Nathan dissolved parliament on 18 October 2001 on the advice of Prime Minister Goh Chok Tong.

The ruling People's Action Party (PAP) won 82 of the 84 elected seats in Parliament in a landslide victory.

The ruling PAP's secretary-general and Prime Minister Goh Chok Tong initially scheduled for the election to be held in 2002, but pushed to November after Singapore faced an economic crisis due to the events of September 11 attacks in the United States.

15 candidates outside PAP were also new, among which new faces include Chee Siok Chin, sister of the SDP's leader Chee Soon Juan, as well as Desmond Lim, who would later lead the newly formed SDA in future years, and a future Perennial candidate Ooi Boon Ewe.

PAP won a landslide victory and its best result since 1980, achieving its third highest score among the general elections it has contested since 1959.

Singapore Democratic Party (SDP) leader Chee Soon Juan came under fire in the media when he encountered Prime Minister Goh while campaigning at a hawker centre.

Goh and Senior Minister Lee Kuan Yew sued Chee for defamation shortly after the election.