Wednesday, February 15, 2023

China's growing middle-class kingdom in Singapore is causing heartburn | Explained

The reasons behind the middle-class Chinese citizens making the move to Singapore are manifold — political stability, economic growth, and access to a high quality of life, among other things.


Saikiran Kannan
Singapore,UPDATED: Feb 16, 2023 

A file photo of Chinese pedestrians in Beijing (AP)


By Saikiran Kannan

For some time now, high-net-worth individuals and successful business families from mainland China have looked towards Singapore as an ideal option. Now, however, it’s not just the uber-wealthy who are eying the sovereign island country. Even China’s middle class, young students, and the working population are reportedly looking to move to Singapore. And we can look at the recent “Lunar New Year” controversy as a microcosm to understand the implications of this change in demographics.

What is the Lunar New Year controversy?

The use of the term "Lunar New Year" instead of "Chinese New Year" sparked a heated debate among local Reddit users in Singapore. This started after a student from China at Nanyang Technological University (NTU), a top-ranked international university with thousands of overseas students, allegedly defaced a board that announced the celebration of the Lunar New Year. The word “Lunar” was struck out and replaced with the word “Chinese”. Later, the student shared the photo on a Chinese social media platform and eventually, a screenshot of that made its way to Reddit. The post on the NTU subreddit read: "A Chinese student at NTU fumes over the use of 'Lunar New Year's instead of 'Chinese New Year,' alleges censorship and discrimination on campus."

However, many Reddit users appeared to disagree with the student's claim, saying that the use of "Lunar New Year" has always been the norm and that it is not exclusively associated with the Chinese community. One Reddit user wrote, "We've always been using Lunar New Year for CNY," and another added, "The Korean, Vietnamese, and some others celebrate on that day as well. It is not exclusively Chinese."

Another Reddit user suggested that the issue was only being raised by ultra-nationalist Chinese citizens who support the Communist Party of China (CCP), further alleging that most of the local Chinese population in Singapore and Malaysia did not have a problem with the naming convention.

One person who claimed they worked at the university wrote about this incident and the vandalism and expressed deep regret and disgust over it. They said that the display was later cordoned off after the vandal removed the tape used to fix it. They called this behaviour "damn disgusting."

The debate surrounding the use of "Lunar New Year" instead of "Chinese New Year" is not limited to Singapore. In New York, a woman from Beijing was allegedly arrested after she tore down a poster that said "Lunar New Year" in a mall. Recently, the British Museum faced similar controversy after promoting events related to Korean New Year as "Korean Lunar New Year." Despite protests from Chinese netizens, the British Museum initially refused to change the term, but eventually removed the related Twitter posts and promotional articles due to pressure. On the evening of January 20, the British Museum held an event titled "Celebrating Seollal Lunar New Year," which included a traditional Korean music and dance performance and a curator's explanation at the Korean Pavilion. This prompted further protests from Chinese netizens, and the British Museum once again removed the promotional articles on Twitter and its website. On January 22, the British Museum posted a picture of a Chinese Qing Dynasty woman holding a rabbit and wrote "Chinese New Year" on the hashtag. These incidents highlight the sensitivity surrounding the use of the term and the importance of being inclusive and respectful of cultural diversity.

Experts have opined that regardless of the stance one takes, it is important to be respectful of cultural diversity and to consider the feelings of those who may be affected by the language or term used to describe the holiday. It cannot be just called “Chinese New Year”.

Aside from this, diplomatic and political experts have also raised concerns that Mainland Chinese people moving into Singapore must respect the local rules and sentiments and stick to following the diverse and accepting culture that is considered the ethos of Singapore.

“The ‘One China’ policy should be restricted to China and Hong Kong, and the incoming Mainland Chinese people should not carry it around wherever they go, especially in Singapore”, said Vincent Koh (name changed), who studies in a premier Singapore University.

The rising cost of living and realty prices led by the influx of Chinese

The reasons behind the middle-class Chinese citizens making the move to Singapore are manifold — political stability, economic growth, and access to a high quality of life, among other things.

In recent years, both China and Hong Kong have experienced a great deal of political turmoil and unrest, leading many residents to seek out a more stable and secure environment. Singapore is known for its stable political environment, as well as its rule of law and efficient government. This makes it a desirable destination for many people who want to escape the uncertainties and instability of their home countries.



Victor Cheng, a consultant for a real estate and relocation services advisory told India Today. “I see a definitive change in the cost of living and rental prices of houses, including HDBs.”

HDBs refer to public housing societies constructed by the Housing & Development Board of Singapore. They are like government quarters or government housing blocks built in India. Official HDB data shows that from Q4 in 2021 to Q4 in 2022, the average rental price increase has been around a whopping 34 per cent. This not only affects the locals but also affects white-collar ex-pats and foreign workers (including Indians) living in Singapore. Tenants face a difficult time renewing their lease/rental agreements as homeowners want to keep up with the trends of rising rental prices.
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“I see many young Chinese students and workers in Singapore renting out private condominiums and HDBs for higher rates, which has in turn driven the rent prices skywards”, added Victor. The attractive tax structure and a lack of fear on the surveillance front make Singapore the “Asian Switzerland” for many of these mainland Chinese.

As of 2021, Singapore just had a population of around 55 lakh. In such a context, an influx of a large group of rich families, students, and youngsters can certainly influence many aspects of a city-state country.

For instance, the registration of Rolls-Royce cars in Singapore skyrocketed in 2021 and 2022 and continues to remain at peak levels in 2023, causing waiting lists for these vehicles to extend for several years. According to showroom sources, the majority of new buyers are from China. Aside from cars, Chinese restaurants with Michelin stars may have difficulty securing a dinner reservation until September later this year.

As a result of this increase in business, private wealth managers and other financial services have experienced exponential growth. With the growth in scale, it has become practical for many major investment banks from the US, Europe, and Japan to transfer more senior staff to Singapore from Hong Kong.

Victor also spoke about the latest trend in the Chinese middle-class investing in Singapore with a view of moving there permanently or setting up homes for their kids to study in Singapore. The budget is usually around INR 6 to 10 crore (1.5-2 million Singapore dollars). While Hong Kong was the most preferred destination for such investors, anti-government protests have made them choose a quieter Singapore. Over the last year or so, many Mainland-Chinese families have been wary of settling in Hong Kong as they don’t feel secure enough interacting with locals there and feel their strong Chinese accent makes it difficult for them to integrate with locals in Hong Kong owing to their hatred towards the CCP and the Mainland Chinese.

To counter the number of foreigners buying private property in Singapore, the stamp duty rate for foreigners in Singapore was raised to 30 per cent after record increases in realty prices. This year especially has seen rental and house prices hit the roof much to the displeasure of Singapore locals.
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How have the locals reacted to this situation?

Singaporeans are always vocal about their views, be it on the ground or on social media. With respect to the NTU fiasco, many locals including university students were livid and disappointed with how the student from China reacted to the use of the term “Lunar” instead of “Chinese”. Many attributed the behaviour to the way the CCP trains the mind of its citizens. Some of them also commented that if the Chinese students did not like how Singapore celebrated its festivals, they could discontinue their studies and go back to China.

Albert Tan, a local Singaporean commented: “I don't know who this Chinese student is who is unhappy with the use of lunar new year instead of Chinese New Year. This student should remain in China instead of studying in Singapore. Then he can enjoy every festive season in China. It's quite shameful that being a Chinese national, he does not even know why the term "Lunar New Year" is used since its inception about 3,800 years ago. Chinese chose the 1st day of the lunar calendar for ancestors’ worship. Today, it becomes a holiday for family gatherings and sharing blessings with loved ones.”

Nevin Thomas (name changed), a local Singaporean shared his views on the large influx of PRC citizens. He uses the popular aphorism, “The rich get richer, the poor get poorer”. He is worried about the rise in the cost of living and how incomers are flashy when it comes to showcasing their wealth. He said, “Every neighbourhood now sees people driving around in flashy new cars, partying hard and not even trying to integrate themselves into the current societal standards or culture”.

It is also true that even though the major race-ethnicity of Singapore is that of the Chinese race, they do not see themselves as part of China, contrary to the “One China” theory promoted by the CCP. The Singaporean Chinese have a culture of their own that is unique to Singapore, which also amalgamates the cultural values and ethos of Malays and Indians.

Chin Han, a Singaporean blogger wrote: “If incoming foreigners who want to settle or study in Singapore do not want to embrace the local way of doing things, it’s these people that Singaporeans don’t want. They are the ones who are trying to undermine Singapore’s culture by making it seem like we are a Chinese country. They like to conveniently forget that Singapore is multicultural. They also want to link everything back to China. If you’re not happy about this and if you love your country so much, you can just choose to stay in China. Who are you to make such a fuss!”

From “Pratas” to “Chicken Rice” to “Nasi Goreng”, Singapore has built a harmonious society for years under the leadership of the late Lee Kuan Yew who is referred to as the father of Singapore. Any change or any external influence that tries to spoil the status quo is unlikely to be taken lightly.
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