SINGAPORE: Singapore will form a national task force to support businesses and workers in response to sweeping new US tariffs that could slow economic growth and impact jobs and wages, Prime Minister Lawrence Wong announced on Tuesday (Apr 8).
The task force, chaired by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, will include representatives from Singapore’s economic agencies, the Singapore Business Federation, the Singapore National Employers Federation and the National Trades Union Congress.
Describing the global situation as “fluid”, Mr Wong said in a ministerial statement in parliament that the task force will help businesses and workers address immediate uncertainties, strengthen resilience and adapt to a new economic landscape.
The tariffs are expected to dampen global growth in the near term, which will hit external demand for Singapore’s export-reliant sectors such as manufacturing and wholesale trade. The global uncertainty and dampened sentiment will also impact some services industries, including finance and insurance, said Mr Wong, who is also finance minister.
While Singapore “may or may not” slip into recession this year, the economy will be significantly impacted, the prime minister said. The Ministry of Trade and Industry is reviewing its 2025 growth forecast of 1 to 3 per cent, with a likely downward revision.
“Slower growth will mean fewer job opportunities and smaller wage increases for workers. And if more companies face difficulties or relocate their operations back to the US, there will be higher retrenchments and job losses,” he said.
Beyond immediate concerns, Mr Wong said the tariffs confirm the stark reality that “the era of rules-based globalisation and free trade is over”.
