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By John O’Callaghan

SINGAPORE, April 22 (Reuters) – They crammed into an art

cafe in Singapore and pulled no punches, deriding authoritarian

officials who ruled with an “iron fist” and complaining that

government ministers with million-dollar salaries were out of

touch.

One woman, a middle-aged professional, got nods of agreement

when she said modern Singapore’s founding father, Lee Kuan Yew,

had done great things but that new ways were needed from current

leaders still practising a “do-as-I-say style of parenting”.

Singapore remains regimented but the unusually frank

criticism at the recent gathering, part of a government-run

national “conversation” about the city state’s future, reflects

the reality that this is no longer the era of Lee Kuan Yew.

LKY, as he is widely known, built the tiny Southeast Asian

island into one of the world’s wealthiest nations with a strong,

pervasive role by the state and no patience for dissent.

Now 89 and in declining health, LKY has receded from the

public and political scene, leaving the government of Prime

Minister Lee Hsien Loong, his elder son, to deal with economic

and social challenges roiling the country of 5.3 million people.

“The time has come for a younger generation to carry

Singapore forward in a more difficult and complex situation,”

LKY said in 2011 as he resigned from the cabinet after the

ruling party suffered its worst election result in history.

Saying they feel inundated by foreign workers and priced out

of their own homeland, Singaporeans are angry. And with the

hugely respected figure of LKY retired from the political stage,

they are no longer hesitant to show it.

In online chatrooms, letters to state-linked newspapers and

at the “Our Singapore Conversation” sessions, they are pressing

for answers from the ruling People’s Action Party (PAP) which is

doing more to listen but struggling with how to change after

five decades in power.

Despite the new climate of open criticism, there is still

some trepidation about speaking out in front of journalists. At

the recent “conversation” session, the organisers asked Reuters

not to identify the participants so they could talk freely

without being intimidated by the presence of a foreign reporter.

LKY’s long-standing openness to foreign workers clashes with

the current mood and detractors decry his paternalistic and

stern ways, including defamation lawsuits against critics.

But his legacy as Singapore’s first prime minister for 31

years and then advisor emeritus is not in doubt.

Last August, rumours spread that LKY was gravely ill or had

died. When he disproved the chatter by appearing at the National

Day parade, the flag-waving crowd erupted into cheers.

In February, he was hospitalised when an irregular heartbeat

interrupted the flow of blood to his brain. But he turned up at

a forum a month later and took the stage with Paul Volcker, the

former chairman of the U.S. Federal Reserve.

Replying to questions about U.S.-China relations, Europe’s

woes and Asia’s future, LKY showed his intellect remains intact

and powerful. But his speech was slow and sometimes difficult to

understand. Many of his answers were short and trailed off.

Volcker prompted nervous laughter from the crowd when he

said: “Singapore is going to have to adjust to Lee Kuan Yew at

some point not being the guide.”

“VESTED IN THE SYSTEM”

That adjustment is already happening, senior officials say,

with LKY leaving the current leaders to set policies without him

pulling the strings. The pace of change is the big question.

Hit by voter discontent in 2011 and again in a by-election

in January, the PAP must walk a fine line in pacifying the

public’s concerns without abandoning policies that have created

a financial powerhouse where stability and an ease of doing

business are magnets for investors and multinational companies.

“We have to work in a more open way. We have to accept more

of the untidiness and the to-ing and fro-ing, which is part of

normal politics,” Prime Minister Lee told the Washington Post.

“It is a major change, of course, which we hope we will be

able to navigate safely over a period of time and not suddenly.”

While the PAP’s majority in parliament has shrunk to 80 of

87 elected seats, few expect the opposition to prevail in the

next election in 2016. But as the PAP charts the way ahead,

there are internal differences over what approach to take,

senior officials say.

Some of those divisions were on display in parliament in

February over a government document that envisioned the

population swelling by as much as 30 percent by 2030, largely

due to more foreigners, to maintain economic growth.

“I have very serious reservations about the white paper,”

PAP member Tin Pei Ling said during the five-day debate.

Inderjit Singh, also from the PAP, said: “Our past decade of

rapid population growth has already created too many problems

which need to be solved first before we take the next step.”

During LKY’s time, it was very rare for PAP politicians and

civil servants to publicly voice any difference of opinion. But

the new scope for dissent extends only so far.

In the end, no PAP member voted against the white paper and

it passed by a 77-13 margin. Singh was not present for the vote.

Despite the unusually heated debate, the outcome illustrates

why speculation may be overblown about a split in the ruling

party or major shifts in policy when LKY is no longer around.

“They still have this pretty much authoritarian kind of

mindset,” said Kumaran Pillai, a businessman and former chief

editor of The Online Citizen, a popular public affairs website.

“I don’t think the split would happen so soon. The main

reason is a lot of PAP cadre members, grassroots members and the

elite are vested in the system and they aren’t going to let it

fall apart just because Lee Kuan Yew has passed away.”

“MORE OPPOSITION VOICES”

The government has taken steps to restrict immigration, cool

the property market, build up infrastructure and broaden social

safety nets. But it did itself no favours with the population

white paper which sent public anger into overdrive and, for

many, reaffirmed the PAP’s reputation for prescriptive policies.

“I just want more opposition voices,” said Brendan Mok, a

university student with a dragon tattoo on his arm. “At the same

time, I don’t feel the opposition is solid enough for anything

that could deliver positive change. But we do want more debate.”

Mok and his friend Ron Ho, who both voted for the opposition

in 2011, said the priority was to narrow income inequalities and

address concerns about housing, good jobs and living costs.

“A lot of Singaporeans aren’t happy and one of the reasons

is because there’s a lot of status anxiety here,” said Ho.

With the PAP under pressure to listen, the year-old “Our

Singapore Conversation” is assuming greater resonance.

In a Singaporean twist, the dialogue about the role of the

state is organised by the government at venues such as The

Connoisseur Concerto, a boutique cafe where about 50 people from

diverse backgrounds recently gathered.

Crowded around low tables, they tucked into a buffet dinner

and then engaged in a feisty chat about the PAP listening but

not really changing and about well-paid officials being out of

touch with anxiety over public transport and home prices.

“They don’t take the train, they don’t take taxis, they

don’t live in HDBs,” said one woman, referring to the

state-built Housing & Development Board apartments where most

Singaporeans live. “So how do they know?”

Lee Kuan Yew, who continues to espouse the need for

immigrants and scolds Singaporeans for not having enough babies,

is also seen as out of touch as citizens challenge the

government’s top-down approach and demand their voices be heard.

With characteristic bluntness, he summed up his own legacy

in the book “Hard Truths to Keep Singapore Going” published in

2011, just before the election that led to his retirement.

“It’s irrelevant to me what young Singaporeans think of me,”

he said. “I’ve lived long enough to know that you may be

idealised in life and reviled after you’re dead.”

(Editing by Mark Bendeich)