PAP have never extended feelers to their enemies, to see them finally do so, shows that they acknowledge that they may have to work with these people in future. I won't exactly call it a loss of face, but for the once mighty PAP to even be seen smiling with the opposition must be galling in some quarters of the PAP, as the ruling party. This is coming right after Tharman smiling with SPP candidates, just a few days before.
That said, the smiling NSP fella looks real disturbing, looking like he's out to squeeze top political dollar from a couple pictures by plastering his headshot during conversations.