In response to the uncertainties created by the recent sweeping US tariffs, Singapore has announced the formation of a task force aimed at assisting businesses and workers navigate the challenges ahead.
Prime Minister Lawrence Wong made the announcement on Tuesday, highlighting the importance of this initiative in mitigating the adverse effects on the nation’s economy.
The task force will bring together key economic government agencies, the Singapore Business Federation, the Singapore National Employers Federation, and the National Trades Union Congress.
Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, will chair the task force, with a primary focus on communication and information sharing.
Gan emphasized that the task force’s main priority will be to engage with the private sector to collect valuable on-the-ground data, understand the challenges faced by businesses, and explore potential solutions to provide support. Union representatives will also be included, as the anticipated economic restructuring could lead to significant impacts on employment.
The government is taking steps to reach out to its trading partners, facilitating the exchange of information and assessments in an effort to sustain business relations and maintain opportunities for enterprises.
Wong acknowledged that Singapore’s outward-facing sectors — such as manufacturing, particularly electronics and semiconductors, along with biomedical sciences — will face the greatest challenges, given their high exposure to US markets.
The Prime Minister also noted that weaker global growth is expected in the near term, which will likely result in reduced external demand for Singapore’s goods and services. Service industries, including finance and insurance, may also be affected due to global uncertainty and dampened sentiments.
“Singapore may or may not go into recession this year. But I have no doubt that our growth will be significantly impacted,” Wong remarked, adding that the slower economic growth would result in fewer job opportunities and smaller wage increases for workers.
He also warned of the possibility of higher retrenchments and job losses if more companies struggle or decide to relocate their operations back to the United States.
With these comprehensive measures, Singapore aims to navigate the challenges posed by external economic uncertainties and protect the interests of its businesses and workforce. The government’s proactive approach signals a concerted effort to shield the economy from the potential negative fallout of global trade tensions, ensuring that Singapore remains resilient amid a changing global landscape.
