Lawrence Wong will become Singapore’s new prime minister next month, inheriting a robust economy and strong local assets. Under the leadership of Lee Hsien Loong, the Singapore dollar has appreciated significantly against major trading partner currencies, outperforming the US dollar as well. Additionally, government bonds have had higher returns compared to global peers.
Lee’s time in office saw significant economic growth, with total assets under management increasing substantially. Singapore has established itself as a prominent financial hub and an attractive location for global talent. The local stock market has benefited from a strong currency, outperforming regional indices since Lee took office.
Despite these positive indicators, many locally listed companies are trading below their book value, indicating a lack of high-growth firms in the mature economy. Wong may take steps to support local equities by increasing investments from sovereign wealth funds and providing incentives for companies to list on the Singapore market.
