Singapore Finance Minister Lawrence Wong, right, speaks as Prime Minister Lee Hsien Loong looks at the Presidential Palace in Singapore on Saturday. EPA
Singapore Finance Minister Lawrence Wong, right, speaks as Prime Minister Lee Hsien Loong looks at the Presidential Palace in Singapore on Saturday. EPA
Singapore Finance Minister Lawrence Wong, right, speaks as Prime Minister Lee Hsien Loong looks at the Presidential Palace in Singapore on Saturday. EPA
Chitrabhanu Kadalayil is deputy comment editor at The National
April 19, 2022
Singapore has had just three prime ministers and one political party at its helm since becoming a self-governing entity in 1959. The reason is down to two overriding factors. One is the country’s tightly controlled political system, and the other is the sheer dominance of the men who throughout its history have come to occupy the hottest seat on the island.
Lee Kuan Yew, Goh Chok Tong and Lee Hsien Loong loom large over Singapore. And given their outsized role in the country’s transformation into a global economic powerhouse, they will be a hard act to follow for Finance Minister Lawrence Wong, who on Thursday was chosen to succeed Lee Hsien Loong on a yet-undetermined date.
As if their legacies are not daunting enough, the time it has taken for the ruling People’s Action Party (PAP) to zero in on Mr Wong, and the lack of clarity about when he will take over, point to two inconvenient truths confronting him. One is the churn that is under way within the party, and the other is the turning point that Singapore politics finds itself at.
Sometimes it takes a crisis to know a man, and Wong’s stock grew as the government’s point man during the pandemic
Mr Wong is undoubtedly in uncharted territory. But before looking at what’s in store for him, it is important to go back in time to understand the PAP’s system by which it chooses its leaders.
After each general election – every one of which the PAP has won by huge margins – the party picks its most competent legislators to form the Cabinet. The new members, then, choose a “first among equals” who will become prime minister.
That all three of the country’s premiers were overwhelming choices among their peers provided the stability that Singapore needed in its growing years. It helped, too, that it had an unofficial one-party system that to some extent was by design, but due also in large part to the PAP’s success in delivering prosperity to the people. There was, as a result, little genuine competition from outside the party.
However, that reality is gradually changing amid Singapore’s evolving demographics and economic conditions, as well as growing geopolitical turbulence around the globe. These changes have given rise to opposition parties both at the grassroots level and in Parliament at a time when the PAP is struggling to find good young leaders.
Mr Lee, who had planned to step down after turning 70 in February, was forced to delay his retirement to shepherd Singapore through the pandemic. His decision was also shaped by Deputy Prime Minister Heng Swee Keat’s announcement last April to step aside as Mr Lee’s original successor-in-waiting. Mr Heng, then 61, cited age as the main reason to rule himself out, but this meant the party had to start over again to find a new leader.
Heng Swee Keat of the People's Action Party meets residents during a walkabout ahead of the general election in Singapore in 2020.
That leader today is Mr Wong. Whether he is undisputedly so, however, remains in question. For even though 15 of the 19 fellow Cabinet members eventually voted for him, it likely wouldn’t have taken a whole year after Mr Heng made his announcement to step aside for the party to anoint Mr Wong, had he been its clear choice. It is believed that a lack of political heft, at least relative to that of some of his peers, was a major hurdle.
Mr Wong, though, has extensive experience in government, having worked as a high-flying career bureaucrat before joining politics in 2011. If his various stints across ministries provided the cake, his position as a co-chair of the all-important Covid-19 taskforce presented the cherry on top. Sometimes it takes a crisis to know a man, and Mr Wong’s stock grew as the government’s point man during the pandemic. During regular briefings, he proved to be an excellent communicator with an empathetic side and an unflappable demeanour that quickly endeared him to his colleagues and the broader electorate.
It is this visibility that the PAP will hope makes him a vote-catcher in the next general election (to be held no later than in the summer of 2025). Mr Wong is also affable, loves playing the guitar and appears in TikTok videos, which have made him more accessible to ordinary Singaporeans than other politicians. More than anything else, though, it is his humble beginnings – not unlike Mr Goh’s background – that the party will bank on come election time, particularly in competitive constituencies.
Then Singapore prime minister Lee Kuan Yew shakes hands with then French prime minister Jacques Chirac at Matignon in Paris. AFP
Goh Chok Tong, who was Singapore's second prime minister, at the 21st International Conference of The Future of Asia in Tokyo in 2015. AFP
But neither the PAP nor Mr Wong should focus on elections just yet, or entertain the idea of holding a snap election, as has been speculated. The leader-in-waiting needs to consolidate his position in the party first.
As Cherian George, the Hong Kong-based Singaporean writer, pointed out, voters in a general election are “entitled to consider factors other than whom the PAP picks as its leader – like the quality of MPs”. The PAP’s numbers, Mr George said, need not reflect confidence in a new leader. Indeed, a clearer measure of Mr Wong’s political standing will come from within the PAP. Can he, for instance, prevail over who gets what post in the party? Or will he, as Mr George says is likely, “have to bow to godfathers' wishes”? Time will tell whether he can hold the party together, but it will undoubtedly be key to how well he is able to govern the country.
Finally, elections can wait as the next man gathers much-needed experience working as Mr Lee’s understudy in the run-up to 2025. With a Cabinet reshuffle coming up, his promotion to the position of deputy prime minister is almost certain. This is important.
If his predecessors were given a long rope before they rose to the top, surely Mr Wong deserves at least until the next election to find his feet.
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Priority access to new homes from participating developers
Discounts on sales price of off-plan units
Flexible payment plans from developers
Mortgages with better interest rates, faster approval times and reduced fees
DLD registration fee can be paid through banks or credit cards at zero interest rates
Company Profile
Name: Thndr Started: 2019 Co-founders: Ahmad Hammouda and Seif Amr Sector: FinTech Headquarters: Egypt UAE base: Hub71, Abu Dhabi Current number of staff: More than 150 Funds raised: $22 million
THE SPECS
Aston Martin Rapide AMR
Engine: 6.0-litre V12
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
UAE currency: the story behind the money in your pockets
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
UAE currency: the story behind the money in your pockets
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
Dubai Creek Open in numbers
The Dubai Creek Open is the 10th tournament on this year's Mena Tour
It is the first of five events before the season-concluding Mena Tour Championship
This week's field comprises 120 players, 21 of which are amateurs
15 previous Mena Tour winners are competing at Dubai Creek Golf and Yacht Club
First Person
Richard Flanagan
Chatto & Windus
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Who has been sanctioned?
Daniella Weiss and Nachala Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.