'We do have quite a big fly swatter': PM Wong says Singapore 'determined' to protect reputation amid money laundering cases

Prime Minister Lawrence Wong has defended Singapore’s stance on combating money laundering amid a series of high-profile cases in the county.

At the Bloomberg New Economy Forum Gala Dinner on Wednesday (Nov 19), PM Wong was questioned if Singapore’s "big push to lure" wealthy foreigners might unintentionally attract those who seek to park their ill-gotten gains in the country.

This comes after 10 foreigners were arrested in 2023 in a $3 billion money laundering probe, and most recently in October this year when the police seized more than $150 million in assets linked to Prince Holding Group and its founder Chen Zhi.

The 38-year-old was charged in the United States for allegedly masterminding a massive cryptocurrency scam that involved forced labour camps in Cambodia.

"We do have quite a big fly swatter," said PM Wong at the event in Clifford Pier.

He was responding to a question from Bloomberg editor-in-chief John Micklethwait on "how many flies can Singapore tolerate".

The Prime Minister said instances of illegal money flows are something that all financial centres have to deal with, and that it is not a problem unique to Singapore.

“The key is, what do you do? We are very stringent, and we take swift action,” he said, adding that they “are determined to protect our reputation because that is what keeps Singapore going — a trusted business and financial centre.”

Wealthy foreigners and income inequality

PM Wong was asked whether the influx of wealthy foreigners to Singapore meant people were more aware of inequality, despite the Gini coefficient here having come down.

Singapore’s Gini coefficient, a measures the gap between the richest and poorest, peaked at 2007 but has since declined to its lowest level in over two decades due to government transfers such as the Progressive Wage Model, and support measures like utility bill rebates and CDC vouchers.

PM Wong said that as a financial centre, Singapore welcomes family offices and foreigners to manage their funds out of Singapore as this creates jobs for Singaporeans.

"Sometimes it creates frictions, especially when they are ostentatious, shows off Ferraris," he noted. "We have just to remind them — Singapore is a different society. We are egalitarian, our norms are different, please understand. And for the most part, they do."

China-Japan ties

Bloomberg’s Micklethwait also asked about the escalating diplomatic dispute between Japan and China, which ignited after new Japanese prime minister Sanae Takaichi said that a Chinese attack on Taiwan threatens Japan’s survival and could trigger a military response.

"I am not her advisor. I cannot just judge the wisdom of whether or not what she said was wise to do. But it has been said, it cannot be unsaid now, so it is there," said PM Wong.

The Prime Minister noted that despite their complex relationship, China is Japan’s largest trading partner.

"I think on the Japanese side, they are clearly wanting to bring things down, to stabilise the relationship and not cause this to escalate further," he said. "I hope China will feel the same way, and while there may be differences, the two countries can still get along and work together."

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chingshijie@asiaone.com