Island intrigue

A big scandal for a small country [View in browser]( [Bloomberg]( Singapore is being hit by scandals that are rocking the Southeast Asian island’s politics but may also reverberate well beyond its shores. The ruling People’s Action Party has been in power since Singapore’s independence in 1965 and has long touted its corruption-free image, even as neighboring countries frequently battle the graft that undercuts their appeal to foreign investors. Key Reading: [Scandals Taint Singapore’s Clean Image, Complicating Succession]( [Singapore Scandals Involving Ruling Party Politicians: Timeline]( [Singapore House Speaker Resigns in New Blow to Ruling Party]( [Singapore’s Widening Corruption Probe: What You Need to Know]( Indeed, PAP officials often wear all-white clothing at political gatherings as part of that graft-free mantra. But now the party finds itself battling on several fronts. Transport Minister S. Iswaran and property tycoon Ong Beng Seng have been arrested in a corruption probe. Meantime, Parliament Speaker Tan Chuan-Jin has resigned after an affair with another lawmaker came to light. Prime Minister Lee Hsien Loong, who’s looking to hand over to a new generation of leaders in the coming years, called Tan’s departure “politically embarrassing” but also “necessary to maintain the high standards of propriety and personal conduct which the PAP has upheld all these years.” Singapore, known locally as the “little red dot” on a map, will hold a presidential election in the next few months, and there is a general election due by 2025. While the PAP is likely to remain firmly in power, these internal distractions could allow opposition parties to make further inroads, especially with the government already under pressure over rising costs of living, including stubbornly high rents. Stability in Singapore is important too in the region. The island state is a center for business and finance in Asia, but also plays a role in helping maintain balance between the US and China, especially on behalf of other smaller countries, given its ties to both Washington and Beijing. It has long warned that nations in Asia should not have to pick a side and pushed for a code of conduct in the disputed South China Sea. So other countries will be watching closely how events unfold in the near term. The PAP leadership has come out quickly and firmly to emphasize there remains no tolerance for misbehavior. But it is a messy clutch of scandals at a tricky time, even for a party so seasoned in reading the mood of voters. — [Rosalind Mathieson]( The Boat Quay district in Singapore on May 17. Photographer: Edwin Koo/Bloomberg Check out the latest [Washington Edition newsletter](. You can [sign up]( to get it in your inbox every weekday. And if you are enjoying this newsletter, sign up [here](. Global Headlines US plans to restrict investments in China will be [narrowly focused]( on cutting-edge technology, only new projects, and likely won’t go into effect until next year, sources say. Officials are aiming to wrap up a proposal by end-August for the long-delayed program to screen and possibly prohibit investment in China’s semiconductor, quantum-computing and artificial intelligence sectors, but the limits on the measures signal early ambitions have been cut back. - Premier Li Qiang pledged China can [strengthen climate action]( with Washington as he met John Kerry for the most high-profile talks scheduled during the US envoy’s visit to Beijing this week. - Treasury Secretary Janet Yellen said that China has [failed to address]( the unfair trade practices that triggered US tariff hikes on the country. The mystery three-week absence of Chinese Foreign Minister Qin Gang, considered a political rising star, has seen him skip major diplomatic engagements, such as an international gathering of foreign ministers in Indonesia last week. The [vacuum of information]( around Qin’s status comes as the world’s second-largest economy faces growing scrutiny over its lack of transparency. More than half of Britons would vote to [rejoin the European Union]( for the first time since the nation opted to leave the bloc seven years ago, YouGov polling showed. UK holidaymakers face longer lines at EU airports and shoppers are seeing higher food prices fueled by both Brexit curbs on migrant workers and its effect on supply chains. Ukraine and Russia accused each other of overnight [drone attacks]( hours after Russian President Vladimir Putin vowed [revenge]( for a strike that damaged his flagship bridge to Crimea. Russia’s Defense Ministry said 28 Ukrainian drones attempted to attack facilities in Crimea, one of the most intense salvos against the peninsula since the war began. Ukrainian officials said they downed 31 drones and intercepted six Kalibr cruise missiles. - Follow our Ukraine [Recap]( for the latest coverage of the war. Best of Bloomberg Opinion - [Biden Deploys Pentagon to Battle Climate Change: Liam Denning]( - [Britain Should Stop Pretending It’s Rich: Adrian Wooldridge]( - [You Rang? The Super-Rich Will Privatize Us All: Howard Chua-Eoan]( Anti-government protests [intensified in Israel today]( in a bid to stop Prime Minister Benjamin Netanyahu’s far-right government from proceeding with a law that will reduce the oversight power of the judiciary. Demonstrators marched into the Tel Aviv stock exchange before trading started, distributing fake currency and holding signs saying “save our startup nation.” - President Joe Biden invited Netanyahu to meet in the US later this year amid [strains between the longtime]( allies. Protesters march today during a “Day of Resistance” demonstration in Tel Aviv. Photographer: Kobi Wolf/Bloomberg Explainers You Can Use - [China’s Economy Is Weakening. Here’s Why That Matters]( - [Manchester United Is More Than a Trophy for UK’s Richest Man]( - [Gensler Warns Artificial Intelligence Risks Financial Stability]( Opposition protests in Kenya against surging living costs and the outcome of last year’s elections are [undermining a post-pandemic recovery]( in the East African nation’s tourism industry, the third-biggest source of foreign exchange. Almost two dozen people have died in violence related to the demonstrations in the past week alone, according to the United Nations Human Rights Office, while businesses have been shuttered and looted, and public infrastructure has been vandalized. An opposition supporter throws a stone toward Kenyan police in Nairobi on March 27. Photographer: Luis Tato/AFP/Getty Images Tune in to Bloomberg TV’s Balance of Power at 5pm to 6pm ET weekdays with Washington correspondents [Annmarie Hordern]( and [Joe Mathieu](. You can watch and listen on Bloomberg channels and online [here](. News to Note - The US and South Korea held the first meeting of a new group that will consult on ways to deter North Korea from [using its atomic arsenal]( and discuss how best to manage America’s nuclear assets in the region. - Former Prime Minister Imran Khan [suffered a major blow]( months before Pakistan’s national elections after one of his most trusted leaders quit his party and formed a rebel group in Khan’s northwest region stronghold. - The US is deploying a [destroyer and fighter aircraft]( including F-35s to the Persian Gulf in response to the seizure and harassment of oil tankers by Iran around the Strait of Hormuz. - The Supreme Court in Georgia rejected former President Donald Trump’s request to [halt a state investigation]( into his efforts to overturn the 2020 US election. - There was [no breakthrough]( when the presidents of France, Colombia, Brazil and Argentina met with Venezuelan government and opposition negotiators yesterday in a bid to find a way out of the nation’s political impasse. And finally ... The hottest June on record has been followed by an early July that now includes 10 of the hottest days in history, and there’s a four-in-five chance that this year will be the [warmest to be recorded]( since measurements started in the 1800s, according to the research nonprofit Berkeley Earth. With heat waves suffocating the US, [much of Europe]( and parts of Asia, the trend is clear: 22 of the last 23 years were the hottest ever, and climate scientists say the only way to stop it is to dramatically and immediately cut greenhouse gasses, mainly through ditching fossil fuels. Tourists try to keep cool yesterday at the Trevi Fountain in Rome. Photographer: Gaia Squarci/Bloomberg Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](