It has dissipated race tension and the old Malay-Chinese fears.

The young ones are into MTV, computer games and a host of new forms of entertainment. But the less fortunate among them continue to toil alongside their parents to make a living.

Their older citizens, be they Chinese, Malay or Indian, are busy grappling with issues like schooling and job security. The old perceptions of race no longer matter when the real competition now comes from abroad.

The foreign presence is increasingly evident in the streets and offices, and Singaporeans of all races now have to compete with foreigners for jobs.

More westerners have moved into my residential estate in recent months to work in the Science Park or attend an Australian school nearby.

In a fast food restaurant the other day, I saw seven women, some with Muslim headscarves and others in sarees, having a meal together. On an adjoining table, a Malay girl and a Chinese boy with dyed hair sat together.

Under the weight of the demographic changes, race friction in Singapore has not necessarily disappeared, but is on the wane. An indication came on the night of the 2004 Singapore Idol contest, where the two finalists were a Malay and a Chinese. As the two finalists sang, people were phoning in their votes to decide who would be the winner.

Being tested was no less than Singapore’s racial maturity itself after nearly 40 years of independence. Could Singaporeans, 76% Chinese and 16% Malays, make a choice without ethnic bias?

Almost 1.1 million calls came in and the outcome: Taufik Batisah 682,000 votes, Sylvester Sim 418,000. Taufik, a Malay polytechnic student, had won by a big margin.

Big Business, unfortunately, had different ideas. The runner-up was given a singing contract by Sony-BMG, while winner Taufik had none.

Obviously, the international recording company was looking for higher profits in the larger Chinese market in the region.

In some societies, the war on terror caused more extremism; in others like Singapore, it led to more racial accommodation.

Besides, a new generation has grown up here strongly aware of the tougher environment. The improvements, however, did not come by themselves.

The state’s education system, including bilingual policy (English plus mother tongue), is a major factor. To promote integration, the schools and housing blocks are not allowed to house too many of one race.

Singapore is also seeing more mixed-race marriages, and couples from different races holding hands in public no longer raise any eyebrows.

“Singapore has come a long way,” said a housewife. “Why not, if they’re in love?”

But less threat does not mean no friction.

Singaporeans, especially Indians, are still encountering race insults that go beyond old stereotypes about greedy Chinese, lazy Malays or alcoholic Indians.

The modern youths have a different worry – casual racism. Too much familiarity erodes sensitivities, a new danger. People may stray into insults without intending to.

Lee Kuan Yew is less optimistic that a melting pot is possible any time soon. He believes that people, by nature, prefer their own ethnic group.

Singapore has made progress in coming together as one people, but Lee says that it will take several more generations before people can “forget about our ethnic origins and be Singaporeans”.

o Seah Chiang Nee is a veteran journalist and editor of the information website littlespeck.com

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