Singapore Must Stay Proactive in an Uncertain World, Says K. Shanmugam at NUS Dialogue
At a dialogue hosted by National University of Singapore Economics Society, K. Shanmugam emphasised that Singapore cannot afford to be passive in an increasingly volatile global environment. Speaking to about 300 students at the National University of Singapore, he described the country as a “small sampan” navigating a vast ocean, highlighting how external developments—from global conflicts to trade disruptions—can significantly impact its economy.
Mr Shanmugam noted that Singapore’s external economy is three times its GDP, making openness to trade, talent and investment essential for national security and continued growth. He stressed that policies such as free trade agreements, political stability and a strong rule of law help attract investments and create quality jobs for Singaporeans.
He also pointed to key challenges, including rising security spending in the national budget, the need to invest in areas like artificial intelligence, and demographic pressures from an ageing population. By 2030, the ratio of working adults to seniors is expected to decline sharply, increasing fiscal strain.
Addressing foreign manpower, he underscored the importance of remaining open while ensuring that economic growth benefits citizens. The session concluded with a lively exchange, with students appreciating his candid insights on policy trade-offs and long-term planning.
