At Singapore’s Fullerton Bay Hotel, Prime Minister Lee Hsien Loong and Malaysian counterpart Najib Razak smile and toss yusheng, a raw-fish salad symbolizing prosperity, and in this case a thaw in five decades of feuding.
When dozens of Chinese bus drivers held Singapore’s first strike in 26 years last week, the island deported the perpetrators. Getting rid of the soaring prices that are emboldening calls for higher wages won’t be as easy.
Singapore’s growth will weaken further this year after slowing in 2011, constrained by a “difficult” global environment and government efforts to cut foreign-worker inflow, Prime Minister Lee Hsien Loong said.
Singapore’s inflation accelerated to the fastest pace since January as transportation and housing costs increased, maintaining pressure on the central bank to allow the currency to strengthen even as growth falters.