SINGAPORE - sizzling economy threatens competitiveness

CNN.com, June 18, 2007

Singapore's sizzling economy, set to expand as much as 7 percent this year, could prove a headache for the government as the city-state risks becoming less competitive than rival business centers such as Hong Kong.
The labor market is tight, with demand for top bankers far outstripping supply, while property prices, a topic that dominates headlines and dinner parties, have gone crazy.
A penthouse at the luxurious St Regis Residences -- butler optional -- was recently resold for S$28 million ($18 million), up a whopping 84 percent from its initial price in August, the Straits Times reported. Prospective buyers queue up overnight for new property projects, while rents are up 30-70 percent.
"Demand is high not only for private bankers, but for all private-banking-related jobs," said Michel Longhini, regional head of BNP Paribas Private Bank in Asia.
"Costs in Singapore are definitely going up. With such high inflation -- particularly in real estate -- the cost of relocating staff is going up."

>>Full article