Singapore’s Economic Outlook: Navigating Uncertainty Amid Trade War Challenges

Singapore's trade minister, Gan Kim Yong, warns of a potential recession due to the U.S.-China trade war. A new taskforce is set up to assist businesses, and the GDP forecast is downgraded. Prime Minister Wong highlights the difficulties posed by unpredictable U.S. tariffs.

Singapore's economy stands on precarious ground as Trade Minister Gan Kim Yong, also serving as deputy prime minister, highlights the looming threat of recession in light of U.S.-China trade tensions. Announcing a specialized taskforce, Gan aims to aid businesses and workers grappling with the challenges posed by the intensified trade conflict.

Minister Gan emphasized the tangible impacts, citing instances of canceled or deferred orders for companies tied to Chinese manufacturing. As Singapore revises its GDP forecast downward for 2025, the nation braces for potential long-term implications should further U.S. tariffs affect key industries like semiconductors and pharmaceuticals.

Prime Minister Lawrence Wong underscored the unpredictable nature of the trade climate, particularly regarding U.S. tariffs. With elections looming, Wong's leadership faces its first significant test since assuming charge in 2024, stressing the importance of strategic economic adaptability amid global uncertainties.

(With inputs from agencies.)