SINGAPORE: Economic challenges can deepen social and racial divisions, said Prime Minister Lawrence Wong on Saturday (Sep 12).

Singapore is not immune to these challenges, he warned, pointing to racist comments that surfaced online recently when investments in India were discussed.

Mr Wong's remarks, made at the Singapore Kadayanallur Muslim League's (SKML) 85th anniversary dinner, come a week after Minister for Home Affairs K Shanmugam said police were looking into "shameful" racist and xenophobic online comments about Singapore Airlines' (SIA) investment in Air India, as well as the Nepal-Tibet disaster.

Police have since identified and interviewed five people over online comments relating to the two matters. Investigations are ongoing.

While Singapore is generally harmonious and stable, Mr Wong said people may still draw lines between foreigners and Singaporeans, as well as between local-born and naturalised Singaporeans, and along racial and religious lines.

"These challenges are real," he said.

Mr Wong said societies around the world were becoming more fragmented, divided and polarised.

Part of this was due to economic challenges, he said. Not everyone achieves the same outcomes, and those who do not do as well may become disappointed and frustrated.

But the challenge goes beyond economic issues when these problems feed into a sense of identity, belonging and perceived unfairness, he said.

"That is when divisions really start to become more entrenched, and people start to build walls between – us versus them," Mr Wong said.

BUILDING TRUST AND BRIDGES

Mr Wong said the government would continue improving policies to tackle concerns over cost pressures and jobs, and to make sure every Singaporean gets a share in the nation's progress.

At the same time, Singapore must keep working on relationships and strengthening the bonds of trust that hold society together, he said.

Government policies can help create the conditions for cohesion, but ultimately, that cohesion is built through people, Mr Wong said.

"It depends on all our communities being confident in their identities, and at the same time being willing to reach out, build ...