Singapore: Singapore Prime Minister Lawrence Wong says the city-state\u2019s economy delivered a stronger-than-expected growth of 4.8% in 2025 and warned that sustaining the pace will be challenging.\u00a0<\/p>\n
\u201cThis is a better outcome than we expected, given the circumstances,\u201d Wong said Wednesday in his New Year\u2019s message. That beat the government\u2019s forecast of around 4%, which was raised in November from between 1.5% and 2.5% previously.\u00a0<\/p>\n
Wong, 53, said Singapore benefitted from an artificial intelligence-related demand surge for semiconductors and electronics, and global growth turned out to be more resilient after many US tariffs were imposed at lower levels than earlier anticipated.<\/p>\n
The premier had said throughout the year that US President Donald Trump\u2019s second presidency has all but ended the era of globalisation and free trade in which Singapore thrived.<\/p>\n
While Singapore faces the lowest US tariff, at 10%, it\u2019s still unclear how sectoral duties on pharmaceuticals and semiconductors, two major sources of exports and jobs, will be impacted.\u00a0<\/p>\n
\u201cTo remain competitive, we cannot simply do more of the same,\u201d he said. \u201cWe must rethink, reset, and refresh our economic strategies.\u201d<\/p>\n
An initial round of proposals will be unveiled soon to tackle the economic challenges ahead, he said. The Trade and Industry Ministry in November said it expects gross domestic product growth next year will ease into a range of 1% to 3%.<\/p>\n
The premier also flagged that he will reinforce social safety nets, and jobs for Singaporeans will be a top priority in the face of rising trade frictions and spread of artificial intelligence.<\/p>\n
Wong\u2019s People\u2019s Action Party, which has ruled Singapore since independence in 1965, won a convincing victory in May. While the next general election isn\u2019t due until 2030, the party has already begun seeking its future leaders.\u00a0\u2014 Bloomberg<\/p>\n<\/p><\/div>\n