2004–2006: First term On 12 August 2004, Lee succeeded
Goh Chok Tong as prime minister and relinquished his chairmanship of the
Monetary Authority of Singapore to Goh.
Chief Justice Yong Pung How had Lee sworn in at
the Istana. As prime minister, Lee also became chairman of the
People's Association. In his maiden
National Day Rally speech on 22 August 2004, Lee announced several new initiatives, among them the policy of the "five-day work week" which removed the half-working day on Saturday. The plan took effect on 1 January 2005. In response to public feedback, maternity leave was also extended from eight to twelve weeks after consultation with employers and unions. To encourage the growth of the birthrate in Singapore, the Baby Bonus scheme was expanded to provide financial support to women who bear a fourth child. In February 2006, Lee announced a S$2.6 billion
Progress Package to distribute budget surpluses in the form of cash, top-ups to the
Central Provident Fund, rental and utilities rebates, and educational funds. The cash bonuses were distributed in early May 2006. As the announcement came three months before the
2006 Singaporean general election, it drew criticism that the ruling party was involved in "vote buying".
2006–2011: Second term In that election, the PAP won 82 of the 84 seats, including 37 walkovers. The
Ang Mo Kio GRC was contested for the first time in 15 years. The
Workers' Party (WP) claimed that they wanted to give Ang Mo Kio residents a chance to exercise their vote. Lee and his six-member GRC team won 66.14% of the votes against WP's team led by
Yaw Shin Leong. On 29 November 2007, Lee announced that he would relinquish his finance ministerial portfolio to
Tharman Shanmugaratnam on 1 December of that year. The handover was largely supported by business analysts, who felt that the importance of the position necessitated the dedication of a full-time minister for Singapore to entrench and promote its role as a financial hub. Regional economist Song Seng Wun said that with the growing sophistication of the economy and the financial markets' increasing volatility, Lee "may not have the full-time attention" due to his concurrent duties as prime minister.
Great Recession The economy grew for the first two years of Lee's tenure but plunged 12.5% during the
Great Recession. Singapore became the first Asian country to slip into a recession during the fourth quarter of 2008, with the financial, construction and manufacturing sectors being particularly affected by the
Great Recession; the downturn was attributed to the city's trade-dependent economy. To counteract the ailing economy, the government announced a S$2.8 billion stimulus fund in November 2008 for SMEs and local firms and further pledged a S$20.5 billion Resilience Package in January 2009. These measures were intended to keep the unemployment rate low, having risen to 2.6% in December 2008 and 3.3% by the end of Q2 2009. The Ministry of Trade and Industry announced an end to the recession in November 2009 and forecast a 3–5% growth for 2010.
Political reforms On 27 May 2009, Lee gave a speech in Parliament validating the roles of nonpartisan
Nominated members of parliament (NMP) and praising the NMP scheme as having improved "quality of debate" in the-PAP dominated parliament. He proposed to make the scheme permanent. In May 2010, Lee instituted electoral reforms to the
electoral system by reducing the number of
group representation constituencies (GRC) and increasing the number of
non-constituency members of parliament (NCMP) and
nominated members of parliament (NMP) to a maximum of nine each (inclusive of the number of elected opposition members). A
cooling-off day on the day before the election was instituted, where campaigning is prohibited except for party political broadcasts.
2011–2015: Third term In the
2011 Singapore general election, the PAP saw a 6.46% swing downwards to 60.14%, its lowest since independence. The result, while a landslide victory for the PAP by international standards, was seen as a rebuke to the ruling party as a result of massive immigration of low-skilled workers, high-profile rail transport breakdowns and the rising cost of living in the intervening years. During the campaigning period, Lee has sensed the discontent in public sentiment and made a public apology. While the PAP swept into power, winning 81 out of 87 seats, it lost
Aljunied GRC to the
Workers' Party (WP) led by
Low Thia Khiang, a historic win by an opposition party. Foreign Minister
George Yeo and Minister in the Prime Minister's Office
Lim Hwee Hua of the GRC were defeated. Following the election, Lee Kuan Yew and Goh Chok Tong resigned from the cabinet as part of a rejuvenation process in the government and to provide a clean slate for Lee. Lee was sworn in to a third term on 21 May 2011. On 1 June 2011, Lee was named chairman of the
Government of Singapore Investment Corporation, which manages more than S$100 billion in assets. He succeeded his father, Lee Kuan Yew, who remained as senior advisor to the fund until his death. In 2012, Lee indicated that he hoped not to be prime minister beyond the age of seventy, noting the need for someone to be in tune with the public.
2015–2020: Fourth term In the
2015 Singapore general election, Lee was re-elected in Ang Mo Kio GRC, with the PAP winning 83 of 89 seats in Parliament and 69.9% of the national vote. Lee's fourth term as prime minister was marked by events such as the
China–United States trade war, which adversely affected the nation's economy, being highly reliant on free markets and trade. Increased cyberattacks on Singapore-related services and websites led to the introduction of the Cybersecurity Act in 2018 and the establishment of the
Cyber Security Agency. The defeat of the
Barisan Nasional government in the
2018 Malaysian general election, which saw the return of
Mahathir Mohamad as prime minister, led to a chill in relations as the new
Pakatan Harapan government sought to overturn previously signed agreements on the
Kuala Lumpur-Singapore high-speed rail and
Johor Bahru-Singapore Rapid Transit System, and also disputed with Singapore on airspace and maritime rights. As part of the Lee government's effort to promote Singapore as an international center for arbitration, the city hosted the leaders of Mainland China and Taiwan for the
Ma–Xi meeting on 7 November 2015 and the
North Korea–United States summit on 12 June 2018. Singapore hosted the signing of the
Singapore Convention on Mediation on 7 August 2019, the first United Nations treaty named after it, and ratified it on 25 February 2020. On 20 July 2018, it was announced that sophisticated state-linked actors had
hacked Lee's health data along with that of 1.5 million other residents. The hack was intended to access Lee's data in particular. On 23 April 2019, Lee reshuffled his cabinet and promoted
Heng Swee Keat to
deputy prime minister, effective 1 May 2019. As part of the party's leadership succession, the move was widely interpreted as a prelude to Heng succeeding Lee as Singapore's fourth prime minister after the next general election. Lee noted that the cabinet reshuffle "was more extensive than usual", with younger, fourth-generation ministers being prioritised and now heading two-thirds of the ministries.
Planned GST hike to 9% Speaking at his party convention on 19 November 2017, Lee said that raising taxes was a necessity to fund investment in the social, healthcare, economic and infrastructure sectors. Annual expenses on preschools is expected to reach $1.7 billion by 2022, while the growth in the
ageing population is predicted to create a larger demand for affordable healthcare. Construction and refurbishment of new port and rail infrastructure, coupled with economic restructuring and training of workers, also necessitated tax increases. The taxes raised would be in the form of the
GST, which is expected to rise from 7% to 9% by 2025. Lee's government said that it was necessary to plan ahead for increasing annual recurrent expenses, with Heng Swee Keat saying that the "hike cannot be put off or scrapped" to pay for critical future needs, especially in the healthcare sector. In his Budget 2020 speech in February, Heng announced amendments to the GST Voucher Fund Act that would allow grants-in-aid to be given to parents or guardians for infants and children to mitigate their expenses. Second Minister for Finance
Lawrence Wong said the intent was to expand the range of people who qualify for the fund. With the amendment, the Act would allow for the funding of the $6 billion Assurance Package, which was intended to delay the impact of the impending hike for five years. The proposed hike met with broad disapproval from the opposition, with the Workers' Party and Progress Singapore Party calling for the GST to be retained at its present rate of 7% and others calling for the GST to be suspended entirely or for the exemption of essential goods from the tax.
POFMA implementation Lee's government introduced the
Protection from Online Falsehoods and Manipulation Act (POFMA) in 2018, colloquially known as the "fake news law", which was first mooted by Minister of Law and Home Affairs
K Shanmugam. Despite concerns by activists and opposition Members of Parliament that the Act would limit free speech under the guise of preventing disinformation, the bill passed by a 72–9 vote on 8 May 2019 after two days' debate.
Reporters Without Borders called the bill "terrible", "totalitarian", and a tool for censorship.
Reuters wrote that the act "ensnares" government critics. Social media firms like Facebook expressed concern that the law would grant "broad powers to the Singapore executive branch to compel us to remove content they deem to be false and pro-actively push a government notification to users". In the leadup to the 2020 general election, Lee's own brother
Lee Hsien Yang accused him of reneging on promises made in his 2004
National Day Rally speech about promising increased civil liberties and the freedom to express diverse views without interference. Lee and his ministers actively rebutted allegations by overseas media that POFMA is a tool for censorship, saying that "no information or view has been suppressed" as a result of the Act and that the government "has not restricted free debate". In an interview with
The Straits Times, Lee noted that fake news could disrupt society, and that the United States and Europe were struggling to manage the situation, especially in light of alleged
Russian interference in recent elections. He cited Germany as a country that
has enacted a similar law. In response to concerns that POFMA could curb free speech, Lee said that free speech exists within appropriate boundaries, with no society having absolute freedom of speech, and that defamatory or threatening speech should be banned to facilitate meaningful exchange of information and ideals.
Response to COVID-19 pandemic The first
COVID-19 case in Singapore was confirmed on 23 January 2020. Early cases were primarily imported until local transmission began to develop. By late March, clusters were detected at multiple dormitories for foreign workers, which soon contributed to an overwhelming number of new cases in the country. In response, Lee announced on 3 April 2020 that Singapore would enter a limited
lockdown with restrictions on movement. The policy, officially called "
circuit breaker" in governmental parlance, was intended to halt the disease's spread in the wider community. Workplaces were shut and all schools switched to home-based learning from 7 April to 1 June. Lee served as advisor to a multi-ministry level task force that had been set up in January, chaired by Minister for Education
Lawrence Wong and Minister for Health
Gan Kim Yong. Lee's government also contributed US$500,000 to support the
World Health Organization. With the pandemic pushing Singapore into a recession, the government unveiled four successive stimulus packages intended to keep the economy afloat, the
Unity,
Resilience,
Solidarity and
Fortitude budgets.
2020–2024: Fifth term Following the
2020 Singapore general election, Lee was re-elected in Ang Mo Kio GRC, with the PAP securing 61.23% of the national vote, beginning his fifth successive term as prime minister. The election was widely seen as a setback for the ruling party, with the opposition Workers' Party capturing a second GRC. While noting that voters had delivered a clear mandate, Lee wrote in a letter to the party ("rules of prudence") that with the official appointment of a leader of the opposition to reflect ground sentiments for alternative ideals, PAP MPs should expect more vigorous debates and probing questions in Parliament. He encouraged party MPs to express their views honestly on proposed policies regardless of their party affiliation, while instructing them to defend their convictions and engage the opposition constructively. As a recognition of the Workers' Party's performance in the election and acknowledgement of society's desire for alternative ideas and more robust debate, Lee appointed
Pritam Singh as the first official
Leader of the Opposition. Following the election, Lee announced a delay to his planned retirement in 2022 at his 70th birthday, given the demands of the COVID-19 pandemic. Lee attended the
Pacific Alliance summit on 11 December 2020 following three years of negotiations with the Latin American trade bloc on the Pacific Alliance-Singapore free trade agreement (PASFTA), with the PASFTA due to be signed in 2021. In 2022, his government strongly opposed
Russia's
invasion of Ukraine due to concerns of the territorial integrity of smaller nations around the world – the only country in Southeast Asia to openly condemn and sanction the Eurasian country. On 21 August 2022, Lee announced during his annual
National Day Rally as prime minister that his government intends to repeal the colonial-era
of the Penal Code (Singapore)|Section 377A of the Penal Code, an
unenforced law that criminalised sex between consenting male adults, effectively ending criminalisation both
de facto and
de jure. The announcement was celebrated by the
LGBT community in Singapore, while adding that this will be the "first step on a long road towards full equality". During the 2023 National Day Rally speech, Lee indicated a resumption of his succession plan, indicating
Lawrence Wong as his likely successor as prime minister. On 5 November 2023, Lee announced that he would hand over the role of prime minister role to
Lawrence Wong by November 2024, before the next General Election which is due by November 2025. The handover ultimately occurred on 15 May 2024. He remains the Secretary-General of the PAP after the handover until the next PAP
Central Executive Committee (CEC) meeting. ==Senior Minister (2024–present)==