On September 13, 2023, Deputy Prime Minister Lawrence Wong emphasized the expectation that the wealthy in Singapore should actively contribute to society through taxes and philanthropy. Speaking at the Milken Institute Asia Summit 2023, Wong addressed business leaders and policymakers, underscoring the importance of adhering to Singaporean norms and avoiding ostentatious displays of wealth.

Wong highlighted that while Singapore has successfully attracted significant investments and established a robust asset management industry—managing approximately S$5 trillion and housing around 700 family offices—the growing wealth has also contributed to perceptions of inequality. He noted that this is an issue the government is closely monitoring.

The Deputy Prime Minister reiterated that wealthy individuals must “do their part” in supporting the social compact. He explained that family offices are encouraged to establish philanthropic efforts and that those with substantial wealth contribute more through taxation. “The rich pay more, and if you’re very rich, you pay even more taxes,” Wong stated, adding that lower-income groups benefit more from government spending.

To combat the perception of inequality, Wong mentioned that the government actively engages new residents to instill Singapore’s values of inclusivity and egalitarianism. He articulated that Singapore is a society where individuals should feel comfortable interacting as equals, and ostentatious displays of wealth are frowned upon. Wong humorously added that those unwilling to adhere to these norms are free to take their money elsewhere.

Furthermore, Wong discussed measures taken to prevent foreign capital from inflating the residential property market, noting strict regulations regarding property sales to foreigners, which have been tightened twice in recent years.

Wong stressed the importance of maintaining the social compact to ensure the strength and unity of society, which is vital for the sustainability of Singapore’s economic model. He pointed out recent positive trends, such as real median income growth and significant income increases for lower-income groups compared to the broader workforce.

The “Forward Singapore” initiative aims to strengthen this social compact by supporting workers in reskilling and assisting the unemployed. Wong asserted that these investments in human capital are essential for fostering a strong, united society and ensuring ongoing support for Singapore’s open and competitive economic model.

During the dialogue, Wong and Milken Institute CEO Richard Ditizio also addressed the geopolitical landscape, the country’s ability to attract investments, and challenges posed by climate change and artificial intelligence.