Singapore gambles big on casinos while the economic chips are down

The casino conundrum is one of the most difficult and controversial issues that conservative, straight-laced Singapore has had to grapple with.

The issue, when all is said and done, is this: Gamble on a S$5 billion ($23.6 billion) investment that will create 35,000 jobs and spin off other economic benefits - plus the attendant social problems - or play safe and watch as the investment goes elsewhere.

Singapore has placed its bets. At a time when the chips are down, the island nation is trading in its four-decade-old ban on casino gambling for two integrated resorts with casinos to revitalise the tourism sector and widen its revenue base.

Economic growth is slowing down, revenue sources are shrinking, manufacturing jobs are migrating and tourism growth is levelling off. But, in one go, the country has come up with two aces to reinvent itself and revitalise its economy.

In the process, it has slain a sacred cow, raised the level of political debate and shown once again that it is not averse to making tough decisions.

The country's leaders are quick to stress that the casinos are but a component of the two integrated resorts to be developed at Marina Bayfront and on Sentosa island.

To be running by 2009, the resorts will boast theme parks, hotels and convention facilities, shopping centres, restaurants and theatres, but it is the casinos that will pull the crowds and rake the cash in.