Singapore's new prime minister Lawrence Wong has had a lengthy run-up to his current job as the Lee family continues its stewardship of the island nation. The improbable star of the developing world has reached dizzying heights of mass affluence because of its open economy, committed bureaucracy and clean politics. In this, it is a veritable poster boy for both developing and developed economies. Wong inherits these strengths, but he also faces China-US decoupling that could become a hurdle to future growth. Singapore's dominant ethnic group is Chinese, while the US is the biggest investor in the country. The city built itself as a global financial powerhouse while China put the squeeze on Hong Kong. Now, China is a bigger force in the region, with deeper economic integration and political interests in all of its neighbours. Wong will have to chart a course clearly distinct from his predecessor Lee Hsien Loong who courted US capital and the technology that accompanied it.
Another shift in outlook is the nature of politics, tightly controlled by three generations of the family of Lee Kuan Yew, the founding father of the modern Singaporean state. Its unique politics was forged by an effort to keep racial power dynamics at bay. But with an ageing population, the city will have to review its immigration policy and cannot keep itself permanently insulated from alternate claims on power. Here, too, Chinese businessmen, seeking a freer business environment than at home, are gaining in voice. Since Singapore cannot reasonably turn down TikTok's request to set up its regional headquarters in the city, Wong is moving towards the geopolitical fault line.
Wong must also get a handle on Singapore's lack of scale. The city of 6 mn has to push the frontiers of technology and finance to stay ahead in the standard-of-living game. This will become more difficult as the rest of Asia, with incredibly bigger economic heft, applies some of the tools that propelled Singapore to becoming one of the costliest cities to live in.
Another shift in outlook is the nature of politics, tightly controlled by three generations of the family of Lee Kuan Yew, the founding father of the modern Singaporean state. Its unique politics was forged by an effort to keep racial power dynamics at bay. But with an ageing population, the city will have to review its immigration policy and cannot keep itself permanently insulated from alternate claims on power. Here, too, Chinese businessmen, seeking a freer business environment than at home, are gaining in voice. Since Singapore cannot reasonably turn down TikTok's request to set up its regional headquarters in the city, Wong is moving towards the geopolitical fault line.
Wong must also get a handle on Singapore's lack of scale. The city of 6 mn has to push the frontiers of technology and finance to stay ahead in the standard-of-living game. This will become more difficult as the rest of Asia, with incredibly bigger economic heft, applies some of the tools that propelled Singapore to becoming one of the costliest cities to live in.
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