opposition to another vice: gambling.

The island-state plans to build its first casino, reversing a four-decade ban, as it seeks new industries to replace manufacturers that are moving to lower-cost China and India. Las Vegas casino operators Harrah’s Entertainment Inc., MGM Mirage and Wynn Resorts Ltd. were among the companies that submitted bids for the project on Feb. 28.

Singapore, with an aging population of 4.2 million, has no choice but to loosen regulations and broaden its economy, says Andy Xie, chief Asia economist at Morgan Stanley in Hong Kong. Prime Minister Lee Hsien Loong, 53, says the casino project is part of Singapore’s plan to stay competitive.

“It will make Singapore different, and it’s one of the things which we must do as we make Singapore develop and grow,” Lee said in an interview. “We have to be prepared to look at a different world, see a landscape that’s changing and ask what we need to do to keep up.”

Building casinos may not be enough to fuel growth in a nation where tourism-related businesses account for just 6 percent of the economy. Singapore’s efforts to lure more visitors also face competition from Macau, which has gained an early lead as Asia’s gambling hub.

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