Singapore’s new prime minister, Lawrence Wong, will be taking on a strong economy and robust local assets when he takes office next month. During Lee Hsien Loong’s time in office, the Singapore dollar has appreciated significantly against major trading partner currencies, outperforming the US dollar as well. Additionally, Singapore government bonds have had higher returns compared to global peers.

Under Lee’s leadership, the economy has grown significantly, with total assets under management increasing substantially. Singapore has become a prominent financial hub and an attractive location for global talent. The local stock market has benefited from a strong currency, outperforming regional indices since Lee took office.

However, despite these positive indicators, many locally listed companies are trading below their book value, indicating a lack of high-growth firms in the mature economy. There is potential for Wong to take steps to support local equities, such as increasing investments from sovereign wealth funds and providing incentives for companies to list on the Singapore market.