Singapore to swear in new Prime Minister

Today, after 20 years in office, Singapore’s Prime Minister Lee Hsien Loong will pass the reins to Lawrence Wong, who currently serves as the Deputy PM and Minister for Finance.

Like Lee, Wong belongs to the People’s Action Party (PAP), which has been governing the country since Singapore’s independence. Wong is stepping into the role during a quite favorable economic period for the country. PM Lee managed to double Singapore’s gross domestic product from US$168 billion to US$392 billion during his tenure and significantly increase the income level of citizens. At the same time, Wong will face contemporary challenges stemming from the government’s focus on economic growth.  For example, the ongoing issue of regulating immigration flows through the Employment Pass (EP) system since 2011. The growing competition in the labor market has led to strong dissatisfaction among locals, prompting the government to raise the minimum wage threshold for foreigners seeking employment in Singapore.

Given that both Lee and Wong have served as Finance Ministers at some point in their careers, Wong is likely to continue leading the country towards economic prosperity without introducing any fundamental changes to foreign policy. However, balancing between the U.S. and China in diplomatic relations may prove to be a more challenging task as the rivalry between the two is gradually increasing. Singapore, with Mandarin Chinese and English as two of Singapore’s three primary languages, will need to find a balance in the ongoing Sino-US competition.