Singapore Prime Minister Lee Hsien Loong said on Tuesday an incentive provided to Taylor Swift to make Singapore the only stop in Southeast Asia on her world tour was not a hostile act towards its neighbours.

"(Our) agencies negotiated an arrangement with her to come to Singapore and perform and to make Singapore her only stop in Southeast Asia," Lee told a news conference in Melbourne.

"It has turned out to be a very successful arrangement. I don't see that as being unfriendly."

Swift is this week playing six sold-out nights in Singapore, her only stop in Southeast Asia.

Last month, the government said it had given Swift a grant to play in Singapore. It did not disclose how much but said the concerts were "likely to generate significant benefits to the Singapore economy, especially to tourism activities such as hospitality, retail, travel and dining".

The announcement annoyed other countries in the region, with the Thai prime minister saying the grant was made on condition that it would be Swift's only show in Southeast Asia, while a Philippine lawmaker said it "isn't what good neighbours do".

Chua Hak Bin, an economist at Maybank, estimates that seven in 10 of the 300,000 concertgoers will be coming in from abroad, spending between S$350 million and S$500 million (US$260 million to US$370 million) on hotels, food and entertainment. (Reuters)