(Bloomberg) -- Singapore’s Prime Minister Lawrence Wong said the country’s economy performed better than expected in 2024, building a strong foundation for the city state to confront a more complex international environment next year.
Gross domestic product expanded 4%, Wong said in his New Year’s message. That beat the trade ministry’s November forecast for an expansion of around 3.5%. The strong economy will allow real incomes to rise further to outpace inflation, Wong added.
In his first New Year message since becoming Singapore’s fourth prime minister since independence, Wong pledged to help the city navigate rising global tensions and to keep tackling livelihood issues at home.
“We will provide more targeted help to those who find it harder to cope, especially older people and lower-income groups,” Wong said, according to a copy of the speech released by the government. “No one will be left behind, because we are all in this together.”
The 52-year-old Wong, who succeeded Lee Hsien Loong as premier in May, said Singapore has overcome tough challenges in recent years, with median income rising by 2.2% per annum above inflation over the past decade.
He placed that performance within a global context of increased strife, including the war in Ukraine and violence in the Middle East, and, in many countries, “a deep sense of angst and anxiety” about the future.
“Singapore is not immune from these global mood shifts and pressures,” Wong said. Still, “we remain a beacon of safety, security and stability in a troubled world.”
While the city’s financial sector continues to perform strongly, many of its roughly six million people are still feeling the pinch from day-to-day expenses. Wong said the 2025 budget, to be delivered Feb. 18, would create “good jobs” while addressing cost-of-living issues and sharpening Singapore’s competitiveness.
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Wong recently became chief of the ruling People’s Action Party, which has held power continuously since independence in 1965. The republic’s 60th anniversary next year will be both an occasion to celebrate and to envision how to shape the future, he said.
While the party is almost certain to retain power in elections that must be held by November 2025, its share of the popular vote declined at the last polls in 2020, partly because of concerns about growing inequality. And 2024 has seen setbacks, including the jailing of a former minister.
The government “did not get everything right in the first instance. But as always, we were upfront with Singaporeans when we fell short and could have done better,” he said. “We learnt from our setbacks, pursued improvements, and continued to give our best to serve all Singaporeans.”
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