Suharto dies with chequered legacy

Former Indonesian President Suharto has finally succumbed to his illnesses, according to AP and BBC. According to an AP report, he died at 2.10pm (Singapore and Malaysia time) today. He was 86.

JAKARTA (Indonesia): Former Indonesian president Suharto, an army general who crushed Indonesia's communist movement and pushed aside the country's founding father to usher in 32 years of tough rule that saw up to a million political opponents killed, died Sunday. He was 86.

"He has died,'' Dr Christian Johannes told The Associated Press, adding that he died at 1.10pm (2.10pm Malaysian time).

Dozens of doctors on Suharto's medical team had been rushed to the Pertamina Hospital in the capital, Jakarta, after his blood pressure fell suddenly Saturday night. Suharto had slipped out of consciousness for the first time in more than three weeks of treatment, doctors said.

Suharto, had been in intensive care with lung, heart and kidney failure since he was admitted to the hospital on Jan 4. Over the past week his physicians had spoken of a recovery, but by Sunday that had changed dramatically. - AP

Suharto's downfall was triggered by the turmoil during the Asian financial crisis in 1997/1998. Indonesia fell like a house of cards, and he agreed to a bail-out package by the International Monetary Fund.

The strict IMF-mandated fuel price hikes led to riots and deaths in Jakarta, and culminated in the political end of the Indonesian strongman, who ruled Indonesia with an iron fist for three decades.

Former IMF managing director Michel Camdessus acknowledged that IMF was the root cause for the fall of Suharto in an interview with New York Times when he resigned in Nov 1999.

"We created the conditions that obliged President Suharto to leave his job," Mr Camdessus said. "That was not our intention."

Whether the change in the political scene in Indonesia was by chance or design, nobody will forget the chaos in the country.

And nobody will forget the famous picture of Mr Camdessus, with his arms crossed in what was seen as an arrogant gesture, overseeing Suharto signing the agreement for an IMF bailout package worth nearly US$50 billion. The picture was widely used to personify Asia's loss of its independence.

Suharto's funeral will probably be well attended as part of international diplomatic and state protocol.

But in reality, he had few friends left during his dying days. Among them were the former PMs of Malaysia and Singapore -- Mahathir Mohamad and Lee Kuan Yew respectively -- and the Sultan of Brunei.

His few friends will always remember the man who ended Konfrontasi, which was a euphemism for the war started by former Indonesian president Sukarno against the creation of an enlarged Malaysia during the 1960s.

But Suharto will not be remembered fondly by the new generation of Indonesians and Asians who despise his regime of corruption, cronyism and nepotism, despite the obvious national economic development during his rule.

Vanishing islands

A couple of days ago Reuters carried an interesting report that Indonesia has so many islands it has not been able to count them all and is having a hard time finding names for them.

Officially there are about 17,000 islands, but the report said that number may drop as one minister fears hundreds of islands might vanish because of rising sea levels from global warming.

The report said the issue has become a hot topic after Indonesia upset neighbouring Singapore recently by banning sand exports to the city state, blaming sand mining for literally wiping some of its islands off the map.

Another way to capitalise on the problem is to sell some of the islands, most of which are uninhabited any way. Land-scarce but cash-rich Singapore will almost definitely be a keen buyer if Indonesian nationalism doesn't get into the way. Of course, most Indonesians will object to such a proposition due to nationalist sentiments.

But Indonesia should have sold some of the less strategic islands at the height of the regional financial crisis, instead of turning to the International Monetary Fund for help. The IMF bailout probably cost more to national pride than the loss of a few atolls.

Singapore Images in 2006

Some images of 2006 captured by The Business Times of key business and political events in Singapore and business deals linked to Singapore entities overseas.

Big stakes, buoyant sentiment
By VINCENT WEE

2006 was a year of big numbers, big stakes and bullish sentiment. The resurgent economy brought waves of investment and optimism to our shores, but also winds of change. Meanwhile, those who strayed from the straight and narrow were brought to account as the law took its course.

One of Singapore's biggest financial scandals finally came to a conclusion when former China Aviation Oil head Chen Jiulin was jailed for four years and three months and fined $335,000 for insider trading. Likewise, former corporate poster boy Victor Tan, founder of Accord Customer Care Solutions, was jailed for four years and three months for his role in trying to cheat Nokia in 2003 and 2004. And former National Kidney Foundation boss TT Durai was charged under the Anti-Graft Act for having tried to deceive the NKF while he was its chief executive.

But a sense of stability prevailed when the ruling People's Action Party won 66.6 per cent of the vote in the May general election and was returned to power.

Big buys also made the news, led by Temasek Holdings' $6.5 billion purchase of an 11.55 per cent stake in Standard Chartered Bank from the family of the late Khoo Teck Puat, who was Singapore's richest man, and $3 billion spent on former Thai prime minister Thaksin Shinawatra's family stake in Shin Corp.

Apple's US$100 million payout for a licence to use Creative Technology's patent in its iPod ended legal disputes between them. The battle hit Creative's profits badly, but the settlement looks like a win-win result, and the local firm will focus more on making sound chips and accessories for Apple and other companies.

Waves of interest and winds of change from abroad came in through the course of the year. In May, Las Vegas Sands won the right to build Singapore's first integrated resort (IR) and casino at Marina Bay. And six months later, Asian gaming outfit Genting International/Star Cruises won the Sentosa bid. The year's foreign buzz culminated in the 16,000 visitors and delegates coming to Singapore during the International Monetary Fund and World Bank meetings in September.

The buoyant economic mood was infectious and spread to the property market, which finally got some reprieve from a decade of gloom when the luxury residential segment saw record prices, led by Marina Bay Residences which commanded up to $3,500 per sq ft in December.

Movements in the boardroom also created a stir. Robinson's chairman Michael Wong Pakshong was voted off the board at the company's annual general meeting, prompting the resignation of three other independent directors and sparking a debate on the role of independent directors. SingTel CEO Lee Hsien Yang surprised markets in July when he announced that he would step down after 12 years with the company.

Finally, the year closed with an ominous reminder of our vulnerability in the Information Age, when a post-Christmas quake off Taiwan damaged vital undersea cables and disrupted telecommunications in and out of Singapore and throughout East Asia.

March 27: Temasek hogs headlines
Singapore investment company Temasek Holdings spends almost $10 billion on two big buys. On March 27, it announces an estimated $6.5 billion purchase of Khoo Teck Puat's estate's 11.55 per cent stake in Standard Chartered. Earlier in January, Temasek paid $3 billion for Thai Prime Minister Thaksin Shinawatra's family stake in Shin Corporation. The Shin deal sparked unexpected events that eventually led to a military coup that ousted Mr Thaksin.

April 18: TT Durai charged with graft at NKF
Former National Kidney Foundation (NKF) chief TT Durai is slapped with two charges over alleged false claims with intent to deceive the foundation. The NKF fiasco has brought about unprecedented scrutiny of charitable organisations and their accountability.

May 6: PAP returned to power
The People's Action Party is returned to power with two-thirds of the valid vote at the general election. The closest fight is in Aljunied GRC, where the PAP wins 56.1 per cent of the vote in a contest with the Workers' Party. The opposition retains Hougang and Potong Pasir.

May 26 and Dec 8: Singapore hands out casino licences
Singapore awards two integrated resort and casino licences after a 40-year ban on casinos. The first licence, at Marina Bay, goes to Las Vegas Sands, controlled by Sheldon Adelson, who has roped in architect Moshe Safdie (top) for the project. The second, at Sentosa, goes to Malaysia's Genting group, controlled by Lim Kok Thay and family.

July 21: Lee Hsien Yang announces decision to step down
Lee Hsien Yang surprises the markets by announcing that he will step down as SingTel's chief executive officer after 12 years with the company. After a two-month global search, SingTel appointed its chief financial officer Chua Sock Koong as CEO.


Aug 23: Creative versus Apple
Apple agrees to pay US$100 million for a licence to use Creative Technology's patent in its iPod. And as part of the settlement, Creative, founded by Singapore businessman Sim Wong Hoo, joined the ''Made for iPod'' programme to produce accessories for Apple's mp3 player.


Dec 13: Irrational exuberance reigns at Marina Bay Residences
After a downturn that lasted a decade, the upper end of the property market rebounds. The best performer is Marina Bay Residences, where all 422 units were quickly sold at unprecedented prices of up to $3,500 per sq ft. Prices at the 99-year leasehold project, located near Las Vegas Sands' upcoming integrated resort and casino, even surpassed those of some units at the 999-year leasehold St Regis Residences in the Tanglin area.


Sept 10-20: IMF and World Bank meetings bring in 16,000 visitors
With a campaign of four million smiles, and tens of thousands of flowers lining the route to Suntec City convention centre, Singapore lays on a grand welcome for visitors and delegates to the IMF/World Bank annual meetings.