GE2025: Political stability, policy continuity should buoy business confidence in Singapore: economists, trade chambers
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
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
6 hours ago
- Business Times
US tariffs' direct impact on Singapore ‘contained', but semiconductors and pharmaceuticals still under threat: analysts
[SINGAPORE] The direct downside impact of US tariffs on Singapore's economy should be 'contained', but sectoral tariffs against semiconductors and pharmaceuticals remain, said analysts on Friday (Aug 1). US President Donald Trump had announced updated tariffs hours ahead of an Aug 1 deadline . Malaysia, Thailand and Cambodia were hit by 19 per cent levies , while Taiwan will face a 20 per cent rate on its US exports. The new directive will go into effect after midnight in the US on Aug 7. A spokesperson from Singapore's Ministry of Trade and Industry confirmed that Singapore will continue to face the global baseline rate of 10 per cent. The figure was confirmed by the ministry with the Office of the US Trade Representative. Prime Minister Lawrence Wong had earlier said the 10 per cent levy was 'not ideal', but was something the country can 'live with'. Sectoral threat remains DBS analysts Radhika Rao and Chua Han Teng said the downside direct impact of the tariffs on Singapore will be 'contained'. However, they warned that the economy would still face indirect pressure. 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 'The city-state's exports and economy will still face indirect negative impact through its trade linkages with key trading partners, with further threats from sectoral tariffs like semiconductors and pharmaceuticals that are still under review,' they added. RHB analysts concurred that Singapore faced threats due to potential sectoral tariffs on semiconductors and pharmaceuticals. They added that 'Singapore continues to be the most exposed' in Asean, citing its high trade openness and reliance on manufacturing exports. The Straits Times Index booked a modest gain of 0.2 per cent shortly after the market opened on Friday, but ended the day 0.4 per cent down at 4,153.83. This came after a 2.3 per cent drop in six days from its record high of 4,273.05 on Jul 24. Asian markets largely unperturbed Lorraine Tan, Morningstar director of equity research in Asia, said that overall, the tariffs are relatively expected for Asia. She added that the levies for South Korea, Japan and South-east Asian countries were not outlandish. 'We think the markets should shrug this news off.' Among Asian markets, South Korea's Kospi dived about 3.9 per cent to close at 3,119.41 points. However, that also came on the back of government proposals on Thursday to hike corporate taxes. Trump said on Wednesday that the US would charge a 15 per cent tariff on imports from South Korea, down from 25 per cent had it not struck a deal, marking a slight win for the East Asian economy. Taiwan's Taiex slumped 1.6 per cent before paring losses to close 0.5 per cent down at 23,434.38 points on Friday. President Lai Ching-te called the new tariff 'temporary' and said Taiwan will continue negotiations with the US. On the other hand, Malaysia's Kuala Lumpur Composite Index jumped 1.33 per cent, ending the day at 1,534.35 points; Thailand's SET tumbled nearly 2 per cent to close at 1,218.33. RHB analysts said the automotive sector in Thailand could also feel some pain, as could the electric vehicle (EV) battery segment in Indonesia. But they noted that in general, 'Indonesia and Thailand are relatively more insulated by their larger domestic demand bases', compared to Singapore. However, Thailand could be affected by pharmaceutical tariffs as well, while Malaysia – like Singapore – also appeared exposed to semiconductor-related tariffs, they added. China still in negotiations Morningstar's Tan noted that, in Asia, China is still in focus with negotiations still ongoing. 'The fact that Trump is willing to impose a higher tariff on India for buying Russian oil may weigh a bit on the direction of the China negotiations,' she said. 'If China is able to assure and introduce a way to rein in the fentanyl exports, alongside an agreement over the rare earths, these issues would help to facilitate the conclusion of a trade deal between the US and China.' China's rare earths have been used as a bargaining chip in the US-China trade war, as they power everything from data centres and electronics to EVs. The US and much of the world largely depends on China for these resources. On fentanyl, the Trump administration blames China for the influx of the drug into the US. Treasury Secretary Scott Bessent said the US and China will continue talks over maintaining a tariff truce before it expires in two weeks. While most Asian markets seemed indifferent to Friday's announcement, Morningstar's Asia equity market strategist Kai Wang cautioned that a 90-day extension to the tariff truce with China could be viewed negatively by investors. News had emerged that China's delegation had indicated a 90-day extension of the two economies' trade-war truce was agreed, although Bessent said Beijing has 'jumped the gun'. 'The extension is signalling that there may be some snags in talks which have the potential to fall apart entirely,' Wang said. Hong Kong's Hang Seng Index was down about 2.7 per cent for the week, its first drop since Jul 4. It fell 1.1 per cent on Friday.
Business Times
6 hours ago
- Business Times
Singapore shares on longest losing streak since April; STI falls 0.5%
[SINGAPORE] Local stocks fell for the sixth consecutive session on Friday (Aug 1), notching their longest losing streak since Apr 9, as most markets in Asia closed lower following the United States' announcement of new tariff rates. Malaysia, Thailand and Cambodia were hit with 19 per cent levies , while Taiwan will face a 20 per cent rate on its US exports. The global baseline rate will be kept to 10 per cent. Singapore is likely to remain at this baseline, which Prime Minister Lawrence Wong earlier said was 'not ideal' , but something the country can 'live with'. DBS economists Radhika Rao and Chua Han Teng said: 'While the downside direct impact on Singapore would be contained, the city-state's exports and economy will still face indirect negative impact through its trade linkages with key trading partners.' They noted further threats from sector-specific tariffs – such as on semiconductors and pharmaceuticals – which are still under review. The benchmark Straits Times Index (STI) fell 0.5 per cent or 19.94 points to 4,153.83. Across the broader market, losers outnumbered gainers 340 to 244, with around 1.3 billion securities worth nearly S$1.7 billion transacted. 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 Keppel DC Reit was the biggest decliner on the STI, losing 3.4 per cent or S$0.08 to end at S$2.29. Jardine Matheson Holdings was the top blue-chip gainer. It added 2.7 per cent or US$1.45 to finish at US$55.98. The conglomerate on Thursday reported a 45 per cent growth in first-half underlying profit to US$798 million. The trio of local banks closed lower. DBS fell 0.6 per cent or S$0.31 to S$47.60, OCBC shed 0.5 per cent or S$0.08 to S$16.79, and UOB dipped 0.3 per cent or S$0.12 to S$36.07. Across the broader Asia region, South Korea's Kospi led the declines with a 3.9 per cent fall. Hong Kong's Hang Seng Index ended 1.1 per cent lower, Japan's Nikkei 225 wrapped up the week with a 0.7 per cent decrease, and China's blue-chip CSI 300 index was down 0.5 per cent.
Straits Times
9 hours ago
- Straits Times
Jalan Kayu Town Council officially begins operations on Aug 1 with new logo and website
Sign up now: Get ST's newsletters delivered to your inbox The Jalan Kayu area was previously looked after by the Ang Mo Kio Town Council as it was part of Ang Mo Kio GRC. SINGAPORE – The newly-formed Jalan Kayu Town Council officially began its operations on Aug 1, serving more than 29,500 voters in the single member constituency. In a statement on Aug 1, Jalan Kayu Town Council (JKTC) unveiled a new logo and website to mark its launch. The website has links to essential services, announcements, contact channels and facility booking systems. Jalan Kayu is one of two new town councils , along with Punggol, that were formed after the 2025 General Election. The Ministry of National Development had in May issued an order to form 19 town councils that were set up at the request of the MPs. JKTC chairman Ng Chee Meng, who won the ward at the May 3 polls against the Workers' Party's Andre Low, said the new website will make estate services easily accessible. He added that residents can expect uninterrupted services, 'thanks to the seamless handover from the Ang Mo Kio Town Council'. The Jalan Kayu area was previously looked after by the Ang Mo Kio Town Council as it was part of Ang Mo Kio GRC. Jalan Kayu SMC was carved out by the Electoral Boundaries Review Committee in its January report ahead of the election. 'After months of hard work from our dedicated staff and council members, we are ready to serve our residents,' said Mr Ng, who is also labour chief. Top stories Swipe. Select. Stay informed. Tech Reporting advanced suspected cyber attacks will provide a defence framework: Shanmugam World Trump modifies reciprocal tariffs ahead of deadline; rate on Singapore likely to remain at 10% Business Singapore's US tariff rate stays at 10%, but the Republic is not out of the woods yet Singapore NUS launches S'pore's first nursing practice doctorate to meet evolving healthcare needs Singapore Data breach involving 147,000 Cycle & Carriage Singapore customer records under probe Business CAD probing Tokenize Xchange operator; firm's director charged with fraudulent trading Singapore PM Wong to deliver National Day message on Aug 8 Singapore Man charged over kicking woman's face in Teck Whye Lane flat, leading to her death JKTC will manage the maintenance and operations of 61 HDB blocks at Fernvale Road, Fernvale Link, Fernvale Street, Jalan Kayu, Sengkang West Way, Sengkang West Avenue, and Sengkang West Road, according to the statement. It added that service and conservancy charges remain unchanged. The town council will also continue with CPG Facilities Management as its appointed managing agent. All existing contracts and vendor arrangements will remain in place under their current terms and conditions, it said. CPG Facilities Management was previously looking after the area as managing agent for Ang Mo Kio Town Council. The Ministry of National Development (MND) had earlier said that town councils have up to 90 days from the date of the order on May 30 to complete the handover and take over the management of the areas to be transferred. The affected town councils – two new and 12 reconstituted – would then take over running the new areas from Aug 1. The last time a town council was formed with just one SMC was after the 2011 General Election, where PAP candidate Sitoh Yih Pin wrested back the Potong Pasir single seat from the Singapore People's Party. Mr Sitoh ran the town council on his own till 2015, when the constituency was grouped under Jalan Besar Town Council after the election that year. The Straits Times has also contacted the Punggol Town Council for comment.
