Business News

CCTV Script 12/06/18


— This is the script of CNBC's news report for China's CCTV on June 12, 2018, Tuesday.

Strict security measures, logistics supporting and the media center that is launched for more than 2000 media representatives cost Singapore government S$20 million to host  the meeting for North Korea and US leaders. Prime Minister of Singapore Lee Hsien Loong said that it is a cost that Singapore is willing to pay.

[Lee Hsien Loong, Prime Minister of Singapore] "We may be able to recoup a little bit of that, but I think it is a cost we are willing to pay. It is our contribution to an international endeavour which is in our profound interest."

Actually, some analysts think that Singapore doesn’t have any loss on this business. Let’s make an analysis from 3 aspects.  Firstly, for the short-term economic effect, there are more than 2500 international media representatives to join this meeting of North Korea and US leaders, and the expenses from flocked tourists and different countries’ media will contribute a considerable profit to Singapore.

Singapore Department of Statistics said that tourists, as well as reporters, will stay in Singapore for 3.5 days on average and every tourist spends at least S$1500, contributing S$21 million to Singapore.

Singapore has the economic capabilities to hold this meeting, even without this tourism income, as its GDP is beyond S$ 430 billion; its national fiscal expenditure is more than S$80 billion in 2018 and its fiscal deficit only accounts for 0.1% of GDP.

The restaurant and hotel industry in Singapore is also boosted by this event. For example, after confirming the news of the meeting in April, rooms order for Royal Plaza on Scotts, which is just 15 minutes away from Shangri-La Hotel that President Trump stays in, increased by 20%. The hotel manager said that hotel occupancy rate is expected to reach more than 90% during the meeting period. In addition, Shangri-La Hotel and St. Regis that Trump and Kim Jong-un stay in will be blockaded for around 1 week, affecting the short-term profit. But in the long-term, this historical meeting will increase the exposure for these 2 hotels, as well as Capella Hotel where Trump and Kim Jong-un meet. Secondly, in terms of international image, Singapore draws the global attention by hosting this historical meeting. If this meeting is successfully held, it will further enhance Singapore's international image of high-efficiency, safety and reliability. It will be attractive to tourist and international investors. Thirdly, Singapore wins the trust and affirmation from US, North Korea and other countries by promoting global arbitration affairs as a neutral state.  Singapore held the Six-party talks in 2018, which is regarding the North Korean nuclear issue. In 2015, Singapore was also the selected place for the meeting of President Xi Jinping and Taiwan leader Ma Ying-jeou. This kind of neutral position gives Singapore more chances to host meetings and increase its international position and reputation.