Leong Mun Wai, a Non-Constituency Member of Parliament (NCMP) from the Progress Singapore Party (PSP), has become one of the most vocal critics of the government’s economic policies.
Leong’s platform primarily focuses on recalibrating Singapore’s labour market, reducing inequality, and advocating for transparency in the management of the nation’s reserves.
However, while his proposals have resonated with some, they have also sparked concerns about their long-term feasibility and the broader impact on Singapore’s economy.
1. Tightening Foreign Labor Policies: A Double-Edged Sword?
Leong has strongly advocated for stricter foreign manpower policies, proposing measures such as raising the minimum qualifying salary for Employment Pass (EP) holders and implementing a 10% nationality cap at workplaces.
He argues that these reforms are necessary to protect the wages and job opportunities of Singaporeans, especially the middle class.
However, critics—including government ministers—have warned that such measures could harm Singapore’s economic competitiveness by making it more difficult for businesses to access the talent they need to grow.
Leong’s approach also faces accusations of xenophobia, though he has denied that his policies are anti-foreigner.
Still, there is skepticism about whether his proposed caps and restrictions might inadvertently deepen racial and social fault lines in Singapore.
Furthermore, his policies could lead to businesses relocating elsewhere if they perceive the labor market as too restrictive—a point raised by Finance Minister Lawrence Wong during parliamentary debates.
2. Reducing GST: Is It Financially Viable?
One of Leong’s headline proposals is to lower the Goods and Services Tax (GST) from 9% back to 7%, arguing that the tax hike disproportionately affects middle- and lower-income Singaporeans.
While this move may provide short-term relief for consumers, critics argue that it ignores the broader fiscal challenges Singapore faces.
The government has explained that the GST increase is crucial for funding future healthcare and social programs, particularly as Singapore’s population ages.
Leong’s focus on reducing GST highlights a common theme in his policy proposals: short-term relief without clearly addressing long-term financial sustainability.
By opposing the tax increase without providing comprehensive alternative revenue streams, Leong risks undermining essential services that rely on government funding.
3. Calling for Transparency in the Use of Reserves
Leong has repeatedly called for greater transparency in the management of Singapore’s national reserves.
He has argued that the government could allocate more of the reserves to address pressing socio-economic issues, such as housing and healthcare, without jeopardising future financial stability. This stance taps into public curiosity about the size of Singapore’s reserves, which are kept confidential by the government.
However, his call to spend more of the reserves is not without risks.
The reserves serve as a critical buffer for Singapore against economic crises, and spending them down prematurely could leave the country vulnerable in future downturns.
Moreover, the secrecy around the reserves is a long-standing policy aimed at protecting Singapore’s financial security from speculation. By challenging this, Leong may be advocating for a populist solution without fully acknowledging the long-term implications.
4. Housing Reform: Addressing Affordability, But Is It Enough?
Leong has also made affordable housing a key priority, calling for reforms to the Selective En Bloc Redevelopment Scheme (SERS) and suggesting ways to make public housing more accessible.
His proposals focus on addressing the needs of younger families and lower-income Singaporeans, echoing common concerns about rising home prices.
However, housing reform is an area where Leong’s approach raises questions about depth and execution.
His proposals, while appealing, lack detailed frameworks on how these reforms would be funded or how they would address the broader supply-and-demand dynamics in Singapore’s tightly regulated housing market.
Critics argue that without structural changes to housing policy, merely lowering costs could exacerbate demand without resolving underlying issues.
Conclusion
Leong Mun Wai’s economic agenda presents a populist alternative to the government’s policies, advocating for immediate relief measures such as reducing GST and tightening foreign labor policies.
While his platform resonates with segments of the electorate frustrated with rising costs and job insecurity, it faces significant challenges in terms of long-term sustainability and economic competitiveness.
His proposals, while bold, often lack comprehensive details on how they would be implemented without negatively impacting Singapore’s fiscal health or its status as a global business hub.
Leong’s leadership in the PSP positions the party as a vocal opposition, but whether his policies can withstand critical scrutiny remains an open question.
