As global economic tensions escalate, Singapore is poised to enhance its support for businesses and workers to safeguard its economy. On 16 May 2025, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong announced that the Singapore Economic Resilience Taskforce (SERT) is developing both short- and long-term strategies to respond to challenges originating from heightened tariff disputes, particularly involving the United States and China.
DPM Gan articulated that SERT’s approach revolves around three core areas: comprehending the global economic landscape, addressing the immediate challenges facing companies and workers, and preparing for a transformed economic future.
The current context is marked by rising tariffs, with a 10% levy applicable to most nations. While certain increases in tariffs have been postponed for negotiations, DPM Gan described recent developments as “encouraging,” referencing agreements aimed at reducing tariff burdens, such as the recent US-China trade discussions and the UK-US Economic Prosperity Deal. However, he cautioned that unpredictability lingers as many negotiations are still in their nascent phases.
Local businesses, encompassing multinational corporations and small to medium enterprises, are increasingly voicing concerns over an economic slowdown, experiencing a decline in orders and worrying about cashflow issues. These strains have led SERT to consider enhancements to existing support schemes, including tax rebates and financing facilities in collaboration with banks. The focus is to ensure that businesses have the financial resources necessary to weather any downturns.
In parallel, worker concerns about job security are intensifying, particularly among fresh graduates entering a competitive job market. To combat these fears, the government is exploring initiatives designed to augment job creation and expand internship opportunities, facilitating skill development before permanent employment is secured. Collaborations with Institutes of Higher Learning aim to enhance job support services, including career counselling and job fairs.
Recognising that households are grappling with rising living costs, DPM Gan referred to government initiatives like the Community Development Council vouchers, which aim to alleviate some financial pressures. The first S$500 tranche of vouchers has already been distributed, with additional support due to follow in the coming years. He reinforced the government’s commitment to ensure households can cope with the potential economic ramifications.
Looking ahead, SERT is actively engaging in efforts to fortify economic resilience by broadening trade partnerships and enhancing supply chain stability. Negotiations concerning the upgraded ASEAN Trade in Goods Agreement (ATIGA) are progressing well, aiming to lower tariffs and dismantle trade barriers. This move underscores ASEAN’s commitment to deepening economic integration, which is pivotal for Singapore’s long-term economic strategy.
Moreover, the government is exploring possibilities for enhanced collaboration with other trading blocs, including the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. These efforts aim to open new markets for Singaporean exports while diversifying its sources of supply.
DPM Gan encouraged businesses and workers alike to maintain flexibility, forward-thinking attitudes, and adaptability as the economic landscape continues to evolve. He emphasised the importance of ongoing skills development, understanding that the skills needed for future opportunities will differ significantly from those currently in demand.
In concluding his remarks, he reassured Singaporeans that the government’s efforts are steadfast, aiming to equip both businesses and workers to not only weather the current uncertainties but also thrive in the emerging economic landscape.
Reference Map
- Core focus on the Singapore Economic Resilience Taskforce and its strategies.
- Context on global economic tensions and impact on Singapore’s economy.
- Establishment of the Economic Resilience Taskforce for local support.
- Overview of the taskforce’s initiatives for immediate and long-term strategies.
- Concerns about tariff impacts on the economy.
- Discussion on fiscal resources available for economic support.
- Focus on communication and adaptive strategies of the taskforce.
Source: Noah Wire Services
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