When Lawrence Wong takes over as Singapore’s new prime minister next month, he will be inheriting a country that has seen tremendous economic success and strong local assets. Under Lee Hsien Loong’s leadership since 2004, Singapore has seen its currency appreciate significantly against major trading partners, outperforming the US dollar in the same period. Additionally, government bonds have delivered strong returns, surpassing global peers by about 16 percentage points.
Singapore’s economy has more than doubled in size during Lee’s 20-year tenure, reaching S$532.3 billion, with total assets under management growing to S$4.9 trillion. Lee has transformed Singapore into a prominent financial hub, attracting global talent and boosting the stock market. The Straits Times Index has outperformed the MSCI Asean Index by nearly 32 percentage points since Lee took office.
Despite the overall success of the economy under Lee’s leadership, over half of locally listed companies are trading below their book value, indicating a lack of high-growth firms in the mature economy. Analysts suggest that Wong may need to take steps to support local equities, potentially through increased investment from sovereign wealth funds and incentives for listing companies on the Singapore market. As Wong prepares to assume leadership, there may be opportunities to further strengthen and support the local economy and market.
Overall, Lawrence Wong will inherit an economy that is poised for continued growth and prosperity under his leadership. He will need to navigate complex issues such as supporting local equities while maintaining Singapore’s position as a prominent financial hub. With his experience and expertise in finance and economics, Wong is well-positioned to lead Singapore into another successful chapter in its history as a thriving business hub in Asia.
