19 September 2026

Why Have Indians Become a Regular Target of Hate in Singapore?

The Diplomat | Asif Ullah Khan

Singapore is experiencing a sharp rise in racial hostility and derogatory online attacks targeting its ethnic Indian community, threatening the city-state's long-cherished model of multicultural cohesion. Recent online backlash has targeted nine Singaporeans of Indian descent missing in Nepal, alongside xenophobic attacks against Temasek chief executive Dilhan Pillay Sandrasegara over corporate investments.

This friction challenges the foundational nation-building policies established when Lee Kuan Yew led Singapore out of the Malaysian Federation on August 9, 1965. To prevent alienation after the 1964 race riots left 36 people dead, Lee instituted English as the primary administrative language and mandated strict ethnic quotas in housing. Social media has now shattered this carefully managed peace. Resentment has intensified as Singapore Airlines, which owns 25 per cent of Air India, reported a 57.4 per cent net profit drop to S$1.2 billion for the year ending March 2026, fueling conspiracy theories that the Indian-origin executive would prioritise the loss-making airline.

Comment

The public backlash against Temasek's stewardship of Singapore Airlines reveals a sharp strategic trade-off between the city-state's external capital deployment and its internal social cohesion. To sustain its position as a premier aviation hub, Singapore Airlines acquired a 25 percent stake in Air India, yet this commercial decision has triggered domestic xenophobic friction. This tension exposes the limits of Singapore's state-directed social engineering. The structural harmony mandated by the Ethnic Integration Policy is increasingly bypassed by digital platforms.

A second-order consequence of this trade-off is the potential constraint on future sovereign wealth deployments by Temasek in South Asian markets. If domestic political sensitivity forces Temasek to hedge its capital injections into Air India, Singapore's broader bilateral economic strategy with New Delhi could suffer long-term disruption.

Strategic Question for Discussion
If domestic public resentment continues to constrain Temasek's capital injections into Air India, how will Singapore balance its global aviation ambitions against the domestic preservation of the Ethnic Integration Policy?
The trajectory indicates that Singapore will likely adopt a more risk-averse posture regarding high-profile acquisitions in politically sensitive sectors. Rather than retreating from South Asian markets, Temasek is expected to diversify its portfolio through quieter, indirect private equity channels to shield state-backed enterprises like Singapore Airlines from domestic nativist backlash. This shift would allow the city-state to sustain its external economic footprint while minimising friction with the housing and integration frameworks of the Ethnic Integration Policy.
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