Businesses must stay nimble, resilient amid challenges: Gan

Businesses here must remain agile, nimble and resilient in the face of challenges that are likely to impact growth outlook in 2025.

- Zhaki Abdullah

Speaking at a Chinese New Year event on Jan 29, Deputy Prime Minister Gan Kim Yong said the new US administration's position on trade has created significant uncertainty —in particular, the risk of trade frictions. "This will impact our manufacturing and trade-related services sectors, and could result in new cost pressures," he added.

US President Donald Trump, who took office on Jan 20, had announced plans to increase tariffs by as much as 20 per cent on imports from all trading partners.

Mr Gan, who is also Minister for Trade and Industry, said growth in gross domestic product (GDP) is expected to moderate to between 1 per cent and 3 per cent, and core inflation to be maintained at 1 per cent to 2 per cent.

Still, he said, businesses can face these challenges with optimism and confidence.

Speaking in Mandarin at Spring Reception 2025, a Chinese New Year celebration held in the Singapore Chinese Chamber of Commerce and Industry (SCCCI) building in Hill Street, Mr Gan said businesses must remain agile to better seize opportunities in the region.

He added: "Today, Asia's economy makes up close to 50 per cent of the world's GDP. This is expected to expand to about 60 per cent by 2030."

He noted that within Asia, South-east Asia has a growing middle-income segment, favourable demographics and widespread digital transformation, and is expected to become the fourth-largest economy in the world by 2030.