Dear readers, the political landscape in Singapore has taken a significant turn with the dissolution of Parliament yesterday, setting the stage for the upcoming General Election on 3 May 2025. This pivotal moment invites us to reflect not only on the political dynamics but also on the economic context in which these elections are taking place.
The last Singapore General Election occurred on 10 July 2020, amid the unprecedented challenges posed by the Covid-19 pandemic. The atmosphere during that election was notably different, characterized by online rallies and virtual engagements due to safety measures and social distancing protocols. It was a time of uncertainty, and the financial markets mirrored this sentiment. On 9 July 2020, just a day before the elections, the Straits Times Index (STI) had plummeted to a low of 2,652.65. Investors were wary, reflecting the economic turmoil wrought by the global health crisis.
Fast forward to the close of trading just yesterday on 14 April 2025, and we see a remarkable turnaround in the STI, which has now closed at 3,624.72—an impressive increase of approximately 36.6%. This rise not only signifies recovery but also underscores the resilience of the Singaporean economy as it navigated through the post-pandemic landscape.
The performance of individual stocks within the STI has also been noteworthy. For instance, DBS Group Holdings, one of Singapore’s largest banks, was trading at $19.39 on 9 July 2020. Fast forward to yesterday, and DBS shares are now valued at $39.96—essentially doubling in price over the span of nearly five years. This significant appreciation in stock price can be attributed to several factors, including the bank’s robust financial performance, strategic digital transformation initiatives, and a rebound in consumer and business confidence as the economy continues to recover from the impacts of Covid-19.
In the lead-up to the election, the political campaigns will undoubtedly be shaped by both the successes and challenges of the past few years. The Straits Times Index will serve as a barometer not just of economic health but also of public sentiment as candidates seek to connect with voters on both economic and social fronts.