Racial harmony bill unlikely to choke ethnic fundraising

Disclosure requirements are not meant to stifle the operations of racial groups.

A Singapore bill that seeks to boost racial harmony whilst requiring about 300 clan and business groups to disclose foreign donations is unlikely to affect the flow of funds, analysts said. 

The measure is not meant to stifle or prevent race-based organizations from fundraising or operating as usual, given that disclosures are likely to be made periodically, Khairil Suhairee, a partner at law firm Rajah & Tann Singapore LLP, told Singapore Business Review.

“I don’t think there will be a very substantial change on how fundraising is done,” he said in an interview via StreamYard. “[The bill] doesn’t have unfair levels of control in relation to donations.” 

The measure lets the government keep tabs on any potential racial issues, the lawyer added.

Parliament passed the Maintenance of Racial Harmony bill on second reading on 4 February, empowering authorities to issue restraining orders on people who make content that prejudices Singapore’s racial harmony, and introduced safeguards against foreign interference.

Eugene Tan, an associate professor of law at the Singapore Management University, said the new law does not seek to curb legitimate business activities or cultural exchanges. [It only] enables the authorities to have a better insight into how these organisations are structured,” he said in the same interview.

Tan said the new law also encourages race-based groups to be more self-aware when receiving foreign or anonymous funding.

“It’s important for the designated entity to ask themselves where those funds are from and what they are going to be put to use for,” he told Singapore Business Review. “The funding should not make them become someone’s proxy.”
Donations are broadly defined by the bill, and organisations should assess whether there is a risk of foreign influence in the funds they get, Suhairee said. “It doesn’t just include grants or other forms of payments made by foreign donors.”

The government is looking at designating about 300 race-based business groups in Singapore, according to Minister for Home Affairs K. Shanmugam.

Tan said the government would probably designate more prominent race-based groups, such as the Singapore Chinese Chamber of Commerce and Industry, Singapore Malay Chamber of Commerce and Industry, Singapore Indian Chamber of Commerce and Industry.

Suhairee expects the government to include community self-help groups like Yayasan Mendaki, which serves the Malay community in Singapore.

Race-based organizations can appeal their designation, Suhairee said. “The entities can make representations to the government to say why they should not or why they should be designated under the act.”
Although the new law’s day to day impact may not be significant, it is important because race, “in many ways, defines Singapore and can be exploited,” Tan said.

Singapore is home to different racial groups, including Chinese, Malay, and Indian. A survey by the Institute of Policy Studies released on 3 February found that eight of 10 Singaporeans believe the nation is free from racial tension. About 65% rated Singapore’s racial and religious harmony as high or very high.

“The government has often described race as a ‘fault line,’ Tan said. “If you are a foreign actor with ill intent, race would be one of the figurative buttons you could press to sow internal discord. This law gives the government additional levers to address various threats.” 

“It’s also meant to sensitize race-based organizations, reminding them that as they continue to interact with foreign entities, they should compromise Singapore’s interests in all their dealings,” he added.