Key View
- The People’s Action Party (PAP) returned to power after winning 87 out of 97 parliamentary seats in the May 3 general election, improving its vote share to 65.6% from 61.2% previously.
- The main opposition, the Workers’ Party, also increased its national vote share. This suggests that voters are prioritising quality representation in parliament.
- The PAP’s improved electoral performance raises the possibility of policies and legislative changes that reinforce its dominance in society, and we expect that society risk may rise in the coming years.
As was widely expected, the People’s Action Party (PAP) returned to power after winning 87 out of 97 parliamentary seats in the May 3 2025 general election. This supermajority will allow the PAP to effectively implement its policy agenda, a crucial advantage amid the current trade war that is a significant risk to Singapore’s open economy. This outcome ensures that political risk, particularly governance risk, will remain low (see chart below).
Singapore’s Policy Stability
Singapore is renowned for its robust policy framework, characterized by continuity and stability. This consistency has been pivotal in fostering economic growth, attracting foreign investment, and maintaining public trust. The government’s strategic planning and long-term initiatives have effectively addressed infrastructure development, education, and healthcare.
Emerging Societal Risks
Despite its strengths, Singapore faces potential societal risks. The pressure of a fast-paced lifestyle, coupled with an aging population, poses challenges to social cohesion and mental health. Rising inequality and the high cost of living are additional stressors, potentially exacerbating societal divisions. These trends necessitate a proactive approach to ensure inclusivity and resilience.
Balancing Stability and Change
While policy continuity remains essential, Singapore must adapt to emerging societal risks to sustain its success. Efforts to enhance social welfare, support mental health, and promote inclusivity can mitigate these challenges. Balancing stability with necessary reforms will be crucial for maintaining harmony and prosperity in Singapore’s future.
