Christopher Khoo, managing director of MasterConsult Services, delivers a speech on integrated resorts' role in leading Singapore's economic growth, during The Korea Times Global Business Club at Korea Press Center in Seoul, Wednesday. Korea Times photo by Shim Hyun-chul

Singapore's success with integrated resorts, which fueled substantial economic growth, provides Korea with an important lesson in balancing development with strong social safeguards to manage gambling-related risks.

At the Korea Times Global Business Club, Wednesday, Christopher Khoo, managing director of MasterConsult Services, highlighted how Singapore managed to achieve impressive economic gains from integrated resorts by implementing strict regulations and prioritizing public welfare.

In his keynote speech, he emphasized that Korea can similarly leverage integrated resorts to enhance public benefits, such as boosting tourism and creating jobs, while minimizing social harm through a carefully regulated approach.

Khoo began by reflecting on Singapore's transformation from an uncertain nation in 1965 into a prosperous global city.

"Singapore as a nation had its independence thrust upon it at a time of racial riots, communal strife, an ongoing battle against communist insurgency and a tense geopolitical backdrop with the Vietnam War and the Cold War raging," he said.

In the early 2000s, Singapore faced a series of major challenges, including the Asian financial crisis, the global downturn following the dot-com crash and the SARS outbreak in 2004. These crises prompted a significant rethinking of the country's economic strategy.

While the Economic Review Committee recommended transforming Singapore into a creative and entrepreneurial hub, the proposal to allow casinos sparked more intense national debate than any other reform. This strategy aimed to reshape the country's economy and boost tourism.

"Despite tourism contributing only 6 percent to the gross domestic product (GDP), the casino issue became a focal point of public discourse, driven by concerns over its social impact and economic potential," Khoo said.

Religious leaders and social organizations expressed strong concerns about the negative social impacts of gambling, including gambling addiction, family breakdowns, and organized crime.

"There was significant pushback, with religious groups like Buddhists, Christians, Hindus and Muslims raising moral and social objections, raising concerns about money laundering, loan sharks and domestic violence," he explained.

Christopher Khoo, managing director of MasterConsult Services, delivers a speech on integrated resorts' role in leading Singapore's economic growth, during The Korea Times Global Business Club at Korea Press Center in Seoul, Wednesday. Korea Times photo by Shim Hyun-chul

Despite the opposition, the government saw the potential economic benefits of casinos, including job creation, increased tourism and strengthening of Singapore's position as a global business hub.

Khoo noted that while there was strong resistance, the pragmatic economic argument ultimately prevailed.

Singapore moved forward with its integrated resort project, while implementing strict social safeguards at the same time to address the risks associated with gambling.

There was debate over the proposal to create foreigner-only casinos to shield Singaporeans from gambling, but the idea was ultimately rejected, as it was considered unacceptable to exclude local residents from participating in or enjoying national facilities.

This principle shaped Singapore's decision to regulate rather than fully ban local access to casinos.

Khoo outlined several key measures designed to mitigate the social harms associated with casinos: A mandatory entry levy of 150 Singapore dollars ($116.50) per day was introduced for Singaporeans to deter impulsive gambling, while limits and exclusions were also established for individuals facing financial distress or receiving government assistance.

In addition, the establishment of the Casino Regulatory Authority and the National Council on Problem Gambling further ensured strict oversight and helped manage gambling addiction issues, he added.

Nearly 20 years after the initial debate over casinos, Singapore's integrated resorts are now widely regarded as a success.

Khoo cited recent data showing that only 0.2 percent of all crimes in 2023 occurred in casinos, underscoring the effectiveness of Singapore's regulatory framework.

"While social concerns persist, the negative impact has been largely muted, and the tangible economic benefits, such as increased tourism and job creation, are undeniable," he said.

Delivering a clear message to Korea, which is seeking to develop its own integrated resorts, Khoo emphasized that Singapore's model demonstrates how a well-regulated and socially responsible approach to casinos can yield significant economic benefits while minimizing social risks.