SINGAPORE (Reuters) – Singapore's ruling party swept back to power as expected in the most contested general election since independence, but the opposition made historic gains and the prime minister signaled there would be change in the tightly governed city-state.
Lee Hsien Loong said it had been a watershed election that had altered Singapore. The tiny Southeast Asian nation is one of the wealthiest and fastest-growing in Asia but is tainted by criticism of political restrictions.
"It marks a distinct shift in our political landscape," Lee, the head of the long-ruling People's Action Party (PAP), told a news conference after the results were announced.
"Many (Singaporeans) wish for the government to adopt a different style and approach. Many desire to see more opposition voices in parliament to check the PAP government."
Analysts welcomed his comments but said they did not expect dramatic reforms.
"Profound change would be unrealistic," said Garry Rodan, a professor at Australia's Murdoch University who has written on Singapore politics.
"The real question we should be asking is whether this portends the possibility of change in the medium to long term. It does not mean we can answer it affirmatively but I think we can genuinely ask it now."
Eugene Tan, an assistant professor of law at Singapore Management University, said: "You will have an evolution although some people might like to see a revolution."
Lee was among the winners as election officials announced that the PAP had secured 81 of 87 seats in parliament. The six seats that went to the opposition were the highest number it has ever taken.
Foreign Minister George Yeo was among the PAP's losers as part of the team defeated by the opposition Workers' Party in a five-member constituency.
"You have made history tonight," Workers' Party chief Low Thia Khiang told supporters. "This is a political landmark in modern Singapore.
"Your votes tell us that Singapore is not just an economic success, Singapore is our home. Your votes tell us that you want Singapore to develop as a nation. Your votes tell the government you want a more responsive, inclusive, transparent and accountable government."
As he spoke, supporters dressed in the party's blue colors chanted "Ole, Ole," and threw confetti on each other, shouting and clapping.
NO POLICY CHANGE
Although it was a sweeping win in terms of seats, the PAP's share of the popular vote slipped to around 60 percent, its worst showing since independence. But analysts noted the PAP was firmly in control since it easily retained the two-thirds majority that allows it to amend the constitution.
No policy shifts, especially in economic policy, were anticipated except around the margins, they said.
"Given Singapore's parliamentary system, the ruling party has the ability to pass comfortably key legislation, including constitutional amendments," Prasenjit Basu, chief regional economist at Daiwa Capital Markets, said in a report.
"With the PAP still solidly in control of policy-making and implementation, we do not expect substantive changes in policy post-election -- although marginal changes could occur via debate and deliberation later in the parliament's term."
The opposition had focused its campaign on the ills brought by Singapore's growth -- rising income inequality, high prices and an unwelcome influx of foreigners. It also complained that the PAP government was not inclusive.
The PAP pointed to its stewardship of Singapore since independence in 1965 that had transformed a sleepy colonial port into a gleaming financial hub. Lee Hsien Loong's father, Singapore's founder Lee Kuan Yew, was the longtime party chief and won his seat unopposed.
Financial markets have largely ignored the election since the outcome was never in doubt. External factors were likely to rule in the local stock market on Monday, said Song Seng Wun, an economist with CIMB.
"The results show that Singapore is growing up," he added. "There is greater willingness to allow for more alternative voices to be heard in parliament."
PAP supporters said there were lessons to be learned.
"It is definitely good for Singapore, but I think the leaders and government realized that there's a gap between them and people on the ground," said Jagjit Singh, a 72-year-old.
At the last election in 2006, the PAP won 82 of 84 seats, with the dispirited opposition contesting about half and conceding walkovers in the rest.
This year the opposition contested 82 of the 87 seats, the most ever.
(Additional reporting by Walter Sim and Harry Suhartono; Editing by Nick Macfie)
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