Prepare for more uncertainty and shifts in global economy: DPM Gan

S'pore needs to position itself well in new landscape, deal with US tariff policy, he says

- Ovais Subhani

Singapore should be ready for more tariff-induced uncertainties and structural shifts in the global economy that can affect trade and investment flows, said Deputy Prime Minister Gan Kim Yong. The Republic needs to position itself well for a new global economic landscape, even as the top priority is to manage the immediate tariff-related uncertainties, he said.

DPM Gan was speaking on Aug 25 at the annual MTI Economic Dialogue, which is jointly organised by the Ministry of Trade and Industry and the local universities, and held at the Singapore Management University. The event, which started in 2008, acts as a platform for students to gain insights into pertinent economic issues and challenges facing Singapore, as well as the role of economics in policymaking.

DPM Gan, who is also the Minister for Trade and Industry, said that while the US has made deals with many of its key trading partners since April 2 – when President Donald Trump unveiled his reciprocal tariff policy – significant uncertainties remain.

"Details on how the deals will be implemented remain unclear, and in fact, we have already seen a number of conflicting interpretations emerge," he said.

Negotiations with China, India and Switzerland are still ongoing, while the US has also hinted that further sectoral tariffs, such as on semiconductors and pharmaceuticals – key Singapore exports – are imminent.

DPM Gan said that as the effects of the tariffs flow through global supply chains, the costs are in time expected to exert margin and price pressures. "This will impact both consumer and corporate spending, and slow down growth in the global economy."