Singapore: Steady Policy Framework in the Face of Rising Social Challenges

The People’s Action Party (PAP) won 87 of 97 seats in the May 3 election, increasing its vote share to 65.6%. Governance risk remains low, with potential policy changes ahead.

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 is often lauded for its strong policy continuity, which has significantly contributed to its economic stability and investor confidence. The government’s long-term planning and strategic initiatives have fostered an environment conducive to growth. By maintaining consistent policies across various sectors, including finance and education, Singapore has successfully positioned itself as a global hub for business and innovation.

However, this stability may be overshadowed by emerging societal risks. As the city-state evolves, issues such as income inequality, rising living costs, and an aging population have begun to surface. These challenges pose potential threats to the social fabric of Singapore, creating disparities that could undermine the sense of community and national cohesion.

To address these concerns, the government must proactively adapt its policies while remaining committed to its foundational principles. Balancing economic growth with social equity will be vital to ensuring a harmonious and sustainable future for all Singaporeans.

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