The year 2010 saw the passing away of Dr Goh Keng Swee, one of the architects of modern Singapore, and Madam Kwa Geok Choo, wife of Minister Mentor Lee Kuan Yew. Their demise brought out poignant moments of national reflection as Singaporeans took pause from the preoccupation with daily living and economic challenges and reminded themselves of the roles Dr Goh and Mrs Lee played in the history of the country. Singapore had been transformed during the lifetime of Dr Goh and Mrs Lee and the progress had left the city state in a much better shape than before to tackle the economic, political, and social issues confronting it.

Nevertheless, the government had to muster all its political capacity and strategic resources to cope with the devastating financial crisis triggered by the collapse of giant Wall Street financial institutions in the United States in the latter part of 2008. In the early months of 2009, the Singapore economy registered its worst performance since independence, plunging deep into sub-zero territory. The financial crisis had threatened to disrupt the global linkages which Singapore had painstakingly built up over the decades through policies such as the attraction of foreign direct investment (FDI), partnerships with multinational companies (MNCs), and utilization of human capital for accelerated and sustained economic growth.

The government demonstrated its nimbleness and depth of expertise in crisis management. Public engagement and creative measures were initiated to deal with economic retrenchment. There were cost reductions for businesses, fiscal stimulus for the economy, and job preservation for the workers through training and re-skilling programmes. The availability of financial resources for the authorities to make the appropriate response was a critical advantage. The government was not cash-strapped like others in the international system. An Economic Strategies Committee (ESC) was established in May 2009 to help develop long-term policy measures for sustained economic growth in the wake of the changed global environment. Many observers were impressed by the quick actions and adaptability of the government in responding to the recession.