Lawrence Wong to take over as Finance Minister, will let go of education portfolio

Annabeth Leow

Published Fri, Apr 23, 2021 · 06:55 AM

Education Minister Lawrence Wong will become Singapore's next Finance Minister on May 15, replacing Deputy Prime Minister Heng Swee Keat.

The announcement on Friday came a fortnight after Mr Heng's shock announcement that he would no longer be in the running to take over from Prime Minister Lee Hsien Loong when Mr Lee steps down.

"Finance is a key ministry, so when the Finance Minister changes, there are many repercussions for the other appointments," Mr Lee said at a virtual press conference at the Istana. "Lawrence has been assisting Swee Keat as Second Minister since 2016, so he has the experience, and is a natural fit for the job."

Mr Wong remains a co-chair of Singapore's multi-ministry taskforce on Covid-19, which was convened in early 2020; the other co-chair is now Ong Ye Kung, who replaces Gan Kim Yong as Health Minister.

Mr Heng still serves as Deputy Prime Minister and Coordinating Minister for Economic Policies.

Said Mr Lee: "Relinquishing finance will free him to concentrate more on the whole-of-government economic agenda, including chairing the Future Economy Council, and incorporating the recommendations of the Emerging Stronger Taskforce into the work of this Council."

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Bilveer Singh, deputy head of the National University of Singapore Department of Political Science, told The Business Times the reshuffle will bring "more continuity than change" to the People's Action Party (PAP) administration's track record with foreign investors.

That's even as a fresh outbreak of the novel coronavirus in a foreign worker dormitory, which was discovered this week, could derail Singapore's recovery from the 2020 recession.

In the wake of an indefinite entry ban on non-residents who have recently been in India, the authorities are also expected to work on relief measures for businesses in affected sectors, with the support of the Ministry of Finance.

The possible re-infections "raise the risk of tighter social distancing measures and will likely keep policymakers cautious", Barclays economist Brian Tan wrote in a flash note on Friday.

Still, Associate Professor Singh added that "instability in the PAP's leadership", as well as geopolitical uncertainties in the region, tensions between the United States and China, the Covid-19 pandemic will be key challenges that "greatly disadvantage the new Finance Minister".

The new minister will need "all the luck and political support from the PAP and people", Prof Singh said.

Mr Wong, who entered politics in the 2011 general election, began as Minister of State for Defence and Education. The next year, he was named Acting Minister for Culture, Community and Youth. He became full minister there in 2014, as well as Second Minister for Communications and Information.

In 2015, he relinquished those portfolios to become Minister for National Development.

Mr Wong was also a board member of the Monetary Authority of Singapore from 2011 to 2016, stepping down after becoming Second Minister for Finance. He became Minister for Education after the 2020 election, while retaining his finance portfolio.

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