Singapore’s Prime Minister Lee Hsien Loong to step down next month

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Good morning. Singapore’s Prime Minister Lee Hsien Loong will step down next month after nearly 20 years in power, handing over to his deputy in what will be only the third leadership transition in the Asian financial hub’s modern history.

Lawrence Wong, deputy prime minister and finance minister, will become Singapore’s leader on May 15 after being named heir apparent in 2022 as part of the ruling People’s Action party’s long-standing succession plan.

The departure of Lee, the son of Singapore’s founding leader Lee Kuan Yew, raises expectations for a consequential general election that could be held as soon as this year.

The PAP, which has governed Singapore since independence, earned one of the lowest vote shares in the 2020 election in the city-state’s history. The party has been seeking to recover public support and bolster Singapore’s status as a trade and financial hub amid an increasingly febrile geopolitical backdrop.

FT Singapore correspondent Mercedes Ruehl reports on the international and domestic challenges ahead for the city-state’s next prime minister.

And here’s what else I’m keeping tabs on today:

• Chinese economic data: China’s GDP probably grew 4.6 per cent in the first quarter from a year earlier, slowing from 5.2 per cent in the previous three months. Separate data released today is expected to show industrial output and retail sales slowing in March. (Reuters)

• China-Germany relations: German Chancellor Olaf Scholz is scheduled to meet Chinese Prime Minister Li Qiang and President Xi Jinping in Beijing.

• Reports: The IMF releases its World Economic Outlook along with Chapter 1 of its global financial stability report.

• Results: Bank of America, Johnson & Johnson, Morgan Stanley are among those reporting first-quarter earnings.

Five more top stories

1. The US and its European allies have stepped up efforts to dissuade Israel from striking back at Iran, as Israel’s military chief vowed to respond to Tehran’s unprecedented attack on the country’s territory. US secretary of state Antony Blinken and UK Prime Minister Rishi Sunak both said western countries were preparing sanctions on Tehran as they sought to prevent escalation into a full-blown Middle East war.

• Arab balancing act: Jordan is facing scrutiny at home for helping to repel Iranian drone and missile attack on Israel.

• Market reaction: Oil prices weakened and US stocks dropped sharply yesterday following Iran’s military strike on Israel, as markets assessed the risk of the conflict escalating into a war that could curb energy supplies from the region.

• Opinion: Why are energy and stock markets becoming less sensitive to geopolitical events, especially in the Middle East? Engine AI’s Robert Buckland explains.

2. Tesla is cutting more than 10 per cent of its workforce — about 14,000 jobs — amid a worldwide slowdown in sales of electric vehicles. The pressure is especially high in China, Tesla’s second-largest market by sales, where it has been hit by a brutal price war amid intensifying competition between local EV makers and foreign carmakers.

3. A “blowout” March retail sales report sparked a sell-off in US government debt and shook global currency markets yesterday. The stronger than expected retail sales were the latest sign that the world’s largest economy may be running too hot to justify cutting interest rates.

4. Manhattan prosecutors asked a judge to fine Donald Trump for his attacks on potential witnesses in the New York hush money case, as jury selection began in the first criminal trial against a former US president. Hundreds of potential jurors are set to be questioned about their political views and media habits by the judge overseeing the case, marking the beginning of what is expected to be a six-week trial.

• Trump Media: Donald Trump’s social media company scrambled to find a new auditor after its first pick resigned after just a few months on the job, according to people familiar with the matter.

5. BNP Paribas has won approval to set up a fully owned securities brokerage in China, the first regulatory green light of its type for months as the country’s economic momentum has slowed and financial activity has declined. BNP’s move marks a new attempt to crack the local market after a joint venture it set up with Changjiang Securities in 2003 fell apart four years later.

News in-depth

Ahead of India’s elections starting this week Narendra Modi has lapped up acclaim from the country’s business elite with many hoping for further easing of stifling investment restraints if, as expected, he wins another five years as prime minister. But in private many businesses still complain about India’s complex tax regulation, difficulties in acquiring land and other red tape. Observers believe the size of a Modi win when results are announced on June 4 will be key to easing India’s bottlenecks.

We’re also reading . . . 

• Baby boomer wealth: Should governments tax the great boomer wealth transfer? While the super-rich are a tempting target, critics say inheritance taxes are unpopular and ineffective.

• Gold is back: There are predictable reasons behind the precious metal’s recent surge, but there are deeper, longer-term messages in its rise, writes Rana Foroohar.

• LVMH: Succession planning at the world’s biggest luxury group is speeding up as French billionaire Bernard Arnault carefully lays the groundwork for his five children.

Chart of the day

Apple lost its lead in the global smartphone market to Samsung in the first quarter of the year as iPhone sales fell 10 per cent. But the strongest growth came from two lower-cost Chinese manufacturers, in the latest indication of Apple’s struggles in the world’s largest smartphone market.

Take a break from the news

Trillions of cicadas are set to emerge in the US Midwest after years of sleep for a once in 221-year occasion. FT columnist Patti Waldmeir spoke to bug lovers from British Columbia to Japan who are travelling to middle America for this once-in-a-lifetime natural phenomenon dubbed “Cicada-geddon”.

Additional contributions from Tee Zhuo and Nora Redmond