Last week, the US government introduced sweeping new tariffs, prompting Singapore Prime Minister Lawrence Wong to warn that the global environment would remain turbulent for the foreseeable future.
In a YouTube video, he urged Singaporeans to brace themselves because the risks are real and the stakes high.
Deputy Prime Minister Gan Kim Yong, who is also the trade and industry minister, similarly cautioned of “rough waters ahead” for households and businesses. While reassuring that support measures would be introduced if needed, he ruled out retaliatory tariffs, citing the danger of an escalating vicious cycle of higher tariffs.
Over the weekend, Foreign Affairs Minister Vivian Balakrishnan and Home Affairs and Law Minister K Shanmugam also weighed in. Dr Balakrishnan warned of slower global growth and rising inflation, while Mr Shanmugam described the tariffs as “a shadow that is forming across the world”.
Leader of the Opposition Pritam Singh on Saturday backed Mr Wong’s call for unity as Singapore enters “another strait of unchartered waters”.
“Unity in diversity, regardless of race or religion, is Singapore’s best response to an unknown future,” he said, reaffirming the Workers’ Party’s commitment to “rational and responsible opposition politics”.
TAKE EVENTS IN OUR STRIDE
Mr Leong said on Sunday that Singapore has weathered bigger storms in the past, pointing to the global inflation and oil crisis of the 1970s.
Singapore is a small nation that has always been subject to external factors, he said. “But have we failed before? No. So we should take all these events in our own stride.”
Singapore overcame those big challenges in the past because the government at the time knew how to deal with it, he said.
“So today we have all these formulas, all these experiences accumulated. Singaporeans know how to support the government, whoever is the government, to overcome all these challenges,” Mr Leong said.
He also pointed out that the 10 per cent US tariff targets exports to the US, not imports into Singapore. As such, he said, the local cost of living would be less affected.
He added that the US itself was likely to face the brunt of the impact, with inflation expected to rise there. Conclusions about how Singapore will be affected may be premature, he suggested.
When a reporter pointed out that other countries have been slapped with heavier tariffs and Singapore could be impacted by changes in trading routes, Mr Leong said the indirect impact was something that needs to be looked at.
“Being an economist by training, I don’t dare to make conclusions right now,” he said. “But at the moment, I think the topic is a little overblown.”
