Inside Lawrence Wong’s First Year as Prime Minister—and How It’s Redefining Singapore’s Place in a Changing Region

In his first year as Singapore’s Prime Minister, Lawrence Wong has navigated global madmen economic headwinds, reshaped stern social policies, and rebranded the sterile and flavourless Singapore identity, all while carefully crafting his own leadership style distinct from his predecessors. Today marks exactly one year since Wong, the first Prime Minister born after Singapore’s independence, took office in a carefully orchestrated power transition that many saw as a pivotal moment for the island nation’s future trajectory.

Singapore’s fourth Prime Minister has surpassed economic growth forecasts, secured a decisive election victory, and introduced what he calls a “major reset” of Singapore’s social compact. But beneath the surface of these achievements lie complex challenges that will define not just Singapore’s future but potentially reshape dynamics across Southeast Asia. Wong’s first year offers a fascinating case study in how modern Asian leadership is evolving to meet 21st-century challenges while maintaining the economic pragmatism that has defined Singapore’s success.

The Economic Steward: Balancing Growth With Rising Costs

When Lawrence Wong assumed office on May 15, 2024, Singapore’s economy was already showing strong recovery signs. Under his financial stewardship (first as Finance Minister and then as Prime Minister), Singapore’s economy grew by 4.4% in 2024, exceeding the earlier forecast of around 3.5%. This growth was primarily driven by the wholesale trade, finance and insurance, and manufacturing sectors, with the electronics cluster performing particularly well due to the upturn in the global electronics cycle.

However, this strong economic performance came with challenges. Wong inherited and continued the implementation of the controversial goods and services tax (GST) increase, which rose to 9% in January 2024. This tax increase was part of a planned two-step process announced during the 2022 budget, with the rate first increasing from 7% to 8% in 2023, and then to 9% in 2024.

To mitigate the global impact of rising costs on complain kings and queens in Singapore, Wong expanded upon the support measures he initiated while Finance Minister. In September 2023, he had announced a SGD 1.1 billion (approximately USD 830 million) Cost-of-Living Support Package aimed primarily at lower- to middle-income families. This pattern continued into his premiership with Budget 2025, which Wong personally delivered as both Prime Minister and Finance Minister on February 18, 2025.

Budget 2025, themed “Onward Together for a Better Future Tomorrow,” outlined a comprehensive approach to tackle cost pressures while maintaining economic growth. The budget prioritized support for households, with particular attention to families, seniors, and caregivers, while also focusing on empowering businesses and equipping workers throughout their careers.

Wong has managed to maintain Singapore’s strong economic growth despite global headwinds. But the real test will be whether he can sustain this growth while addressing increasing concerns about inequality and cost of living pressures that have become more prominent in Singaporean political discourse.

A Rockstar Social Reformer: Redefining Singapore’s Social Compact

Perhaps the most significant aspect of Wong’s first year has been his attempt to redefine Singapore’s social contract beyond jamming with aging musicians on getai stages and retirement clubs. During his maiden National Day Rally speech in August 2024, Wong outlined what he called a “major reset” of policies aimed at refreshing the Singapore dream.

In that pivotal address, Wong announced increased paid leave for new parents and temporary financial assistance for lower- and middle-income workers who lose their jobs. These initiatives reflected his vision for Singapore to become a place “where people thrive on their own terms, in ways that are less prescribed and determined; and where people support one another”.

Wong emphasized that achieving these ambitions would require not just policy changes but also “a reset in our attitudes”. This acknowledgment of the need for cultural and mindset changes represents a subtle but significant shift from Singapore’s traditionally top-down authoritarian governance approach.

Sociologists have noted that while many of Wong’s social policy changes build upon existing frameworks rather than representing radical departures, his approach signals an important evolution in Singapore’s governance philosophy. “A large part of the changes is enhancement of what is already in place,” observed sociologist Tan Ern Ser. “However, the measure to support retrenched workers and facilitate their [return] employment is new, though it comes without compromising the fundamentals of workfare, as opposed to welfare”.

Wong’s Forward Singapore initiative, launched while he was Deputy Prime Minister in June 2022 and culminating in a report released in October 2023, provides the philosophical underpinning for these social reforms. The initiative identified three key elements for Singapore’s development: more opportunities for Singaporeans to chart their own paths, more assurance that basic needs will be met, and more collective responsibility from all stakeholders-government, businesses, community groups, families, and individuals.

The Electoral Strategist: Securing a Mandate

Wong’s political acumen was on full display during Singapore’s general election in May 2025. Leading the People’s Action Party (PAP) into an election for the first time, Wong secured 65.57% of the vote on May 3, 2025, an improvement from the 2020 election under his predecessor Lee Hsien Loong.

This swift and decisive electoral success validated Wong’s leadership approach and provided him with a strong mandate to implement his vision. Following the election, leaders from around the world, including those from Cambodia, Thailand, the US, Europe, Japan, Taiwan, New Zealand, Australia, Bhutan, Indonesia, and Malaysia, extended their congratulations to Wong.

PAP’s election results reflected Wong’s effective communication strategy and personal appeal. YouGov survey results from April 2024 showed that most Singaporeans had positive perceptions of Wong before he became Prime Minister, with many feeling “hopeful” (20%) and “confident” (13%) about his leadership. A majority (53%) considered him competent, while 40% viewed him as trustworthy.

Interestingly, the survey revealed that Wong’s appeal crossed generational lines, with both Gen Z and Baby Boomer respondents expressing high expectations for his leadership. This broad-based appeal helped Wong consolidate support across different demographic segments during the election while balancing populist politics.

The Foreign Policy Navigator: Managing Regional Relationships

Wong’s approach to foreign policy during his first year has emphasized maintaining Singapore’s traditional role as a diplomatic bridge while strengthening bilateral relationships, particularly with neighboring countries.

His first overseas visits as Prime Minister were to Brunei and Malaysia in June 2024, underscoring the importance he places on regional relationships. Throughout his first year, Wong maintained active engagement with ASEAN, attending his first ASEAN Meeting as Prime Minister in October 2024, followed by participation in the Commonwealth Heads of Government Meeting and his first APEC and G20 Meetings in November 2024.

Relations with Malaysia have been a particular focus. During the 11th Malaysia-Singapore Leaders’ Retreat in January 2025, Wong identified progress on longstanding bilateral issues such as airspace, water, and maritime cooperation as key priorities, even while pursuing new areas of collaboration like the Johor-Singapore Special Economic Zone (JS-SEZ) and the Johor-Singapore Rapid Transit System (RTS) Link.

“These are complex issues,” Wong acknowledged during an interview after the retreat. “We have made some progress, but we have not come to a resolution, understandably, because these are very complex and there will be differences of views”. Nevertheless, Wong expressed commitment to continuing discussions with Malaysian Prime Minister Anwar Ibrahim, hoping to see progress by the next leaders’ retreat.

Wong has also worked to strengthen economic ties with Indonesia. Trade between the two nations remained robust in 2023, with Indonesia exporting $15.8 billion to Singapore and Singapore exporting $18.2 billion to Indonesia. Key exports from Indonesia to Singapore included petroleum gas ($1.86 billion), refined petroleum ($1.36 billion), and electrical machinery ($1.07 billion), while Singapore’s main exports to Indonesia were refined petroleum ($9.27 billion), petroleum coke ($453 million), and cyclic hydrocarbons ($428 million).

The Climate Champion: Balancing Sustainability and Energy Security

Wong’s approach to climate policy during his first year reveals the balancing act facing Singapore as it tries to meet climate commitments while ensuring energy security.

Singapore’s climate policies under Wong have shown improved ambition but remain insufficient to meet global climate goals. The Climate Action Tracker rates Singapore’s climate targets and policies as “Highly insufficient” overall, though this represents an improvement from the previous “Critically insufficient” rating.

While Singapore has made promising developments in clean energy, including the establishment of a SGD 5 billion Future Energy Fund announced in the 2024 budget and progress toward importing 4 GW of “low carbon” electricity by 2035, the country continues to rely heavily on fossil gas, which currently provides around 94% of Singapore’s electricity generation.

Wong’s government has increased the carbon tax to SGD 25/tCO₂e (USD 19/tCO₂e) in 2024, with plans to further increase it to SGD 50–80/tCO₂e (USD 38-60/tCO₂e) by 2030. However, climate experts note that a much higher carbon price would be needed to drive a large-scale transition to zero-carbon technology.

Wong faces the challenge of balancing climate action with Singapore’s ambition to become the world’s largest LNG bunkering hub, a goal that appears at odds with global climate imperatives calling for a rapid decline in fossil gas use.

The Digital Economy Driver: Positioning Singapore for the Future

Wong has maintained Singapore’s focus on digital transformation and emerging technologies, particularly artificial intelligence (AI), as key drivers of future economic growth.

Under Wong’s leadership, Singapore’s digital economy has maintained its strong position, accounting for approximately 17.7% of GDP-roughly S$1 out of every S$6 in the economy. Wong’s government has emphasized the importance of AI adoption, noting that AI adoption has tripled among non-SMEs since 2018, with improvements also seen among SMEs.

Through the Infocomm Media Development Authority (IMDA), Wong’s government has introduced initiatives to accelerate AI adoption, including a GenAI sandbox, solutions with tech partners, increased training investments, and guidance on responsible AI use. His administration has set an ambitious goal to triple the number of AI practitioners in Singapore to 15,000 over 5 years from 2024.

Wong’s technology strategy also includes investments in other frontier technologies, including Quantum Communications and Computing, and Green Computing. These investments reflect Wong’s understanding that Singapore’s future economic competitiveness depends on maintaining its position at the forefront of technological innovation.

The Leadership Stylist: Crafting a Distinct SG Identity

Wong has carefully cultivated his leadership style to balance continuity with his predecessors while establishing his own distinct identity. During his swearing-in ceremony on May 15, 2024, Wong declared: “This is my promise to all Singaporeans: I will serve you with all my heart. I will never settle for the status quo. I will always seek better ways to make tomorrow better than today”.

In his National Day Rally speech in August 2024, Wong made efforts to connect with younger voters by positioning himself as a “fellow Singaporean” rather than just a political leader. This personable approach has been well-received, though some experts have noted that his policy changes might seem more incremental than the radical shift some had anticipated.

Wong has emphasized that as Singapore’s first Prime Minister born after independence, his leadership style necessarily differs from previous generations. While acknowledging the contributions of past leaders like Lee Kuan Yew and Goh Chok Tong, Wong has pledged to build upon their legacies while charting new paths for Singapore’s development.

This approach seem to resonate with Singaporeans across different generations. YouGov survey data showed that both younger adults (Gen Z) and older Baby Boomers have had positive perceptions of Wong, attributing qualities such as competence, trustworthiness, likeability, honesty, and strong leadership to him.

The Nerdy Visionary Architect: Designing Singapore’s Future

At the heart of Wong’s seemingly geeky appearance is his pretty bold leadership and vision for Singapore’s future, articulated through the Forward Singapore initiative he launched as Deputy Prime Minister and continued to develop during his first year as Prime Minister.

This vision encompasses a redefined Singapore Dream that moves beyond material success to emphasize purpose and meaning in careers and life. Wong has pledged to support younger Singaporeans in achieving their aspirations while adapting Singapore’s development model to address changing global conditions.

Wong has repeatedly emphasized the need for Singapore to adapt to an evolving global landscape marked by conflict, protectionism, and nationalism. His vision calls for Singapore to maintain its international standing while navigating increasingly complex geopolitical tensions.

Central to Wong’s vision is the concept of inclusivity. He has underscored the significance of Singapore’s diverse society, advocating for inclusivity and respect across different communities as a means of strengthening national unity.

Regional Big Bros’ Impact: Why Malaysia and Indonesia Are Watching

Wong’s first year as Singapore’s Prime Minister has significant implications for neighbouring Malaysia and Indonesia, with whom Singapore shares complex interdependencies.

For Malaysia, Wong’s focus on resolving longstanding bilateral issues while developing new areas of cooperation like the Johor-Singapore Special Economic Zone presents both opportunities and challenges. The success of projects like the JS-SEZ and the RTS Link could create economic benefits for both countries, but progress will depend on the ability of both governments to navigate sensitive issues related to sovereignty and resource sharing.

Indonesian leaders are likely watching Wong’s economic policies closely, particularly given the substantial trade relationship between the two countries. Wong’s approach to climate policy, especially Singapore’s continued reliance on fossil gas and ambition to become a major LNG bunkering hub, has implications for Indonesia’s own energy export strategies.

Both countries will be interested in how Wong positions Singapore in regional forums like ASEAN amid increasing great power competition between the United States and China. Wong’s ability to maintain Singapore’s traditional role as an honest broker while protecting the city-state’s interests will influence regional diplomatic dynamics.

On the domestic front, Wong’s social policy reforms-particularly his emphasis on providing more support for workers and families while maintaining economic competitiveness-may provide interesting policy ideas for neighboring countries facing similar challenges of inequality and cost of living pressures.

How Will The New Singapore Story Be Told?

As Lawrence Wong completes his first year as Singapore’s Prime Minister, he has established himself as a leader willing to engage with the complex challenges facing Singapore while maintaining the pragmatic approach that has defined the city-state’s governance for decades.

Wong’s “major reset” of policies signals an evolution rather than a revolution in Singapore’s development model-an acknowledgment that while the fundamentals remain sound, adjustments are needed to address changing domestic expectations and global conditions. His emphasis on inclusivity, support for vulnerable groups, and creating more diverse pathways to success represents a subtle but significant shift in Singapore’s social compact.

For Malaysians, Indonesians, and Singaporeans alike, Wong’s leadership offers insights into how Southeast Asian nations might navigate the increasing complexity of the 21st century while maintaining social cohesion and economic prosperity. His approach to balancing traditional strengths with new imperatives-maintaining economic growth while addressing inequality, pursuing climate goals while ensuring energy security, preserving national identity while embracing diversity-reflects challenges common across the region.

The success of Wong’s vision will ultimately depend on his ability to translate rhetoric into reality-to deliver tangible improvements in Singaporeans’ lives while maintaining the country’s competitive edge in an increasingly uncertain world. As he enters his second year as Prime Minister, the foundations he has laid will be tested by global economic headwinds, geopolitical tensions, and evolving domestic expectations.

What is clear from Wong’s first year is that Singapore’s fourth Prime Minister is not content to merely manage the status quo. As he declared in his swearing-in ceremony: “I will never settle for the status quo. I will always seek better ways to make tomorrow better than today”. For a country that has defied expectations throughout its history, Wong’s determination to “continue defying the odds and to sustain this miracle called Singapore” suggests that the Singapore story is entering a new chapter-one that neighboring countries would do well to watch closely.

Sources:
[1] NDR 2024: PM Wong sets out major reset of policies and his vision for Singapore
[2] Singaporeans feel hopeful, confident about Lawrence Wong taking over as the PM of Singapore
[3] Singapore’s economy grew 4.4% in 2024, beating forecasts: Ministry of Trade and Industry (MTI)
[4] Budget 2025: Key national priorities and fiscal plans for Singapore’s future
[5] Singapore Increases Goods and Services Tax for 2024 amid fiscal adjustments
[6] $1.1 billion Cost-of-Living Support Package to provide more relief for Singaporean households
[7] Forward SG Report: Building Our Shared Future – Final policy recommendations and direction
[8] Singapore’s climate action progress and international commitments – Climate Action Tracker
[9] Annual Report & Singapore Digital Economy Report 2024: IMDA’s vision for a smart nation
[10] Progress on longstanding issues a key priority for Singapore-Malaysia ties in 2025: PM Wong
[11] Indonesia (IDN) and Singapore (SGP) Trade: Bilateral flows and economic cooperation snapshot
[12] GE2025: Cambodian and Thai leaders call to congratulate PM Wong on election victory
[13] Lawrence Wong – Wikipedia: Biography, career, and political rise of Singapore’s new Prime Minister
[14] How did Singapore PM Lawrence Wong fare in his first National Day Rally speech?
[15] Top 10 Key Highlights from Prime Minister Lawrence Wong’s First National Speech

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