Not many LGBT activists in Singapore favour the use of the pink dollar strategy in the struggle for LGBT equality. Some have pointed out that the purchasing power of the LGBT community and its allies is insufficient to make a dent in the bottom lines of anti-LGBT businesses and organisations and that it is too weak to effectuate any change in their attitude. One local drag artiste even quipped that "you can't shop your way to equality".

However, historical precedent has shown that the ruling People's Action Party tends to liberalise official policies regarding the LGBT community during times of economic hardship in an attempt to pull Singapore out of the economic doldrums. A salient example of this was seen during the peak of the Asian economic crisis in the early 2000s when the Prime Minister Goh Chok Tong liberalised the employment of openly gay employees in the civil service. In the decade preceding that, many Government politicians and civil servants had also read Richard Florida's seminal work, "The Rise of the Creative Class" in which he attributed the economic dynamism and creativity of cities to the fact that they tolerated diversity and were accepting of their LGBT communities.

Since the early 2000s, mainstream businesses have also become more cognisant of the purchasing power of the community and have started to woo their patronage.

Open for Business' report, 2024[]

In September 2024, Open for Business, a coalition of leading global companies, launched a report, the first of its kind, exploring the economic case for inclusion in Singapore, as well as five other Southeast Asian focus countries (Indonesia, Malaysia, the Philippines, Thailand and Vietnam)[1],[2],[3]. The study, which combined findings from a range of quantitative and qualitative research methods, explored several factors that if addressed could improve economic performance. It estimated that LGBTQ+ discrimination cost Singapore between SGD$1.2 to 2.8 billion (0.19% to 0.43% of GDP) per annum and suggested that:

addressing health inequalities relating to depression rates and HIV/AIDS response could further bolster GDP.
"brain drain" data indicated that Singaporean talent was moving to more inclusive countries such as Australia and Japan.
SOGIE (sexual orientation, gender identity and expression) inclusion could help boost tourism from all communities, not just those who were LGBTQ+.

Key findings[]

Economically successful countries had better records on LGBTQ+ rights[]

Analyses demonstrated correlations between LGBTQ+ rights and:

World Bank Per Capita Gross Domestic Product (GDP)
Global Innovation Index (GII) from the World Intellectual Property Organization (WIPO)
World Bank Labor Force Participation Rates

Newly developed Granger causality testing demonstrated that not only were LGBTQ+ rights and these metrics correlated, but they also showed that improvements in LGBTQ+ rights preceded – and predicted – these key economic indicators.

Conversely, corrupt countries had worse records on LGBTQ+ rights. Data from Transparency International’s Corruption Perception Index (CPI) showed that the higher levels of corruption in some of these Southeast Asian countries were strongly correlated with LGBTQ+ rights. Granger causality testing demonstrated that not only were LGBTQ+ rights and a country’s level of corruption highly correlated, but they also showed that improvements in LGBTQ+ rights preceded – and predicted – improvements in anti-corruption activities.

Foreign Direct Investment (FDI) “Decriminalization Dividend”[]

A new analysis of World Bank FDI data showed that countries that did not have punitive laws around same sex intimacy received and gave significantly more foreign investment.

National reputation on LGBTQ+ issues played a large part in employee mobility and tourism decisions[]

How LGBTQ+ issues in Southeast Asian countries were covered in the media hade a great impact on decisions being made about relocation and travel to the region.

Skilled workers in the region were leaving to work in more open societies[]

An analysis of a new World Bank-LinkedIn database showed that regional workers were leaving to work in more open societies.

LGBTQ+ friendly companies outperform their rivals[]

Diversity, Equity and Inclusion (DEI) programs not only differentiated companies in a competitive labor market, but actually impacted the bottom line. A new Open For Business report demonstrated that companies which were transparent on LGBTQ+ inclusion hade superior financial performance, improved brand reputation, and enhanced talent attraction. Case studies from a diverse group of locally and globally owned companies, large and small, and from various sectors, further underscored this crucial point.

New data from BCG also showed that companies were embracing LGBTQ+-specific DEI programs in the region. Even in Indonesia, one in six companies surveyed had such programs.

Most Southeast Asian capital cities were not fully open for business[]

Open For Business’ 2022 Cities Ratings Report found the majority of Southeast Asian cities underperforming on key economic and LGBTQ+ inclusivity ratings, and that Manila and Ho Chi Minh City’s ratings had actually fallen since 2020.

References[]

Acknowledgements[]

This article was written by Roy Tan.

Pink dollar in Singapore

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