Singapore’s business-minded leaders say they want to be friends with everybody. That makes sense for a tiny island state of four million people trying to make a living in a volatile region increasingly dominated by China and India. But as protests in Thailand against PM Thaksin Shinawatra have intensified, Singapore has found itself on the receiving end of a highly unamicable barrage of threats from its large neighbour to the north.

Posters of Singapore’s PM Lee Hsien Loong have been burned in public; the Singaporean embassy in Bangkok has been besieged; and a boycott of the country’s products has been urged.

Sondhi Limthongkul, a leader of the Thai opposition People’s Alliance for Democracy, accused Singapore of “economic imperialism’’ this week. “If you don’t stop, should the Thaksin government change we will make sure that your activities in Thailand go down with him,’’ he said. Thai anger centres on January’s tax-free $1.9 billion sale of Shin Corp, a telecoms conglomerate founded by Thaksin and owned by his family, to Temasek Holdings, the Singapore’s state investment arm.

The opposition portrays the deal as a threat to Thai sovereignty and control of key national assets such as satellites. It wants the sale rescinded and allegations of insider dealing investigated. But Singaporean officials say the Shin Corp row has nothing to do with them.

“Temasek operates like any other company,’’ said Angelina Fernandez of the Monetary Authority of Singapore. The ministry of finance does not tell Temasek what to do.’’ Singapore’s minister for trade and industry, said the sale had become enmeshed in domestic Thai politics but admitted the government had been caught on the hop.

Singapore’s hard-nosed brand of free-wheeling, free-market capitalism, and what critics see as a concomitant lack of concern for democratic rights and civil liberties, has caused controversy before. Campaigners say significant Singaporean investment in Myanmar undermines UN-led efforts to encourage reform. And Singapore’s enthusiastic pursuit of regional free trade agreements is not wholly shared by some fellow members of the ASEAN concerned at the social and cultural impact of too-rapid economic change. The PM urged expanded trade with China during a recent visit to Beijing. But the former British colony remains an important Western ally that affords naval facilities to the US Pacific fleet, keeps on good terms with Japan, and harbours secret sympathies for Taiwan. As Sino-American strategic competition in Asia hots up, it may eventually be forced to take sides.

Singapore’s precociousness has also fuelled regional jealousies, illustrated by a bizarre row with Malaysia. Malaysia wants to replace the causeway linking the countries with a bridge. Singapore has not agreed so far. It cites the high costs but deeper concerns about its “over-bearing’’ neighbour are also in play. Malaysia has now decided to build its half of the bridge anyway, regardless of whether it actually leads anywhere. — The Guardian