BEING a small nation-state with an open economy has never been easy, and this will only become more difficult amid current trends. Geopolitical risks are worsening and economic realities have become harsher, as Prime Minister Lee Hsien Loong warned in his National Day Rally speech on Sunday (Aug 21).

The challenge for Singapore is not just to seek silver linings in the international storm clouds ahead, but to be both psychologically and practically prepared for the storm itself.

On the geopolitical front, tensions between the United States and China are rising, while Russia’s war in Ukraine also affects security in the Asia-Pacific region, said PM Lee.