NTUC set to be designated 'politically significant person' under foreign interference law given 'close nexus, symbiotic relationship' with PAP

SINGAPORE — The National Trades Union Congress (NTUC) has been served a notice under the Foreign Interference Countermeasures Act (Fica) due to its "close nexus and symbiotic relationship" with the ruling People’s Action Party (PAP).

NTUC is Singapore’s national trade union that represents the interests of workers across various industries.

In a statement on Thursday (July 11), the Ministry of Home Affairs (MHA) said NTUC would be designated as a "politically significant person" under section 47 of Fica.

The ministry added that its Registrar of Foreign and Political Disclosures "has assessed that given NTUC’s close nexus and symbiotic relationship with the PAP, it is in the public interest for countermeasures under Fica to be applied to NTUC".

If designated as a politically significant person, NTUC would be required to make annual disclosures to the registrar.

These include political donations of S$10,000 or more that NTUC receives and accepts, and its foreign affiliations. 

"These transparency requirements will mitigate NTUC's risk of being a target of foreign interference," MHA said.  

Under Fica, a politically significant person is one who is subject to stringent countermeasures against foreign inteference, given the person's direct involvement in Singapore’s political processes. 

Fica defines politically significant persons as political parties, political office-holders, Members of Parliament, central executive committee members of political parties, and election candidates and their election agents.

It also empowers a competent authority to designate individuals and organisations as politically significant persons if relevant conditions are met.

Its latest provisions to counteract foreign interference through domestic proxies took effect on Dec 29 last year. 

NTUC has 14 days from Thursday to submit representations to the registrar. The union may appeal to Home Affairs Minister K Shanmugam against the registrar’s decision if designated. 

Responding in a statement on Thursday, NTUC Secretary-General Ng Chee Meng said that the trade union is committed to championing its members’ and workers’ interests with "accountability and transparency".

Mr Ng added: “We are aligned with national safeguards to prevent foreign interference, and we will continue to ensure that our operations remain free from foreign influence.

"We will review MHA’s requirements for the designation process and would like to assure our members, partners and stakeholders that NTUC’s core work to better workers’ lives and livelihoods will continue unabated."

Mr Ng was co-opted as part of the PAP Central Executive Committee in its party elections in 2020 and 2022.

In response to queries from CNA, an NTUC spokesperson said the trade union has not and does not accept donations from political entities. 

“NTUC is aligned with national safeguards to prevent foreign interference, and we will continue to ensure that our operations remain free from foreign influence.”

On the nature of NTUC’s foreign affiliations, the spokesperson said NTUC is affiliated internationally with the International Labour Organisation, International Trade Union Confederation (ITUC), ITUC Asia-Pacific and the Association of Southeast Asian Nations (Asean) Trade Union Council, which are stated on its website. 

Additionally, the spokesperson said NTUC is also “unlikely” to appeal the registrar's decision.

In response to media queries, MHA said the decision to designate NTUC as a politically significant person is a “pre-emptive measure”. 

This is to mitigate any risk there might potentially be in the future, of foreign interference, based on the registrar’s assessment of NTUC’s involvement in Singapore’s politics, said MHA.

“It is not because NTUC has been compromised by a foreign actor or has committed any wrongdoing nor anything of concern,” added MHA. 

The ministry added that it is only now designating the NTUC as a politically significant person under Fica because the relevant provisions only came into force in December 2023. 

MHA said it required time to consider and assess various issues.

The ministry also clarified that NTUC's designation as a politically significant person is at the federation level and does not extend to its affiliated unions, associations or social enterprises, as these are separate legal entities. 

“The other NTUC-linked entities have much less or no nexus to Singapore politics and there is no public interest to designate them,” said MHA. 

Additionally, NTUC’s designation does not include its personnel, such as Central Committee members and employees.

However, some of NTUC’s Central Committee members or appointment holders may already be designated as politically significant persons due to their roles outside of NTUC such as Members of Parliament, added MHA. 

In a separate statement, a spokesperson from the Ministry of Manpower (MOM) said on Thursday that NTUC’s designation as a politically significant person does not prohibit its ongoing activities.

“MOM will continue to work with NTUC as a key tripartite partner. NTUC’s activities have been in compliance with the Trade Unions Act.”

PAP AND NTUC'S RELATIONSHIP

The ruling party and the trade union have had a long-standing relationship since the 1960s, when Singapore was striving for its independence.

At then Prime Minister Lee Hsien Loong’s May Day Rally this year, he referenced how the late Lee Kuan Yew started his political journey by representing the postal workers’ union in the postmen’s strike in 1952.

"Our symbiotic partnership was born in a crucible of fire," said Mr Lee, who is now Senior Minister.

He referenced the tripartite model, in which the Government, employers and unions such as NTUC work together to promote economic growth, social stability and fair labour practices. 

"We have not only created prosperity and progress for our nation but ensured that every Singaporean benefits from the fruits of growth. Through the symbiotic relationship with the PAP, the NTUC has done right by workers, and helped them and their families to enjoy a better life," Mr Lee added.

In then Deputy Prime Minister Lawrence Wong’s May Day Rally speech in 2023, he also emphasised the importance of the tripartite relationship between the PAP, NTUC and employers. 

“Tripartism — that’s our secret recipe, our secret formula. It is one of our greatest and most sustainable competitive advantages,” said Mr Wong, who succeeded Mr Lee as Prime Minister in May.

He referred to the relationship between the PAP and NTUC as “sibling organisations” that “originated from the same movement”.

"The Government will always strive for a fairer and more equal society and for the well-being of every worker — that conviction is in our DNA; it’s in the DNA of both the PAP and the NTUC," Mr Wong said. 

He added that NTUC has continuously supported the ruling party “through good times and bad”, and both organisations have attended each other’s rallies. 

“We affirm this special relationship when we say together in one voice: Majulah NTUC, Majulah PAP, Majulah Singapura.”

INTENDED DESIGNATION 'MAKES SENSE'

Two political analysts told CNA that the intended designation of NTUC makes sense since it meets the requirements of Fica.

"This move should not be surprising because of NTUC’s evident political influence and reach, which makes it a suitable candidate for designation as a PSP," said Associate Professor in Practice Terence Ho, who is from the National University of Singapore's Lee Kuan Yew School of Public Policy.

He said the move could be seen as a pre-emptive measure against foreign interference, although he noted there has been no suggestion that NTUC has had any such interference.

Associate Professor Eugene Tan from the Singapore Management University agreed that it was a "necessary and timely" move.

"This intended designation is a proper and needed application of the law to prevent, detect and disrupt foreign interference in our domestic politics," he said.

"The law cannot discriminate between entities that are closely connected with the ruling party and those that are not. 

"The former could be argued to be more likely to be a target of foreign actors seeking to interfere in our domestic politics."

Assoc Prof Tan added that it would be highly unusual if NTUC is not designated as a PSP. "It was a question of when rather than whether NTUC would be so designated."

The union's activities are largely directed towards a political end and it is in the public interest for appropriate measures to be taken, he said.

The transparency declarations that a designated PSP has to make can cause NTUC to be prudent and alert to attempts by foreign actors to manipulate it and interfere in Singapore's politics, he added.

The designation would not change the political landscape significantly, Assoc Prof Tan said.

"It will not affect how NTUC engages the PAP Government and vice versa."