“Nothing in Singapore happens by accident.” This old Singaporean saying, though exaggerated, does essentially capture a home-truth — that the island-republic is small enough (in land area and population size) to have every aspect of its social, political and economic life carefully managed (almost micro-managed) by a political élite that has remained the same for four decades. That élite has made predictability and continuity its most enduring virtues. Nineteen ninetyeight exemplified aspects of the old Singaporean saying. But the year also had a few surprises that caught both the leaders and people of Singapore off-guard. Even in those moments, however, the national approach was to manage difficulties calmly and in a measured way. The emphasis was one of management — management of people's expectations and management of the national spirit and morale in the face of economic and geopolitical uncertainties.

Like much of the rest of Southeast Asia, the consuming preoccupation of Singapore in 1998 was to grapple with an economic downturn which had its origins in the previous year when the devaluation of the Thai baht (and the ensuing economic malaise) led to a contagion effect throughout the region. A second preoccupation was clearly the attempts to mitigate a deterioration of Singapore's external geopolitical environment as a result of strained bilateral ties with its two closest neighbours, Malaysia and Indonesia. In terms of domestic politics, the year was relatively quiescent, with the focus being on a debate about civil society; a few political personalities were also in the news, but theirs were fleeting references in media headlines more often dominated by extraordinary events in and around the region.

Managing People's Expectations in the Economic Downturn

Singapore has always prided itself for its astounding economic success, grounded as it is in sound economic fundamentals. Therefore, in the economic crisis that was sweeping Southeast Asia, Singapore in 1998 attempted to distinguish itself from the rest of the region. Initially, this was not an unfounded attempt as the republic was relatively less affected by the regional crisis than were Thailand, Malaysia, Indonesia, and the Philippines.