Latest news with #SingaporeEconomicResilienceTaskforce
Straits Times
4 days ago
- Business
- Straits Times
Acting Transport Minister Jeffrey Siow, SBF chair Teo Siong Seng join Economic Resilience Taskforce
Acting Minister for Transport and Senior Minister of State for Finance Jeffrey Siow will join the Singapore Economic Resilience Taskforce. PHOTO: BT FILE SINGAPORE - Changes have been made to the composition of the Singapore Economic Resilience Taskforce (SERT) following the new Cabinet line-up announced on May 21. Acting Transport Minister and Senior Minister of State for Finance Jeffrey Siow has joined the task force, while Minister for Education and Minister-in-charge of Social Services Integration Desmond Lee will leave SERT. Newly elected Singapore Business Federation (SBF) chairman Teo Siong Seng will replace former chairman Lim Ming Yan as SBF's representative. The changes will take effect immediately, said the Ministry of Trade and Industry, the SBF, the National Trades Union Congress (NTUC) and Singapore National Employers Federation (SNEF) in a joint media release on May 27. Deputy Prime Minister Gan Kim Yong, who chaired the task force, said: 'SERT's mandate remains unchanged. We will continue to work with our tripartite partners to help our businesses and workers navigate the current uncertainties in global trade.' The other members of the task force include: Minister for Digital Development and Information Josephine Teo Minister for Manpower and Minister-in-charge of Energy and Science & Technology Tan See Leng Minister for National Development Chee Hong Tat NTUC secretary-general Ng Chee Meng SNEF president Tan Hee Teck The task force was announced by PM Wong on April 8, after US President Donald Trump on April 2 said he would impose sweeping tariffs on all imports, including goods from Singapore. DPM Gan first hinted of possible changes to SERT's composition on May 16 while updating the media about its progress on trade talks with the US. He said while a 10 per cent baseline tariff on Singapore remains non-negotiable, there is hope that the Republic may be spared from an upcoming sectoral levy on its pharmaceutical exports. He added the Government is ready to enhance existing schemes to help workers and businesses if the global economy weakens further due to tariff-induced uncertainties. Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
16-05-2025
- Business
- Straits Times
Govt prepared to enhance support for workers, businesses amid tariff uncertainty: DPM Gan
Deputy Prime Minister Gan Kim Yong said job security had emerged as the top-of-mind concern during conversations with fresh graduates, workers and the unions. ST PHOTO: LIM YAOHUI SINGAPORE - The Government is ready to enhance existing schemes to help workers and businesses if the global economy weakens further due to tariff-induced uncertainties, said Deputy Prime Minister Gan Kim Yong. While providing an update on the progress made by the Singapore Economic Resilience Taskforce on May 16, DPM Gan said job security had emerged as the top-of-mind concern during the committee's conversations with fresh graduates, workers and the unions. He said the task force is working with institutes of higher learning to step up efforts in helping fresh graduates secure good jobs. These include providing career counselling and holding job fairs. He also encouraged fresh graduates and younger workers to keep their options open, and be more flexible in terms of the type of jobs and the salary package they are looking for. 'When the situation improves and the job market strengthens, there will always be opportunities to look for better jobs and better-paying jobs,' he said. Employers can also do their part and give more opportunities to young graduates, he added. 'You take them on as a trainee, as interns, so that they will acquire necessary experience because everybody has to start somewhere. We will be talking to these companies to create internship opportunities,' DPM Gan said. For mid-career workers, he said they can tap the training and upskilling opportunities under initiatives such as the SkillsFuture Level-Up Programme, which provides Singaporeans aged 40 and above with a top-up of $4,000 in SkillsFuture Credit to pursue courses that can help them stay industry-relevant. He urged workers to stay positive and focus on upgrading themselves as the job market and the skill sets needed after the tariff tension settles will be 'quite different'. 'They should keep their skills up to date and relevant, so that when these new opportunities emerge, they will be in a strong position to seize these opportunities that will come our way,' DPM Gan said. More support for companies On the business front, DPM Gan said some companies are already grappling with deferred or cancelled orders, while others are worried about declining revenue, potential payment delays and cash flow issues. To address their concerns, the Government has introduced several measures from tax rebates to the Market Readiness Assistance grant, which supports companies that want to explore new markets by defraying their costs of overseas market promotion, business development and set-up. 'We are also talking to the banks and reviewing our various financing schemes that we have already put in place and are still in place, to see whether they are adequate and whether there is room for us to enhance them,' DPM Gan said, noting that companies that are exporting directly to the US market may face greater issues with working capital in the event of an economic slowdown. Businesses are also concerned about the policy uncertainty over tariffs. They do not know what tariffs will be applied six months or a year from now, which makes it hard for them to lock in longer-term orders. 'To many businesses, this uncertainty is very worrying and very unsettling,' DPM Gan said, adding that companies have found it difficult to do business planning. 'In the absence of absolute knowledge of what's going to happen, it is always a challenge,' he said. But he encouraged businesses to look ahead and get ready for any changes that may come their way. 'We must be ready to diversify our supply chain sources, and also diversify our markets for our goods and products. 'At the same time, we also encourage our enterprises to develop new products and services that will allow us to open up new opportunities for our businesses and for the workers,' he said. He noted that some companies here have taken advantage of the 90-day tariff deferment period to export to the US as much as they can, he said, but he cautioned against interpreting this as a positive sign. 'This is what we call front-loading, and therefore you may see our exports grow, and our economy activities picking up,' he said. According to figures released by trade agency Enterprise Singapore on May 16, Singapore's non-oil domestic exports surged 12.4 per cent in April year on year, compared with a 5.4 per cent rise in March. Mr Gan said while the advance sales may boost export numbers, it is 'really no consolation'. 'You are just selling ahead of time, which means in time to come, the exports and production will slow down when they (importers) have already stocked up in the countries that we are exporting to,' he said, adding that the advance exports may also incur storage costs, especially if there are further changes to tariff policies. Join ST's Telegram channel and get the latest breaking news delivered to you.
CNA
16-05-2025
- Business
- CNA
Singapore firms struggling with cash flow amid US tariffs
Singapore companies are struggling with cash flow, as their orders get delayed and customers miss payments. They have voiced these concerns to the Singapore Economic Resilience Taskforce chaired by Deputy Prime Minister Gan Kim Yong. Local firms are facing uncertainty over the effects of US tariffs and slowdown in the global economy. Mr Gan said the taskforce is keeping a close watch on local firms and support measures will be given, if needed. Nasyrah Rohim reports.
Business Times
16-05-2025
- Business
- Business Times
Singapore may get preferential tariff or exemption for pharmaceutical exports in US trade talks: DPM Gan
[SINGAPORE] There is a prospect that Singapore's pharmaceutical exports to the United States may be tariff-free, based on ongoing trade negotiations between the two countries. The US has offered to discuss 'some form of concession for Singapore to have an official preferential tariff, even to the extent of zero tariff, for pharmaceutical exports to the US', said Deputy Prime Minister Gan Kim Yong on Friday (May 16). DPM Gan was giving an update on Singapore's negotiations with the US, which are centred on sectoral tariffs – chiefly for pharmaceutical exports, though the US has also indicated plans for semiconductor tariffs. In exchange, Singapore may have to ensure 'a smoother flow of goods' and the 'security of supply chains', he said at a doorstop at the Singapore Economic Resilience Taskforce, which he chairs. He did not give details, citing the confidential nature of the discussions. The task force was set up shortly after US President Donald Trump unleashed his 'Liberation Day' tariffs on Apr 2, with a 10 per cent baseline duty and higher reciprocal tariffs for some countries. A week later, a 90-day pause on reciprocal tariffs was introduced for most countries. There is a 'significant opportunity' as pharmaceuticals remain a key part of Singapore's exports to the US – but the negotiations are likely to be a 'fairly long journey' due to the high level of details involved, DPM Gan warned. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up There are also discussions on semiconductors, but 'the details are not available yet', he added. 'They are happy to discuss with Singapore how we can ensure continued supply, and the reverse is also important – that they are also keen to see how they continue to supply Singapore with semiconductor technology so that we will support our digital economy or semiconductor industries.' Given the widely-held belief that consumers bear the cost of import tariffs, a concession on pharmaceutical products would be consistent with President Trump's desire to bring down drug prices in the US. Despite the US tariff pause and ongoing talks on pharmaceutical rates, Singapore is not further revising its growth projection for now, amid heightened global uncertainty, DPM Gan said on Friday. 'The fact that the US and China are at the discussion table is encouraging, but it's too early to tell what the outcome will be, and the uncertainty remains,' he pointed out. So while the talks are encouraging, Singapore must 'exercise caution', he added. Singapore downgraded its full-year growth outlook to 0 to 2 per cent last month, from an earlier projection of 1 to 3 per cent. DPM Gan, who is also trade and industry minister, noted that tariff uncertainty is causing businesses to hold back on investment and hiring decisions. 'The slowdown in investment will also result in the slowdown of the global economy and domestic economy,' he said. US tariffs on China imports were cranked up to 145 per cent at their peak, then slashed to 30 per cent for a 90-day period, following a May 14 meeting between Trump and Chinese President Xi Jinping in Geneva. DPM Gan noted that some companies may be front-loading exports during this 90-day window, leading to a short-term boost. Singapore's non-oil domestic exports surged 12.4 per cent in April, Enterprise Singapore data showed on Friday. Yet this is 'really no consolation', explained DPM Gan, as it merely represents 'advance sales', and exports and production will eventually slow down. Potential support measures DPM Gan gave an overview of the task force's three key areas of work: information, engaging businesses and longer-term strategy. The task force has been speaking to both multinational corporations and smaller companies to prepare them for the tariff impact and learn how to better support them. DPM Gan said that the task force has started working on potential support measures that can be rolled out 'when the situation warrants it'. These include enhancements to schemes in Budget 2025, such as the Market Readiness Assistance Grant for going overseas; financing schemes with local banks; and job-creation efforts. Asked what the tipping point for such a roll-out would be, the minister replied that there is no specific index being watched, but the task force is monitoring 'the overall development of the global situation, as well as the domestic and economic situation'. There may be both broad-based measures to help the economy as a whole, and 'very targeted measures' for affected sectors, he added. For example, some companies that export directly to the US could see orders slowing down, and may thus need more capital since payments may be dragged out. Change in line-up? With a Cabinet reshuffle imminent after the May 3 General Election (GE), DPM Gan did not rule out the possibility that the line-up of the task force could change. 'We may need to make some adjustments to the membership, because the membership is taken from ministers with a specific portfolio,' he said. Besides DPM Gan, the task force comprises four other ministers and three tripartite representatives – one each from the Singapore Business Federation, the National Trades Union Congress and the Singapore National Employers Federation.
Business Times
16-05-2025
- Business
- Business Times
Singapore may get preferential or tariff exemption for pharma exports in US trade talks: DPM Gan
[SINGAPORE] THERE is a prospect that Singapore's pharmaceutical exports to the US may be tariff-free, based on ongoing trade negotiations between the two countries. The US has offered to discuss 'some form of concession for Singapore to have an official preferential tariff, even to the extent of zero tariff, for pharmaceutical exports to the US', said Deputy Prime Minister Gan Kim Yong on Friday (May 16). DPM Gan was giving an update on Singapore's negotiations with the US, which are centred on sectoral tariffs – chiefly for pharmaceutical exports, though the US has also indicated plans for semiconductor tariffs. In exchange, Singapore may have to ensure 'a smoother flow of goods' and the 'security of supply chains', he said at a doorstop at the Singapore Economic Resilience Taskforce, which he chairs. He did not give details, citing the confidential nature of the discussions. The task force was set up shortly after US President Donald Trump unleashed his 'Liberation Day' tariffs on Apr 2, with a 10 per cent baseline duty and higher reciprocal tariffs for some countries. A week later, a 90-day pause on reciprocal tariffs was introduced for most countries. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up There is a 'significant opportunity' as pharmaceuticals remain a key part of Singapore's exports to the US – but the negotiations are likely to be a 'fairly long journey' due to the high level of details involved, DPM Gan warned. There are also discussions on semiconductors, but 'the details are not available yet', he added. 'They are happy to discuss with Singapore how we can ensure continued supply, and the reverse is also important – that they are also keen to see how they continue to supply Singapore with semiconductor technology so that we will support our digital economy or semiconductor industries.' Given the widely-held belief that consumers bear the cost of import tariffs, a concession on pharmaceutical products would be consistent with President Trump's desire to bring down drug prices in the US. Despite the US tariff pause and ongoing talks on pharmaceutical rates, Singapore is not further revising its growth projection for now, amid heightened global uncertainty, DPM Gan said on Friday. 'The fact that the US and China are at the discussion table is encouraging, but it's too early to tell what the outcome will be, and the uncertainty remains,' he said. So while the talks are encouraging, Singapore must 'exercise caution', he added. Singapore downgraded its full-year growth outlook to 0 to 2 per cent last month, from an earlier projection of 1 to 3 per cent. DPM Gan, who is also trade and industry minister, noted that tariff uncertainty is causing businesses to hold back on investment and hiring decisions. 'The slowdown in investment will also result in the slowdown of the global economy and domestic economy,' he said. US tariffs on China imports were cranked up to 145 per cent at their peak, then slashed to 30 per cent for a 90-day period, following a May 14 meeting between Trump and Chinese President Xi Jinping in Geneva. DPM Gan noted that some companies may be front-loading exports during this 90-day window, leading to a short-term boost. Singapore's non-oil domestic exports surged 12.4 per cent in April, Enterprise Singapore data showed on Friday. Yet this is 'really no consolation', explained DPM Gan, as it merely represents 'advance sales', and exports and production will eventually slow down. Potential support measures DPM Gan gave an overview of the task force's three key areas of work: information, engaging businesses and longer-term strategy. The task force has been speaking to both multinational corporations and smaller companies to prepare them for the tariff impact and learn how to better support them. DPM Gan said that the task force has started working on potential support measures that can be rolled out 'when the situation warrants it'. These include enhancements to schemes in Budget 2025, such as the Market Readiness Assistance Grant for going overseas; financing schemes with local banks; and job-creation efforts. Asked what the tipping point for such a roll-out would be, the minister replied that there is no specific index being watched, but the task force is monitoring 'the overall development of the global situation, as well as the domestic and economic situation'. There may be both broad-based measures to help the economy as a whole, and 'very targeted measures' for affected sectors, he added. For example, some companies that export directly to the US could see orders slowing down, and may thus need more capital since payments may be dragged out. Change in line-up? With a Cabinet reshuffle imminent after the May 3 General Election (GE), DPM Gan did not rule out the possibility that the line-up of the task force could change. 'We may need to make some adjustments to the membership, because the membership is taken from ministers with a specific portfolio,' he said. Besides DPM Gan, the task force comprises four other ministers and three tripartite representatives – one each from the Singapore Business Federation, the National Trades Union Congress and the Singapore National Employers Federation.
