Singapore’s new prime minister, Lawrence Wong, will take over a country with a strong economy and local assets. Under Lee Hsien Loong’s leadership since 2004, the country has seen its currency appreciate significantly against major trading partners and outperformed the US dollar in the same period. Additionally, Singapore government bonds have delivered strong returns, surpassing global peers by about 16 percentage points.
The economy has more than doubled in size during Lee’s 20-year tenure, reaching S$532.3 billion, with total assets under management growing to S$4.9 trillion. Lee has transformed Singapore into a prominent financial hub, attracting global talent and boosting the stock market. The Straits Times Index has outperformed the MSCI Asean Index by nearly 32 percentage points since Lee took office.
However, despite the overall success of the economy, over half of locally listed companies are trading below their book value, indicating a lack of high-growth firms in the mature economy. Analysts suggest that Wong may need to take steps to support local equities, potentially through increased investment from sovereign wealth funds and incentives for listing companies on the Singapore market. As Wong prepares to assume leadership, there may be opportunities to further strengthen and support the local economy and market.
As Wong takes over as prime minister next month he will inherit an economy that is filled with economic success and strong local assets. Under Lee Hsien Loong’s leadership since 2004 Singapore has seen its currency appreciate significantly against major trading partners outperforming even US dollar in same period.
Furthermore Singapore government bonds have delivered strong returns surpassing global peers by about 16 percentage points. During his tenure which lasted more than two decades Singapore saw its economy more than double in size reaching S$532.3 billion while total assets under management grew to S$4.9 trillion.
Lee transformed Singapore into a prominent financial hub attracting global talent boosting stock market index which outperformed MSCI Asean Index by nearly 32% since he took office.
Despite overall success however there are challenges ahead as more than half of locally listed companies are trading below their book value indicating a lack of high-growth firms in mature economy.
Analyst suggest that Wong may need to take steps to support local equities potentially through increased investment from sovereign wealth funds and incentives for listing companies on Singapores market as he prepares to assume leadership.
Therefore there may be opportunities for further strengthening and supporting local economy and market during Wongs tenure as prime minister next month
