GRCs were introduced in this GE to ensure ethnic minority representation in Parliament, beginning with three joint constituencies. The law was also amended such that changes to electoral boundaries would no longer be passed in Parliament but be approved by the Prime Minister's Office. The Electoral Boundaries Delineation Committee was renamed the Electoral Boundaries Review Committee. Its report, after submitting to the PMO on 25 May 1988, was released on 14 June 1988. Seven wards with their names erased from the map were Anson, Bo Wen, Delta, Khe Bong, River Valley, Rochore and Telok Ayer. Hong Kah and Tampines were each divided into three divisions falling within GRCs and so was Nee Soon but into two single wards and a GRC division. There were another two new single wards and a new GRC division. This was the last time PM Lee Kuan Yew led the PAP in a GE. Another two stalwarts, former Deputy PM Dr Toh Chin Chye and Senior Minister S. Rajaratnam, retired. Two seats were vacated in 1986. They were Anson held by WP chief J. B. Jeyaretnam and Geylang West held by PAP Member of Parliament Teh Cheang Wan, but no by-elections were held. Jeyaretnam was convicted for impropriety of party accounts and disqualified as MP and Teh had committed suicide while under investigation for corruption. WP absorbed BS and SUF to become the largest opposition party and also allied with PKMS. Francis Seow, former solicitor-general, Law Society president and Internal Security Act detainee, ran under the WP ticket in Eunos GRC alongside veteran politician Dr Lee Siew Choh. Defending lawyer for several Operation Spectrum detainees, he came under heavy fire from the PAP leadership who made allegations about his past record in the civil service and dubious financial circumstances. PAP also swapped candidates to field popular stalwart, Dr Tay Eng Soon, to face the strong WP team. In the end, PAP won the GRC by an extremely narrow margin. SDP won the only opposition seat and two Non-Constituency MP seats were offered to WP, which nominated Dr Lee and Seow to take them up. However, Seow, who was charged for tax evasion, fled the country to avoid arrest and was disqualified from his seat on 17 December 1988, before Parliament was sworn in. Dr Lee became Singapore's first NCMP. This marked his return to the legislature after 25 years since his last stint with PAP and BS. In November 1990, two years after the GE, the Nominated MP scheme was introduced to bring non-partisan voices into Parliament. Although the law provided for up to six NMPs, two were first appointed and served for a year before the term ended.

6th Parliament dissolution: 17 August 1988 [Wed]
Nomination day: 24 August 1988 [Wed]
Polling day: 3 September 1988 [Sat]
7th Parliament convention: 9 January 1989 [Mon]

Electorate: 1,669,013
Walkover voters: 219,175 (13.1%)
Eligible voters: 1,449,838 (86.9%)
Voter turnout: 1,373,064 (94.7%)

Election deposit: $4,000 (+$2,500)

Single member constituencies Group representation constituencies
Ang Mo Kio Hougang Paya Lebar Aljunied GRC
Ayer Rajah Jurong Potong Pasir Bedok GRC
Boon Lay Kallang Punggol Brickworks GRC
Braddell Heights Kampong Glam Serangoon Gardens Cheng San GRC
Bukit Batok Kebun Baru Siglap Eunos GRC
Bukit Gombak Kim Keat Tanglin Hong Kah GRC
Bukit Merah Kim Seng Tanjong Pagar Jalan Besar GRC
Bukit Panjang Kreta Ayer Teck Ghee Marine Parade GRC
Bukit Timah Leng Kee Telok Blangah Pasir Panjang GRC
Buona Vista MacPherson Thomson Sembawang GRC
Cairnhill Moulmein Ulu Pandan Tampines GRC
Changi Mountbatten Whampoa Tiong Bahru GRC
Chua Chu Kang Nee Soon Central Yio Chu Kang Toa Payoh GRC
Fengshan Nee Soon South Yuhua
Total seats = 81