Dealing with Govt is a pain.

Bernie Ecclestone candidly said that he found dealing with the Singapore Govt, a pain. Mahathir had previously said that Singapore Govt is also inflexible.

A glimpse into the back stage negotiations was given when it was revealed that at all stages the govt kept raising operational issues and questions that had to be resolved. I think businessmen like Bernie Ecc and Ong Beng Seng were used to shaking hands on the deal in principle and sorting out the niceties and details as they arise. Their personal relationship and trust would smooth over any bumps.

However with govt personal ties only goes so far. Personality is not a good basis for business with the govt. Mahathir and Abdullah are a contrast in styles and approach and Singapore's relationship with Malaysia, is more dependent on the personality of the Malaysia leader than the shared economic interests and potential for collaboration.

Similarly, on hindisght, the security of Temasek Holdings investment in ShinCorp could also be said to be tied to the personal influence of Thaksin, rather than on indisputable legal foundations.

The fact is that govt leaders changed. Sometimes as a matter of succession, sometimes a little more forcefully, like Thaksin. Furthermore, there is a tendency to treat the govt as the safety net when things go awry. That's when the govt will see its commitment and expenses grow beyond the budget.

So it is good and prudent to spell out the details of any deals clearly. Good fences make good neighbours. Good agreements make good deals.