Tan's election win loosens Lee's grip

FORMER deputy prime minister Tony Tan has narrowly won Singapore's presidential election in a sign that support for the party that has ruled the city-state with an iron grip for more than four decades is eroding.

By InvestSMART · 29 Aug 2011

By InvestSMART ·
29 Aug 2011

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Mr Tan was tacitly endorsed by Prime Minister Lee Hsien Loong in the first contest for the largely ceremonial position since 1993.

The closeness of the vote will ring alarm bells in the People's Action Party that was founded by former prime minister Lee Kuan Yew.

It comes after May's parliamentary election where the PAP's total vote fell to 60 per cent, it's lowest since Singapore split from Malaysia in 1965.

The PAP still maintains a big majority in parliament with 81 of 87 seats, but analysts say the party is facing a backlash over issues including soaring house prices, a surge in foreign workers and rising income inequality.

Murray Hiebert, a senior fellow at the Washington-based Centre for Strategic and International Studies' south-east Asia program, said the closely fought race shows Singaporeans are divided between those who wanted to support the candidate most closely associated with the PAP and give the government a vote of confidence and those who wanted a more independent president.

Mr Tan, 71, received 35 per cent of about 2.1 million votes in Saturday's election, beating former MP Tan Cheng Bock by 7269 votes.

However, election officials have ordered a recount because of the closeness of the vote.

"I plan to work my utmost for Singaporeans whatever be their political affiliation. The president is above politics," Mr Tan said after the results were announced.

During his 27 years in parliament Mr Tan was a senior minister under Lee Kuan Yew before heading the Government of Singapore Investment Corporation.

The president has veto powers over key government appointments and safeguards Singapore's foreign reserves, which now total around $US250 billion.

Prime Minister Lee appealed for unity after intense campaigning by four candidates.

"Now that the election is over, we should all come together again as Singaporeans, to tackle the challenges that Singapore faces, and take our nation forward," Mr Lee said.

After the May election, Mr Lee made key cabinet changes that included the retirement of his 87-year-old father, Lee Kuan Yew and former prime minister Goh Chok Tong.

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Frequently Asked Questions about this Article…

Who won the Singapore presidential election and how narrow was the victory?

Former deputy prime minister Tony Tan narrowly won the presidency, receiving about 35% of roughly 2.1 million votes and beating former MP Tan Cheng Bock by 7,269 votes. Election officials ordered a recount because the margin was so close.

What powers does the Singapore president have and why does that matter to investors?

The president has veto powers over key government appointments and is responsible for safeguarding Singapore's foreign reserves, which the article says total around US$250 billion. Those responsibilities matter to everyday investors because they relate to stability and stewardship of the nation's financial resources.

What is Tony Tan's background and why is it relevant to financial investors?

Tony Tan spent 27 years in parliament, served as a senior minister under Lee Kuan Yew and later headed the Government of Singapore Investment Corporation (GIC). His GIC experience is particularly relevant to investors given GIC's role in managing state investments.

How did the result reflect public sentiment toward the ruling People's Action Party (PAP)?

The close result highlighted eroding support for the PAP. In May's parliamentary election the party's total vote fell to 60% — its lowest since 1965 — and analysts say the PAP faces backlash over issues such as soaring house prices, a surge in foreign workers and rising income inequality.

Was there an official endorsement in the presidential race and what was the prime minister's message afterward?

Prime Minister Lee Hsien Loong tacitly endorsed Tony Tan in the contest. After the election he appealed for unity, saying Singaporeans should come together to tackle national challenges once the election was over.

What were the main issues driving voter concerns in the election that investors should know about?

Analysts cited soaring house prices, an increase in foreign workers and rising income inequality as key issues driving voter discontent. These social and economic concerns can influence public policy and political sentiment, which investors often watch closely.

Does the closeness of the presidential vote affect confidence in Singapore's institutions?

The article says the close race will 'ring alarm bells' within the PAP and shows a divided electorate between those wanting a PAP‑associated candidate and those seeking a more independent president. The president's role as a non‑partisan safeguard of reserves was emphasized, with Tony Tan saying he plans to be 'above politics.'

What recent political changes did Prime Minister Lee make after the May parliamentary election?

Following the May election, Prime Minister Lee made key cabinet changes that included the retirement of his 87‑year‑old father, Lee Kuan Yew, and former prime minister Goh Chok Tong, according to the article.