A year ago, Singapore welcomed 2021 hoping the worst of the pandemic was over, with Singapore Prime Minister Lee Hsien Loong hailing "the light at the end of the tunnel” as the city-state launched its vaccination drive.
Since then, new virus variants and Singapore’s worst COVID-19 surge have tempered expectations of a quick reopening, even as the island nation boasts one of the world’s highest vaccination rates. Now, on the cusp of 2022, the global spread of the omicron variant has rekindled concern over setbacks and a reimposition of social curbs — though so far the government is staying the course on reopening.
New challenges like the persistent rise of inflation and a slowing economic recovery will keep eyes focused on how Singapore policy makers react. Investors are also watching how economic policies addressing long-term challenges like climate change and income inequality impact the island’s business-friendly reputation.