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Singapore is probably one of the most competitive countries in the world.
There is "surprise defeatism" as proof.
Kiasu, which means fear of losing, is a Hokkien and Cantonese word. In 2007, the Oxford English Dictionary included the word, which it explained as "a greedy and selfish attitude".
Defeatism isn't that negative. Singaporeans just don't want to miss out on an opportunity.
In Singapore, people use tissues or umbrellas to set up tables in advance
The latest prime example is Singapore's announcement of support for more data center expansion and more power for them after a three-year ban.
Recently, US tech giants Microsoft, Nvidia and Google will invest US$8.5 billion in Malaysia in data centers, cloud computing and artificial intelligence. This has exacerbated the onset of "panickingism" in Singapore.
We can also understand "Fear of Missing Out" as an enhanced version of FOMO. Singapore, where Web3, cryptocurrency and other "cyber achievements" are ahead of others, is unlikely to give up "real" industrial opportunities.
Shocked
A few days ago, the CEOs of American technology companies such as Nvidia, Google, and Microsoft visited Singapore's neighbor Malaysia, as well as other Southeast Asian countries, and pledged to invest billions of dollars.
In Malaysia alone, all three have already spent US$8.5 billion on new data centers to develop cloud computing and artificial intelligence.
Singapore is about to announce an increase in data center capacity by more than one-third and welcomes the new investment.
This move was somewhat unexpected. From 2019 to 2022, Singapore imposed a "three-year ban" on data centers, and did not want "electric tigers" and "water tigers" to consume precious energy. When the ban expired in 2022, the government allowed applications for a "pilot" but delayed issuing permits.
Microsoft Singapore Data Center
Many Malaysian officials joked that Singapore's rush to grab the data center is definitely "a typical Singapore's fear of losing".
The most typical place to reflect the "surprise loss" of Singaporeans is probably to eat and occupy a place. In the food court, many foreign tourists are surprised to find that Singaporeans are buying food while neatly using napkins or umbrellas to occupy the table and seats, and this action even has a special word to describe it - chope.
These also include queuing up for the latest smartphones, queuing up for McDonald's limited-edition Hello Kitty toys, and scrambling to get in when the elevator doors open.
Singaporeans will patiently queue up to buy the latest mobile phones
In 2015, a survey of Singapore's national values showed that "fear of losing" was among the top 10 national social perceptions, along with "competitiveness" and "self-centeredness".
Since independence from Malaysia in 1965, this micro-nation with a history of just over 50 years and an area of more than 700 square kilometers is surrounded by neighbors with different cultures and traditions. Leung Chun-xiong, a senior research fellow at the National University of Singapore's Institute for Policy Studies, sees "surprise loss" as a "survival instinct".
Singapore lacks natural resources. Staying competitive is the only resource. No fresh water, no land, no food – you have to be the first to survive.
Singapore doesn't want to build too many data centers because of its lack of resources.
With 25 submarine cables, Singapore is one of the world's top submarine cable hubs with the fastest fibre connections and is consistently ranked as the world's most desirable data centre location. As of 2022, Singapore has more than 70 operating data centers, accounting for 60% of the total data center capacity in Southeast Asia. Well-known technology companies such as Google and Meta have used Singapore as their data center headquarters.
Singapore is one of the world's top submarine cable hubs
In 2019, when countries were still fiercely competing for data center bids, Singapore suspended the construction of new data centers. There are two main reasons for this. One is that it lacks land, electricity, and water to provide space, energy, and cooling for the data center. The second is that Singapore has high temperatures and humidity throughout the year, which requires additional energy to cool the servers.
Data centres account for more than 7% of Singapore's electricity consumption. If data centers grow unchecked, it undermines the government's 2050 net-zero commitments.
The ban has pushed data center companies to Johor, Malaysia, and Batam, Indonesia.
Looking at Southeast Asia's data center capacity, Malaysia is "far ahead", Indonesia and the Philippines are both ahead of Singapore, and Thailand is close behind, overtaking Singapore.
Singapore can't sit still.
Late
Data centers around the world are "going big and fast".
The significance of the data center is not only about stacking hundreds of GPUs together, but more importantly, it can pave the way for cloud computing and artificial intelligence. With a top-level data center, there is top-level computing power and top-level intelligent feedback.
Data center capacity is measured in megawatts (MW). In East Asia, Tokyo has 865 MW of installed capacity and Beijing has 1,600 MW.
In Europe, there is a "construction boom" in secondary data centers, with eight out of 10 markets set to see double-digit growth, and five markets with capacity exceeding 100 MW by the end of 2024. By the end of 2023, some investors will spend $7 billion to build 10 new data centers in Western Europe and the United States.
EU Data Center
Singapore has an installed capacity of more than 1,000 megawatts, while Malaysia plans to build 500 megawatts.
At the data center level, neighboring countries are not as good as Singapore. But in terms of the scope and breadth of investment, as well as the expanded economic opportunities, neighboring countries are moving fast.
Nvidia has partnered with Malaysia's YTL Group to use the former's AI chips, which is developing the country's fastest supercomputer. Microsoft has just made investments in AI infrastructure in Indonesia and Thailand.
Singapore's policy is "late", on the one hand, it underestimated the development of artificial intelligence in 2019, and of course, the industry shock brought by ChatGPT is indeed difficult to predict; On the one hand, there was a change of government, with Lee Kuan Yew, the third prime minister who had been in power for more than 20 years, resigning from his post and Lawrence Wong becoming the fourth generation of leaders in Singapore's history.
Lawrence Wong
On May 15, Singapore completed the transition of power. On May 30, Singapore announced an 80-megawatt data center expansion.
Lee Hsien Loong's resignation is seen as the decline of the "Singapore model". Compared to Lee Kuan Yew, the first prime minister, who was known for his severity, the eldest son, Lee Hsien Loong, looks approachable. During his 20 years in power, Singapore's per capita GDP of $150,000 far exceeded that of the United States. Today, Singapore not only has the halo of a financial center and a tourist destination, but also has the ambition to win the "artificial intelligence center".
Friction between China and the United States is growing. The undertaking of China's spillover of U.S. companies and U.S. capital is a historical opportunity for Southeast Asian countries. Singapore is one of the best choices in Southeast Asia in terms of environment and system.
However, the People's Action Party (PAP), which has been in power for nearly 70 years, is being challenged as never before. In 2020, the People's Action Party (PAP) won 83 of the 93 seats in the 13th parliamentary elections, with the Workers' Party winning the remaining 10 seats, the most seats held by opposition MPs since 1968.
A smooth transition is a top priority for the Singapore regime.
Lee Hsien Loong and Lawrence Wong
Lawrence Wong, 52, holds a bachelor's and master's degree in economics and a master's degree in public administration, and has worked in various ministries of finance and health in Singapore, including as chief secretary to Lee Hsien Loong. Wong is active on multiple social media and is described as a "bookworm, guitarist and dog lover", and is very popular with young voters.
As the core of the PAP's fourth-generation leadership, Wong's gaining the trust of young people is an important factor in meeting the opposition challenge, as the Workers' Party has the largest number of supporters between the ages of 21 and 25.
Lee Hsien Loong has repeatedly mentioned "long-term vision, long-term planning". After Wong took office, he immediately promoted the "openness" of data center policies, which also means that Singapore's "national policy" to develop digital and intelligent industries will remain unchanged for a long time.
mythology
Singapore has its own mythology. Lee Kuan Yew, the "Father of the Nation", in a generation, transformed a poor city-state into one of the richest countries on earth – one of the "Four Little Tigers" and created the "East Asian Miracle".
In 1960, Singapore and Jamaica had similar GDP per capita, both at about US$425. By 2023, Singapore's GDP per capita will rise to $157,000, compared to only around $6,000 in Jamaica.
Today, Singapore is a global hub for maritime trade, home to Taylor Swift's concerts and Formula 1 night races, and a haven for crypto and Web3 players.
At the same time, Singapore is one of the most expensive cities in the world: there is no minimum wage, housing prices, prices are high, and social mobility is low.
The cityscape of Singapore
If you want to continue the economic myth and fight for land, resources and energy, Singapore has no advantage.
The core issue is to "learn from each other's strengths" and complement each other. As more and more companies decentralise their supply chains, Singapore is pushing for a "Singapore+1" strategy to encourage companies to set up headquarters in Singapore to take advantage of the country's business environment, free trade agreements and professional talent; Then put the manufacturing or data center in Malaysia or Indonesia.
In fact, tech giants such as Nvidia and Microsoft favor Johor precisely because it is only a few kilometers away from Singapore.
Against the backdrop of the U.S. all-round strategic competition with China, Southeast Asia is a key region for Sino-U.S. competitive investment. ASEAN countries have focused on regional economic development and have overcome the impact of the pandemic and the Ukraine crisis.
In 2023, Singapore, Cambodia and Thailand have completed the change of power in different ways, and their domestic and foreign policies have maintained stability and continuity. This year, Southeast Asia's overall economic growth rate was around 4.7%, which is lower than the 5.6% growth rate in 2022 but still higher than the global average.
A bustling night view of Singapore
According to ASEAN data, Singapore was the largest FDI inflow country in Southeast Asia between 2013 and 2022. In 2022, Singapore attracted US$141 billion in foreign direct investment, accounting for more than half of the region's total.
Although it has achieved good results in ASEAN and has many "first" titles, Singapore still maintains a "shocking doctrine" and will not lie down.
In particular, Singapore has made great efforts to attract high-tech and new industries in order to seize the historical opportunity of a new round of technological revolution and industrial relayout.
In March, Temasek, Singapore's government investment firm, was in talks to invest in artificial intelligence company OpenAI. As a small country, it is difficult for Singapore to challenge the two major technological powers of China and the United States in terms of cutting-edge technological innovation dominance, and betting on OpenAI is a strategic move carefully laid out by the Singapore government.
Temasek
By getting involved in the AI leader early, Singapore will have access to cutting-edge AI technology and top talent resources, and share in OpenAI's future development.
Coupled with the recently promulgated "National Quantum Strategy", Singapore has made great efforts in quantum technology, investing nearly S$300 million in five years to build quantum processors.
A combination of science and technology, Singapore is in full swing. "Never be left behind" is a trait of Singaporeans, said Johnny Lau, creator of the TV series "Mr. Lost".