A campaign poster showing Singapore Prime Minister Lee Hsien Loong of the incumbent People's Action Party on a lamp post ahead of the general election in Singapore last Friday. EPA
A campaign poster showing Singapore Prime Minister Lee Hsien Loong of the incumbent People's Action Party on a lamp post ahead of the general election in Singapore last Friday. EPA
A campaign poster showing Singapore Prime Minister Lee Hsien Loong of the incumbent People's Action Party on a lamp post ahead of the general election in Singapore last Friday. EPA
Singapore's founding father and long-time leader Lee Kuan Yew once famously said: "Even if you are going to lower me into the grave and I feel that something is going wrong, I will get up." The late Mr Lee, who was prime minister of the city-state from 1959-90 before remaining in government as senior minister and then minister mentor until 2011, would almost certainly have been moved to do so had he been around to witness Singapore's recent general election.
For in it the ruling People’s Action Party (PAP), helmed since 2004 by his son Lee Hsien Loong, received its second worst vote in Singapore’s history as an independent state. The opposition notched up a record number of MPs. The Deputy Prime Minister, Heng Swee Keat, only squeaked a victory in his own constituency, leading many to assume that the PAP’s succession plans – Mr Heng was expected to take over before Mr Lee’s 70th birthday in 2022 – have been upended. After the shock of losing their first ever multi-member constituency (known as GRCs) in the 2011 election, the PAP lost a second last Friday.
Held during a pandemic that Prime Minister Lee called "the crisis of a generation", the election was supposed to return his party with a "strong mandate". Instead Mr Lee was returned in a weakened state. Could it be the PAP that now faces a crisis? Is it destined to follow the fate of the Barisan Nasional in neighbouring Malaysia – which had ruled the country since independence, but after a strong blow in a 2008 general election was finally voted out of office 10 years later?
A voter casts his ballot at at the Chung Cheng High School polling centre in Singapore on Friday. Wearing masks and plastic gloves, Singaporeans began voting in a general election that is expected to return Prime Minister Lee Hsien Loong's long-governing party to power. AP Photo
Singapore's Prime Minister Lee Hsien Loong arrives at a People's Action Party branch office, as ballots are counted during the general election, in Singapore on Friday. Reuters
Opposition Worker's Party secretary-general Pritam Singh surrounded by members of the media during a campaign walkabout ahead of the general elections in Singapore last week. EPA
Pritam Singh, right, speaks to residents during his election campaign. EPA
Pritam Singh fist bumps a resident during his election campaign. EPA
Pritam Singh, who took over the party's reins from Low Thia Khiang, right, will be named opposition leader on the floor of Singapore's Parliament. EPA
A man with a child crosses a street in Singapore this week. Singapore's Prime Minister Lee Hsien Loong called a general election "like no other" last week as the city-state struggles to recover from the coronavirus outbreak. AFP
Raymond Lye and Ng Chee Meng of the People's Action Party (PAP) meet with residents during a walkabout ahead of the general election in Singapore on Sunday. Reuters
Ng Chee Meng of the PAP arrives for a walkabout ahead of the general election in Singapore on Sunday. Reuters
Heng Swee Keat of the PAP meets residents during a walkabout ahead of the general election in Singapore on Sunday. Reuters
Ng Chee Meng, Heng Swee Keat and Raymond Lye of the PAP speak to residents during a walkabout ahead of the general election in Singapore on Sunday. Reuters
Lee Hsien Yang, brother of Singapore's Prime Minister Lee Hsien Loong, centre, arrives with Tan Cheng Bock, right, of the opposition Progress Singapore Party (PSP) at the Tiong Bahru Market for an event ahead of elections in Singapore on Sunday. AFP
Tan Cheng Bock and Lee Hsien Yang of the PSP greet people during a walkabout ahead of the general election in Singapore on Sunday. Reuters
Lee Hsien Yang of the PSP greets a hawker during a walkabout ahead of the general election in Singapore on Sunday. Reuters
Lee Hsien Yang, right, chats with Tan Cheng Bock, left, at the Tiong Bahru Market in Singapore on Sunday. AFP
Lee Hsien Yang, left, shows his membership card after been given it by Tan Cheng Bock, right, of the PSP at the Tiong Bahru Market in Singapore on Sunday. AFP
Lee Hsien Yang, talks to the media after been presented a membership with opposition PSP at the Tiong Bahru Market in Singapore on Sunday. AFP
Lee Hsien Yang of the PSP greets people during a walkabout ahead of the general election in Singapore on Sunday. Reuters
A PSP volunteer hands out leaflets at a food centre ahead of the general election in Singapore on Sunday. Reuters
Lee Hsien Yang of the PSP attends a walkabout ahead of the general election in Singapore on Sunday. Reuters
That seems unlikely. The results of the poll were certainly an upset, but they must be seen in the context of a state where any dent in the PAP's dominance comes as a surprise. The party still won 61 per cent of the vote and 83 seats – compared to the Workers' Party's 10 seats, while the Progress Singapore Party will be allocated two non-constituency seats. Ruling parties in many countries would be delighted with so overwhelming a victory.
“The opposition have no expectations of getting into government,” comments my former colleague Shahriman Lockman of the Institute of Strategic and International Studies Malaysia. The long-term trend may be, as he says, that the PAP “just need to get used to the fact that they’re not going to get 70 per cent of the vote anymore".
That does not mean, however, that the PAP should rest on its somewhat diminished laurels. To his credit, Mr Lee is obviously aware of that. “The results show a clear desire for a diversity of voices in Parliament,” he said in a news conference after the election. “Singaporeans want the PAP to form the government. But they, and especially the younger voters, also want to see more opposition presence in Parliament.”
Mr Lee recognised Pritam Singh of the Workers’ Party as the official “leader of the opposition” – a title never accorded before – and said he would be provided with staff and resources. Singaporean commentators have long had carte blanche to say what they like about neighbouring countries, but Lee Kuan Yew’s attitude towards internal debate was brutal. “We decide what is right. Never mind what the people think," he once said; so the younger Mr Lee’s words and generous move are significant.
Singapore Deputy Prime Minister Heng Swee Keat barely won in his constituency. EPA
More worrying for the PAP is the relatively poor performance of their so-called 4G – fourth generation – politicians, of whom Deputy Prime Minister Heng was supposed to be the standard-bearer. Several won with thin majorities far lower than the 3G leaders, such as Mr Lee and his much-admired former deputy Tharman Shanmugaratnam, both of whom were elected with over 70 per cent of their constituency votes. If their popularity does not transfer to the generation that is due to take over the leadership, that does not bode well for the future.
Nor can the PAP bank for too much longer on the tranche of voters who remember the country before its independence in 1965. "If you knew what Lee Kuan Yew did for Singapore," – turning the country "from third-world to first", as Mr Lee also titled the second volume of his memoirs – is a point that has been made to me many times by older Singaporeans. But younger voters may take their prosperity and world-class education for granted.
And why shouldn’t they, you may ask? If the PAP does not make sure it is fully responsive to the wishes and dreams of younger generations, which includes allowing greater space for free speech and politics, why shouldn’t it one day lose – just as governments do in other normal countries?
Lee Kuan Yew died in 2015 but his governance model continues to dominate Singapore's politics to this day. AP Photo
Members of the ruling PAP see themselves as the necessary guardians of this special state. And yet the voters appear to be less visibly grateful to them than before
Lee Kuan Yew's answer to that was that Singapore was not a "normal" country. He was concerned that if its citizens did not remember that, "Singapore will cease to exist". This view rests on both the external geo-political threats and the risk of internal failure unique to a small polity with no natural riches to sustain itself. As the diplomat and academic Kishore Mahbubani pointed out in his 2015 book, Can Singapore Survive?: "History is not comforting. Many successful city-states have disappeared from the face of the earth." And the attitude manifests itself in what the younger Mr Lee calls the "need to be both paranoid and paradoxically confident".
Mr Mahbubani voiced the PAP’s fear that if they lose, a populist government could irresponsibly fritter away the country’s vast reserves on “bonuses” and “entitlements” for citizens, which could win them elections for many years until the money ran out. “Once it runs out of resources designed to take care of Singapore through rainy days,” he wrote, “Singapore could collapse.”
So the election result will worry the PAP more than outsiders may think. They congratulate themselves on their responsibility and see themselves as the necessary guardians of this special state. And yet the voters appear to be less visibly grateful to them than before. Expect a long and perhaps anguished inquest into why the PAP did not do better, and whether opening the public square further could sow the seeds of their own destruction by empowering the opposition. If this seems over the top, you are failing to understand the mindset. As PM Lee put it in a 2014 lecture: “Anxiety is understandable, anxiety is even constructive… only the paranoid survive.”
Sholto Byrnes is a commentator and consultant in Kuala Lumpur and a corresponding fellow of the Erasmus Forum
About Housecall
Date started: July 2020
Founders: Omar and Humaid Alzaabi
Based: Abu Dhabi
Sector: HealthTech
# of staff: 10
Funding to date: Self-funded
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
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Thalassaemia is part of a family of genetic conditions affecting the blood known as haemoglobin disorders.
Haemoglobin is a substance in the red blood cells that carries oxygen and a lack of it triggers anemia, leaving patients very weak, short of breath and pale.
The most severe type of the condition is typically inherited when both parents are carriers. Those patients often require regular blood transfusions - about 450 of the UAE's 2,000 thalassaemia patients - though frequent transfusions can lead to too much iron in the body and heart and liver problems.
The condition mainly affects people of Mediterranean, South Asian, South-East Asian and Middle Eastern origin. Saudi Arabia recorded 45,892 cases of carriers between 2004 and 2014.
A World Health Organisation study estimated that globally there are at least 950,000 'new carrier couples' every year and annually there are 1.33 million at-risk pregnancies.