Singapore Voters Embrace Stability as Trump Roils Global Trade

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In 2020 the PAP won 89% of the seats — its worst showing since independence, due in part to a backlash from younger voters. The party sought to lure them back ever since by, among other things, easing access to public housing and repealing a long-standing law barring sex between men. Half of the 32 new candidates the PAP floated in this election were under 40.

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The transition to Wong marked a further shift in the PAP’s approach to addressing rising costs among some 3.6 million Singaporeans. That included first-time unemployment benefits and billions of dollars more in successive budgets to help pay for everything from meals to utilities and education support.

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Trade War

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Now Wong can focus on confronting economic headwinds that threaten to upend the city-state’s trade-reliant economy. The government last month revised its 2025 economic growth forecast down to 0-2% from a previous 1%-3%, and the prime minister has warned that a recession can’t be ruled out.

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The strong result also provides a sigh of relief to companies, which were more likely to face higher taxes and restrictions on hiring foreign workers if the opposition had outperformed.

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“For businesses, this means greater clarity and continuity in economic policy, including support for digital transformation, sustainability goals, and manpower policies,” said Nydia Ngiow, managing director at consultancy BowerGroupAsia. 

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Companies will “find a more predictable regulatory environment in the near term, which would aid in investment planning and operational stability against the backdrop of the geopolitical tensions,” she said.

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At the same time, Wong’s government will head into any trade negotiations with the US more confident, with key ministers elected back into office. Wong had sought to convince voters on the campaign trail that Singapore would be in a stronger position to do just that if reelected.

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The biggest tailwind for the PAP “was the heightened global uncertainty driven by the trade war unleashed by President Trump,” said Pushan Dutt, a professor of economics and political science at Insead in Singapore. “Voters were never going to take a gamble in the form of a protest vote.”

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For the opposition, the result means that efforts to bring more balance and debate to parliament will have to wait. As the tallies came in Saturday evening, opposition candidates were despondent.

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“We are shocked by the results,” said Leong Mun Wai, an opposition candidate from the Progress Singapore Party. “We may need to review our strategy and regroup ourselves to fight another day.”

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Nonetheless, there was some consolation for them in the ability of the Worker’s Party to hold its ground in parliament. 

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“The party is doing very well and the team did about as expected,” said Christopher Pereira, a 67-year-old Worker’s Party volunteer. “I’m very happy with that.”

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—With assistance from Bernadette Toh, Weilun Soon, Justina T. Lee, Yongchang Chin, Rachel Yeo, Low De Wei, Audrey Wan, Natalie Choy, Katharine Gemmell and Nurin Sofia.

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