IN 2025, Singapore delivered stronger-than-expected growth of 4.8 per cent, said Prime Minister Lawrence Wong in his New Year Message. Unemployment and inflation remained low, and real incomes have risen across the board.
Going forward, the PAP Government is reinforcing social safety nets for Singaporeans of all ages and abilities. It will keep securing clean energy to power Singapore, and will keep bringing in overseas investments and opportunities for Singaporeans.
TWENTY-TWENTY-five was a significant year for Singapore. We commemorated 60 years of nation building – an extraordinary milestone for a country that few had expected to survive, much less succeed. Singaporeans also entrusted a new government with a clear mandate to lead our nation in a changed world.
Externally, 2025 also marked a major turning point – a year that signalled the end of the global order that we had long operated in. Longstanding assumptions about open markets and win-win cooperation are being questioned and sometimes rejected. Countries are reconfiguring trade networks and supply chains in the name of resilience and security.
Geopolitical tensions have deepened. The war in Ukraine shows no signs of ending. The situation in Gaza remains precarious. In many parts of the world, tensions rooted in identity and belief continue to spill over into violence. Closer to home, Thailand and Cambodia have clashed over disputed border areas. While a ceasefire has since been reached, sustained restraint and dialogue will be essential to secure a durable peace.
Taken together, these developments have made the world less predictable and secure. We must remain vigilant against security threats, even as risks in our region and beyond continue to evolve.
Yet, amidst these external troubles, Singapore delivered stronger-than-expected growth of 4.8%. Global economic growth turned out to be more resilient than anticipated. The US tariffs were imposed later, and at lower levels, than many had feared. We also benefitted from an AI-related surge in demand for semiconductors and electronics. As a result, unemployment and inflation remained low, and real incomes have risen across the board.
This is a better outcome than we expected, given the circumstances. But we must be realistic: sustaining this pace of growth will be challenging. Fractured trade and geopolitical tensions are not transient problems, but permanent features of a fragmented world. We will face more obstacles to growth, and inflationary pressures may intensify. As a small and open economy, Singapore cannot fully shield ourselves from these headwinds.
To remain competitive, we cannot simply do more of the same. We must rethink, reset, and refresh our economic strategies. DPM Gan Kim Yong is leading a team of younger officeholders in this important effort. Their first set of proposals will be released soon, and the Government will respond at Budget 2026.
There will be more challenges and unknowns on the road ahead, but we can press on confidently – because we are dealing with them from a position of strength.
Singapore’s international standing is high, and our brand is trusted and respected. Amidst global uncertainties, many companies are seeking stability and turning to Singapore as a trusted base. Microsoft, for example, has set up an AI research lab here, their first in Southeast Asia, to drive cutting-edge AI research and develop solutions for industries. And it is not only the major players. A growing number of promising start-ups and growth companies from around the world are making Singapore their launchpad into the region. We have a window of opportunity to attract and anchor more dynamic enterprises.
Across my overseas visits, I have seen how our reputation opens doors and creates opportunities for our businesses and people. From Africa to Latin America, our firms are carving out new niches and making their mark. We will continue to support our companies, as they expand, scale up, and seize overseas opportunities. I have also met many enterprising Singaporeans who are striking out beyond our shores. Their resilience, adaptability, and readiness to venture beyond their comfort zones are truly inspiring.
Even as we look outward for new opportunities, our focus remains firmly on improving lives here at home. Economic success is a means to an end. What matters is that every Singaporean benefits from the nation’s progress. Alongside the Labour Movement and employers, we will help every worker grow and progress in their careers, so they can see tangible gains for themselves and their families. Beyond jobs, we will continue improving the basics in life – education, housing, and healthcare – so every Singaporean has security and peace of mind.
At the same time, we will reinforce our social safety nets to ensure that no one is left behind. We will uplift lower-income families – not only through financial assistance, but by empowering them to build a better future for themselves and their children. We will also enhance support for persons with disabilities and their caregivers – improving access to services, expanding opportunities for meaningful work and independent living, and giving families greater confidence to plan for the future.
These are pressing issues we must tackle. But we must also confront the longer-term challenges that will shape tomorrow.
First, like many advanced economies, our population is rapidly ageing, and birth rates are declining. We will continue to support young Singaporeans who want to marry, settle down and have children, by addressing their concerns – from housing to childcare and education. We will create an environment where families can grow and thrive, and society remains vibrant and forward-looking. This also means staying open, and welcoming those who embrace our way of life as our fellow citizens. Together, these efforts will help strengthen our shared values and identity, and maintain a strong and cohesive Singaporean core.
Second, we must prepare ourselves for longer lifespans, which will have far-reaching implications for healthcare, work, and retirement. We are studying these issues holistically. A Tripartite Workgroup on Senior Employment is reviewing strategies to enable seniors to work meaningfully in age-friendly workplaces. This goes hand-in-hand with our efforts to strengthen retirement adequacy, especially for lower- and middle-income workers who need more support.
Third, we will secure a reliable supply of clean energy to power the energy-intensive industries of the future, including Artificial Intelligence. One strategy is to import green energy, and work towards the longer-term goal of an ASEAN Power Grid. In parallel, we are pursuing our own clean solutions, including possible options like low-carbon hydrogen and nuclear energy. In our early years of nation-building, water was an existential threat. Through hard work and ingenuity, we created NEWater. Now, clean energy is our new frontier and next major challenge. Just as we did with water, we must turn this vulnerability into a source of strength.
The challenges ahead are complex. They will require us to be bold, creative, and open to new solutions. We will have many discussions and robust debates. But we must never allow our differences to divide us. Instead, we must harness our diverse perspectives to chart a new path forward – as one united people.
We ended 2025 with a reminder of how the Singapore Story began. The Albatross File exhibition – featuring newly declassified documents and oral history accounts – reveals just how close we came to a very different fate. It shows the agonising choices that confronted our founding leaders and how often Singapore’s future hung by a thread. Nothing about our survival was inevitable. Nothing about our success was assured.
That we emerged from those turbulent beginnings to become a stable, prosperous and united nation is nothing short of a miracle. A miracle not based on chance, but shaped by the courage and grit of all Singaporeans.
Today we live in a world that feels darker and more dangerous than before. Yet history reminds us that Singapore has always found strength in adversity. We endured and progressed because we refused to be defeated – because we faced challenges together, with courage and quiet determination. Sustaining the Singapore miracle requires the same spirit from all of us today.
We saw this resolve in our Lions, who fought hard and qualified for the Asian Cup for the first time in our history. We saw it too at the SEA Games, where Team Singapore athletes, including many young debutants, delivered outstanding performances, broke records and reached new milestones. These achievements remind us that when we stay focussed and keep pushing on, we can overcome setbacks, rise above adversity and face uncertainty with confidence.
Let us carry this mindset into the new year – resilient and united, determined and hopeful – as we write the next chapter of our Singapore Story together.
I wish all Singaporeans a very Happy New Year.
