Singapore says its growth forecast may need further adjustment amid uncertainty
SINGAPORE (Reuters): Singapore's economic growth forecast may need to be adjusted further, its trade minister said on Friday, as uncertainty remains despite a recent breakthrough in US-China tariff negotiations.
Trade Minister Gan Kim Yong, also deputy prime minister, said the trade-reliant economy is beginning to slow down and while US-China talks are encouraging "we need to exercise caution, because the outlook remains very uncertain."
Singapore in April downgraded its gross domestic product forecast for the year to a range of 0% to 2% from 1% to 3%.
Despite having a free trade agreement with the United States, the wealthy financial hub was subject to a 10% baseline tariff, though far short of the stiff levies on Southeast Asian neighbours which are among the world's hardest hit.
The United States has imposed tariffs of 32% on Indonesia, 36% on Thailand, 46% on Vietnam, 49% on Cambodia and 24% on Malaysia.
As one of the world's most open economies, Singapore is often seen as a bellwether for global growth as its international trade dwarfs its domestic economy. That leaves the city-state exposed to global uncertainties and its government has warned the 10% tariff and the global trade war could lead to a recession and job losses.
Gan told a press conference the United States was not going to budge on the 10% levy, but it was trying to negotiate for concessions on pharmaceutical tariffs that U.S. President Donald Trump has threatened but not yet announced.
"Both Singapore and the US can sit down and discuss some form of a concession for Singapore to have a beneficial or preferential tariff, even to the extent of zero tariff, for pharmaceutical exports to the US.
"That will require some efforts on the Singapore side to ensure that the supply chain for pharmaceuticals is secure," said Gan.
He did not elaborate on what he meant by a secure supply chain. Gan previously said that pharmaceuticals makes up more than 10% of Singapore's total exports to the U.S.
(Reporting by Jun Yuan Yong; Editing by Martin Petty) - Reuters
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
an hour ago
- New Straits Times
Chelsea add Gittens to glut of attacking talent
LONDON: Chelsea added England under-21 international winger Jamie Gittens to their array of attacking talent on Saturday from Borussia Dortmund. The Blues will reportedly pay an initial £48.5 million (US$66 million) for the 20-year-old, who was in Chelsea's academy as a youth player, with a further £3.5 million in add-ons. Gittens eventually moved to Manchester City's academy before signing for Dortmund in 2022. He made 107 appearances for the German giants, scoring 17 goals, 12 of which came in the Bundesliga and Champions League last season. "It's a great feeling to join such a big club as Chelsea," said Gittens. "I can't wait to learn from everyone in the team and to push myself to the max here. It's an amazing feeling." Gittens became Chelsea's fifth signing of another big-spending summer, joining forwards Liam Delap and Joao Pedro, midfielder Dario Essugo and defender Mamadou Sarr. Brazilian rising star Estevao Willian, 18, will also join the Premier League giants, in a deal agreed last year, after scoring against Chelsea in Palmerias' 2-1 Club World Cup quarter-final defeat on Friday. Gittens, though, will not be eligible to feature in Chelsea's semi-final against Fluminense on Tuesday or the final should the Blues progress. "Jamie Gittens' career exemplifies the development of top talents at BVB," said Dortmund CEO Lars Ricken. "We discovered him very early, signed him almost at no cost, continuously developed him in our youth academy, and provided him with playing time at the highest professional level. "Jamie has repaid that trust with dedication, performance, and goals. His transfer back to his home country would be highly valuable for us." Chelsea are under pressure to recoup some of their transfer spend in sales over the coming months. On Friday, they were fined €31 million by UEFA for two breaches of financial sustainability rules, with a further €60 million suspended as part of a four-year settlement agreement. Moreover, Chelsea, who have qualified for the Champions League, cannot register any new players for European competition unless they earn more from transfer sales than they spend on new signings. — AFP
Daily Express
2 hours ago
- Daily Express
Myanmar armed groups rebuff junta's ‘cooperation' appeal
Published on: Sunday, July 06, 2025 Published on: Sun, Jul 06, 2025 By: AFP Text Size: The unexpected appeal comes as the junta continues to suffer major battlefield reverses to ethnic minority armed groups and pro-democracy forces. BANGKOK: Myanmar's ruling junta on Saturday made a rare call for the armed groups it is fighting to cooperate with it ahead of a slated election, an invitation anti-coup forces swiftly rejected. The unexpected appeal comes as the junta continues to suffer major battlefield reverses to ethnic minority armed groups and pro-democracy 'People's Defence Forces' (PDF) that rose up to oppose its seizure of power in 2021. Advertisement 'If the armed groups... choose to legally establish themselves within the framework of the law and cooperate hand in hand with the government... the government will welcome and accept this,' the military said in a statement published by junta media The Global New Light of Myanmar. The National Unity Government, a body dominated by ousted lawmakers working to reverse the coup, said the junta announcement was 'a strategy filled with deception aimed at legitimising their power-consolidating sham election and attempting to divide and weaken' its opponents. The military ousted Aung San Suu Kyi's elected civilian government in February 2021, triggering mass protests that were met with a brutal crackdown. Civilians set up PDFs to fight back and ethnic minority armed groups—many of which have fought the military for decades—were reinvigorated, plunging the country into civil war. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Malay Mail
2 hours ago
- Malay Mail
Brics leaders target ‘indiscriminate' US tariffs as China's Xi skips Brazil summit
RIO DE JANEIRO, July 6 — Brics leaders meeting in Rio de Janeiro today are expected to decry US President Donald Trump's 'indiscriminate' trade tariffs, saying they are illegal and risk hurting the global economy. Emerging nations, which represent about half the world's population and 40 per cent of global economic output, have united over 'serious concerns' about US import tariffs, according to a draft summit statement obtained by AFP yesterday. Since coming to office in January, Trump has threatened allies and rivals alike with a slew of punitive duties. His latest salvo comes in the form of letters informing trading partners of new tariff rates that will soon enter into force. The draft summit declaration does not mention the United States or its president by name, and could yet be amended by leaders gathering for talks today and tomorrow. But it is a clear political shot directed at Washington from 11 emerging nations, including Brazil, Russia, India, China and South Africa. 'We voice serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO (World Trade Organisation) rules,' the draft text says. It warns that such measures 'threaten to further reduce global trade' and are 'affecting the prospects for global economic development.' Xi no show Conceived two decades ago as a forum for fast-growing economies, the Brics have come to be seen as a Chinese-driven counterbalance to Western power. But the summit's political punch will be depleted by the absence of China's Xi Jinping, who is skipping the annual meeting for the first time in his 12 years as president. That absence has prompted fevered speculation in some quarters. 'The simplest explanation may hold the most explanatory power. Xi recently hosted Lula in Beijing,' said Ryan Hass, a former China director at the US National Security Council who is now with the Brookings Institution think tank. The Chinese leader will not be the only notable absentee. War crime-indicted Russian President Vladimir Putin is also opting to stay away, but will participate via video link, according to the Kremlin. Hass said Putin's non-attendance and the fact that Indian Prime Minister Narendra Modi will be a guest of honor in Brazil could also be factors in Xi's absence. 'Xi does not want to appear upstaged by Modi,' who will receive a state lunch, he said. 'I expect Xi's decision to delegate attendance to Premier Li (Qiang) rests amidst these factors.' Still, the Xi no-show is a blow to host President Luiz Inacio Lula da Silva, who wants Brazil to play a bigger role on the world stage. In the year to November 2025, Brazil will have hosted a G20 summit, a Brics summit, and COP30 international climate talks, all before heading into fiercely contested presidential elections next year, in which he is expected to run. Lula warmly welcomed leaders and dignitaries yesterday, including China's Premier Li Qiang, as the leftist president hosted a pre-summit business forum in Rio. 'Faced with the resurgence of protectionism, it is up to emerging countries to defend the multilateral trade regime and reform the international financial architecture,' Lula told the event. Iran's President Masoud Pezeshkian, whose nation is still reeling from a 12-day conflict with Israel, is also skipping the meeting and will be represented by Foreign Minister Abbas Araghchi. A source familiar with the negotiations said Iran had sought a tougher condemnation of Israel and the United States over their recent bombing of Iranian military, nuclear and other sites. But one diplomatic source said the text would give the 'same message' that Brics delivered last month. Then Iran's allies expressed 'grave concern' about strikes against Iran, but did not explicitly mention Israel or the United States. Artificial intelligence and health will also be on the agenda at the summit. Original members of the bloc Brazil, Russia, India, and China have been joined by South Africa and, more recently, Saudi Arabia, Iran, the United Arab Emirates, Egypt, Ethiopia and Indonesia. — AFP
