Singapore ranks 4th on The Economist's 2023 crony-capitalism index

[SBFNews]

Singapore ranks 4th on The Economist's 2023 crony-capitalism index
www.theonlinecitizen.com

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Singapore has been ranked fourth in the 2023 crony-capitalism index recently published by The Economist, behind Russia, the Czech Republic, and Malaysia.
The British weekly magazine calculated the index based on whether the livelihoods of people from capitalist economies are easily affected by crony capitalism.
The index lists 43 countries with a GDP of over $250 billion and estimates how much plutocrats profit from rent-seeking industries that benefit from state favouritism.
The Economist called out Russia as the “most crony-capitalist country” in the index.
Malaysia fell to No. 3 on The Economist’s crony-capitalism index for 2023, while Singapore dropped from third to fourth place compared to 2021.
The Economist derived the index by starting with data from Forbes, which publishes an annual list of the world’s wealthiest people.
Forbes listed 2,640 billionaires with a total worth of $12 trillion, but most of them do not operate in rent-seeking sectors.
The Economist then classifies the sources of wealth into rent-seeking and non-rent-seeking sectors. The chart mentioned that Singapore’s billionaire wealth from crony sectors amounts to over 10% of GDP.

Amassed wealth from industries that benefit from favourable relationships with the state​

“Crony capitalists’ wealth has risen from $315bn, or 1% of global Gross Domestic Product (GDP), 25 years ago to $3trn or nearly 3% of global GDP now, ” The Economist’s article said.
According to the article, 65% of the global increase in crony-capitalist wealth has been generated by the United States, China, India, and Russia.
In total, autocratic countries account for 40% of crony-capitalist wealth, which amounts to 9% of their respective GDPs.
The article highlights that many billionaires around the world are believed to have amassed their wealth from industries that benefit from favorable relationships with the state.
The effects of the Ukrainian war are clear, with crony wealth declining from $456bn in 2021 to $387bn in 2023.
The index also illuminates other trends among the mega-wealthy.

Singapore became prime destination for China’s crazy rich​

Many of America’s 735 billionaires have been hit by the crash in tech stocks last year, and China’s crony wealth has fallen sharply due to Xi Jinping’s crackdown on private capital.
Over 1.5 million people in China have been punished so far, and has also resulted in high-profile tycoons facing increased scrutiny, such as Jack Ma, co-founder of Alibaba, who disappeared in 2020 after criticizing the authorities.
The article notes that the Chinese government’s emphasis on “common prosperity” has led to an increase in the number of Chinese family offices in Singapore, from 33 in 2019 to an estimated 750 by the end of 2022.
Indeed, multiple reports from international news agencies have highlighted the influx of ultra-wealthy families from overseas, particularly from China, to Singapore.

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[Eisenhut]

Cronyism already with ruling party , what you expect

 

[laksaboy]

Singapore became prime destination for China’s crazy rich​

This will backfire in a spectacular way. Remember, you heard this first.

 

[Leongsam]

United states at 26??? Does the author not have a clue into how things work in the USA?

 

[Pinkieslut]

United states at 26??? Does the author not have a clue into how things work in the USA?

Right now Ah Loong is porlamping CCP make the AmeriKKKans tulan hence write this kind of article.

 

[borom]

Well, somebody once said, if you do not sue than it must br true.
Waiting for POFMA, FICA, and sue till pants drop or will it be stern warning ?.

 

[Pinkieslut]

Well, somebody once said, if you do not sue than it must br true.
Waiting for POFMA, FICA, and sue till pants drop or will it be stern warning ?.

Those are used only against Sinkies because they commit more crimes.

Last time Ah Loong daddy too garang anyhow Wack AMDK mass media

 

[Willamshakespear]

What exactly is 'crony capitalism' that the UK mag The Economist talking about?

To most, it brings up concepts of unfair advantages held by others whom are close to political leaders under a free market system. Such does happen around the World and is often associated with CORRUPTION.

However, is Singapore a corrupted nation? Many indexes by so called mainstream media had accepted for decades that Singapore ranks one of the lowest in such index. Had the editors of the Brit mag or its paid subscribers suffered from unproven corruption in Singapore, or have personal agendas about our country that it attempts to stoop to low levels to HINT of corruption in Singapore, that it INSIDIOUSLY uses the term 'crony capitalism'?

The word crony is defined as a close friend or relative. In the biz world, it is often those whom are close friend, family or relatives of the biz owner whom are often promoted above others. It is simply because of TRUST. Is a biz owner guilty of any crime if he puts such in those positions - sons/daughters, relatives, friends whom they grew up with knowing their strengths & weaknesses, to progress & evolve their biz? Or is such only biz ACUMEN, so long as they is no corruption?

The insignificant nobody me once met a very old lady, whom related her life story to me. She & her late husband, both uneducated but very much in love, eloped to Singapore back in the 60s, worked hard, scrimped & saved. Within years they set up hardware stores in Singapore, then in the blossoming path of constructing homes for the nation, & made a fortune, buying up properties & diversifying into becoming landlords.

Unfortunately, by the 70s, her husband passed away, left his wife as the beneficiary of his will, as he had no children & relations with family ties long severed. His bereaved wife knew her limits, being uneducated, sold away the hardware biz to his partners & even to staff at prices which seemed reasonable, but were at a pittance as even the land & title deeds were sold along as well. She did not know that she had been taken advantage off, but at that point of time, she bore no grudges & only wish the best for others, as she had millions of dollars in the bank & several properties providing rental returns.

She was introduced to a young NUS grad, whom showed her how she could derive better returns on her investments. Being uneducated, she assumed that those whom were better educated would not cheat & lie, more so in our newly independent nation. She trusted him & his knowledge, & within a year saw better returns than she could ever manage, as she had communication issues with her foreign tenants from all over the world living on her landed properties.

Soon, the young grad convince her to upgrade her properties to attract better tenants, such as re-developing the lands, creating more land space, etc to even forming tech units to provide tech support such as changing lightbulbs to keep tenants happy. From her account, she transferred vast sums to the holding company that he claimed as hers, signing many documents she had little knowledge over, even when explained to her in her language, surrendering her mansion in Holland & move to a terrace house in Bt Timah, which she felt is better served as she lived alone.

Within mere years, vast sums rolled in, the young grad often showed her the company accounts, but after 5 yrs, the money stopped. She called the young grad, but he did not answer. She went to check on her office, which had a new company name, & had a confrontation with the new owner where police were called in. To resolve the issue, the police advised her to seek a lawyer to clarify ownership issues.

She took her stack of documents to an introduced legal firm, & had a shock of her life when the lawyers told her she had transferred all her properties except the terrace house in Bt Timah. The millions of dollars transferred to the company account had been legitimately made, with documents signed & attested by her, but that company was owned by the young grad. A trace was done on the whereabouts of the young grad, & found out that he had given up his citizenship & is living in a foreign land beyond the jurisdiction of local police enforcement.

The point of this story is show why one would rather trust a 'crony' than some 'talent' over biz matters. It is just biz acumen - to only entrust those whom you grew up with for years to know their abilities & capabilities. Within a company or a civil service, there are many other positions than just the few places at the top. Some folks may be envious of so called 'parachuted positions' but if one check their backgrounds, one will realize their proven hardwork & merit for the job.

Singapore is not a corrupted country, as proven by mainstream indexes conducted. Any award or tender is always open & transparent. Any who attempts towards corruption will be easily found out, as Singapore, although has a hi GDP thru intelligence & diligence, is still a small country & there is no where to hide.

All the best to the UK mag. Fortunately, many are educated in our World & will not be taken as fools to trust what is written in the mag.

 

[Loofydralb]

Singapore will not last a hundred years. The indeginous will patiently wait for it's return.