First-Half GDP Boost to Economy Likely Temporary: Chan Chun Sing

Republic Has to Be Consistent and Coherent in a World of Unpredictability, Says Minister

- Andrew Wong

Despite the stronger than expected gross domestic product (GDP) growth in the first half of 2025, the boost to the Republic's economy is likely to be temporary.

And Singaporeans will need to be clear about the challenges that lie ahead, said Defence Minister Chan Chun Sing.

He was speaking at the Tanjong Pagar GRC and Queenstown and Radin Mas SMCs' 60th National Day dinner on Aug 16 at Tanjong Pagar Community Club.

On Aug 7, a baseline tariff of 10 per cent from the United States came into effect for Singapore.

Prime Minister Lawrence Wong had said on April 8 the tariff would hurt the nation's economy, businesses and workers, and significantly impact the economy's growth.

Speaking to more than 750 residents, partners and volunteers at the dinner, Mr Chan said the good news is that Singapore's GDP growth hit 4.3 per cent year on year in the first half of 2025, which is stronger than expected.

But part of the growth came from a flurry of front-loading activity where businesses stepped up production and exports ahead of the tariff hikes.

And that boost is likely to be temporary, he said.

Mr Chan, an MP for Tanjong Pagar GRC, warned the constituents: "Looking ahead, we are concerned with the uncertainties in the global environment that will slow down the investments or will reduce the confidence of investors."