US tariffs prompt Singapore to launch review of economic strategy, competitiveness, AI
The economic strategy review will have five committees, each chaired by two government ministers and including members from the business, academic and social sectors, and they are due to publish their recommendations by mid-2026.
'We must reinforce Singapore's competitive positioning as a key hub for trade and investment and remain relevant to the global economy,' Deputy Prime Minister and Trade Minister Gan Kim Yong told at a press conference.
Singapore's Deputy Prime Minister and Minister of Trade and Industry Gan Kim Yong said the city state 'must reinforce its competitive positioning as a key hub for trade and investment'. Photo: Reuters
The review comes as
US tariffs and global trade tensions threaten the Southeast Asian nation's growth, where trade is three times the size of its gross domestic product.
Singapore's exports to the US remain subject to a 10 per cent baseline tariff after US President
Donald Trump set new tariffs for dozens of countries, but authorities are still waiting for clarity on proposed sector-specific tariffs in areas such as pharmaceuticals. Last week, the central bank said the effective US tariff rate on Singapore's exports rose to 7.8 per cent in July from 6.8 per cent in April on the back of steel and aluminium tariff hikes.
The Monetary Authority of Singapore held its policy settings steady last week, adopting a wait-and-see approach to trade tensions after easing at its previous two reviews this year.
While the economy grew at a better-than-expected annual rate of 4.3 per cent in the second quarter, according to preliminary data, authorities have warned that growth is likely to slow as the impact of front-loading of orders to beat the US tariffs tapers off.
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