^{Source: The Star}

Inflation Trends: Stability Amid Global Turbulence

In March 2025, Singapore's headline inflation rate remained steady at 0.9% year-on-year, matching February's figure and marking the lowest level in over four years. Core inflation, which excludes private transport and accommodation costs, eased to 0.5% from 0.6% in February, reflecting broad-based moderation across various sectors, except for food prices. ​

The Monetary Authority of Singapore (MAS) has adjusted its core inflation forecast for 2025 to an average of 0.5%–1.5%, down from the previous estimate of 1.0%–2.0%. ​

Economic Outlook: Growth Forecasts Downgraded

Singapore's economy grew by 3.8% in the first quarter of 2025, falling short of the 4.3% growth anticipated by economists and down from the 5.0% expansion in the last quarter of 2024. ​

In response to global economic headwinds, including U.S.–China trade tensions and supply chain disruptions, the Ministry of Trade and Industry (MTI) has downgraded the nation's GDP growth forecast for 2025 to a range of 0%–2%, from the earlier projection of 1%–3%. ​

Monetary Policy: Easing Measures Implemented

On April 14, 2025, the MAS eased its monetary policy for the second time this year, adjusting the slope of the Singapore dollar's nominal effective exchange rate (S$NEER) policy band to accommodate the slowing economy. This move aims to support economic growth amid declining external demand and global financial tightening.

Political Landscape: Elections Amid Economic Concerns

Singapore is set to hold its general election on May 3, 2025. The ruling People's Action Party (PAP), led by Prime Minister Lawrence Wong, is introducing 32 new candidates, marking the largest renewal of the party's lineup since independence. Key issues dominating the election discourse include rising living costs and economic resilience. ​‍

Prime Minister Wong has acknowledged the public's concerns over the cost of living, attributing the challenges to global factors such as geopolitical conflicts and trade disruptions. He emphasized the government's commitment to addressing these issues through prudent economic policies.​

Navigating Uncertain Waters

As Singapore navigates a complex economic landscape marked by subdued inflation, downgraded growth forecasts, and global uncertainties, the upcoming general election presents an opportunity for the nation to reaffirm its economic strategies and policy directions. The government's responsive measures, including monetary easing and proactive fiscal policies, aim to bolster economic resilience and maintain stability in the face of external challenges.​

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