Since coming to power in 1959, the People's Action Party (PAP) has ruled Singapore for an uninterrupted 62 years. Such is its dominance that electoral outcomes are mostly predictable, while the politics itself is efficient, brilliantly stage-managed and, for the most part, without drama.
“Singa-bore,” some like to call it, albeit happily. For political stability and efficient governance have served the South-East Asian city-state well, making it among the world’s wealthiest and most business-friendly countries.
But politics in recent months has been anything but boring, and much to the PAP's misfortune, bad things have come in threes. It started with the Covid-19 pandemic and was quickly followed by electoral setbacks, as the Workers' Party gained 10 seats in Parliament – a record for any opposition party in Singapore. Both of these developments culminated last week in Deputy Prime Minister Heng Swee Keat's announcement that he was stepping aside as the ruling party's leader-in-waiting.
Mr Heng cited his age as the primary reason for doing so. Originally due to succeed Lee Hsien Loong after the incumbent turns 70 in 2022, that goalpost was shifted indefinitely following the pandemic and the PAP’s relatively poor electoral performance (even though it won 83 of the 93 seats). Mr Lee said he will hand over the reins only once Singapore is “in good working order” again. At 60, Mr Heng said he would be much too old by the time he is ready to enter office.
In most countries, an announcement of this magnitude would animate the public for a few days. In Singapore, that could last much longer, given how intimately involved government is in people’s lives. For many, Singapore is PAP and PAP is Singapore. And what happens in the party matters, at some level, to all Singaporeans.
Mr Heng’s decision has so far not caused panic in the markets. But for a country that thrives on stability and predictability in all aspects of life, particularly in politics, it is a harbinger of uncertainty for the coming few months. In the long term, it could even presage dissent and divisions within an otherwise tightly knit party that takes leadership and succession-planning very seriously.
That stability and predictability have been the primary drivers behind Singapore’s success is entirely by design, as conceived by its founders.
Not long after he was sworn in as Singapore’s first prime minister in 1959, Lee Kuan Yew went about amassing power within the executive, thereby limiting the legislature and judiciary. He also restricted the press and passed laws making it nearly impossible for opposition parties to criticise the PAP, much less grow their movements. Even to this day, public demonstrations are almost non-existent.
Lee Hsien Loong has postponed stepping down as Singapore's Prime Minister. Bloomberg
It is easy to see why the founders prized stability and predictability over other considerations. The country is just over 700 square kilometres in size. It has no natural resources to speak of, save for its nearly 6 million people, who are divided along racial and religious lines but united by a national identity. Any hint of disunity can very quickly lead to disharmony on a small piece of real estate, LKY feared, as it indeed had in the early 1960s, leading to a series of race riots. Being surrounded by much larger and unfriendly neighbours at the time of independence was also a great source of insecurity.
Critics, particularly in the West, have scorned LKY’s command-and-control style of governance, but he and the effectively one-party system he bequeathed have nonetheless overseen a clean and efficient government, ushered in prosperity and helped foster peace, friendship and co-operation in the region.
Aside from delivering for the public, the PAP's longevity is also predicated upon its unique process of picking leaders.
LKY and his fellow first-generation leaders, or “1G”, mentored the 2G leadership group that was then tasked with picking the prime minister from among them – effectively choosing their “first among equals”. It still took five years of “apprenticeship” for that leader, Goh Chok Tong, to eventually succeed LKY in 1990. Mr Goh’s 2G group followed the same process to groom Mr Lee and his 3G team before the latter entered office in 2004.
The late Lee Kuan Yew was Singapore's prime minister for 31 years. AFP
After a painstaking process of identifying the next leader, the PAP now has to start over. But it isn't back to square one
In both instances, the task was smoothened by the fact that the choice of who should become prime minister was crystal clear to the leadership group, and the party rallied behind him. This practice seems to have hit a curb in Mr Heng’s case.
There are mitigating circumstances, of course. The pandemic is a once-in-a-generation crisis. Age, as Mr Heng himself pointed out, is also an undermining factor – particularly for someone who has suffered a stroke once before. LKY was 36, Mr Goh was 49 and Mr Lee was 52 when they took office.
Well documented, however, is the fact that the process to identify and mentor Mr Lee’s successor was fraught with delays. These were mostly caused due to a lack of experience among the 4G leadership group, as well as Mr Heng’s stroke in 2016. But despite having had a clear edge over his peers in terms of experience, administrative skills and a gentle demeanour that initially seemed to endear him to the public, he was not the clearest choice when he was officially unveiled as Mr Lee’s heir apparent in 2018. A younger but less relatable Chan Chun Sing, the country’s trade and industry minister, finished a close second. The question being asked then was whether the PAP would get squarely behind Mr Heng’s candidature.
Even though he may not admit it, the people’s vote seems to have paved the way for last week’s decision. Not only did the PAP emerge with fewer seats and a reduced vote share in the 2020 election, Mr Heng barely won his own constituency, sparking doubts about his electability and electoral leadership.
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
After a painstaking process of identifying the next leader, the PAP now has to start over. The good news for it is that it isn’t back to square one. In the intervening years, Mr Heng’s peers, including Mr Chan, have acquired considerable experience, honed their political skills and buttressed Singapore from the pandemic’s worst aftershocks. The cupboard is also far from bare.
The bad news for it is that the world is in flux and so is Singapore's politics. Opposition parties, some that include disgruntled former PAP members, see an opportunity.
The question now is whether, in one or two years’ time, a clear leader will emerge – and if the party will get behind him or her. It is a multi-billion-dollar question, for Singapore's continued economic success will depend on it. A cabinet reshuffle, due in a couple of weeks, will throw up some clues.
Singapore has come a long way since the 19th and early 20th centuries, when it earned the moniker of “Sin-galore” due to its high crime rates and lawlessness. Much needs to happen for it to return to those bad old days. To the contrary, the country will continue to be a paradise of stability for years to come. But the next few months could determine whether, as unlikely as it seems, it can go back to being “Singa-bore” again.
Chitrabhanu Kadalayil is an assistant comment editor at The National
9pm: Handicap Dh185,000 (T) 1,600m; Winner: Chiefdom, Mickael Barzalona, Salem bin Ghadayer
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Under 19 World Cup
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
Group D: Afghanistan, Canada, South Africa, UAE
UAE fixtures
Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Abdelfattah Mourou (Ennahdha party): 12.88 per cent
Abdelkarim Zbidi (two-time defence minister backed by Nidaa Tounes party): 10.7 per cent
Youssef Chahed (former prime minister, leader of Long Live Tunisia): 7.3 per cent
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
Red flags
Promises of high, fixed or 'guaranteed' returns.
Unregulated structured products or complex investments often used to bypass traditional safeguards.
Lack of clear information, vague language, no access to audited financials.
Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The biog
Fast facts on Neil Armstrong’s personal life:
Armstrong was born on August 5, 1930, in Wapakoneta, Ohio
He earned his private pilot’s license when he was 16 – he could fly before he could drive
There was tragedy in his married life: Neil and Janet Armstrong’s daughter Karen died at the age of two in 1962 after suffering a brain tumour. She was the couple’s only daughter. Their two sons, Rick and Mark, consulted on the film
After Armstrong departed Nasa, he bought a farm in the town of Lebanon, Ohio, in 1971 – its airstrip allowed him to tap back into his love of flying
In 1994, Janet divorced Neil after 38 years of marriage. Two years earlier, Neil met Carol Knight, who became his second wife in 1994
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
'Texas Chainsaw Massacre'
Rating: 1 out of 4
Running time: 81 minutes
Director: David Blue Garcia
Starring: Sarah Yarkin, Elsie Fisher, Mark Burnham
Match info:
Burnley 0
Manchester United 2
Lukaku (22', 44')
Red card: Marcus Rashford (Man United)
Man of the match: Romelu Lukaku (Manchester United)
Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press
The biog
Job: Fitness entrepreneur, body-builder and trainer
Favourite superhero: Batman
Favourite quote: We must become the change we want to see, by Mahatma Gandhi.
