The PAP has always been bending over backwards to appease and placate the whims of the Malay-Muslim community, under the euphemism of 'religious/racial harmony'.
The PAP knows that the continuation of its own political hegemony lies in co-opting (euphemism: engaging) the Malay-Muslim community. The day when Malays become the majority ethnicity in Singapore is the day the PAP loses power. Simple as that.
There's nothing good or bad about it: it's just the PAP doing the politically expedient and ensuring its own survival.