Singapore’s Multifaceted Approach to Inequality, Economic Resilience, and Global Engagement: Insights from PM Lawrence Wong

Singapore’s Prime Minister Lawrence Wong recently shared some intriguing insights about how the city-state tackles inequality beyond just the usual tax measures. In a candid chat at the Bloomberg New Economy Forum gala dinner, he broke down some of the unique strategies Singapore employs to ensure that even the lower-income groups aren’t left behind.

Now, Singapore isn’t just about taxes when it comes to managing inequality. PM Wong highlighted that the country’s home ownership policy plays a massive role. Thanks to this policy, even the bottom 20% of households have significant net assets. That’s pretty impressive, considering the typical picture of inequality you might find elsewhere. It’s like giving everyday Singaporeans a leg up with a tangible asset—a place to call home—which is a huge wealth injection in itself.

But it doesn’t stop there. The Central Provident Fund (CPF), which is Singaporeans’ own retirement savings nest egg, also gets occasional top-ups. This means the government is actively supporting people’s retirement greenery beyond basic contributions. It’s about giving that extra cushion for the future, which helps smooth out income inequality over time.

When asked about the influx of wealthy foreigners and how that impacts inequality perception, PM Wong explained that Singapore has to juggle two separate puzzles: managing wealth inequality among locals and handling the massive funds foreigners bring in. While Singapore warmly welcomes foreign investment and family offices—because they generate local jobs—there’s an understanding that sometimes the flashy displays of wealth can cause social friction. The PM pointed out that the city-state reminds foreign residents that Singapore’s values are quite egalitarian, and fortunately, most people get that.

Of course, no discussion about money flows would be complete without mentioning the darker side: illicit funds. The 2023 $3 billion money laundering case brought this to light, but PM Wong was quick to remind everyone that Singapore isn’t alone in facing such challenges. What sets the city apart is its strict and swift action against illegal money moving through the system. Maintaining Singapore’s reputation as a trusted financial hub is paramount because that’s what keeps the economy ticking and the city attractive to legitimate businesses.

Aside from financial policies and controls, energy future is another big topic on Singapore’s agenda. PM Wong shared that the country is seriously exploring nuclear energy, especially small modular reactors (SMRs), which might be safer but currently aren’t available at a large commercial scale that fits the nation’s needs. Other options on the table include hydrogen energy, though it’s pricey right now, and creating an ASEAN power grid to share energy resources regionally. It’s complex and slow-moving but definitely happening.

Switching gears to geopolitics, the discussion dove into the US-China rivalry and Southeast Asia’s role amid these global power shifts. With trade tariffs and other policies, has the US lost its grip on the region? PM Wong observed that the US actions have only made China double down on technology and self-sufficiency. It’s a game where ultimately the future of both countries depends on their people’s choices and reforms rather than just their leaders’ international moves.

For Southeast Asia, PM Wong painted a hopeful picture. The region used to be a proxy battleground but isn’t looking to repeat that history. The ASEAN nations prefer to be multiple-aligned—engaged with all key players and making decisions based on their own interests rather than just following one side. With the global multilateral framework under strain and countries focused more on security and resilience, Singapore aims to pioneer new frameworks that balance national interests with shared rules and restraint.

This is where partnerships like the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Future of Investment and Trade Partnership (FIT-P) come in. These agreements aren’t just trade deals; they’re laying down new norms and “rules of the road” for the future. PM Wong reminded everyone that big things can start small—CPTPP itself began with just four countries, including Singapore. So, even a tiny city-state can make a significant impact on the global stage.

Wrapping up, PM Wong touched on what it means to be Singapore’s first prime minister born after its independence. While his generation gives him a slightly different viewpoint, his core values align with the ruling People’s Action Party’s ethos. His mission is crystal clear: to ensure Singapore’s survival and prosperity in a tricky and increasingly dangerous world, not just for today but for generations to come.

All in all, Singapore’s approach to inequality, economic resilience, and global engagement is a multifaceted puzzle, balancing pragmatism and idealism. It’s not just about numbers or policies but about creating a society where fairness is baked into the system—where even those at the lowest rungs have a solid foundation to build upon.