Will this stormy red dot sway Indian blue-chips?

Unprecedented events are unfolding in Singapore. The children of the late Lee Kuan Yew, founding father of the city-state, are fighting on social media. At the centre of the public spat between LKY’s elder son and prime minister, Lee Hsien Loong, and his two younger siblings is the late leader’s family home — 38, Oxley Road — in the heart of the city.

In Facebook posts on Wednesday, Lee Wei Ling, LKY’s unmarried neurologist daughter, and Lee Hsien Yang, the younger son, alleged their brother was trying to milk their father’s legacy for political gain by trying to convert the iconic house into a public monument.

The war of Facebook posts has escalated since, with even the next generation of Lees drawn into it. The PM has given a couple of lengthy explanations, including extracts of his deposition before a ministerial committee formed to decide what was to be done with the house. It is said the ruling People's Action Party (PAP), which dominates discourse in the country, was born in the drawing room of this 100-year-old bungalow.

Yang was the chief of Singtel, the telecom major and wants the house to be demolished as in their father’s will. He called it a “committee of highest paid ministers...set up in secret”. The matter has also gone beyond the house itself. with the younger siblings accusing their brother of abusing his executive position and alleging he was trying to establish a “dynasty”.

Nor did they spare the PM’s wife, Ho Ching. Comparing her role and influence with that of their own mother, they said of the latter: “She lived discreetly and set a high bar for the conduct of a prime minister’s wife. She would never instruct permanent secretaries or senior civil servants.”

Adding, “The contrast between her and Ho Ching could not be more stark. While Ho Ching holds no elected or official position in government, her influence is pervasive, and extends well beyond her job purview.”

Ho Ching’s job is at the helm of Singapore’s investment vehicle, Temasek Holdings, whose capital gains feed into the government's annual Budget. Incidentally, she became chief executive officer of the $242-billion behemoth in 2004, the year the fund first started investing in India. It has since built a diversified portfolio in this country, with both unlisted and listed companies across sectors such as telecom, financial services, health care, e-commerce and information technology.

At last count, it had around $8 bn (Rs 54,000 crore) in this country; with its vehicles, it has been investing around a billion dollars every year. Mahindra, Godrej Group and Glenmark are among its investee companies. It was also among the early backers of Bharti Airtel, before selling off to Singtel.

Will the crisis lead to structural changes? Do the portfolio companies need to worry?

Similar allegations of nepotism, which ironically suggested Yang himself as a beneficiary, in the past had been crushed with defamation cases. The Wall Street Journal and Financial Times have been at the receiving end. This Guardian report in 2007 talks of an apology FT had to carry on a Temasek story that alluded “nepotistic motives”.

This time, with the allegations coming from within the family itself, they might have to be handled more carefully.

For the Indian investor community, Temasek has been the face of Singapore but that’s not all. A lot of foreign direct investment, especially in e-commerce, gets routed through the island nation. So are foreign portfolio flows. The SGX Nifty is a money spinner.

Above all, the country's infrastructure prowess, aided by its aggressive land laws, its cleanliness and its aggressive media policies have inspired the current regime here. Let us hope Singapore emerges stronger, both politically and economically, out of this Oxley Road turmoil.