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The suspect, who lit a bottle of kerosene and threw it at MP for Yio Chu Kang Seng Han Thong, was disgruntled for not being selected to receive a hong bao or gift, according to Chu Sheng Temple devotees.
And the attack was carried out as 'a revenge'.
The hong bao was reported to contain $200.
A bursary and hong bao presentation ceremony, organised by Chu Sheng Temple, had taken place earlier at Yio Chu Kang Community Club where the attack happened.
According to one media report, the suspect ran in, lit a bottle of kerosene and threw it at Mr Seng.
Another report said that the suspect approached the MP and Temple chairman Aw Chui Seng from behind, poured the flammable liquid on them and set them on fire using a lighter.
The suspect then tried to escape but was pinned down by several people and brought to the Community Club before handing him over to the police.
A Mr Zhang was quoted in a Reuters report as saying: "A man ran in, lit a bottle of kerosene and threw it at Mr Seng. Half of Mr Seng's hair was burnt ... his back suffered burns as well.
"The man who threw the bottle tried to escape, but some people caught him."
The suspect is said to be in his late 60s and is an ex-inmate of the Institute of Mental Health.
He is also known to Mr Seng and had met the MP on several occasions.
Residents of the area told a local TV news station that the suspect is a familiar face in the neighbourhood, but not much else is known about him.
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