On August 1, the United States announced tariff rates on 69 global trading partners, and the global economic outlook remains filled with uncertainties. Despite the challenging situation, it also brings new opportunities and possibilities, and Singapore must re-examine its existing economic strategies.
According to Lianhe Zaobao, Singapore’s Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, held a press conference on the 4th, announcing that the government will conduct a review of its economic strategies. Five committees will be set up to study different topics. During the conference, he spoke about the impact of US tariffs on Singapore.
Singapore Continues to Face 10% US Tariffs
Although the Ministry of Trade and Industry confirmed last Friday that Singapore will continue to face a 10% US tariff, Gan Kim Yong reminded that there are still many uncertain factors in the global situation as a whole.
He gave examples, such as several major countries, including China and India, that are still in negotiations with the US. How each country will respond to these tariffs remains unknown, and the details of the tariff implementation are yet to be determined.
In addition, the US may in the future announce more tariffs for industries such as pharmaceuticals, semiconductors, and aerospace. These measures will have a long-term impact on the rules-based multilateral trade order, and will inevitably affect Singapore as well as other regions of the world.
Gan Kim Yong said: “We will face challenges to the rules-based multilateral trading system. This system is vital, and we have relied on it for decades to conduct trade and to foster economic development and growth. With the introduction of new tariffs, this situation and environment are changing rapidly, and the future is full of uncertainty.”
Government to Strengthen Communication with Local Enterprises
He emphasized that while continuing to communicate with the US, the Singapore government will intensify communication with local enterprises to assess the latest developments in tariffs and how they affect businesses. The government is also working with the Singapore Business Federation to review whether further measures are needed to support local companies.
The government will also closely monitor how the situation affects local employees, and will work with the Singapore National Employers Federation and the National Trades Union Congress to strengthen the necessary support.
Gan Kim Yong emphasized: “We must begin long-term planning so that our economy, businesses, and workers can adapt to the new economic landscape.”