Last week, Las Vegas Sands was in the news regarding the building of the Marina Bay IR. It seems that Las Vegas Sands’ auditor in the U.S openly doubts their ability to continue building the casino, sorry resort, in Singapore.
As the world is in the midst of a global recession, I’m not surprised at this. What surprise me are the assumptions that the Singapore Government will step in to save the project if Las Vegas Sands cannot finish the project. Las Vegas Sands hinted as much in their press conference and as there has been no objection from the Singapore government yet, I think we can safely assume that this will be the case.
First off, I have to ask why the Singapore Government is even considering bailing out the project. The Marina Bay area is one of 2 IR projects ongoing. We have another project on Sentosa and that is going well. Why should the Singapore Government saved the project when there is another project just like it still ongoing?
Second, Las Vegas Sands is an American company. If the Singapore Government wants to start bailing out companies and their projects, they should start by bailing out Singapore companies first! Already, there is 1 Singapore company who has been affected by the global credit crunch, but I never heard of the Singapore Government coming in to save it. Why should the Singapore Government use Singapore taxpayer’s money to save a project by an American company?
Third, if I am not mistaken, the Singapore Government has a stake in the IR as well. Now most Singaporeans will say that this is the reason why the Singapore Government will step in to save the project, I say this is the reason why the Singapore Government should NOT save the project. As a stakeholder in the project, it will not be right for the Singapore Government to save its own project. It will be the left hand giving money to the right hand, and this will hurt Singapore’s reputation.
For these reasons, I feel that this is why the Singapore Government should NOT saved the project.