Goh Chok Tong, who for several years had served as Singapore’s deputy prime minister, succeeded Lee as prime minister in late 1990, although Lee remained in the government and powerful behind the scenes as a “senior minister” in the cabinet. The PAP maintained firm control of Parliament through a succession of elections. After opposition candidates won four seats in the 1991 legislative contest, their numbers in the 1997, 2001, and 2006 polls dropped to two each time. Opposition parties were granted a small but increasing number of constitutionally mandated appointed seats, but the PAP continued to enjoy an overwhelming legislative mandate.

The economy continued to do well during most of Goh’s tenure in office, although the country was seriously affected by the Asian financial crisis of the late 1990s. Growth resumed in the early 2000s, however, buoyed by a strong manufacturing sector. At the time that Goh became prime minister in 1990, Lee Hsien Loong, Lee Kuan Yew’s son, was named deputy prime minister. The general understanding was that the younger Lee was being groomed to eventually succeed Goh. Such a transition took place in August 2004, when, following Goh’s resignation from office, Lee was named the country’s new prime minister. Goh became the new senior minister, and the elder Lee was designated to the post of “minister mentor,” both still influential cabinet positions.

Lee Hsien Loong presided over successful legislative elections in 2006, with the PAP retaining its commanding presence in Parliament. Two years later, however, Singapore was caught in the global recession of 2008–09, from which it began to recover only in 2010. Important to that recovery was the growth of the services sector, notably tourism, which benefited greatly after two large resort complexes that included newly legalized gambling casinos opened in 2010.

When Lee took office in 2004, he appeared to be willing to relax somewhat Singapore’s rigid libel laws and proscriptions against dissent and to allow greater freedom of expression. However, like his father had done before him, he continued to bring libel and antidefamation lawsuits against detractors and political opponents, which earned him disapproval internationally and stirred discontent at home. He and the PAP were therefore surprised by the relatively strong showing by opposition parties in the 2011 parliamentary elections, which won six seats outright. Later that year, Tony Tan, the PAP-backed candidate for the largely ceremonial office of president, barely won election over his three opponents.

In the wake of the 2011 elections, the Lee administration began to explore ways of being more responsive to citizens’ concerns. Helping to pave the way for a change in outlook were the resignations from the cabinet in 2011 of both Lee Kuan Yew and Goh Chok Tong, a tacit admission by the government that their presence there was hampering new approaches and styles of governance. Reforms were subsequently explored that were intended to make health care, public housing, and education more affordable for lower-class Singaporeans. One of those measures, a compulsory national health care plan, was to go into effect at the end of 2015. The government, however, remained determined to protect the integrity of political officeholders, which included Prime Minister Lee’s successful libel suit in 2014 against an Internet blogger.

Singaporeans witnessed two milestone events in 2015. In March Lee Kuan Yew died at the age of 91, and his passing elicited widespread mourning in the country. In August the country observed the 50th anniversary of its secession from the Federation of Malaysia with a gala celebration throughout Singapore. At the end of that month President Tan dissolved Parliament and called for early elections, which were held in early September. The PAP again won overwhelmingly, garnering 83 of the 89 contested seats.

Singapore’s diplomatic relations with its immediate neighbours improved in the 21st century. Agreements were reached with Malaysia on territorial disputes and on concerns over water supplies and transportation access, although some issues regarding water remained unresolved. Singapore and Indonesia concluded a pact in 2006 that established special economic zones on islands off the Indonesian coast, and in 2010 an agreement went into effect between China and six ASEAN countries (including Singapore) that established a largely tariff-free trade zone in the region.