President Ong Teng Cheong dissolved parliament on 16 December 1996 on the advice of Prime Minister Goh Chok Tong.

The results were released in the late evening that day and the ruling People's Action Party won a total of 81 out of 83 seats as well as a tenth consecutive term in office under the then-Prime Minister Goh Chok Tong.

After nomination day on 23 December 1996 the People's Action Party returned to power for the second consecutive (and third overall) election as 47 (more than half of the total 83) seats were won uncontested.

In 1994, Chee criticized then-Deputy Prime Minister Lee Hsien Loong over a lack of democracy, which led to the attention of Organising Secretary and Marine Parade GRC member-of-parliament Matthias Yao; Chee publicly request to challenge Yao with a condition of carving out his MacPherson ward from Marine Parade GRC into a SMC, which the latter accepted.

Chia Shi Teck became the first former Nominated MP to contest in the election as an independent candidate in an only four-cornered fight in Chua Chu Kang SMC.

B. Jeyaretnam for Cheng San GRC, faced criticism where Tang was accused by PAP of being an anti-Christian Chinese chauvinist.