PUBLISHED ONApril 16, 2025 12:38 PMByBhavya RawatDeputy Prime Minister and Minister for Trade and Industry Gan Kim Yong has unveiled a new Government task force aimed at addressing concerns and mitigating the impact of the recent US tariffs.
Chaired by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, the new Singapore Economic Resilience Taskforce also comprises seven other members:
This task force will serve as a bridge between the Government, businesses, and workers, addressing immediate challenges and developing strategies to adapt to the new economic landscape.
After holding its first meeting on Wednesday (April 16), the task force will begin engaging companies and workers in the weeks ahead.
Speaking to the media at a press conference on Wednesday (April 16), DPM Gan said that the world today is "highly volatile and uncertain" due to the tariffs imposed by US President Donald Trump on April 5.
Referencing the escalating tit-for-tat tariffs between the US and China, Gan warned that trade amounting to over US$600 billion (S$788b) between the two countries is at risk of being disrupted.
He added that some Singapore companies, such as those with manufacturing operations in China or those who sell to Chinese manufacturers, are already being affected by these events as US and China are "both key trading partners to Singapore".
DPM Gan also said: "We cannot rule out the possibility that there will be some levels of receivable tariffs that will continue to be imposed on certain countries when the deferment of the tariffs [is] lifted. This may in turn spark more retaliatory actions by some of these countries."
He added that these developments have caused "significant uncertainty and outside risks to global economy" and cited them as the reason MTI downgraded Singapore's economic growth forecast for 2025 to zero to two per cent.
“We are facing the most serious challenge to global rules based economic order. We must be prepared for more protectionist, unstable and fragmented world,” he said.
"Given potential downside risks, we cannot rule out the possibility of a recession this year."
SBF vice chairman Mark Lee, who was representing chairman Lim, then spoke on business sentiments regarding the recent events.
"Many (businesses) are actually adopting a 'wait and see' attitude. They are postponing their investments and expansion plans and...waiting for more clarity," he said.
"I think overall, the businesses are concerned that global economic demand will slow."
Lee added that some Singapore-based firms embedded in the US and China supply chains are facing contract cancellations and some are opting to absorb penalties rather than proceed with shipments that will be subject to tariffs.
"This has resulted in a real disruption to regional production and the viability of exports," he explained.
Minister for Manpower Tan also addressed the impact of recent developments on fresh graduates' job opportunities as well as the job security of mature workers.
He pointed out that business uncertainty will cause employers to hold back their expansion or investment plans, which will result in a slowdown in hiring.
"This will affect our fresh graduates, in particular, who we face greater difficulties in securing their first job," he added.
"Mature workers are also vulnerable, should companies decide to downsize their operations amidst their uncertainties. So, we are paying special attention to the needs of these groups of workers."
First announced by Prime Minister Lawrence Wong in Parliament on April 8, the task force has been formed to help businesses, especially Small and Medium Enterprises (SMEs), and workers to address immediate uncertainties amid the US tariffs on foreign goods.
Singapore faces the lowest level of tariffs, at the baseline rate of 10 per cent.
On Monday, Senior Minister Lee Hsien Loong said that the uncertainty caused by the US-imposed tariffs is high, and over the next five to 10 years Singapore faces "a less friendly world".
He was speaking at a closed-door dialogue which was attended by NTUC president K Thanaletchimi, secretary-general Ng Chee Meng as well as other union leaders.
During his ministerial statement in Parliament, PM Wong said that the measures announced at Budget 2025 — CDC vouchers, SG60 vouchers and U-Save rebates — will provide households with support for short-term strain amid the new US tariffs.
The SkillsFuture Jobseeker Support scheme will also be available in the coming weeks.
Businesses, on the other hand, can benefit from corporate income tax rebates and schemes to boost their productivity and competitiveness.
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