On the domestic front, Singapore will maintain its approach of combining strict market discipline with an activist state, said Mr Lee.
Singapore has long relied on market forces to make its firms and economy efficient and competitive, he said.
“Wherever possible, we have achieved social and political objectives not by imposing administrative requirements, but by harnessing market forces and aligning economic incentives,” he added.
“The free-market economy incentivises our people to work hard and to do well. It is the impetus for wealth creation and progress.”
Mr Lee said the government plays an active role in creating the conditions for businesses to thrive. It has invested in infrastructure and skills, promoted new economic activities, developed capabilities, opened up new markets overseas, and overcome market failures and coordination problems.
While industrial policy has come in and out of fashion in other developed economies, Singapore has consistently practised this approach for decades, he said.
Mr Lee also said Singapore would have to “remake” its economy repeatedly, including helping businesses adopt artificial intelligence and supporting workers through continuing education and training as jobs evolve.
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