SINGAPORE — Singapore’s economy could grow at a slower pace in 2019 amid global uncertainties, but the Republic enters its bicentennial year with “renewed vigour and purpose”, as a strong team of younger political leaders is gradually taking over the reins of government.

This was the crux of Prime Minister Lee Hsien Loong’s New Year message to Singaporeans on Monday (Dec 31), where he outlined the highlights of the past year and the challenges ahead for the Republic, which will commemorate the 200th year of its modern founding in 2019. 

Singapore’s economy exceeded expectations to grow 3.3 per cent in 2018, he noted. That was close to the 3.6 per cent growth in 2017.

In the year ahead, he added, it is expected to grow between 1.5 and 3.5 per cent.

But he warned: “There are major uncertainties in the global economy, with growing trade conflicts, nervous financial markets and signs of slowing growth.”

This comes as many societies around the world are under stress, he noted.

“People are angry and frustrated that wages are stagnating, lives are not improving, and political systems are malfunctioning,” Mr Lee said.

This stress has manifested itself in events such as the recent “yellow vest” protests in France against the rising cost of living, and the drastic loss of support for moderate political leaders in the United States and Germany, he noted.

As a highly open society, Singapore is exposed to similar pressures, he added.

“But we have coped better than most other countries, because we have worked closely together to improve the lives of all Singaporeans.

“The economy has grown, unemployment remains low, and incomes have risen across the board.”

It was also a year in which Singapore was placed in the international spotlight, as it chaired the Association of South-east Asian Nations (Asean) and organised the historic meeting between United States President Donald Trump and North Korea’s leader Kim Jong Un.

Still, the government’s focus remains on addressing Singaporeans’ concerns and working with them “to create a better tomorrow for all”, said Mr Lee. These include in areas such as healthcare, education, housing and public transport.

For example, it will build more polyclinics and hospitals and improve schemes such as the Community Health Assist Scheme (Chas) and CareShield Life to support those with chronic conditions and disabilities.

It will also continue to push for a reduced focus on examinations and grades in the education system, and press on with housing improvement programmes.

Mr Lee added that the government’s hard work on the public transport system is also paying off, with bus and train services now less crowded and more reliable.

CAPABLE LEADERS TO STEER THE COUNTRY

To realise bold plans in these key areas, Mr Lee stressed: “Singapore needs steady and capable leaders, who can rally Singaporeans to progress and prosper”.

It was good, then, that Singapore made “significant headway” in leadership succession this past year, with the fourth-generation of political leaders choosing Finance Minister Heng Swee Keat as their leader and supporting his choice of Trade and Industry Minister Chan Chun Sing as his deputy.

This puts Mr Heng on track to be Mr Lee’s successor as Prime Minister, and Mr Chan as Deputy Prime Minister.

“This is a good outcome. It gives Singaporeans and foreigners alike confidence that Singapore will be in good hands over the long term, beyond the working lives of me and my senior colleagues,” Mr Lee said.

“The older Ministers and I will do our utmost to help the new team take over the reins from us, and to succeed in their responsibility to lead Singapore and secure its future.”

However, Mr Lee noted that Singaporeans too have a “vital part” to play in the leadership succession and urged them to work with the younger political leaders.

Singapore’s model of governance is “quite exceptional and has served us well”, said Mr Lee, adding that it has allowed Singapore to make the most of what it has and stand out in a highly competitive world.

As such, he noted that Singapore’s politics “cannot afford to be riven and destabilised by the rivalries, contestations and factions so often seen elsewhere”.

Singaporeans must “stay united, and work together resolutely to strengthen and renew our social compact”, he added.

Ending his message on an upbeat note, Mr Lee said that with long-term policies in place and a strong team in charge, the country can be confident of its future.

“Despite the uncertain external environment and economic outlook, we are entering 2019 with renewed vigour and purpose,” he added. “We are ready to tackle the challenges ahead and make further progress in building a secure, harmonious, and prosperous nation.”