Singapore's Year In Review 2025: Job Woes, Transport Challenges & PM Wong's First General Election

Singapore Year in Review 2025: A Comprehensive Overview

Key Concepts:

• Liberation Day Tariffs: New tariffs imposed by President Trump impacting global trade and Singapore’s economy.
• SG60: Singapore’s 60th anniversary of independence, marked by celebrations and initiatives.
• Skills Mismatch: Discrepancy between the skills possessed by job seekers and those demanded by employers, particularly in the tech sector.
• Vaping/K-pods: Increasing prevalence of e-vaporizers, particularly among youth, and the authorities’ crackdown.
• COE Premiums: Certificates of Entitlement (COE) prices, reflecting the cost of owning a vehicle in Singapore, reaching record highs.
• Rail Reliability: Ongoing efforts to improve the reliability of Singapore’s rail network and address disruptions.
• Sinkholes: Unexpected ground collapses, exemplified by an incident involving a car, raising concerns about infrastructure safety.
• Autonomous Vehicles (AVs): Deployment and testing of driverless vehicles in Singapore, particularly in public transport.
• General Election (GE2025): The parliamentary elections and its impact on Singapore’s political landscape.

1. Economic Landscape & Global Challenges

2025 was characterized by significant global economic uncertainty. President Trump’s “Liberation Day” tariffs, reaching 10% for Singapore, disrupted global trade norms and compelled businesses to restructure supply chains. Despite these headwinds, Singapore’s GDP growth in the first three quarters of the year exceeded expectations. Firms like a life sciences company adapted by shifting production between the US and China to mitigate tariff impacts. Electrical parts distributors experienced a 70% sales jump due to anticipatory buying before price hikes, though absorbing tariff costs led to a 1-1.5% increase in operating costs. The Singapore Business Federation launched a Gen AI tool to simplify trade rules and is assembling a team of trade advisors, focusing on workforce competency and diversification into new markets. SMBC Asia-Pacific’s Jeff director noted Singapore’s success in producing in-demand goods like technological exports and pharmaceuticals, but warned of risks from potential sectoral tariffs and slowdowns in the US and China. The Monetary Authority of Singapore (MAS) may shift its exchange rate policy to maintain export competitiveness. A task force chaired by Deputy Prime Minister Gimyong was formed to protect jobs and adapt to the changing global trade environment.

2. Employment & Workforce Challenges

A key domestic concern was the rising unemployment rate among those under 30, increasing from 5.4% in March to 5.7% in June. This was attributed to increased competition from fresh graduates and a “catch-22” situation where jobs require experience that young people lack. A skills mismatch was also identified, with companies needing employees proficient in AI and new technologies, skills many graduates hadn’t acquired during their education. The government responded with career advisory tools and funded traineeship programs, but concerns were raised about converting these traineeships into full-time positions and providing sufficient incentives to companies. Experts warned that a tougher economic climate in 2026 could exacerbate these challenges. The changing business model also saw firms increasingly hiring contract staff, potentially putting mid-level roles at risk.

3. Public Health & Vaping Crisis

Authorities intensified their crackdown on vaping, particularly the use of K-pods and e-vaporizers, some laced with drugs. Distributors were described as constantly innovating to circumvent regulations, creating a “cat and mouse game.” Dr. Pua highlighted the difficulty of research due to the rapidly evolving nature of vaping products and the varying harms associated with different devices. Measures included amnesty bins for disposal, sting operations, and stricter laws. Schools like St. Andrew School implemented programs focusing on risk awareness, counseling, and peer support. Institutes of higher learning shifted their focus towards developing healthier coping mechanisms and providing mental health support. A 24/7 online support portal for students is slated to launch in 2026.

4. Transport Infrastructure & Disruptions

Singapore faced ongoing challenges with its public transport system, particularly rail reliability. Despite a reduction in total disruption distance to 1.6 million train kilometers (the lowest since 2020), the rate remained above the target. Major incidents included a trackpoint fault on the East-West line in August and a voltage transformer failure affecting the North-East line and Sengkang LRT. A new rail reliability task force was established to review maintenance processes and prevent future failures. Planned shutdowns for renewal and maintenance were increased, acknowledging the need for more extensive work as the system ages. A sinkhole incident on Tanjong Katung Road, caused by a failure of a quaison ring during sewer construction, raised concerns about infrastructure safety and led to a safety timeout for similar projects. The deployment of autonomous vehicles (AVs) continued, with trials in Ponggol and plans for driverless buses in Marina Bay and One-North.

5. COE Prices & Vehicle Ownership

COE (Certificate of Entitlement) premiums reached record highs, peaking around $130,000-$140,000 in October, driven by strong demand for electric vehicles (EVs) and Chinese EV brands. Chinese EVs accounted for over 60% of the EV market share. While prices eased slightly in November, the situation highlighted the cost of vehicle ownership in Singapore.

6. Political Landscape & GE2025

The General Election (GE2025) saw the People’s Action Party (PAP) secure 65.57% of the national vote, a gain from the previous election. The Workers’ Party (WP) retained its position as the key opposition party, holding onto its existing seats and gaining two Non-Constituency MP positions. The election saw a record number of female MPs (32) and a significant influx of first-term MPs. The PAP’s redeployment of Deputy Prime Minister Gimyong to Ponggol GRC was a strategic move to address a tough contest. Newly elected MPs like Jasmine Laauo and Dr. Harun are navigating the demands of their roles, focusing on community engagement, policy development, and workforce upskilling.

7. SG60 Celebrations & National Identity

Singapore’s 60th anniversary of independence (SG60) was marked by celebrations, vouchers, and national initiatives. Sociologists emphasized the importance of reinforcing core values like multiculturalism and social cohesion as Singapore moves forward. There was a focus on empowering seniors to play a greater role in community support.

Notable Quotes:

• “They are like in a catch 22 situation. In other words, uh the jobs will require experience and they can't get experience until they get a job. So, they are literally stuck in this spiral.” – Comment on the challenges faced by young job seekers.
• “I think that's the scary thing is that as long as they able to skate one step ahead of all of us, we will always be playing this cat and mouse game.” – Dr. Pua on the ongoing battle against vaping distributors.
• “This should not be just stop gap measure. We we need many of these training ships to eventually convert into full-time position.” – Comment on the need for sustainable traineeship programs.
• “As our rail system ages, it will take more time and more resources to maintain the same level of reliability.” – Acting Transport Minister Jeffrey Se on the need for increased maintenance efforts.
• “Being Singaporean means that we respect and embrace persons of all ethnic backgrounds and we respect their religious beliefs.” – Sociologist on the importance of core values.

Conclusion:

2025 was a year of navigating complex challenges for Singapore, ranging from global economic uncertainties and workforce issues to public health concerns and infrastructure disruptions. While the economy demonstrated resilience, the year highlighted the need for proactive measures to address skills mismatches, combat emerging threats like vaping, and ensure the reliability of essential services. The GE2025 results signaled a continued mandate for the PAP while acknowledging the importance of a strong opposition. As Singapore looks ahead, maintaining social cohesion, investing in its workforce, and adapting to a rapidly changing world will be crucial for sustained progress.