What Observers Are Saying as Singapore’s Lee Paves Way for Next PM Wong

Abhishek Vishnoi, Ishika Mookerjee and Philip J. Heijmans
·4 min read
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(Bloomberg) -- Singapore’s Prime Minister Lee Hsien Loong is stepping down on May 15 after two decades in office. Lee, 72, will hand the reins over to his deputy Lawrence Wong, 51, in a widely-telegraphed transition.

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Singapore’s benchmark Straits Times Index was little changed after the news was announced Monday, falling in line with the regional stock benchmark. The gauge was down as much as 1.4% on Tuesday amid a regional selloff.

Here are some comments on the succession, with most expecting Wong to focus on prudent policymaking, attracting foreign investment and social welfare.

Eugene Tan, a law professor at Singapore Management University

“It will be business as usual with regard to the great US-China power rivalry, so the mantra will be guided by what is in Singapore’s national interests.”

“The biggest challenge, in terms of foreign policy, would actually be the domestic audience as people are being divided between the US and China.”

Nydia Ngiow, managing director at strategic business consultancy BowerGroupAsia

“Embracing a more consultative approach post-election in 2011, Lee led policy adjustments on talent and housing, as he sought to address dissatisfaction.”

“Wong is expected to continue to address such dissatisfaction from the ground. The continuity of cash handouts signals a willingness to implement more social welfare measures.”

“It is likely that Wong will call for general elections before long, so that he can confirm that he has the mandate of the people and start his tenure on a relatively clean slate.”

Mohit Mirpuri, a senior partner at multi-family office SGMC Capital

“The announcement is positive and amid the geopolitical tensions around the world, re-emphasizes the political stability we have here in Singapore. DPM Wong continues to be a steady hand.”

“We believe he can elevate Singapore further in attracting investments through friendly policies, and the infrastructure we have in place.”

Selena Ling, chief economist at Oversea-Chinese Banking Corp Ltd.

“While the external geopolitical landscape is challenging, domestic policy continuity is likely to be the case for the Singapore economy.”

“Monetary policy is on a prolonged pause mode, awaiting a further easing in core inflation. For fiscal policy, the budget direction is clear with the first installment of the Forward Singapore.”

Hazel Poa, secretary-general of the opposition Progress Singapore Party

“We hope that in his new role, Mr Wong will be committed to improving the lives of all Singaporeans, particularly those in the working class and middle class, developing more concrete plans for housing affordability, reallocating our fiscal resources for better outcomes and ensuring a level playing field for Singaporeans in the job market.”

Nirgunan Tiruchelvam, head of consumer and Internet at Aletheia Capital

“The market will look to Wong for fiscal and monetary prudence.”

“It is possible that he could produce a roadmap for boosting Singapore’s equity capital markets. Of the more than 600 companies trading on Singapore Exchange, about 400 are trading below book value.”

“There is a need to attract more overseas and domestic companies to list here. Singapore has attracted a huge amount of wealth but much of the money is going offshore.”

Tamara Mast Henderson, an economist at Bloomberg Intelligence

“The handover likely means a steady trajectory for Singapore’s reform agenda and long-term growth outlook.”

“Policies are likely to remain prudent and forward-looking to tackle the issues of the day — rapid technological change, global warming, geopolitical strains and aging.”

Deputy Prime Minister Heng Swee Keat wrote in a Facebook post

“Over the past 20 years, PM has led Singapore with quiet wisdom and a steady hand.”

“At a time when societies are growing more fragmented, Singaporeans continue to be optimistic about the future, and come together to enlarge our common space and build a cohesive society.”

New Zealand Prime Minister Christopher Luxon, during a joint briefing with Lee in Singapore before the announcement

“You are quite rightly esteemed as a leader of the highest order for the world.”

(Comments edited for clarity and length.)

(Adds details of stock market reaction in second paragraph. Updates Aletheia Capital quote after analyst clarifies that much instead of all of the money in Singapore is being invested offshore.)

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