Singapore will establish a national task force to support businesses and workers in response to significant new US tariffs that could stymie economic growth and have an impact on wages and employment, according to Prime Minister Lawrence Wong on Tuesday ( Apr 8 ).
Staff from Singapore’s financial organizations, the Singapore Business Federation, the Singapore National Employers Federation, and the National Trades Union Congress will make up the work force, which is led by Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong.
In a ministerial statement in parliament, Mr. Wong said the work force may assist businesses and workers in addressing fast uncertainties, enhance endurance, and adjust to a new economic environment. He described the global situation as “fluid.”
The levies are anticipated to slow down global growth in the near future, which will have an impact on Singapore’s export-dependent industries like manufacturing and wholesale business. According to Mr. Wong, who is also banking minister, the lingering effects of global confusion and attitude will also be felt in some services, including finance and insurance.
The business will be considerably impacted, the excellent secretary said, even though Singapore “may or may not” enter recession this year. The Ministry of Trade and Industry is revising its 2025 growth forecast, which is expected to increase by 1 % to 3 %, with a likely drop in the forecast.
” Lower rise will result in fewer job opportunities and lower wage rises for workers,” the statement states. Additionally, he predicted that there will be higher cutbacks and job losses if more businesses are having trouble or relocating their activities to the US.
Beyond the immediate concerns, Mr. Wong claimed that the taxes confirm the stark fact that” the time of rules-based globalization and free trade is over.”
Mr. Gan, speaking after Mr. Wong, stated that it is still” also in the early stages” and that more time will be required to understand the impact of the taxes on the Singapore market.
One of its main tasks and content is still being worked out by the newly formed job force, he continued, but one of its main areas of focus will likely be on information sharing and communication.
For instance, given the likelihood that jobs may be impacted in the medium to long term as well as a significant economic reform, the coalition is a part of the task force. Private sector members will also be a benefit to the work force in terms of involving businesses and better understanding issues on the ground.
The government has also reached out to Singapore’s buying colleagues to discuss how the situation is being handled and find alternative ways of working together, according to Mr. Gan.
US TARIFFS” A FUNDAMENTAL REJECTION” OF WTO Laws
The tariffs, which were announced by US President Donald Trump on April 2, place a universal 10 % tax on all imports into the nation, with even higher rates for nations deemed to have” treated the US unfairly”
Singapore is also subject to the current 10 % rate, which now applies to US imports.
The price for Singapore may become zero if the tariffs were actually bilateral and were only intended to affect countries with trade surpluses. However, Mr. Wong continued, citing Singapore’s diplomatic free trade agreement and its trade deficit with the US and ongoing business.
” We are quite disappointed by the US decision, especially given our two countries ‘ sincere and enduring compassion,” the statement read. These are not the kind of things one does to a friend,” the excellent minister continued.