Singapore's governing People's Action Party is soul-searching as to how it could have lost another election to the opposition Worker's Party of Singapore. Saturday's by-election defeat, the second in less than a year, on top of its worst-ever general poll showing in 2011, leaves it with 80 of the 87 elected seats in parliament. The party, having dominated politics for more than half a century, is unfamiliar with losing, so is bound to put its campaign strategy under the microscope. But as much as there is a temptation to try to win back what has been lost, its energies would be more wisely directed towards how to better serve a more demanding electorate.

The ruling party thought it had done all that was necessary to win, promising policy reforms and massive public spending in the lead-up to polling day. Theories abound as to how its candidate, a noted surgeon, could have lost to a middle-class corporate trainer. Perhaps it was due to a lack of political experience, insufficient campaign preparedness or a perception of elitism. Or maybe the hot Singapore issues of housing, immigration, transport congestion and the soaring cost of living were the main reasons.

Authorities are well aware of growing discontent, especially among young voters. They have moved aggressively to cool property prices, bolster social protections and limit the number of low-skilled foreign workers. But the fast-ageing population brings significant challenges, while policies, such as providing affordable housing, take time to implement.