Prime Minister highlighted economic thinking, policy trade-offs and the Economist Service’s evolving role
Singapore Prime Minister and Minister for Finance Lawrence Wong attended the Economist Service’s Silver Jubilee Celebration on 30 September 2026, where he reflected on the service’s 25-year history and outlined the role of economic thinking in policymaking. Speaking to Chief Economist Yong Yik Wei, economists and distinguished guests, Mr Wong also discussed the importance of understanding prices, costs, incentives and policy trade-offs.
Mr Wong drew on his own experience as a former research economist in the Ministry of Trade and Industry (MTI), where he began work in 1997. He recalled colleagues from the former Research and Planning Division, including Prof Tan Kong Yam, the Government’s first chief economist, as well as Loh Khum Yean, Selina Ling and Chua Boon Loy.
The Economist Service was formally established in 2001 with five economists, including Mr Wong. He noted that economists had previously been part of a broader generalist Senior Officer scheme, but a dedicated professional pathway was subsequently developed as economists experienced higher turnover amid strong demand for their skills in the private sector.
Mr Wong said the service had since expanded to more than 100 economists working in over 20 government agencies and two international organisations. “I am very proud and happy to be here this evening – not only as Prime Minister, but as your alumnus,” he said.
Addressing the wider role of economics, Mr Wong said economic models should support analysis rather than be treated as tools for predicting every future development. “Economics is not a crystal ball. Models are simplifications of reality,” he said, adding that models help policymakers organise their thinking, understand relationships and test assumptions.
He highlighted three principles of economic thinking: prices matter, costs matter and incentives matter. He cited Singapore’s approach to water and electricity pricing, land allocation and the SkillsFuture Jobseeker Support Scheme as examples of how policymakers consider resource constraints, opportunity costs and behavioural responses.
Mr Wong also encouraged economists to use advanced tools, including high-frequency data, empirical techniques, machine learning and artificial intelligence, while recognising their limitations. “But never mistake better tools for better judgement,” he said.
He concluded by thanking economists who had served over the past 25 years and urged the Economist Service to continue applying rigorous analysis and professional judgement to policymaking in Singapore.
Source: PMO Singapore
