Singapore in 2022: Challenging Times, Uncertain Future

Summary

The year 2022 was projected to be a year to turn the page for Singapore. The COVID-19 pandemic, which was described by Singapore's prime minister Lee Hsien Loong as a “crisis of a generation”, had become endemic and the country was transitioning to a new normal. By the beginning of the year, more than ninety per cent of the population had completed their full vaccination regimen, and about three-quarters had received booster shots. Also, a significant portion of the population had caught the virus, granting protection from immunity. In April 2022, the Singapore government announced the easing of most COVID-19 measures, including group size limits, safe-distancing requirements, and the lowering of the Disease Outbreak Response System Condition (Dorscon) level. International travel restrictions were also lifted, which permitted Singaporeans and visitors to travel more easily, giving a boost to businesses, particularly the tourism sector. The ebullience was perhaps manifest when the Formula 1 Singapore Grand Prix returned after a two-year hiatus because of the pandemic. The race weekend brought in the highest attendance the event had seen since its inception in 2008. Foreign visitors accounted for almost half of racegoers, and the takings of hoteliers exceeded past highs.

However, against this backdrop of cheer, a sliver of unease looms. The prime minister warned in the August National Day Rally (NDR) that Singaporeans must “get real” and be psychologically prepared for a “very troubled” external environment even as the country emerges from the pandemic. The war in Ukraine and the severely strained US-China relationship have also created “external dangers” that threaten the peace Singaporeans had taken for granted.

While the ruling People's Action Party (PAP) government quelled brewing political uncertainty when it finally announced that finance and deputy prime minister Lawrence Wong would succeed Lee Hsien Loong as the country's next prime minister, the 4G (or fourth generation) group of PAP leaders faces the task of navigating the city-state through significant economic and political unknowns in 2023 and beyond.

The Economy

Beating early estimates, Singapore achieved a robust GDP growth of 7.6 per cent for 2021.