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S'pore economy beginning to slow down as uncertainty looms: DPM Gan
The Singapore Economic Resilience Taskforce is working on potential measures to help Singaporeans and businesses.
Although the United States government has paused its "reciprocal tariffs" for 90 days and reached deals with countries such as China, the global economic outlook remains "very uncertain", said Deputy Prime Minister Gan Kim Yong on May 16.
"What will happen at the end of 90 days is still a big question mark," he said at a Friday media doorstop interview.
"Whether negotiations with other countries will progress smoothly, whether they will eventually settle at a level that is mutually agreeable and workable, is something that is yet to be seen," added DPM Gan, who is also Minister for Trade and Industry and chairs the Singapore Economic Resilience Taskforce (SERT).
Describing the U.S.-China agreement to pause tariffs and lower the tariff levels as one of the "encouraging developments" recently, DPM Gan still offered words of caution:
SERT working on potential measures to help Singaporeans & businesses
According to DPM Gan, Singapore's economy is beginning to slow down.This was due to uncertainties revolving around tariffs that led some export orders for Singapore businesses to be delayed, deferred, or cancelled.
Earlier on Apr. 14, the Ministry for Trade and Industry had also downgraded Singapore's Gross Domestic Product (GDP) growth forecast from 1.0 to 3.0 per cent to 0.0 to 2.0 per cent.
In view of the potential impact of an economic slowdown on Singapore businesses, workers, and residents, DPM Gan said SERT has been engaging with SMEs (small and medium-sized enterprises), MNCs (multinational corporations), trade unions, workers, and households.
Besides sharing with them the latest developments globally and locally, SERT also sought feedback to understand their concerns, worries, and interests so that SERT can better support them.
"We have started working on potential measures that we may want to roll out in time to come, when the situation warrants it," he added.
These measures will add to the supportive measures in the Budget 2025 Statementdelivered by Prime Minister Lawrence Wong, such as corporate tax rebates and Community Development Council (CDC) vouchers.
Details of possible measures
Noting that some Singapore businesses were worried about cash flow and working capital in a global economic slowdown, DPM Gan said SERT is looking at how related schemes, such as the Market Readiness Assistance Grant (MRA), can be enhanced."We are also talking to the banks and also reviewing our various financing scheme that we have already put in place and still in place, to see whether they are adequate or whether there is room for us to enhance them."
For workers, DPM said the key "is to create more job opportunities and more opportunities for them to stay engaged and stay productive".
As such, SERT has been working with some of the major employers and companies to see whether it can continue to support the creation of new jobs and explore increasing internship opportunities for younger workers, especially for fresh graduates.
"We are also working with institutes of higher learning to see whether we can step up our efforts in job assistance, including counselling, job search, and creating more opportunities for job fairs, so that our graduates will have more opportunities to secure a job going forward."
Concurrently, SERT is working on increasing training and upskilling opportunities for in-service workers and fresh graduates, such as through the SkillsFuture Level-Up Programme.
SERT "will roll out additional programmes to ensure our workers will be able to find jobs" if the employment market remain soft, said DPM Gan.
DPM Gan also highlighted that the first tranche of CDC vouchers, which amount to S$500, have been made available for eligible Singaporean households from May 13.
Additionally, eligible Singaporeans and households will receive SG60 vouchers in July 2025 and the second tranche of CDC vouchers, which amount to S$300, early next year.
He said:
Top image by Mothership
