By Kambes Kesolei, Islands Business
Palau's President, Surangel Whipps Jr speaks at UNGA. Photo: Supplied/ Palau press office
Palau's President Surangel Whipps Jr has clinched another term in office, decisively defeating former President Tommy Remengesau Jr in a race that initially seemed poised for a close finish.
This time, Whipps achieved a notable 57.5 percent of the vote (4323 votes) compared to Remengesau's 41.3 percent (3106 votes), marking one of the largest margins in Palau's presidential election history.
The victory stands in sharp contrast to their initial matchup, where Whipps narrowly lost to Remengesau by over 260 votes. Now, Remengesau would face a nearly insurmountable task to overturn this lead, needing a high turnout and winning a substantial majority of absentee ballots to bridge the gap.
What drove Whipps' election success
Unofficial results indicate Whipps enjoys robust public support. His strong showing, with over 57 percent of the vote, underscores a decisive endorsement of his economic policies and steady leadership in uncertain times. Many point to the president's effective response to inflation and rising cost-of-living as critical to his appeal.
After two years of double-digit inflation, and a bit of good timing, inflation rates eased significantly just before the election. President Whipps addressed the economic strains through key initiatives, such as the Value-Added Tax (PGST), which he argued would enhance revenue, close tax loopholes, and support essential services. In addition, his tax refund program launched in January provides full income tax refunds for individuals earning up to US$15,000, benefiting about 70 percent of Palau's workforce.
Whipps also introduced a series of support measures, including government salary increases of US$3,120 in two years, a minimum wage hike to $5 per hour by October 2025, child subsidies, and a one-time $480 payment for retirees-distributed throughout the year as a reminder of his commitment to easing the financial burdens on Palauans.
Further bolstering his re-election bid, Whipps secured a $20 million commitment from the US State Department for Palau's struggling pension fund, along with additional US support for a new national hospital weeks before the election. These developments, along with tangible solutions to economic challenges, appear to have bolstered his support among voters.
What's in store for the next four years
Looking ahead, Whipps is expected to focus on economic diversification, including the development of blockchain-based industries and expanding key initiatives including the Digital Residency Program, Palau Stablecoin, and blockchain-based saving bonds. On economic policy, he aims to introduce more commercial fishing opportunities through marine spatial planning-what he term as balancing production with protection-offsetting the $2.6 million annual loss from Palau's National Marine Sanctuary, which restricts fishing in 80% of Palau's waters.
In foreign policy, Whipps plans to reinforce alliances with key partners, including the US, Japan, Taiwan, and Australia, while maintaining a critical and adverbial tone toward China. Palau's growing ties with the US are likely to result in a stronger American military presence, potentially including missile batteries and even a permanent base-part of Whipps' vision to position Palau as a strategic defense partner and as part of the US Homeland.
Remengesau's next steps
As Maderngebuked, Remengesau sits on the Rubekul Belau, the Council of Chiefs, serving as an advisor on customary matters to the president. Remengesau's candidacy brought about a rigorous economic debate, particularly on the PGST, addressing Palauans' concerns about the cost of living.
In a message to voters, Remengesau expressed his "heartfelt gratitude" for their participation in the election, emphasising democracy's strength in Palau and his ongoing commitment to the nation's well-being.
-This article was originally published by Islands Business.
