New Singapore Prime Minister Lawrence Wong Inherits Economic Growth and Asset Strength, but Needs to Boost High-Growth Firms

Singapore’s new prime minister, Lawrence Wong, will inherit a robust economy and strong local assets. During his predecessor Lee Hsien Loong’s tenure, which began in 2004, the Singapore dollar gained about 40% against major trading partners, outperforming the US dollar. The country’s government bonds also saw returns that surpassed global averages by around 16 percentage points.

Under Lee’s leadership, Singapore’s economy more than doubled in size, reaching S$532.3 billion. Total assets under management grew to S$4.9 trillion and the country became a prominent financial hub and a desirable location for global talent. The local stock market benefited from the strong currency, with the Straits Times Index outperforming the MSCI Asean Index by nearly 32 percentage points.

However, despite these successes, over half of locally listed companies are trading below their book value, indicating a lack of high-growth firms in the small mature economy. Analysts suggest that Wong could take steps to support local equities such as increasing investments from sovereign wealth funds and offering incentives for companies to list in the Singapore market as he prepares to take on his role as prime minister. There are opportunities for him to further strengthen and diversify the country’s economy.