SINGAPORE — Singapore has never stayed neutral and will always take a position on policies or international issues, said Deputy Prime Minister Gan Kim Yong at a conference on May 22.
Among the thorniest of those issues are the trade tensions between the US and China, but as contentious as the issue is, Singapore cannot stay permanently on the sidelines, he added.
"We do take positions. The only difference is that we take positions not because you are the US or because you are China," he said, noting that Singapore will take a stance based on what is in its best interests, for the country and citizens.
DPM Gan, who is also the Trade and Industry Minister, added that Singapore values doing business with the US and with China, and both countries know its position.
However, it is becoming "increasingly difficult and challenging" to "find a way that will be comfortable for both sides".
The May 12 deal — where the US and China agreed to suspend part of their tariffs on each other's goods for 90 days — may provide a temporary reprieve, but questions remain over what happens when the truce ends.
But what is certain is that it is not going to be business as usual at the end of this tariff crisis.
"It is going to be a new world," added DPM Gan, who was speaking with Young Jin Yee, co-head of UBS Global Wealth Management Asia-Pacific, at the Wealth Edition of the UBS Asian Investment Conference at Capella Singapore.
What is this new world going to be like? How can Singapore continue to seize opportunities and grow the economy in this environment? These are just some questions that keep the minister awake at night.
DPM Gan said that even before "Liberation Day" on April 2, when US President Donald Trump announced reciprocal tariffs on foreign countries, negotiations at the World Trade Organisation had been challenging for many years.
Trade talks have been increasingly centred on domestic needs, and countries are becoming more protectionist, he said.
The Government formed the Singapore Economic Resilience Taskforce in April to help businesses and workers navigate the near-term challenges arising from the US tariffs and to position the country in the new economic landscape.
DPM Gan chairs the task force, which comprises four other ministers and representatives from the Singapore Business Federation, the National Trades Union Congress and the Singapore National Employers Federation.
He said the Government will focus on priorities, including investing in innovation and research and development to create new businesses, new products, new services and even new markets, as well as new business models.
Singapore must also continue to invest in its people, its most critical resource, he said. "Every industry, every business needs to continue to invest in developing our local talent, bringing in talent and building a team together."
DPM Gan also noted that Singapore must stay nimble and be prepared to move fast, change fast and respond fast when the business environment changes.
He was also part of the multi-ministry task force formed during the Covid-19 pandemic, earning him the nickname "task force man".
"We are quite fond of forming teams and task forces so that we are able to tackle issues collectively," he said, noting that this approach is the most effective way to tap the range of local expertise given Singapore's small size and limited resources.
"So if one day I call upon you to help me form a new task force to deal with challenges, please do not shy away," DPM Gan added.
This article was first published in The Straits Times. Permission required for reproduction.
