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Economy / Singapore

Australian Relations Mended

July 2006 | Ratings Update
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Singapore Prime Minister Lee Hsien Loong's visit to Canberra signals the restoration of warm relations with Australia, following a fallout in December 2005 over the execution of Australian Tuong Van Nguyen for heroin smuggling. Australia is strongly against capital punishment but its repeated calls for clemency were denied. Australian Prime Minister John Howard, however, rejected calls for trade boycotts and this has allowed the reparation of relations within just seven months. It is in both countries' interest to remain on good terms, with Singapore being Australia's largest trade and investment partner in South East