Following is a summary of key risks to watch:
POLITICAL CHANGE
Prime Minister Lee has removed unpopular ministers, tightened immigration and increased the supply of government-built apartments to help stem the rise in property prices following May 7 parliamentary elections where the opposition made historic gains.
Still, Tony Tan's narrow win over former PAP parliamentarian Tan Cheng Bock in the presidential election on Aug. 27 shows many voters are unhappy with the PAP, though they are voting for moderate rather than radical opponents.
What to watch: The PAP, co-founded by Lee's father Lee Kuan Yew, has ruled Singapore since independence in 1965 and markets will be watching how the party competes for the support of voters in a more open political environment. -- Lee must address soaring property prices which have upset many young Singaporeans who feel they can no longer afford homes, unlike their parents' generation. Full story
