The economic picture in Singapore offers the patient investor much promise. Singapore is transforming itself into a world-class knowledge-based economy. Biomedical research and private banking are at the forefront of the country's march up the value chain. Output of drugs and medical devices is up fourfold since 2000. Over the past two years, medical travelers are up 28% to 410,000. And more than 100 foreign drug makers and biomedical companies have set up factories in Singapore. These firms are likely attracted to the city-state's strict patent enforcement, highly educated workforce, and friendly business climate.

On the financial services side, Singapore is fast becoming Asia's offshore financial center. Assets under management in the country's private banking industry are growing at rates of up to 30%. In a recent Barron's article, Justin Ong, a partner at PricewaterhouseCoopers, notes that China is creating 30,000 new millionaires every year, with India, Indonesia, and Taiwan not far behind. This newly minted group of millionaires is attracted to Singapore's low rate of corruption, rigorous legal system, and secrecy laws that are now considered stricter than even Swiss laws.