Singapore's Prime Minister Just Explained Why Price Caps Backfire. America Should Listen
Asked on Oct. 8 how Singapore copes with its high cost of living, Prime Minister Lawrence Wong said high prices are "legitimate price signals" and that capping them invites shortages. In our view, his case for targeted help and balanced budgets is a lesson for Washington, even where we part ways with him on tariffs.
By Clara Hughes
ALTAS WORLD NEWS OPINION | By Clara Hughes, Chief Opinion Editor | October 11, 2026 | 6-min read Every politician who has faced angry voters at the checkout line has felt the pull of the easy answer: cap the price. On Thursday, the prime minister of Singapore, a city-state he readily admits is not a cheap place to live, explained why he will not do it. Asked by Steve Forbes how Singapore copes with a high cost of living, Prime Minister Lawrence Wong said that if prices are high, "we recognise that these are legitimate price signals. We should not artificially have the Government intervene to cap prices because that may lead to a lot of unintended consequences" [1]. In our view, that is one of the clearest defenses of market economics any head of government has offered this year, and American policymakers should listen. Key Takeaways Wong spoke on Oct. 8 in a dialogue with Steve Forbes at the 24th Forbes Global CEO Conference in Singapore [1][2]. Instead of price caps, he said, Singapore gives targeted help, including utility rebates and cash support for low- and middle-income families [1]. In a Sept. 30 speech, Wong warned that price controls such as rent controls and food price caps lead to shortages, CNA reports [3]. Here is why this matters to you. When prices rise,