In response to the escalating US tariffs, Singapore has set up the Economic Resilience Task Force, led by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong. The group, comprising ministers and representatives from key trade organizations, aims to help businesses, particularly small and medium-sized enterprises, cope with the emerging challenges. At a press conference held after the task force’s inaugural meeting on April 16, DPM Gan outlined the key areas of focus: understanding and communicating the situation, providing immediate support, and crafting long-term strategic responses.
Immediate Concerns Over Trade Tensions
DPM Gan pointed out that several Singaporean companies with operations in China, or those supplying Chinese manufacturers selling to the US, have already been affected. He noted that these firms are experiencing canceled or deferred orders, indicating the tangible fallout of the tit-for-tat tariff war initiated by US President Donald Trump. Although the US has temporarily deferred certain reciprocal tariffs on other countries, the threat of sudden imposition and potential retaliations remains a pressing concern for businesses.
Enhancing Communication and Building Awareness
One of the first tasks of the Economic Resilience Task Force is to foster “sense-making” through robust communication strategies. The government will engage regularly with businesses, trade associations, and chambers to keep them informed about tariff developments and provide clarity on available support measures. This communication effort is co-led by Minister for Digital Development and Information Josephine Teo and Singapore Business Federation (SBF) chairman Lim Ming Yan. Minister Teo emphasized that the volatile nature of the current trade environment demands constant reorientation by businesses, making timely and accurate information critical.
Offering Immediate Assistance to Affected Enterprises
Another major focus area is delivering immediate support to businesses and workers impacted by the tariffs. The task force will evaluate the effectiveness of existing measures outlined in Budget 2025 and, where necessary, enhance or introduce new initiatives. This aspect is led by Manpower Minister and Second Minister for Trade and Industry Tan See Leng, NTUC secretary-general Ng Chee Meng, and Singapore National Employers Federation president Tan Hee Teck. Ng highlighted that 70 percent of union leaders surveyed expressed anxiety over global trade uncertainties, while Dr. Tan flagged vulnerable sectors such as manufacturing, finance, logistics, semiconductors, and biopharmaceuticals.
Preparing for Workforce Challenges Ahead
As businesses potentially delay expansions and investment plans, the labour market could face disruptions. Dr. Tan warned that fresh graduates might encounter difficulties in securing their first jobs, while mature workers may be at risk of layoffs. The government is therefore placing special emphasis on supporting these groups. Initiatives such as the newly announced Jobseeker Support Scheme are already in place to cushion potential employment shocks, with readiness to roll out additional measures if the situation worsens.
Financial Flexibility for Future Interventions
Responding to questions on the extent of government intervention, Minister Teo stressed that flexibility is crucial. Authorities are avoiding pre-set assumptions about the necessary level of response, choosing instead to assess conditions dynamically and act accordingly. DPM Gan reiterated that additional support schemes, if needed, will be carefully tailored to address the specific challenges identified during the task force’s assessments.
Building a Future-Ready Economic Strategy
Beyond immediate responses, the task force is equally committed to formulating long-term strategies. This effort is spearheaded by Minister for National Development Desmond Lee and Minister for Transport and Second Minister for Finance Chee Hong Tat. Future plans include helping businesses diversify supply chains, enter new markets, and strengthen Singapore’s global standing in air, sea, trade, and finance sectors. Moreover, there will be a strong push to enhance innovation and productivity to ensure the economy remains resilient and competitive.
Strengthening Regional and Global Partnerships
Singapore’s strategy also includes reinforcing regional and international alliances. While Asean member states will conduct tariff negotiations with the US on a bilateral basis due to varying trade interests, they have agreed to deepen integration within Asean and honor existing trade agreements. DPM Gan emphasized that Singapore will continue engaging the US, viewing it as a vital economic and strategic partner despite recent trade tensions. Insights gathered by the task force will guide the government’s external engagements and negotiations to protect Singapore’s long-term interests.