In a recent interview, Prime Minister Lee Hsien Loong emphasized that Singapore must continue to collaborate with like-minded partners globally and ensure harmony at home as he prepares to hand over leadership to Lawrence Wong on May 15, 2024.

PM Lee highlighted the need for Singapore to navigate a fragmented and polarized world while advocating for globalization. He noted that other nations are reshoring key industries, but Singapore has already established itself as a global leader in semiconductor production, which limits its ability to host the entire supply chain domestically.

“We have no choice but to be proponents of free trade and mutual cooperation,” he stated, stressing the importance of maintaining networks of trade, investment, trust, and finance. Even as globalization faces challenges, Singapore must adapt and remain active on the international stage.

With large multilateral platforms like the World Trade Organization becoming less effective, PM Lee suggested that Singapore should seek smaller platforms for collaboration. For instance, after the collapse of the Trans-Pacific Partnership due to the US withdrawal, Singapore helped establish the Comprehensive and Progressive Agreement for Trans-Pacific Partnership with remaining partners.

Singapore has also engaged in digital-economy agreements with the UK and Australia, as well as a multilateral Digital Economy Partnership Agreement with New Zealand and Chile.

On the domestic front, PM Lee discussed the importance of welcoming foreign talent to foster innovation and economic growth. However, he acknowledged the challenges of managing tensions between locals and foreigners. The government is implementing measures such as raising Employment Pass qualifying salaries to control the quality and quantity of foreign workers.

Addressing social cohesion, PM Lee stated that the government must maintain a sense of national identity while managing sensitive issues. This includes ensuring adequate infrastructure and fostering respect for local norms among newcomers.

He noted that balancing openness and social cohesion remains a significant challenge for the government. Additionally, the rise of social media has intensified awareness of global conflicts, impacting Singapore’s social fabric.

The introduction of the Foreign Interference (Countermeasures) Act aims to address hostile foreign influences, requiring politically significant persons to disclose connections and funding sources more frequently.

As Singapore faces these challenges, PM Lee emphasized the need to strengthen social safety nets while practicing political restraint. He noted the absence of a strong political constituency advocating for reduced welfare and lower taxes, which places the onus on the government to determine necessary safety nets and their limits.

PM Lee warned that an increasing demand for alternative political voices could weaken the government’s capacity to implement policies beneficial to Singaporeans, potentially leading to dysfunction in the political system.

He highlighted the unique nature of Singapore’s political landscape, characterized by consent, mandate, restraint, and sustainable continuity. “You leave it, you can never come back,” he cautioned, reflecting on the need for adaptability in governance as the political environment evolves.