Singapore Launches Task Force to Tackle Tariff Impact and Chart Long-Term Strategies
Singapore will introduce immediate and long-term support measures to help businesses and workers cope with the effects of new US tariffs and broader global trade disruptions. Deputy Prime Minister Gan Kim Yong, chairing the new Singapore Economic Resilience Taskforce, warned that the escalating US-China trade war and potential new levies on key sectors like semiconductors could push Singapore toward a recession in 2025. Companies with operations linked to China are already experiencing order cancellations and deferrals.
The task force, which includes Cabinet ministers and leaders from major business and labour groups, will focus on three areas: communication with businesses and workers, addressing immediate challenges, and crafting longer-term strategies. In the short term, the task force will explore how existing schemes can cushion companies and protect jobs. Over time, new initiatives will be launched to help Singapore adapt to a restructured global economy.
Analysts note that despite a relatively modest 10% US tariff on Singapore’s exports, the broader disruption to global trade could significantly impact Singapore’s export-driven economy. Consequently, the Ministry of Trade and Industry has downgraded Singapore’s 2025 GDP growth forecast to between 0% and 2%. To support growth, the Monetary Authority of Singapore has also eased the local currency’s appreciation.
The government’s $143 billion Budget for 2025, which includes a 50% corporate income tax rebate and household support measures, offers some economic buffer, with a projected surplus allowing for further interventions if needed. As a major hub for finance, logistics, and high-value manufacturing, Singapore is particularly vulnerable to global trade shocks. Nevertheless, DPM Gan stressed the need to view the upheaval as an opportunity for Singaporean businesses to innovate, pivot to new markets, and invest in upskilling workers to thrive in the evolving landscape.
