The move comes amid expectations of slower economic growth and sector-wide disruptions.
A new taskforce will be formed to help businesses and workers address the immediate uncertainties brought about by US President Donald Trump’s sweeping tariffs on all of America’s global trading partners.
Prime Minister Lawrence Wong made the announcement during his ministerial statement on 8 April 2025 in Parliament.
Chaired by Trade and Industry Minister Gam Kim Yong, Mr Wong added that the taskforce will help businesses and workers strengthen their resilience and adapt to the new economic environment.
The taskforce will be made up of representatives from the Government’s economic agencies, the Singapore Business Federation (SBF), the Singapore National Employers Federation (SNEF), and NTUC.
“We will continue to monitor developments closely. The Government stands ready to do more if and when necessary,” said Mr Wong.
As a result of the tariffs, Mr Wong said that Singapore’s economic growth will be significantly impacted.
The Ministry of Trade and Industry (MTI) will be reassessing its initial economic forecast for the year. It’s initial projection of 1-3 per cent growth would likely be revised downwards.
“The outward sectors of our economy will suffer the brunt of the impact,” said Mr Wong.
This would include manufacturing, biomedical science, wholesale trade and transport. He added that the finance and insurance sectors too would likely feel the impact.
“Singapore may or may not go into a recession this year, but I have no doubt that our growth will be significantly impacted,” he said.
While Mr Wong expressed disappointment in the US’ decision, he said that Singapore will not be introducing retaliatory tariffs as doing so will only “increase costs for Singaporeans.”
For now, Mr Wong said that the measures introduced in Budget 2025 will provide both businesses and workers with some short-term support.
He said: “We are also supporting workers through investment into SkillsFuture. Those who find themselves involuntarily unemployed will receive help to get back on their feet through the SkillsFuture Jobseeker Support which will start later this month.
“We’ve also rolled out measures in our Budget to help businesses. There are short term support measures through corporate income tax rebates, as well as schemes to boost their productivity and competitiveness, and to pivot to other markets.”
Mr Wong added that the Government’s economic agencies will be engaging the firms impacted by the tariffs to see how they can be supported.
“In this new environment, Singapore must redouble our efforts to remain a key node in global flows and a trusted business hub. We will forge closer links with like-minded partners who share our commitment to open and free trade,” he said.
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