logo
GE2025: Political stability, policy continuity should buoy business confidence in Singapore: economists, trade chambers

GE2025: Political stability, policy continuity should buoy business confidence in Singapore: economists, trade chambers

Business Times04-05-2025

[SINGAPORE] The clear mandate given to the ruling People's Action Party (PAP) in Singapore's 2025 General Election (GE) should reassure investors and businesses, paving the way for decisive action while signalling stability and continuity, economists and trade chambers said.
The PAP secured 65.57 per cent of the popular vote, up from 61.24 per cent in GE2020.
With this strong mandate, the business community now expects more action.
Said Maybank economist Chua Hak Bin: 'PM Lawrence Wong can form a new Cabinet quickly within the next few weeks and focus on the many economic challenges at hand, particularly the global trade war and tariff shocks.'
'Businesses and investors will be reassured that rationality and prudence will prevail (in Singapore), and fiscal support will be forthcoming if the economic downturn worsens,' he said.
Similarly, the Singapore Chinese Chamber of Commerce & Industry said that it looked forward to the formation of a 'capable and united government team' to take Singapore through growing global uncertainty.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Strong leadership will be critical to sustain growth, strengthen resilience, and reshape Singapore's economy, said the chamber.
Reassuring stability
'Markets and businesses will receive the results well, given the policy continuity and political stability,' said Maybank's Chua.
He drew a contrast with other democracies that saw 'massive and disruptive shifts' in parties and policies in the last few years, which dampened growth and investments.
Similarly, DBS economist Chua Han Teng said that the strong mandate 'will reassure investors of ongoing political stability and policy continuity'.
This, he added, 'has the potential to enhance Singapore's already favourable business environment'.
Singapore International Chamber Of Commerce CEO Bita Seow said: 'Political transitions here are carefully managed and institutional frameworks are resilient, providing the predictability and certainty investors value.'
She noted that political continuity 'strengthens Singapore's brand as a trusted, dependable international business hub', but added: 'However, even in times of leadership change, Singapore's strong institutions, robust governance, and clear national priorities have ensured that the country's reputation remains unshaken.'
Sustained fundamentals
Beyond the election result, economists and trade chambers stressed that Singapore's fundamentals are what keep it attractive to investors.
Said Seow: 'What matters most to businesses is the continuation of core attractiveness of Singapore: integrity, efficiency, and openness to global talent and trade – all of which are deeply entrenched in Singapore's system.'
DBS' Chua said the strong rule of law, favourable business environment, access to skilled talent, and high infrastructure connectivity will keep Singapore a 'stable and trusted investment destination' in an increasingly turbulent global economy.
But while OCBC's chief economist Selena Ling agreed that a clear mandate 'is likely a plus', she added that economic policy continuity may not necessarily mean an easy path ahead.
Singapore's domestic stability does not change how the global order is coming apart, she added – though Singapore still looks attractive to foreign investors as a 'safe harbour' in an uncertain world.
Tougher policies?
Separately, at a Sunday morning webinar held by scholar collective Academia.SG, panellist Bertha Henson suggested that the strong mandate could enable the new PAP leadership to push through unpopular policies.
The former journalist cited the precedent of how GE2015 – when the PAP's vote share rose to 69.86 per cent, from 60.14 per cent in 2011 – was followed by 'fierce and tough' policies.
While Henson did not cite specific examples, that term of government saw the announcement of the planned goods and services tax hike from 7 to 9 per cent, as well as the passing of the controversial Protection from Online Falsehoods and Manipulation Act in 2019.
For more election coverage, visit our GE2025 microsite

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Singapore shares rise as trade tensions between China and US ease; STI up 0.1%
Singapore shares rise as trade tensions between China and US ease; STI up 0.1%

Straits Times

time11 hours ago

  • Straits Times

Singapore shares rise as trade tensions between China and US ease; STI up 0.1%

Singapore shares rise as trade tensions between China and US ease; STI up 0.1% SINGAPORE – Signs of a truce in the tense tariff stand-off between the US and China gave local shares a welcome nudge north on June 12. While far from a ringing endorsement of an apparent trade deal, hopeful local investors still managed to push the benchmark Straits Times Index (STI) up 0.1 per cent or 3.15 points to 3,922.2 but losers pipped gainers 252 to 236 on trade of 1.3 billion securities worth $1.2 billion. Jardine Matheson was the STI's standout, rising 1.9 per cent to US$44.64, while inflight caterer Sats led the losers, down 1.3 per cent to finish at $3.11. The local banks ended lower: DBS dropped 0.4 per cent to $44.67; UOB fell 0.1 per cent to $35.09; and OCBC shed 0.1 per cent to $16.14. There wasn't much for share investors to shout about on Wall Street overnight, where most action was in the markets for oil and government bonds, which rallied after the latest US inflation numbers. Stocks had a lacklustre day with the S&P 500 down 0.3 per cent while and Dow Jones Industrials was unchanged and the tech-heavy Nasdaq declined 0.5 per cent. Major regional indexes had mixed sessions. South Korea's Kospi rose 0.5 per cent and Malaysian stocks gained 0.2 per cent but the Nikkei in Japan fell 0.7 per cent and Hong Kong's Hang Seng dropped 1.4 per cent. Buoyant energy shares couldn't prevent the ASX in Sydney from sliding 0.3 per cent. Mr Jose Torres, a senior economist at Interactive Brokers, said: 'Markets are soaring following a lighter-than-anticipated (US) consumer price index report that is quelling fears about tariff-related inflation and boosting enthusiasm that the (US Federal Reserve) will cut rates in the next two or three meetings.' He added that bulls are energised by a de-escalation in trade tensions between Beijing and Washington, with American President Donald Trump remarking on June 11 that the relationship between the two economies is 'excellent'. THE BUSINESS TIMES Join ST's Telegram channel and get the latest breaking news delivered to you.

Singapore shares rise as trade tensions between China and US ease; STI up 0.1%
Singapore shares rise as trade tensions between China and US ease; STI up 0.1%

Business Times

time11 hours ago

  • Business Times

Singapore shares rise as trade tensions between China and US ease; STI up 0.1%

[SINGAPORE] Singapore stocks rose on Thursday (Jun 12), amid the world's two largest economies agreeing to de-escalate trade tensions. The blue-chip Straits Times Index (STI) closed 0.1 per cent or 3.15 points higher at 3,922.2. Across the broader market, gainers beat decliners 252 to 236 as 1.3 billion securities worth S$1.2 billion changed hands. The top gainer on the STI was Jardine Matheson , which advanced 1.9 per cent or US$0.85 to US$44.64. The trio of local banks ended the day lower. DBS was down 0.4 per cent or S$0.20 at S$44.67, UOB fell 0.1 per cent or S$0.03 to S$35.09, and OCBC shed 0.1 per cent or S$0.02 to end at S$16.14. The biggest loser on the index was inflight caterer Sats , which lost 1.3 per cent or S$0.04 to finish at S$3.11. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Across Asia, major indices were mixed. South Korea's Kospi rose 0.5 per cent and the Bursa Malaysia Kuala Lumpur Composite Index gained 0.2 per cent. Meanwhile, Japan's Nikkei 225 fell 0.7 per cent and Hong Kong's Hang Seng Index lost 1.4 per cent. Jose Torres, a senior economist at Interactive Brokers, said: 'Markets are soaring following a lighter-than-anticipated consumer price index report that is quelling fears about tariff-related inflation and boosting enthusiasm that the (US Federal Reserve) will cut rates in the next two or three meetings.' He added that bulls are energised by a de-escalation in trade tensions between Beijing and Washington, with American President Donald Trump remarking on Wednesday morning that the relationship between the two economies is 'excellent'.

DBS becomes first Singapore-listed company to hit US$100B market capitalisation
DBS becomes first Singapore-listed company to hit US$100B market capitalisation

Independent Singapore

timea day ago

  • Independent Singapore

DBS becomes first Singapore-listed company to hit US$100B market capitalisation

Photo: Depositphotos/TKKurikawa SINGAPORE: DBS has surpassed the US$100 billion (S$128.62 billion) mark in market capitalisation, becoming the first Singapore-listed company to do so. On June 10, the bank's valuation crossed S$129 billion, thanks to a weaker US dollar, according to As of June 11, 2025, DBS's market capitalisation stood at S$128.39 billion, with its share price at S$44.86 at 4:43 p.m. SGT, based on data from the Singapore Exchange. According to Bloomberg data, DBS now ranks 22nd among global banks by market value. Morningstar analyst Michael Makdad said much of DBS's strong performance comes from the 'larger growth of its wealth management', which is starting to challenge top players in Asia. He also said that despite US tariffs, conditions remain 'relatively benign' for Singapore banks, with higher share dividends and more buybacks than expected a year ago. Singapore Business Review reported that a recent report by Moody's Ratings also projected continued strength in the bank's solvency and liquidity through 2025 and 2026. /TISG Read also: New DBS CEO says businesses should 'look at new opportunities where they can grow' amid trade tensions

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store