Singapore Economic Resilience Tested by Rising Global Risks, Wong Says

Singapore’s economy remains strong following better-than-expected first-quarter growth, but policymakers must prepare for increasing uncertainty arising from geopolitical tensions, inflation pressures and artificial intelligence-related disruption, Prime Minister Lawrence Wong said.

The Singapore economic resilience message came during a Singapore Press Club dialogue.

Wong noted that the economy expanded 6% year on year in the first quarter, significantly exceeding the earlier estimate of 4.6%.

He said the Singapore economic resilience demonstrated by the city-state reflects its diversified economic structure and strong institutional foundations.

However, Wong cautioned that the full effects of the Middle East conflict have yet to emerge, particularly through higher oil, food and fertiliser prices.

He also warned that global fragmentation could create longer-term challenges for trade-dependent economies.

The Prime Minister said Singapore must continue adapting its economic strategies, support workers and households, and strengthen social cohesion to navigate a more uncertain global environment.