Malaysia will be main test for Singapore’s leaders

Subject

Singapore's political challenges.

Significance

The ruling People’s Action Party (PAP) has begun what will be a lengthy leadership handover from Prime Minister Lee Hsien Loong to Heng Swee Keat, currently finance minister and the PAP’s first assistant secretary-general. Speculation is mounting that Lee could bring forward the general election due by January 2021. In recent months, Singapore’s relations with Malaysia have soured.

Impacts

• Turbulent relations with Malaysia will have no impact on the PAP’s leadership handover.
• Malaysia-Singapore ministerial ties will mitigate the effects of Malaysian Prime Minister Mahathir Mohamad’s erratic foreign policy.
• Judicial verdicts against legislators from the opposition Workers’ Party (WP) could worsen the WP’s already weak position in parliament.
• A prolonged US-China trade war would lead to a further decline in exports to China from Singapore.