The pearl of Southeast Asia

Singapore is a small island country, just three times the size of Washington, D.C., with a population of 5.2 million people. Of those, 2.2 million are foreign residents. English is the official language, while Mandarin, Malay and Tamil also widely spoken. The ethnic diversity of this young country is 75 percent Chinese, 15 percent Malaysian, 9 percent Indian and 3 percent Eurasian.

Singapore was established as a trading post in 1891 by Thomas Stamford Raffles of Britain (who abolished slavery in Southeast Asia), even though the Portuguese were using the island to trade spices as early as the 1600s. The British left during World War Two, and in 1942 Japan occupied this swampy isle. Singapore became part of the Malaysian Federations in 1945 and was kicked out in 1965, becoming the independent Republic of Singapore.

Thanks to the genius of Lee Kuan Yew, his strongarm tactics and visionary outlook,  Singapore leaped forward. Today it is the private banking center for Asia, much like Switzerland is for Europe. It has the world's third-highest per capita income, and unemployment is less than 2 percent. A stunning one in every five residents is a millionaire. Those making less than $20,000 a year do not pay taxes, while the highest income tax rate is 20 percent. Corporate taxes are 18 percent, and capital gains is 10 percent. 

Ninety-five percent of Singaporeans own their apartments; though some are subsidized by the government, most people purchase their homes from their savings. High interest savings accounts, controlled by the government, are mandatory, and companies are required to match people's savings. An account similar to the U.S. Social Security system is also mandatory. As for health, everyone must establish a medical expense trust to be used when and if they become ill. The birthrate of just 1.2 percent growth is a matter of concern for Singaporeans, whose life expectancy is 84 years of age.

This city-state spends more on its military, as a proportion of gross domestic product, than any other country after Israel. Every male citizen and permanent resident has to serve in the military when he turns 18-years-old. The Singapore Armed Forces has an active force of around 71,600 troops and is capable of mobilising another 350,000 reservists.

The government limits the number of cars on Singaporean streets with high tariffs to prevent pollution and congestion, so a simple Toyota model may cost as much as $270,000, including the price and a certificate of ownership.Taxis are plentiful, and residents walk, ride their bikes or use mass transit, which includes buses and subways. 

Speaking of transportation, Singapore is an aviation hub for the region, with eight airports hosting a network of 80 airlines that connects the city to 200 cities in 68 countries. Its maritime harbour, the Port of Singapore, is the world's second-busiest with as many 1,000 ships anchored. The government plans to build an underwater bullet train to Malaysia, which supplies Singapore with its water, agricultural goods and cheap labor.

Our cruise ship terminal, the Marina Bay Cruise Center, was built in 2012 on reclaimed land, which makes up 40 percent of Singapore. It also includes hotels, convention centers and botanical gardens. It is also the site of  the Marina Barrage, which creates a catchment to prevent seawater from entering a freshwater reservoir, and a water-recycling facility that turns even sewage into potable water. 

Lee Kuan Yew, whose grandson is the new prime minister, established Singapore on five basic priorities:

1. Education 
2. Housing 
3. Racial Harmony 
4. Economic Development
5. National Service  

Many attribute the stability of this 50-year-old republic to the rule of law. Singapore is  a "guided" democracy with a parliamentary system that values law and order above everything else. Punishments for littering, smoking in public, jay walking, vandalism or public disturbance is punishable by caning. In 1994, American teenager Michael Fay was caned after a conviction for vandalism.

More serious crimes like drug trafficking and armed offenses or treason are punishable by death (hanging). There is no trial by jury. Judges assess the crime and hand out the sentence within weeks of the offense.

Gambling is legal in and generates a lot of income for the government. American business tycoon Sheldon Adelson of Las Vegas built the three-tower Marine Bay Sands Resort for $7 billion -- and got his investment back in less than three years. Singapore's convention centers are teeming with businessmen, and the hotels have high occupancy rates. Some 7,000 U.S companies are represented in Singapore.

Sailing with us for a few days were Mike and Shelly Dee from Texas who first came to Singapore with the investment bank JP Morgan in the early 1990s. Following work in other parts of the world, they chose to return to Singapore where they are raising five children and are involved in dozens of philanthropic causes. They have given 10 scholarships to Semeaster at Sea students. Shelly serves on the board of Institute for Shipboard Education, the umbrella organization for SAS.