Singapore's Prime Minister Lee Hsien Loong arrives at an international conference on the future of Asia in Tokyo in May 2022. EPA
Singapore's Prime Minister Lee Hsien Loong arrives at an international conference on the future of Asia in Tokyo in May 2022. EPA
Singapore's Prime Minister Lee Hsien Loong arrives at an international conference on the future of Asia in Tokyo in May 2022. EPA
Singapore's Prime Minister Lee Hsien Loong arrives at an international conference on the future of Asia in Tokyo in May 2022. EPA


Will political succession in South-East Asia always hinge on race?


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July 05, 2023

When Singaporeans cast their votes to elect their next president, at some point before mid-September, the result appears to be a foregone conclusion.

Tharman Shanmugaratnam, the former senior minister and deputy prime minister in the ruling People's Action Party government and one of the most popular politicians in the country (even the opposition like him), is expected to win the largely ceremonial position of head of state very comfortably.

Capping his 22-year career as an MP and minister with the presidency may well be an honour. But it raises one question for many. Why couldn’t Mr Tharman have succeeded the current prime minister, Lee Hsien Loong, when he decides to step down?

The man himself has long batted away such suggestions, telling the media “I’m good at policymaking, I’m good at advising my younger colleagues, and at supporting the PM – not at being the PM. That’s not me.”

Mr Tharman was speaking in 2016, when the subject was a hot topic because a Yahoo poll had put support for him to be premier at 55 per cent – with the next contender on 17 per cent.

Former Singapore's Deputy Prime Minister Tharman Shanmugaratnam at a high-level independent panel during the G20 Finance Ministers' and Central Bank Governors' meeting in Venice on July 9, 2021. AFP
Former Singapore's Deputy Prime Minister Tharman Shanmugaratnam at a high-level independent panel during the G20 Finance Ministers' and Central Bank Governors' meeting in Venice on July 9, 2021. AFP

His popularity hasn’t waned. In the 2020 general election Mr Tharman led his team in his multi-member constituency to victory with an impressive 75 per cent of the vote. So why shouldn’t he be a candidate for the premiership? The incumbent, Mr Lee, gave the answer in 2019.

“I think that ethnic considerations are never absent when voters vote,” he told an interviewer. Asked specifically whether Singapore – whose main ethnic groups are Chinese at 74 per cent, Malays at 13 per cent and Indians at 9 per cent – was ready for a non-Chinese leader, he said: “If you ask whether it will happen tomorrow, I do not think so.”

In neighbouring Malaysia and Indonesia, on the other hand, it is inconceivable that an ethnic Chinese person or any non-Muslim could become the country’s leader. The percentage of minorities is different in the two countries – Chinese make up 23 per cent of the population in Malaysia, with Indians at seven per cent, whereas in Indonesia the Chinese are only reckoned to constitute just over one per cent, albeit of a much larger population of 282 million, as opposed to 33 million in Malaysia.

This view, that only a member of the country’s majority ethnic group and religion should be the leader, goes further. When an ethnic Chinese was appointed Malaysia’s finance minister and an ethnic Indian attorney general in 2018, it was highly controversial.

And having been President Joko Widodo’s deputy when he was governor of Jakarta didn’t protect Basuki Tjahaja Purnama, an ethnic Chinese Christian who had succeeded his former boss as governor, from what many thought were dubious blasphemy charges in 2017, when he was sentenced to two years in jail.

There might also be some who say that throughout history, it has been the natural order of things for a leader to be from a majority or dominant ethnic group

But outsiders who view all this over-simplistically should take a pause. They should remember that it is only very recently that people of colour have attained the highest office in Europe and North America. The nonchalance with which Britons greeted Rishi Sunak as their first non-white prime minister was remarkable, but relatively new. There might also be some who say that throughout history, it has been the natural order of things for a leader to be from a majority or dominant ethnic group.

But there are other reasons for South-East Asian countries to take such a view. The history of communal tensions spilling over into rioting is so seared into the national consciousnesses that anything that could possibly upset inter-ethnic relations is ultra-sensitive, if not to be avoided at all costs.

Having been ruled by the British and the Dutch for centuries, local populations may have a degree of paranoia about post-colonial interference. Certainly, in Malaysia there was a fear among the majority Malays of “not being masters in the only country they can call their own”.

It may not be justified today, but it was in 1970 when Malays and other indigenous peoples owned a mere four per cent of the country’s wealth.

What may look like rigidity about race relations to some is particularly strictly followed in Singapore, where housing is deliberately mixed so one-racial enclaves don’t develop, and where the Home Affairs minister K Shanmugam has recently said the government is "publicly committed to keeping our percentages [of race] more or less constant".

But it is all done in the pursuit of harmony. And in countries where, first, the community comes before the individual, and second, history has shown them that care needs to be taken, it has, to a large degree succeeded. There may be a glass ceiling in politics, but in other areas of life, particularly in business, ethnic minorities have excelled.

Comparing this to France, where the frustration and anger of youths of North African and Arab descent was one of the main causes of the recent riots, a Malaysian friend returning from Europe said to me: “Thank goodness we live in Kuala Lumpur!” Such scenes are unthinkable here (as are activists gluing themselves to whatever immovable objects they can find, which she also mentioned).

It would be fair to acknowledge that race-based stereotyping is common in South-East Asia. Sometimes that is harmless.

Every time I’ve gone to a stand-up comedy set in Kuala Lumpur, there have been jokes based on caricatures – which everyone laughs at, regardless of ethnicity. Sometimes less so, as in former premier Dr Mahathir Mohamad’s bizarre and divisive claim this week that promoting a multi-ethnic country was against the Malaysian constitution.

But understandable though it may be for historical reasons, if the idea that only members of one ethnicity or religion can occupy the highest office prevents the greatest talents from realising their potential, that is only going to hinder those countries. Future generations will benefit if they can be open to any of their countrymen and women becoming their leaders. On this, I concur with Singapore’s Mr Lee. “It is not impossible,” he has said, “and I hope one day it will happen."

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

INDIA SQUADS

India squad for third Test against Sri Lanka
Virat Kohli (capt), Murali Vijay, Lokesh Rahul, Shikhar Dhawan, Cheteshwar Pujara, Ajinkya Rahane, Rohit Sharma, Wriddhiman Saha, Ravichandran Ashwin, Ravindra Jadeja, Kuldeep Yadav, Mohammed Shami, Umesh Yadav, Ishant Sharma, Vijay Shankar

India squad for ODI series against Sri Lanka
Rohit Sharma (capt), Shikhar Dhawan, Ajinkya Rahane, Shreyas Iyer, Manish Pandey, Kedar Jadhav, Dinesh Karthik, Mahendra Singh Dhoni, Hardik Pandya, Axar Patel, Kuldeep Yadav, Yuzvendra Chahal, Jasprit Bumrah, Bhuvneshwar Kumar, Siddarth Kaul

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Updated: July 05, 2023, 8:20 AM