SINGAPORE- Singapore’s economy will be buffeted by global tensions, its prime minister said on Tuesday, as he delivered a budget offering support for workers and businesses as well as help with living costs ahead of an election this year.
Lawrence Wong, who is also finance minister, said the United States and China were locked in a “fierce contest for global supremacy” and were prepared to take more assertive actions to advance their interests.
“We can expect escalating attempts at containment and counter containment with ripple effects that will inevitably draw in other countries, including Singapore,” Wong said.
“All these pressures will reshape the global economy and dampen prospects for global growth. As a small and open economy, we will feel the impact.”
Singapore’s GDP accelerated to 4.4 percent in 2024 from a revised 1.8 percent in 2023, but the trade ministry expects growth in 2025 to moderate to 1.0 percent to 3.0 percent, a forecast Wong reiterated on Tuesday.
The budget is Wong’s first as premier after taking the top post last year. It comes ahead of a general election that must be held by November and will be widely seen as a barometer of his popularity.
His People’s Action Party is almost certain to dominate and win most seats, as it has in every vote since independence in 1965, although its share of the popular vote will be closely watched after one of its worst ever electoral performances in the last contest in 2020.
