Singapore, April 8 Singapore will establish a task force to help businesses and workers navigate uncertainties created by recent sweeping US tariffs, Prime Minister Lawrence Wong announced on Tuesday.
The task force will involve economic government agencies, the Singapore Business Federation, the Singapore National Employers Federation, and the National Trades Union Congress, Wong said during a parliamentary session.
Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, who will chair the task force, said that a key priority would be communication and information sharing. The task force will engage with the private sector to collect on-the-ground data, understand challenges faced by businesses, and explore ways to support them.
Union representatives will also be part of the task force, given the expected impact on jobs, Xinhua news agency reported. A major restructuring of the economy is anticipated, which will likely lead to long-term workforce adjustments, Gan said.
The government is also reaching out to trading partners to exchange information and assessments, aiming to collaborate on sustaining business relations and providing ongoing opportunities for enterprises.
Wong noted that weaker global growth is expected in the near term, which will likely reduce external demand for Singapore's goods and services. The outward-facing sectors, such as manufacturing, especially electronics and semiconductors, along with biomedical sciences, which have high export exposure to the United States, will bear the brunt of the impact. Some service industries, including finance and insurance, will also face challenges due to global uncertainty and dampened sentiments.
"Singapore may or may not go into recession this year, but I have no doubt that our growth will be significantly impacted," Wong said, adding that slower growth would lead to fewer job opportunities and smaller wage increases for workers. He also warned of potential higher retrenchments and job losses if more companies face difficulties or relocate operations back to the United States.
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