Singapore is ‘entering a more dangerous world’ of economic threats, new Cold War: Lawrence Wong

SINGAPORE is “entering a more dangerous world” with tougher economic conditions and “a new Cold War”, Deputy Prime Minister Lawrence Wong said on Sunday (Nov 6) at the party conference of the People’s Action Party (PAP).

“We are on the cusp of a new era in history,” said Wong, a member of the PAP’s Central Executive Committee (CEC). In his speech to party activists, he laid out the challenges that Singapore faces and the importance of building solidarity through exercises such as Forward Singapore.

The last three decades have featured low inflation and low interest rates, but the world is now entering “a sustained period of higher prices”, he noted. Similarly, the last three decades have seen a globalised world with free flows of trade and investments, but “all that is set to shift, if not reverse”.

This is due to the emerging Cold War between the United States and China, which will be more dangerous than the first as there is “no easy or painless way to decouple” these closely integrated economies. The situation will be worsened by climate change, with countries scrambling for the resources needed to meet climate targets.

“What I’ve described is not something abstract, distant or faraway,” said Wong. “These are clear and present threats unfolding right before us, and they can very quickly impact all of our lives.”

This new world is “one where conflict or war cannot be ruled out, even in our region; one where growth will be slower and it will be harder to create opportunities for our people”.

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On top of external threats, Singapore faces domestic challenges: a maturing economy, ageing population and growing needs. All of this will affect social cohesion, as has already happened elsewhere, said Wong: “When there are diminishing opportunities for progress, tensions between people of different races, religions, or places of birth are bound to flare up.”

Political parties seeking a short-term edge will tap these tensions, and “offer simplistic proposals to score political points” that do not truly solve problems but instead make things worse, he warned.

Singapore must confront these challenges head on – but can draw confidence from how it has weathered the last three pandemic years, said Wong. He said he was grateful for the country’s “deepened reservoir of trust” and how it had emerged stronger, unlike other advanced economies where Covid-19 has fractured societies.

Stressing the importance of maintaining solidarity and trust, Wong noted that his first priority after becoming deputy prime minister in June was to launch the Forward Singapore exercise of public engagements.

He laid out three aims for Forward Singapore: first, to help Singaporeans of all backgrounds realise their potential and share in the country’s success; second, to strengthen assurances and protection for citizens in an uncertain world, by tilting policies further in favour of the less fortunate; third, to build a stronger sense of solidarity and responsibility in society.

In his speech, which included portions in Chinese and Malay, Wong also spoke of how he had been “a huge beneficiary of the Singapore story”, with his parents having been through tough times. “I learnt early in life that the peace and stability I and so many other Singaporeans enjoyed did not come without cost,” he said.

As a political party, the PAP also faces challenges. Wong noted that in his visits to party branches, questions were asked about when the next general election (GE) will take place and when he will take over as prime minister.

But whether the next GE is before or in 2025 – the deadline for it to be held – it will be a tough battle, he said. So the real questions are not about when, but how the PAP can put up a strong fight and secure a clear mandate, he added.

Many have become accustomed to the PAP forming the government, but “there is no such guarantee”, he pointed out.

At the last GE in 2020, the Workers’ Party (WP) contested in six constituencies, winning three. In those six constituencies, their total votes were slightly more than the PAP’s, noted Wong. “What if the WP had contested more seats? Would the PAP still have won 61 per cent of the votes nationwide? Would we still have returned to power?”

“Every election from now on will be about which party forms the government,” he concluded.

At the conference, held every two years, the PAP also elected its 37th CEC – though positions within the CEC have yet to be determined. Prime Minister Lee Hsien Loong is currently secretary-general, while the post of assistant secretary-general usually goes to the existing or upcoming deputy prime minister.