MM Lee Kuan Yew at the 25th Anniversary Dinner of the Singapore Federation of Chinese Clan Associations

In the early years, clan associations provided social support and protection for Chinese migrants in Singapore. They looked after clansmen who fell sick or lost their jobs, and assisted with important events such as marriages and funerals. They also started schools for their members’ children.

After self-government in 1959, many of these functions were taken up by government agencies which had more resources and provided better services. Traditional clan associations that did not adapt to the changing needs of a better-educated population now with their first language as English and the second language, Mandarin. They found it difficult to recruit new members, except for new immigrants whose English is still inadequate.

Clan associations are an important part of Singapore’s heritage. The Singapore Federation of Chinese Clan Associations was thus formed in 1986 to revitalise this sector. We want the clan associations to play a useful role in present day conditions by promoting Chinese language and culture; and building a connected and cohesive community. The Federation has contributed actively to these objectives for the past 25 years. It started with 70 members, and is now an umbrella organisation for 200 clan associations.

The Federation has done well, but it must not rest on its laurels. It should review their functions and remain relevant. There is no other option. If the clan associations do not constantly look ahead and move in tandem with new trends and developments, they will become irrelevant.

This was the challenge which I set for the Federation leaders when they invited me to attend this evening’s anniversary dinner. I am pleased that the Federation has responded positively to the call. After discussing with their members and community leaders, it has decided to focus on the following three key thrusts.

First, exposing young Singaporeans to China through education exchanges and scholarships to study in top Chinese universities. These will complement existing efforts by the government and our education institutions to nurture a group of bicultural Singaporeans who can effectively engage China.

Second, enhancing business linkages with China. Singapore is well placed to ride on China’s growth. Singapore and Singaporeans are held in high regard by Chinese government officials and business leaders. We are known to be competent and reliable, and can interact easily with the Chinese as we are bilingual in English and Mandarin. China is now our third largest trading partner and top investment destination. There are more than 3,500 Chinese companies in Singapore, including 156 listed on the Singapore Exchange. The trade and economic links will continue to expand with China’s growth. Clan associations should leverage on their networks and historical ties with provinces in Southern China, and work with organisations like Business China and the Singapore Chinese Chamber of Commerce and Industry to organise trade missions and explore new business opportunities.

Third, integrating new immigrants in Singapore. The Federation’s recent decision to include new immigrant groups is a step in the right direction. Clan associations could serve as catalysts to help bring the local Chinese community and new immigrants closer together through social and cultural activities. The government will support the Federation’s efforts in this area. We must help them to master the English Language which they need to succeed in Singapore.

Some Singaporeans are worried about competition from new immigrants. The government understands these concerns and has taken steps to slow down the inflow of immigrants and foreign workers. We have also sharpened the distinction between citizens and non-citizens to give more benefits to our citizens, including many perks which foreigners and PRs are not eligible for.

Despite numerous measures and incentives to encourage marriage and procreation, our overall fertility rate fell from 1.28 in 2008 to 1.22 in 2009 and further declined to 1.16 in 2010, far below replacement level. The fertility rate for the Chinese remained lowest among all races. It was only 1.02 in 2010, down from 1.14 and 1.08 in 2008 and 2009 respectively¹.

At these low birth rates, we will rapidly age and shrink. So we need young immigrants. Otherwise, our economy will slow down, like the Japanese economy. We will have a less dynamic and less thriving Singapore. This is not the future for our children and grandchildren.

Hence, we need to be welcoming of new immigrants and help integrate them into Singapore society. The first generation will take some time to integrate, but their children will be completely Singaporean. I have met some such students in our schools: they serve NS and marry Singaporeans. They will increase our population and talent pool. Singapore will be vibrant and prosperous, not declining and ageing.

Let me conclude by congratulating the Federation on its 25th anniversary. I wish you every success as you embark on the new key thrusts and initiatives.

[1] The 2010 figures are based on preliminary estimates from the Department of Statistics.