SINGAPORE TO SET UP TASKFORCE TO ADDRESS IMPACT OF US TARIFFS ON BUSINESSES

By Nur Ashikin Abdul Aziz

SINGAPORE, April 8 (Bernama) -- Singapore will set up a taskforce to help businesses and workers address immediate uncertainties, strengthen resilience, and better adapt to the new economic environment following the introduction of new US tariffs, said Prime Minister Lawrence Wong.

Wong, who is also the Finance Minister, said the taskforce, chaired by Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong, will include economic agencies, the Singapore Business Federation, the Singapore National Employers Federation, and the National Trades Union Congress.

“The government stands ready to do more if and when necessary. We have the resources to do so because of the financial discipline and prudence we have exercised over the decades.

“In this new environment, Singapore must redouble our efforts to remain a key node in global flows and a trusted business hub,” Wong said in his ministerial statement at Parliament on Tuesday.

He said the economic agencies are also engaging with the firms impacted by the tariffs to better understand their responses and see how the government can support and assist them with any specific issues they might face.

Wong said the government is still carefully assessing the impact of the situation, especially on specific industries in the country.

“But our deeper worry is not the direct impact that these businesses face. It is the wider implications for the global trading system and the world economy,” he noted.

Wong said Singapore expects weaker global growth, which will lower external demand for its goods and services, while sectors such as manufacturing -- especially segments like electronics and semiconductors, which have higher export exposure to the US -- will bear the brunt of the impact.

He said the Ministry of Trade and Industry is also reassessing the growth forecast and is likely to revise it downwards.

“Slower growth will mean fewer job opportunities and smaller wage increases for workers. If more companies face difficulties or relocate their operations back to the US, there will be higher retrenchments and job losses.

“Singapore may or may not go into recession this year, but I have no doubt that our growth will be significantly impacted,” he added.

He said that for now, the measures announced in this year’s budget will provide support for any short-term strain on individuals, households, and businesses.

Wong also expressed his disappointment over the US’s move to impose 10 per cent tariffs on Singapore, even though the countries share a deep and long-standing friendship, as well as a free trade agreement between them.

“We impose zero tariffs on US imports, and we actually run a trade deficit with the US, meaning we buy more from them than they do from us. If the tariffs were truly reciprocal, and if they were meant to target only those with trade surpluses, then the tariff for Singapore should be zero... These are not actions one takes against a friend,” he said.

Meanwhile, Wong said Singapore will forge closer links with like-minded partners who share its commitment to open and free trade, in particular, to strengthen collaboration and integration with ASEAN.

He said a special ASEAN Economic Ministers’ Meeting on Thursday will discuss further ways that ASEAN can work together to strengthen intra-ASEAN trade and to send a strong signal of the grouping's commitment to regional economic integration.

“As a group, ASEAN will also continue to strengthen our links with like-minded partners in areas of mutual interest,” he said.

-- BERNAMA