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

- Link: https://www.thailand-business-news.com/asean/singapore/217517-singapore-steady-policy-framework-in-the-face-of-rising-social-challenges
- Published: 2025-05-13T09:48:00+07:00
- Author: News Desk

**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**

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 * 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.

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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.
[Read More](https://www.fitchsolutions.com/bmi/political-risk/singapore-strong-policy-continuity-potential-rise-society-risk-05-05-2025)