Singapore to launch new grant for companies, expand support for workers amid US tariff uncertainties

The Star

5 days ago

SINGAPORE: Singapore companies will be able to tap a new grant to help them adjust to the new tariff environment, announced the Singapore Economic Resilience Taskforce (SERT).
The Business Adaptation Grant, to be launched by October 2025, will be capped at S$100,000 per company and requires co-funding by firms, Minister of Manpower Tan See Leng said as the taskforce provided an update of its work so far on Thursday (July 10).
SMEs will receive a higher level of support, while larger companies will be eligible for a smaller quantum. More details will be announced in October.
Dr Tan said the grant will support two broad groups of businesses.
For firms that export to or operate in overseas markets, it will cover advisory services related to free trade agreements, trade compliance, legal and contractual matters, supply chain optimisation and market diversification.
For businesses with local or overseas manufacturing operations, the grant can help to defray reconfiguration costs such as logistics and inventory-holding expenses.
Dr Tan noted that it would not be possible for the Government to cover every aspect of business operations or reach every firm with local, regional or international exposure, but the grant has been structured to differentiate between small-and-medium enterprises (SMEs) and larger firms.
'SMEs will receive more generous support, as they account for about two-thirds of Singapore's workforce, with a significant proportion being Singaporeans,' he said.
The July 10 press conference was attended by Deputy Prime Minister Gan Kim Yong, who chairs the taskforce; Minister for Digital Development and Information Josephine Teo, who also serves as Second Minister for Home Affairs; and Minister for Manpower Tan See Leng, who is also Second Minister for Trade and Industry.
Also present were NTUC secretary-general Ng Chee Meng, Singapore National Employers Federation (SNEF) president Tan Hee Teck, and Singapore Business Federation (SBF) chairman Teo Siong Seng.
The meeting comes as US President Donald Trump continued to fire off letters to countries, informing them of their new tariff rates.
Singapore has not received the letter. Other Asean neighbours such as Laos and Myanmar were told to expect 40 per cent.
Deputy Prime Minister Gan Kim Yong said that Singapore is one of the top investors in several countries across the region.
He cited the example of Suzhou Industrial Park in China, where the Republic is a major investor.
But with the world's second-largest economy now facing significant headwinds due to the global tariff situation, some Singapore firms with operations there may need to reconfigure their supply chains to remain competitive in both practical and compliant ways.
'These are our companies' investments overseas, and therefore it is important to make sure that they continue to survive and do well,' he said.
It is also crucial for these firms to remain profitable, DPM Gan added, as this strengthens the strategic value of the Republic's business ecosystem and creates more jobs in Singapore, whether in finance, legal services, R&D or manufacturing.
'So that's why it's important for us to have this regional and global perspective, not just a Singapore company doing business in Singapore,' he said.
On the job market front, NTUC secretary-general Ng Chee Meng said that young job seekers currently face four key 'gaps' as they transition into the workforce - skills, expectations, opportunities, and experience.
For example, some of them feel unprepared to take on roles in fast-evolving areas such as environmental, social, and governance (ESG), and have asked for targeted upskilling not just in industry-relevant technical skills, but also in soft skills.
Others are also concerned about job opportunities amid global instability, as well as the impact of AI on job availability and the nature of work.
Many employers also prefer candidates with prior industry experience, which puts first-time job seekers at a disadvantage.
'We will try our best to highlight existing tools that we have and the programmes that are in the works,' said Ng.
SNEF president Tan Hee Teck said that most employers are taking a cautious approach to workforce-related 'movements'.
Around 70 per cent have either planned or made workforce adjustments, including team reorganisations, hiring pauses and prioritising upskilling and reskilling to future-proof their organisations, he said.
'To help alleviate cost pressures and drive transformation, we strongly encourage employers to tap on the SERT's enterprise and work force support measures,' said Tan.
Still, there are silver linings in the job market.
Dr Tan noted that employment rate for the 2025 graduating cohort stood at 51.9 per cent as at June, a four per cent increase from the 47.9 per cent recorded in June 2024.
Vacancies for entry-level jobs have also remained steady. For example, there are currently 2,400 immediate vacancies suitable for fresh graduates in the public sector, including roles for engineers and software developers.
These are available on the Careers@Gov portal, with more opportunities to be found at a public service career fair in August.
Dr Tan noted that as at March 2025, there were 1.64 job vacancies per unemployed person, with about 70 per cent of these vacancies suitable for residents, largely concentrated in expanding or growth sectors.
According to the Ministry of Manpower's (MOM) finalised data in its Labour Market Report for the first quarter of 2025, the number of job vacancies stood at 81,100 in March, up from 77,500 in Dec 2024.
The proportion of employers intending to raise wages in the next three months also rose slightly, compared with the pre-tariff period in April and May 2025, added Dr Tan.
Dr Tan said the SkillsFuture Jobseeker Support Scheme had benefited about 2,200 involuntarily unemployed citizens between April and June. He added that the number of applications for the scheme has stabilised.
Still, the Government will expand support for jobseekers, with more career guidance services that workers can access through the Government and NTUC's Employment and Employability Institute, he said.
The Government will also provide temporary enhanced funding for basic certification to help human resource professionals better support employers in managing their workforce amid a volatile economic environment.
In his closing remarks, DPM Gan said it is important to plan ahead and take action to ensure that Singapore's economy continues to grow and remain relevant globally.
'Our focus remains very clear, which is to protect livelihoods, strengthen our resilience, and keep Singapore moving forward,' he said. - The Straits Times/ANN