A lot of nations have hideously terrible regulations in some area, and comparing such regulations in an index like this is of course subjective to some extent. It's also not a measure of all freedoms (otherwise, Singapore wouldn't be so high). It's intentionally only looking at economic freedom, which is relevant to the comment I was replying to (and as far as I can tell, the index is not trying to imply that these are the only freedoms that matter).
If you're referring to mandatory filtering no - it never happened. Despite the communications minister announcing it. A large ISP also won a major test case against big media about having to report file sharers. Turns out they dont have to. So right now it's not so bad but I'm waiting for the nanny state to fight back.