Singapore’s new prime minister, Lawrence Wong, will inherit a strong economy and local assets. During Lee Hsien Loong’s tenure since 2004, the Singapore dollar has risen significantly against major trading partners, outperforming the US dollar in the same period. Additionally, Singapore government bonds have generated strong returns compared to global peers.
Under Lee’s leadership, Singapore’s economy has more than doubled in size and total assets have grown significantly. The country has become a prominent financial hub and an attractive destination for global talent. The local stock market has also benefitted from a strong currency, outperforming the MSCI Asean Index by a significant margin.
However, despite these successes, many locally listed companies are trading below their book value, indicating a lack of high-growth firms in the small, mature economy. Wong may take steps to support local equities by increasing investments from the nation’s sovereign wealth funds and providing incentives for companies to list on the Singapore market. As he prepares to take office, there may be opportunities for him to further bolster Singapore’s financial standing and support local businesses.
