{"id":24768,"date":"2026-01-01T00:55:35","date_gmt":"2025-12-31T16:55:35","guid":{"rendered":"https:\/\/sgbuzz.com\/?p=24768"},"modified":"2026-01-01T00:55:35","modified_gmt":"2025-12-31T16:55:35","slug":"spore-economy-grew-4-8-in-2025-strategy-must-be-refreshed-to-stay-competitive-pm-wong","status":"publish","type":"post","link":"https:\/\/sgbuzz.com\/?p=24768","title":{"rendered":"S\u2019pore economy grew 4.8% in 2025, strategy must be refreshed to stay competitive: PM Wong"},"content":{"rendered":"


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SINGAPORE \u2013 Singapore posted stronger-than-expected economic growth of 4.8 per cent in 2025 amid a changing global order and deepening geopolitical tensions.<\/p>\n

But Singaporeans must be realistic and know that sustaining this pace of growth will be challenging, Prime Minister Lawrence Wong said on Dec 31 as he unveiled the latest figure in his New Year message. <\/p>\n

To remain competitive, PM Wong said Singapore cannot simply do more of the same and must \u201crethink, reset and refresh\u201d its economic strategies.<\/p>\n

On this front, he noted that the first set of proposals from the Economic Strategy Review will be released soon, and the Government will respond to them at Budget 2026. Deputy Prime Minister Gan Kim Yong heads the task force that the review \u2013 overseen by a team of younger office-holders \u2013 comes under.<\/p>\n

PM Wong, who is also Finance Minister,\u00a0will deliver the Budget\u00a02026\u00a0speech in\u00a0Parliament\u00a0<\/p>\n

on Feb 12,<\/p>\n

<\/a> when he is expected to address concerns such as job security and cost of living.<\/p>\n

Explaining<\/p>\n

the stronger-than-expected growth,<\/p>\n

<\/a> PM Wong said Singapore had benefited from an artificial intelligence-related surge in demand for semiconductors and electronics.<\/p>\n

Global economic growth also turned out to be more resilient than anticipated, and the tariffs imposed by the US kicked in later and at lower levels than many had feared.<\/p>\n

These factors led to unemployment and inflation remaining low and real incomes rising across the board, PM Wong said. <\/p>\n

Going forward, fractured trade and geopolitical tensions are not transient problems, but permanent features of a fragmented world. <\/p>\n

In 2025, countries reconfigured trade networks and supply chains in the name of resilience and security, while <\/p>\n

geopolitical tensions deepened,<\/p>\n

<\/a> PM Wong noted, citing the ongoing war in Ukraine, the precarious situation in Gaza, and clashes between Thailand and Cambodia over disputed border areas. <\/p>\n

Reflecting on the past year, he said it was a significant one as the nation commemorated 60 years of independence. Singaporeans also entrusted a new government with a clear mandate to lead the country in a changed world, following a general election.<\/p>\n

\u201cWe will face more obstacles to growth, and inflationary pressures may intensify. As a small and open economy, Singapore cannot fully shield ourselves from these headwinds,\u201d he said.<\/p>\n

While there will be more challenges and unknowns, Singapore can press on confidently as it is dealing with them from a position of strength, he added.<\/p>\n

The Republic\u2019s international standing is high, and its brand is trusted and respected. Amid global uncertainties, many companies \u2013 including major players like Microsoft and promising start-ups \u2013 are seeking stability and turning to Singapore as a trusted base or a launch pad to the region, he noted. <\/p>\n

PM Wong said that during his overseas visits, he saw how Singapore\u2019s reputation opens doors and creates opportunities for its businesses and people, with local firms carving out new niches and making their mark in places like Africa and Latin America.<\/p>\n

He said the Government will continue to support local companies as they expand, scale up and seize overseas opportunities. <\/p>\n