Three Reasons why the Value of Gold will rise significantly in 2007


PRODUCTION DOWN, DEMAND UP.

Every major gold mining country has reported slumping mine production of gold in 2006. As a result of mine strikes, environmental disputes and increasing production costs, global production is continuing to sag and shows no signs of significantly reversing this trend in the near-term. South Africa’s gold-mining output has repeatedly disappointed and this also includes major declines in production in Peru and slumping output in Australia.

“We may see the occasional quarter or monthly production figures that show a spike in production, but the trend is for global production to remain flat to falling in the future,” said research report from Blanchard quoted by Dow Jones in January 2007. “There have been no new world-class discoveries in the last decade, coupled with slashed exploration budgets and industry consolidation.”

BEATING PLOWSHARES INTO GOLD:
CHINA ENTERS ITS GOLDEN ERA.

Gold ownership for Chinese citizens was legalized in 2004. A system for selling bullion to the largest population in the world is slowly getting off the ground. Once this is established, the effect on gold demand will be staggering. Meanwhile, India, already the world’s largest consumer of gold, is experiencing an 80 percent growth in gold investment following a loosening of trade restrictions.

“Chinese gold consumption is expected to rise 17% this year,” news service Bloomberg quoted China Gold Association chair Cheng Fumin of 2007. “China is the world’s third biggest consumer of the precious metal and is expected to use 350 metric tons this year, up from 300 tons in 2005, owing to an increase in demand for bullion as an investment.”

CENTRAL BANKS ARE BEGINNING TO DIVERSIFY INTO GOLD.

The effect of central bank policies on the price of gold has always been significant. Today a new era of central bank purchasing is set to begin as the world’s key banks look for diversification of their foreign exchange reserves away from U.S. dollar dominated holdings. The Russian central bank has begun adding gold to reserves, following a commitment to do so in 2006. Other Asian banks are rumored to be planning a similar move. This trend in central bank buying is extremely critical and will have a profound and immediate impact on the gold market in 2007.

“The price of gold will continue to go up and probably very substantially. In the long run, it’s very clear that central banks are basically increasing the supply of money and the supply of gold is obviously very limited.”

— Dr. Marc Faber, January 8th, 2007

Good Harvest

Our tendency is to be interested in something that is growing in the garden, not in the bare soil itself. But if you want to have a good harvest, the most important thing is to make the soil rich and cultivate it well.

Shunryu Suzuki

Banking

“OK. If I am being honest with you then, yes, let’s whisper it, but the truth of the matter is that all of us are overpaid. There is nothing magical about what we do. Anybody can do it.”

– Allen Wheat, CEO of Credit Suisse First Boston

Rajah & Tann adds four new lawyers to its stable

This follows on the heels of many high-level moves in the legal industry
By WEE LI-EN
Business Times

FOLLOWING a series of recent high-level movements among law firms, Rajah & Tann (R&T) has strengthened its practice with four new senior additions to its team from a rival firm.

The R&T recruits are leading telecommunications and information technology lawyer Andrew Ong, mergers and acquisitions lawyer Christina Ng, finance and securities lawyer Evelyn Wee and medical science lawyer Lim Wee Han.

R&T has recently been beefing up its practice with high-level additions to its firm. Former High Court judge Sundaresh Menon re-joined the firm last month, along with 12 other lawyers from international law firm Jones Day.

The firm’s four new lawyers are expected to join in the third quarter of the year.

The four are directors of a 32-member board at Drew & Napier (D&N), each with a long career at the firm.

According to D&N’s website, Ms Ng joined D&N in 1990 and heads its Indonesian and Thai desks, and Ms Wee joined D&N in 1989. Mr Lim joined D&N in 1992 and co-heads its medical science practice group.

Mr Ong, who heads the info-communications and technology business group at D&N, said yesterday in a statement: ‘I am extremely privileged to have been a part of Drew & Napier’s renown. After so many delightful years at Drew, I leave behind many good friends and colleagues as well as the fondest memories one could hope for.’

Yesterday, managing director of corporate and conveyancing David Ang said that despite the departures, Drew ‘will grow from strength to strength’.

He said of his departing colleagues: ‘We fully understand their plans to pursue their careers elsewhere. We will remain friends.’

D&N has itself just admitted four lawyers to its board from within the firm and is poised for further growth.

The new lawyers are Cheryl Tan, Adrian Tan, Kelvin Tan and Valerie Kwok.

There have been many high-level movements in the legal industry recently. It was reported last month that top criminal lawyer Subhas Anandan is leaving Harry Elias Partnership (HEP) for KhattarWong while Singapore’s first specialist judge Tan Chee Meng and co-managing partner of HEP is also leaving the firm for personal reasons.

Secondhand Books for Sale

Collect at IFC Mall, Hong Kong or buyer bears shipping costs.

Military and Leadership

Elite Forces – The world’s most formidable secret armies
Richard M Bennett
HK$110 [SOLD]


The Marine Corps Way – Using Maneuver Warfare to lead a winning organisation
Jason A Santamaria et al
HK$110

Semper Fi – Business Leadership the Marine Corps Way
Dan Carrison and Rod Walsh
HK$80


Be Know Do – Leadership the Army Way
Frances Hesselbein and General Eric K Shinseki (USA Ret.)
HK$110 [SOLD]


Commandos – The Inside Story of Britain’s most elite fighting force
John Parker
HK$60 [SOLD]



Business

Never Wrestle with a Pig
Mark H McCormack
HK$60


Magnetic Service – secrets for creating passionately devoted customers
Chip R Bell and Bilijack R Bell
HK$110


Rain Making – The Professional’s guide to attracting new clients
Ford Harding
HK$80 [SOLD]

How to be a Rainmaker
Jeffrey J Fox
HK$60 [SOLD]


The McKinsey Way
Ethan M. Rasiel
HK$100 [SOLD]


Principle-Centred Leadership
Stephen R Covey
HK$60


What Color is Your Parachute? 2005 Edition
Richard N Bolles
HK$100


iCon – Steve Jobs, the greatest second act in the history of business
Jeffrey S Young and William L Simon
HK$100


Goldman Sachs – The Culture of Success
Lisa Endlich
HK$80 [SOLD]

Financial Accounting, 9th Edition
Needles & Powers (recommended by CFA Institute)
HK$480 (HK$840 new)


Spirituality

The Places that Scare You – A Guide to Fearlessness in Difficult Times
Pema Chodron
HK$80


The Miracle of Mindfulness
Thich Nhat Hanh
HK$70


How to Free Your Mind
Thubten Chodron
HK$80


The Art of Happiness
HH Dalai Lama and Howard C Cutler
HK$70 [SOLD]


Advice From a Spiritual Friend
Geshe Rabtem and Geshe Dhargyey
HK$80


Remarkable Healings
Shakuntala Modi M.D.
HK$70


Through Time into Healing
Brian L Weiss M.D.
HK$70


Travel and Sport

Shenzhen – A Travelogue in China
Guy Delisle
HK$100 [SOLD]


Buenos Aires – Lonely Planet
3rd Edition – 2002
HK$60


The Fundamentals of Hogan
David Leadbetter
HK$100


The Worst-Case Scenario Survival Handbook: Travel
Joshua Piven and David Borgenicht
HK$70


Pain

Your pain is the breaking of the shell that encloses your understanding.
Even as the stone of the fruit must break, that its heart may stand in the sun, so must you know pain.
And could you keep your heart in wonder at the daily miracles of your life, your pain would not seem less wondrous than your joy;
And you would accept the seasons of your heart, even as you have always accepted the seasons that pass over your fields.
And you would watch with serenity through the winters of your grief.

~ Kahlil Gibran ~

Dragon-I

After dinner drinks at Dragon-I with lawyers qualified in New York, Shanghai, India, Japan, New York, Indonesia, Singapore, England, Hong Kong and Beijing.

The Power of Myth

We have only to follow the hero’s path, and where we had thought to find an abomination, we shall find a god.

And where we had thought to slay another, we shall slay ourselves.

Where we had thought to travel outward, we will come to the center of our own existence.

And where we had thought to be done, we will be with all the world.

Joseph Campbell
The Power of Myth

How to stretch

In the easy stretch spend 10 – 15 seconds holding the stretch. Push the stretch until you feel a mild tension. Remember to relax as you hold each stretch. The feeling of tension should slowly reduce as you hold the stretch position. You should feel the stretch, but without pain. If the tension does not subside, ease off slightly and to an amount of tension that is comfortable for you. The easy stretch reduces muscular tightness and tension and prepares the tissues for the developmental stretch.

The developmental stretch
Now move slowly into the developmental stretch. Do not bounce. Move a little bit further until you again feel a small amount of tension and hold the position for 10 – 15 seconds. Stay in control. The tension should decrease, if it does not, lessen the tension slightly. If the stretch tension increases as you hold the stretch or it is painful, you are stretching too far. The developmental stretch fine tunes the muscles and increases your flexibility.

Breathing
Your breath should be slow, rhythmical, and under control. If you are bending forward during a stretch, exhale as you bend forward and breathe slowly as you hold the stretch. Don’t hold your breath while stretching. If a position changes or prevents a natural breathing pattern, then you are not relaxed. Ease up on the stretch to resume your natural breathing.

Counting
In the beginning, silently count the seconds as you hold each stretch, this will help you to hold the proper tension for the right amount of time. In a while, you will be able to stretch by how it feels, without having to count the time you hold the stretch.

Warming up
Before you stretch, you should do a few minutes of warming up (ie. walking, swinging arms) to loosen the muscles and related soft tissue. This will get the blood moving. It is important to warm up and stretch properly.

It is possible to injure yourself while stretching when:
• you are in too much of a hurry (not relaxed)
• you push too far, too soon (overstretching a cold muscle)
• you are not paying attention to the feeling of the stretch

If you are running, cycling or doing some other activity: warm up by doing the activity you are about to do, but at a lesser intensity for about 2 – 5 minutes. THEN STRETCH.

Cooling down
You should cool down after exercise by doing a scaled down version of the main workout. Get your heart rate back down towards a resting rate. Then stretch to prevent muscle soreness and stiffness.

Stretching © 2000 by Bob and Jean Anderson. Shelter Publications, Inc.

Lactic Acid

Muscle tension
Muscles, in the course of their work, use oxygen and nutrients and produce carbon dioxide and waste products. The principle waste product of muscle metabolism is called lactic acid. Nutrients and wastes are transported to and from muscles by the blood circulation, and so the efficiency of this transport system is dependent upon good blood flow. Poor or insufficient blood flow causes an accumulation of lactic acid producing tension in muscles.

Muscle pain
There are many types and causes of muscle pain, but all of us are familiar with the stiff achy feeling of a muscle which is reacting to an unusual level of exercise, a chronic strain or build-up of stress-related tension. This achiness is caused by the development of lactic acid residues in the muscles tissue, compounded by the fact that a tight muscle clamps down on its supply blood vessels and impedes drainage of its own tissue.

Massage
Massage acts on the tight achy muscle in several ways. It helps relax tension and spasm and promotes the release of lactic acid from the tissue. This relaxing action automatically enhances the function of the supplying blood vessels. In addition, massage actively increases the rate of blood flow to and from the area.

Epsom salts
Because of the high magnesium content, epsom salts bath can be helpful any time you are suffering from achiness and muscle strain. It is an excellent idea for the evening after you have had a massage because it helps to clear out released lactic acid. Without this, there may be a temporary generalized soreness following the massage treatment of a particularly tight area.

Instructions for taking a bath
Epsom salts are readily available at your local pharmacy. Use 2 to 4 cups in a full bath, the temperature of which is as hot as you can comfortably tolerate. You must soak in the bath for a minimum of 20 minutes, without adding any bathing solutions or oils and without using soap, as these substances will alter the chemistry of the water. After soaking for 20 minutes, you may wash or rinse off as you wish.

To replace the fluid you lose as perspiration, keep a glass of cold water beside you and sip it during the bath. If you like, you may also wring a towel in cold water and wrap it around your neck. As with any hot bath, make sure you get out of the tub slowly and carefully.

Liar's Poker

“I have this theory,” said Andy Stone, seated in his office at Prudential-Bache Securities.

“Wall Street makes its best producers into managers. The reward for being a good producer is to be made a manager. The best producers are cutthroat, competitive, and often neurotic and paranoid. You turn these people into managers, and they go after each other. They no longer have the outlet for their instincts that producing gave them. They usually aren’t well suited to be managers. Half of them get thrown out because they are bad. Another quarter get muscled out because of politics. The guys left behind are just the most ruthless of the bunch. That’s why there are cycles on Wall Street – why Salomon Brothers is getting crunched now – because the ruthless people are bad for the business but can only be washed out by proven failure.”

Michael Lewis, Liar’s Poker

Top 50 Superclubs

List of Top 50 superclubs as voted by international DJs:

1 Space (Ibiza)
2 Fabric (London)
3 Pacha (Ibiza)
4 The End (London)
5 Warung (Itajai)
6 Panorama Bar (Berlin)
7 DC10 (Ibiza)
8 Amnesia (Ibiza)
9 Pawn Shop Lounge (Miami)
10 Zouk (Singapore)
11 Stereo (Montreal)
12 The Arches (Glasgow)
13 Turnmills (London)
14 Space (Miami)
15 Digital (Newcastle)
16 Ministry Of Sound (London)
17 Womb (Tokyo)
18 Guvernment (Toronto)
19 Cocoon (Frankfurt)
20 Pacha (New York)
21 D-Edge (Sao Paolo, Brazil)
22 Cavo Paradisco (Mykonos, Greece)
23 Sirena (Maresias, Brazil)
24 Crobar (Chicago)
25 Fuse (Brussels, Belgium)
26 Pacha (Buenos Aires)
27 Basics (Leeds)
28 Club Kristal (Bucharest)
29 Coco Rico (Riccione, Italy)
30 Cielo (New York)
31 Rex Club (Paris)
32 Robert Johnson (Frankfurt)
33 Yellow (Tokyo)
34 Tenax (Florence, Italy)
35 Weekend (Berlin)
36 Privilege (Ibiza)
37 The Cross (London)
38 Sankeys (Manchester)
39 Home (Sydney, Australia)
40 Pacha (Sao Paolo, Brazil)
41 The Key (London)
42 Babyface (Shanghai, China)
43 Honey Club (Brighton)
44 Se One (London)
45 Alter Ego (Verona, Italy)
46 Spundaue (Los Angeles)
47 Trilogy (Dubai)
48 Venue (Athens, Greece)
49 T Bar (London)
50 Ageha (Tokyo)

Nothing Exists

Yamaoka Tesshu, as a young student of Zen, visited one master after another. He called upon Dokuon of Shokoku.

Desiring to show his attainment, he said: “The mind, Buddha, and sentient beings, after all, do not exist. The true nature of phenomena is Emptiness. There is no realisation, no delusion, no sage, no mediocrity. There is no giving and nothing to be received”.

Dokuon, who was smoking quietly, said nothing. Suddenly he whacked Yamaoka with his bamboo pipe. This made the youth quite angry.

“If nothing exists”, inquired Dokuon, “where did this anger come from?”

George Soros

On Terror: “How can we escape from the trap that the terrorists have set us?” he asked. “Only by recognizing that the war on terrorism cannot be won by waging war. We must, of course, protect our security; but we must also correct the grievances on which terrorism feeds…. Crime requires police work, not military action.”

On the Bush Administration: “An open society is a society which allows its members the greatest possible degree of freedom in pursuing their interests compatible with the interests of others,” Soros said. “The Bush administration merely has a narrower definition of self-interest. It does not include the interests of others.”

On the Bush Administration: “The supremacist ideology of the Bush Administration stands in opposition to the principles of an open society, which recognize that people have different views and that nobody is in possession of the ultimate truth. The supremacist ideology postulates that just because we are stronger than others, we know better and have right on our side. The very first sentence of the September 2002 National Security Strategy (the President’s annual laying out to Congress of the country’s security objectives) reads, ‘The great struggles of the twentieth century between liberty and totalitarianism ended with a decisive victory for the forces of freedom and a single sustainable model for national success: freedom, democracy, and free enterprise.'”

On Philanthropy: “I’m not doing my philanthropic work, out of any kind of guilt, or any need to create good public relations. I’m doing it because I can afford to do it, and I believe in it.”

On Stock Market Bubbles: “Stock market bubbles don’t grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.”

Looking for a Job

—–Original Message—–
From: Alan Lewis
Sent: Tuesday, March 22, 2005 11:34 AM
To: Daniel Loeb
Subject: CV

Daniel,

Thanks for calling earlier today. Enclosed is my cv for your review. I look forward to following up with you when you have more time.

Best regards,

Alan

Alan D. Lewis
Managing Director
Sthenos Capital Ltd.

—–Original Message—–
From: Daniel Loeb
Sent: 27 March 2005 23:08
To: Alan Lewis
Subject: RE: CV

what are your 3 best current european ideas?

Daniel Loeb
Managing Member
Third Point LLC

—–Original Message—–
From: Alan Lewis
Sent: Monday, March 28, 2005 1:03 AM
To: Daniel Loeb
Subject: RE: CV

Daniel,

I am sorry but it does not interest me to move forward in this way. If you wish to have a proper discussion about what you are looking to accomplish in Europe, and see how I might fit in, fine.

Lesson one of dealing in Europe, business is not conducted in the same informal manner as in the U.S.

Best regards,

Alan

—–Original Message—–
From: Daniel Loeb
Sent: 28 March 2005 09:50
To: Alan Lewis
Subject: RE: CV

One idea would suffice.

We are an aggressive performance oriented fund looking for blood thirsty competitive individuals who show initiative and drive to make outstanding investments. This is why I have built third point into a $3.0 billion fund with average net returns of 30% net over 10 years.

We find most brits are bit set in their ways and prefer to knock back a pint at the pub and go shooting on weekend rather than work hard. Lifestyle choices and important and knowing one’s limitations with respect to dealing in a competitive environment is too. That is Lesson 1 at my shop.

It is good that we learned about this incompatibility early in the process and I wish you all the best in your career in traditional fund management.

Daniel

—–Original Message—–
From: Alan Lewis
Sent: Monday, March 28, 2005 4:08 AM
To: Daniel Loeb
Subject: RE: CV

Daniel,

I guess your reputation is proven correct. I have not been in traditional fund management for more than eleven years. I did not achieve the success I have by knocking back a pint, as you say. I am aggressive, and I do love this business. I am Half American and half French, and having spent more than half my life on this side of the pond I think I know a little something about how one conducts business in the UK and Europe.

There are many opportunities in the UK and Europe, shareholder regard is only beginning to be accepted and understood. However, if you come here and handle it in the same brash way you have in the U.S. I guarantee you will fail. Things are done differently here, yes place in society still matters, where one went to school etc. It will take tact, and patience (traits you obviously do not have) to succeed in this arena.

Good luck!

Alan

—–Original Message—–
From: Daniel Loeb
Sent: 28 March 2005 10:23
To: Alan Lewis
Subject: RE: CV

Well, you will have plenty of time to discuss your “place in society” with the other fellows at the club.

I love the idea of a French/english unemployed guy whose fund just blew up telling me that I am going to fail.

At Third Point, like the financial markets in general,”one’s place in society” does not matter at all. We are a bunch of scrappy guys from diverse backgrounds (Jewish Muslim, Hindu etc) who enjoy outwitting pompous asses like yourself in financial markets globally.

Your “inexplicable insouciance” and disrespect is fascinating; It must be a French/English aristocratic thing. I will be following your “career” with great interest.

I have copied Patrick so that he can introduce you to people who might be a better fit-there must be an insurance company or mutual fund out there for you.

Dan Loeb

————————————————

From: Alan Lewis
To: Daniel Loeb
March 28 2005

Hubris.

————————————————

From: Daniel Loeb
To: Alan Lewis
March 28 2005

Laziness.

—————————–

New Yorker article: http://www.newyorker.com/archive/2005/04/18/050418ta_talk_mcgrath

Freedom

When the mind and the heart are stretched together in expanding self awareness, I assure you, there is instantaneous self transcendence and, therefore, limitless freedom.

~Shri Swami Nirmalananda~

Maximising Industry Profit by Collusion

One strategy that firms in an oligopoly might consider is to form a cartel, in which they agree to operate as if they were one firm (a monopoly). In the typical cartel arrangement, all the firms in an industry agree that, as a group, they will produce the same output and charge the same price for the industry’s product as would a monopolist who controlled the industry. This will maximise the industry’s economic profit, which can then be divvied up on some mutualy agreeable basis.

This seems like a perfectly acceptable way for firms in an oligopoly to operate. There are only two problems with it:

1. Collusion to restrain trade and the forming of cartels, typically, is illegal.

2. If firms cheat on the agreement, the strategy will not work.

My Favourites

Favourite LCD TV: Sharp

Favourite LCD Monitor: Eizo

Favourite aquarium: Aqua Design Amano

Favourite briefcase: LV

Favourite pen: Montblanc

Favourite telephone: Bang & Olufsen Beocom 2

Favourite mobile phone: Nokia

Favourite headphones: Sennheiser

Favourite earphones: Shure

Favourite food: Maguro

Favourite vegetable: Wasabi

Favourite yoghurt: Wallaby Organic

Favourite mineral water: Ferrarelle

Favourite dessert: Gula Melaka (from Melaka)

Favourite fruit: Durian (from Penang)

Favourite sport: Ashtanga Yoga

Favourite car: Ferrari 612 Scaglietti

Favourite motorcycle: Ducati 749 Testastretta

Favourite bicycle: Klein Attitude

Favourite backpack: Arcteryx

Favourite hydration system: Hydrapak

Favourite outdoor clothing: Arcteryx

Favourite climbing equipment: Petzl

Favourite scuba regulator: Scubapro

Favourite wetsuit: Bare

Favourite fin: Mares Plana Avanti Quattro

Favourite dive computer: Suunto Stinger

Favourite camera: Canon

Favourite torchlight: Surefire

Favourite waterbottle: Sigg

Favourite designer: Dries van Noten, Marni, Versace, Paul Smith

Favourite vitamins: Solgar

Favourite drink: Pu-Erh or Dongding Oolong

Favourite pet: Nishikigoi

Favourite DJ: Paul van Dyk

On women:

Favourite jeans: Rock and Republic

Favourite shoes: Manolo Blahnik

Favourite handbag: Chanel

Favourite cosmetics: Lancome

Favourite fragrance: Gucci Summer

Favourite beauty products: Aveda, Jurlique

Battle of Clubs

ST March 11, 2007
Battle of clubs
Party Central is now firmly focused on the trinity of Zouk, Ministry of Sound and St James Power Station, each with its rabid fans

By Sandra Leong

IF YOU haven’t been out on the town for a couple of months, prepare yourself for a shock as you get set to spin around that disco ball.

In that short space of time, Singapore’s nightclub scene has exploded to centralise around three monster clubs, with news emerging yesterday that the dancefloor shake-up has claimed its first victim.

Smaller clubs are taking a thumping – literally. Thumper at Goodwood Park Hotel revealed that it has had to shut down.

The mid-sized nightclub was hit by falling takings as clubbers streamed to what has quickly become Party Central’s unholy trinity: iconic Zouk, massive Ministry of Sound (MoS) and the newcomer that drove the nail into Thumper’s coffin, St James Power Station.

One of Thumper’s owners, Mr David Chin, says the club’s downward spiral started last November when ‘all the big places started opening’, adding: ‘St James and all that… it took a big chunk out of us’.

But what do partygoers care: Many of them are no doubt pondering more pressing issues, like what to wear to St James’ official opening tomorrow night – a $600,000 bash, no less.

The megaclub opened in September with a soft launch, but immediately blasted the old scene to bits. It split Singapore revellers into three distinct tribes, based on what nightclub they prefer to go to.

New friendships were forged. Old ones failed. All hinges on what crowd you identify with. Are you a Smoover? Or a Dragonfly buzzer? Or does ol’ Velvet do it for you?

A whole new cultural touchpoint has sprung up, virtually overnight.

As one clubber, 26-year-old accounts manager Lisa Yeo, puts it: ‘Zouk people are the trendiest, MoS people are those who want to be trendy, and St James people are those who really don’t give a damn.’

WORLD-renowned Zouk at Jiak Kim Street; British legendary dance club MoS at Clarke Quay; and all-in-one entertainment complex St James Power Station at HarbourFront already account for up to 40 per cent of the nightlife scene’s estimated $250 million-a-year revenue, say industry players.

Although new, St James is the heavyweight of the three. Standing at over 70,000 sq ft with nine separate clubs, it is more than twice the size of Zouk and 11/2 times MoS – making the former coal-fired power station the biggest entertainment venue in Singapore.

Spruced up for a hefty $43 million, it has already garnered a reputation as a one-stop, hip spot offering everything from house to live music. Though it is targeted at PMEBs (professionals, managers, executives and businessmen), its crowd ranges from teens to 50somethings.

Tomorrow’s launch extravaganza is expected to be attended by more than 5,000 revellers. The $600,000 bill includes entertainment, food and drinks; and three cars, one to be given away every four months.

It will also be attended by Defence Minister Teo Chee Hean, which is probably the first time a club opening has received such a high-powered guest of honour.

St James chief executive officer Dennis Foo says Mr Teo was invited through the Workforce Development Agency, which has recognised the megaclub’s efforts to train its 350 staff in the hospitality trade.

Next up in size is the 40,000 sq ft MoS, which opened in December 2005 amid much hype. The franchise club has five themed rooms playing anything from retro to hip-hop and is touted as the most lavish MoS in the world.

Completing the trio, 16-year-old Zouk also upped the ante recently when it underwent a $5 million revamp in September 2005. At about 30,000 sq ft, it is still the smallest of the three, but what it lacks in size it makes up in reputation.

YET just two years ago, Thumper at Goodwood Park Hotel was the darling of Singapore’s nightlife scene, playing host to a bevy of Beautiful People, and even picking up the coveted Best Nightspot title awarded by the Singapore Tourism Board.

But today the mid-sized joint popular for its live band and sophisticated crowds is no more, no thanks to flagging crowds and a 70 per cent drop in business.

Over 1,000 nightspots – ranging from big-name establishments to neighbourhood pubs – now dot the island. But as far as some revellers are concerned – and as Thumper found to its cost – the trinity rules them all.

Indeed, Thumper’s Mr Chin owns another nightspot, Q Bar at The Old Parliament House, and he says its business dropped by about 50 per cent in January, though other factors such as heavy rain and the post-festive season also came into play.

Over at another mid-sized club, Attica, marketing manager Amanda Ng laments: ‘The growing number of such superclubs, mid-sized clubs and bars popping up does not justify the population of clubbers… ultimately, all in this industry will somehow or other be affected by this trend.’

St James’ Mr Foo, a nightclub scene veteran who also owns Devils Bar in Orchard Hotel, says: ‘Nowadays, customers look for the biggest, with the most, and having the best.’

Still, some would have thought the presence of incumbent biggies Zouk and MoS would have deterred St James from throwing its hat in the ring.

Indeed, when St James’ first outlet, mandopop jive Dragonfly, opened in September, it had a dry three weeks, recalls Mr Foo.

‘I was initially quite worried. But after the third week, the response grew and I can say the feeling was like coming out of a whirlwind into a clear blue sky.’

St James now makes close to $1 million every month, with every one of its outlets profitable, he reveals. That’s no small beer.

However, Mr Michel Lu, who ran the now-defunct Centro and now owns chill-out lounges like Suba and The Hacienda, notes: ‘I’m very confident that Dennis will do well… his focus is there because St James has many different offerings.’

WITH St James already proving a runaway success, neither Zouk nor MoS will admit to feeling any jitters, though.

Mr Clement Lee, executive director of MoS’ parent company LifeBrandz, says: ‘We have each targeted different markets. The proposition is different, the music is different.’

While St James may be big on live music, MoS, he says, is frequented by savvy dance music lovers who appreciate the ‘heritage’ of the brand, which has its roots in British youth culture.

From August to October last year, LifeBrandz’ lifestyle sector chalked up takings of $6.5 million, the majority of which came from MoS. The club sees about 20,000 to 30,000 partygoers a week.

Similarly, Zouk’s marketing manager, Ms Tracy Philips, counters that going by sales, the club had its ‘best year’ in its 16-year history. ‘The economy picked up, we had a lot of noteworthy events and we still enjoy a strong following.’

Though Zouk was initially hit by the entry of MoS, with business dropping by about 20 per cent, St James has not made much of a dent. Says Ms Philips: ‘In terms of size, we’re a mid-sized club. But in terms of status and quality, we are a super club. So I’d like to think we are somewhere in between in our own niche.’

Even Mr Foo stresses that St James was never designed to rival the other big boys. ‘From the start, we were clear about our different target audience – PMEBs. So St James merely filled what was a vacuum in the scene.’

St James’ chief operating officer, Mr Andrew Ing, also points out that about one-third of the club’s clientele comes from ‘latent’ demand – people who never used to club, but are now inspired to paint the town red.

So rather than compete, the relationship between the Big Three is complementary, with each generating interest for the other, says Ms Philips. ‘Every new outlet that opens now lends its success to the people who paved the way before.’

But some observers feel the ‘different strokes, different folks’ refrain is too convenient an explanation.

Says one industry player who declines to be named: ‘The Velvet (a club within Zouk) crowd has gone to Dragonfly (one of St James’ outlets), the Zouk people have gone to Power House. I would say Zouk has been widely affected.’

Adds Mr Lu: ‘The pie has grown a lot larger but, unfortunately, not large enough. Someone’s gonna hurt… Inevitably there will be some loss of crowd somewhere. Anyone who says his business is better than ever, it cannot be. How can it add up?’

Still, Mr Foo believes there is room for a fourth super club in Singapore.

He says: ‘It’s like saying, is there room for another six-star hotel. When St James first opened up, people said there wouldn’t be enough people. But the people will come.’