Key Highlights from the Prime Minister’s Speech:
1. The End of Rules-Based Globalisation
- PM Lawrence pointed to the US Liberation Day tariffs as a clear sign that rules-based globalisation is over.
- The US, once a stalwart champion of open markets and multilateralism, has now imposed blanket tariffs of 10% on nearly all imports, with additional hikes of up to 50% targeting specific countries, including long-time partners like Singapore.
2. Singapore Hit Despite Trade Deficit with US
- Singapore, despite running a trade deficit with the US and having zero tariffs on American goods, has still been subjected to the new 10% tariff.
- PM Lawrence described the move as deeply disappointing and unjustified, noting it goes against the spirit of friendship between both countries.
3. WTO System Under Threat
- The US tariff regime is seen as a complete repudiation of the WTO’s Most Favoured Nation (MFN) principle.
- This unilateral approach threatens to unravel decades of cooperative trade norms and marginalise smaller nations like Singapore who rely on a level playing field.
4. A Looming Global Trade War
- The risk of a full-blown trade war is increasing.
- Countries like China have already retaliated, and the EU is weighing its options.
- While Singapore will not impose retaliatory tariffs, the spillover impact on businesses and global confidence is already being felt.
5. Serious Economic Impacts on Singapore
- The PM warned that Singapore’s outward-oriented sectors such as manufacturing (especially electronics), biomedical sciences, and transport will be hit hardest.
- GDP growth forecast for 2025, originally at 1–3%, will likely be revised downward.
- A rise in retrenchments, fewer job opportunities, and smaller wage increases are expected.
6. Support Measures & National Response
- The government is activating a multi-agency task force led by DPM Gan Kim Yong to support businesses and workers.
- Existing Budget 2025 measures—including CDC and SG60 vouchers, ComCare support, and SkillsFuture programs—will help cushion the impact.
- PM Lawrence reaffirmed Singapore’s financial strength and readiness to do more if needed.
7. ASEAN & Global Strategy
- The PM emphasised strengthening ASEAN integration and building new partnerships globally.
- Meetings with leaders including UK PM Keir Starmer and Malaysian PM Anwar Ibrahim highlight a drive to form new trade linkages.
- Singapore will work with like-minded partners to maintain open markets and lay foundations for a new global trade framework.
8. A Call for Unity and Resilience
Concluding with a powerful reminder of Singapore’s legacy of resilience, the Prime Minister called on all Singaporeans to stay united, resolute, and forward-looking:
Conclusion
PM Lawrence’s speech is a sobering reminder that Singapore’s fate is deeply tied to global stability, and that the country must adapt quickly to survive the shocks ahead. While the external environment grows more hostile, the government’s approach is clear: prepare, support, engage, and evolve.
As the global order fractures, Singapore is choosing principled pragmatism—anchored in unity, openness, and strategic foresight.
