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SM Lee Hsien Loong defends CECA, calls for integration and openness amidst political sensitivities

Senior Minister Lee Hsien Loong defended the Comprehensive Economic Cooperation Agreement (CECA) during a Sinda-hosted dinner, emphasising its economic benefits and rejecting nativism. His remarks come as public debate on CECA intensifies ahead of elections, amid concerns over the Racial Harmony Act’s impact on discourse.

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Senior Minister Lee Hsien Loong has reiterated the importance of maintaining an open and inclusive society while addressing political sensitivities surrounding immigration and foreign talent in Singapore.

Speaking at an appreciation dinner hosted by the Singapore Indian Development Association (Sinda) and 14 other Indian community organisations on 11 January 2025, the former Prime Minister highlighted the critical role of agreements such as the Comprehensive Economic Cooperation Agreement (CECA) in strengthening Singapore’s economic position.

He stressed that Singapore relies heavily on immigrants and foreign workers to bolster its population base and talent pool, a strategy crucial for maintaining the city-state’s competitiveness.

“We must manage the inflow and integration of new arrivals with the utmost sensitivity and caution to ensure the flows are balanced and sustainable,” he said.

However, SM Lee also urged Singaporeans to reject nativism and xenophobia, calling for new arrivals to be welcomed as part of the extended national family.

Integration and sustainability

SM Lee highlighted that the integration of newcomers is a gradual process that requires societal effort.

Drawing parallels with earlier waves of immigrants, he said, “This is how earlier generations became Indian Singaporeans, and it will happen with this generation and with new arrivals from other groups too.”

He framed this as part of a broader effort to sustain and enrich Singapore’s identity as a cohesive, inclusive society connected to the world.

The Prime Minister also underscored the significant contributions of the Indian community to Singapore’s progress, noting its role as a shining example of the country’s successful multiracial model.

He described how groups from the Indian subcontinent integrated over generations, forming a distinctive Singaporean Indian identity while adding vibrancy to the national culture.

CECA’s role in economic ties

Addressing one of the evening’s focal points, SM Lee defended CECA, describing it as a cornerstone of Singapore’s trade and investment ties with India. He noted that the agreement had paved the way for Indian companies to set up in Singapore and for local businesses to explore opportunities in India’s growing market. ”

India is growing and on the move,” he said, citing opportunities in areas such as bilateral trade, skills training, fintech, healthcare, and green economies.

The Singapore Indian Chamber of Commerce and Industry (SICCI), he added, has been instrumental in supporting businesses in these endeavours. CECA, often a contentious topic in public and political discourse, was framed as a mutual benefit fostering growth for both nations.

Public and political challenges

The issue of CECA and free trade agreements has long been contentious, with critics, including the Progress Singapore Party, raising concerns about its impact on local employment. While the government has consistently defended CECA as essential for economic growth, public discourse often features allegations that the agreement disadvantages Singaporeans, particularly in online forums like Reddit.

The Maintenance of Racial Harmony Bill, set for its second reading in February 2025, grants the Minister for Home Affairs wide-ranging powers to issue restraining orders against individuals deemed to have engaged in racially offensive conduct. Such orders could include prohibiting public communication on certain topics, requiring the removal of online materials, or barring involvement in related media activities.

Given Minister K Shanmugam’s past framing of discussions on CECA as having racial undertones—particularly during the 2021 debate with NCMP Leong Mun Wai—it is highly likely that similar discussions could be interpreted as racially charged under the Act’s provisions.

One could argue this could stifle legitimate public debate ahead of the general election, especially as the Minister has discretionary authority to issue such orders without prior consultation.

The potential use of these powers has raised concerns about a chilling effect on public discourse, as labelling criticism of CECA as racially motivated could deter meaningful dialogue on critical economic policies.

Celebrating contributions of new arrivals

SM Lee also praised the contributions of recent arrivals, highlighting their volunteerism and active involvement in the community. “They add vibrancy and dynamism to our Indian culture, contributing to the community and the country,” he said.

Cheques of $150,000 each were presented to the Singapore Indian Education Trust and Sinda during the event, showcasing the community’s ongoing efforts to uplift its members.

With the next general election due by November 2025, SM Lee’s remarks come at a pivotal time. While his government is expected to face questions about CECA and immigration policies during the campaign, he maintained a firm stance on the importance of these measures in securing Singapore’s long-term success.

As SM Lee concluded, he expressed confidence that the Indian community, like others in Singapore, would continue to play an active role in building a stronger, more united nation.

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