Singapore’s State-Led Capitalism

At the heart of Singapore’s political economy is the PAP government, which controls the levers of control. The accumulation of power occurs through a recurring pattern of state collectivisation and economic liberalisation, while the nation’s wealth expands through state investment vehicles adapting to shifts in geopolitics and trends in international trade and finance.

Overshadowing the bicameral capitalistic system is the corridor of power, where ideas are developed to drive growth and prosperity in order to maintain an iron grip on the populace. As bureaucrats and ministers coordinate to rebalance economic reforms with state control by binding state collectivisation and financialisation, citizens are caught in the paradox of economic liberalisation and authoritarianism.

This book examines how Singaporean leaders embrace change—by meticulously balancing control and freedom, prosperity and dominance—to stay in power.

Lee Khuay Khiang is a political economist who researches state power, international trade, international finance, and geopolitics with a focus on Japanese, Korean, and Chinese business networks and public policies in Southeast Asia. He is a lecturer at the National University of Singapore, the Singapore University of Social Sciences, and the Singapore Institute of Management-University of London (International programme), where he teaches macroeconomics, microeconomics, international trade, political economy of Asia, international political economy, and corporate strategy.