It is almost 50 years since Singapore was expelled from its shortlived federation with Malaysia and began its inspiring ascent from the developing to the developed world. Two years ago, its economy overtook the US in gross domestic product per head, an incredible accomplishment in a country with few natural resources, which once depended on hostile neighbours even for its water.

Yet according to Goh Chok Tong, who was prime minister between 1990 and 2004, Singapore seems to be trapped in a midlife crisis. As the population ages, the economy is becoming increasingly reliant on foreign workers. A housing boom, fuelled in part by money that is flowing into the country’s expanding asset management industry, is contributing to a sharp rise in living costs. For the squeezed middle, who are struggling to step on to the housing ladder even as billionaires flaunt their wealth, rising inequality is beginning to chafe.

These anxious times have lifted the fortunes of the opposition Workers’ party, which garnered almost 40 per cent of the vote in the most recent parliamentary elections and now poses the most serious threat to the People’s Action party since it took power in 1959. It has taken note. Lee Hsien Loong, the prime minister, announced this week that spending on healthcare, social welfare and housing will be increased.