SINGAPORE is well-positioned to weather the economic slowdown because of its political and social stability, said Hong Kong-based Political & Economic Risk Consultancy.

Its analysts ranked Singapore as having the least political and social risks next year among 16 territories in Asia Pacific, according to a summary of its 87-page report released to the media on Tuesday.

The unlikelihood of sudden political changes, stable labour relations and sound policies, including measures to help the poor, were among the factors in Singapore's favour, said Perc's managing director, Mr Robert Broadfoot.

He told The Straits Times: 'Singapore's fiscal situation is strong enough for the fiscal incentives that are going to help the country get over the crisis and spread the pain of recession.'

Politically, he noted, Singapore has no election coming up and the Government would stay in power.

In addition to crafting good policies to take Singapore through a recession, the Government's ability to implement them is a plus point.

Social stability is also expected, he said, because Singapore has 'no insurrection movements, the labour situation is stable and more harmonious than most countries, and you don't have religious fundamentalist movements.'

The report also concluded that despite external shocks, Singapore and Hong Kong will emerge stronger in their credibility as regional and international business centres.

Read the full story in Wednesday's edition of The Straits Times.