Lawrence Wong’s Big Test: Can Singapore Adapt in a New Era of Protectionism?

Abstract

Singapore’s 2025 General Election, set for May 3, marks a pivotal test for Prime Minister Lawrence Wong, following his recent leadership succession. Voters, grappling with rising living costs, housing affordability, and healthcare pressures from an aging population, seek strong governance amid global economic uncertainty caused by new U.S. tariffs under President Trump. Opposition parties, especially the Workers’ Party, aim to capitalize on demands for greater parliamentary checks and balances. The election’s outcome will significantly influence how Singapore navigates intensifying U.S.-China tensions, offering regional implications as neighbors closely observe Singapore’s approach to political stability, economic resilience, and geopolitical strategy.

On May 3, 2025, Singaporeans will head to the polls for the nation’s 14th general election since independence. This election marks a significant milestone as it is the first under Prime Minister Lawrence Wong, who succeeded Lee Hsien Loong in 2024, signifying a generational leadership transition for the ruling People’s Action Party (PAP).

A New Leadership Era

Prime Minister Lawrence Wong, formerly the Deputy Prime Minister and Finance Minister, assumed leadership of the PAP in December 2024. His ascension represents the emergence of Singapore’s fourth-generation (4G) leadership. Wong has emphasized the importance of leadership stability as Singapore confronts global economic challenges, portraying the election as crucial for maintaining the nation’s progress and resilience.

Domestic Concerns: Cost of Living, Housing, and Healthcare

A recent survey by YouGov indicated that nearly 90% of Singaporeans prioritize the quality of governance and candidate competence at the constituency level over national personalities. The rising cost of living remains a primary concern, with 55% of respondents in another survey expressing that the government’s budget measures were insufficient to address inflationary pressures.

Housing affordability is another pressing issue. While Singapore boasts a homeownership rate exceeding 90%, the Housing & Development Board (HDB) system faces challenges due to limited supply and increasing demand. In response, the government plans to roll out approximately 19,600 new flats in 2025 to alleviate the housing crunch.

Healthcare, particularly for the aging population, is also a significant concern. By 2030, it’s projected that over 21% of Singapore’s population will be aged 65 and above. To address this, the government is introducing a revamped Seniors Bonus scheme in 2025, aiming to provide enhanced financial support and healthcare accessibility for the elderly.

Economic and Geopolitical Challenges

Singapore’s economy, heavily reliant on global trade, faces headwinds due to recent U.S. tariffs imposed by President Donald Trump. These tariffs have disrupted supply chains and dampened growth prospects, leading the Ministry of Trade and Industry to downgrade the 2025 GDP growth forecast to 0–2% (Reuters).

In response, the Monetary Authority of Singapore has eased its monetary policy to mitigate the impact of these external shocks. Prime Minister Wong has cautioned that the era of rules-based globalization and free trade is waning, emphasizing the need for Singapore to adapt to a more protectionist and unstable global environment.

Opposition’s Growing Influence

The opposition, led by the Workers’ Party (WP), is expected to contest all 97 parliamentary seats, an increase from the previous election. In 2020, the WP secured a record 10 seats, reflecting a shift in the political landscape. The opposition is capitalizing on the electorate’s desire for more checks and balances in government, especially among younger voters who are increasingly open to alternative political voices.

Regional Implications

Singapore’s political stability and economic model have long been benchmarks for the region. The outcome of this election will be closely watched by neighboring countries as an indicator of how small, trade-dependent states can navigate rising global protectionism and geopolitical rivalry. A strong mandate for Wong and the PAP would signal continuity, reinforcing Singapore’s reputation as a reliable partner in Southeast Asia. Conversely, significant opposition gains could inspire reformist movements elsewhere in Asia, highlighting the growing demand for political pluralism and accountability.

The upcoming general election is a pivotal moment for Singapore, testing the new leadership’s ability to address domestic concerns and navigate external challenges. As the nation approaches this critical juncture, the decisions made by its citizens will shape Singapore’s trajectory in the years to come.