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Business Times
15-07-2025
- Business
- Business Times
Singapore's new grant signals the need to adapt to tariffs, not just ride them out
[SINGAPORE] Announced in April, suspended till July, then postponed to August, with sectoral variations on the way – the rollercoaster of US President Donald Trump's tariff threats hurtles onward, with no clear end in sight. Even as talks continue over so-called 'reciprocal tariffs' and sector-specific ones, countries and companies are prepared for an inescapably changed trade landscape. If nothing else, the US shows no intention of lifting the global 10 per cent tariff that it has imposed unilaterally. This dual stance of negotiation and preparation was clear in last Thursday's (Jul 10) press conference by the Singapore Economic Resilience Taskforce, set up in April in response to Trump's tariffs. Deputy Prime Minister Gan Kim Yong is heading to the US later this month for trade talks, with a focus on the Republic's pharmaceutical exports. In the meantime, a grant for tariff-affected businesses is in the works. To be launched by October this year, the aim is not to provide relief. Rather, it is to support businesses to 'adapt to the new tariff environment', as stated in a media release. The grant's long-term orientation reinforces a warning that political leaders have repeatedly made: The world has changed. Trump's tariff crisis is not just a passing bout of turbulence that companies can ride out, but part of a more fundamental shift in global dynamics. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Meanwhile, the grant's focus on adapting – with its very name being the Business Adaptation Grant – underlines the need for companies to not simply buckle in for a rough ride, but actively change in pursuit of better prospects. Businesses that export or have overseas operations, and are affected by tariffs, can tap the grant for advisory in free trade agreements and trade compliance; legal and contractual issues; and supply chain optimisation and market diversification. Meanwhile, manufacturers can get support for 'reconfiguration costs', such as costs associated with logistics and holding inventory. Not small change The grant will provide co-funding of up to S$100,000. While the sum may seem modest to some, it is far from negligible for small and medium enterprises (SMEs) – arguably its target audience. Indeed, the grant allocation will be 'more generous' for SMEs, as Manpower Minister Tan See Leng noted at the taskforce press conference. Beyond the practical aim of providing support, the grant may also play a persuasive role. First, the grant is being introduced in October and will be valid for two years. This two-year window is to provide 'some form of reassurance for businesses that, should there be a protracted period of negotiations, it would cover that length', said Dr Tan. But it also suggests, therefore, that the government sees a risk that negotiations might take that long – implying two years of tariff uncertainty. Secondly, the very fact that a grant is being introduced should suggest – not least to SMEs – the importance that the government places on such action. Granted, other government schemes have been underutilised before, such as SkillsFuture credits for individuals to get trained. The government's sense of urgency may not always be shared by the intended audience. But if nothing else, the specificity of this grant should dispel any lingering illusions that companies can simply wait passively for the tariff storm to pass. Larger companies, that can afford their own risk and compliance teams, have undoubtedly been making their own calculations about how to respond to the trade environment. The upcoming grant is a clear push for SMEs, too, to take action.
The Star
10-07-2025
- Business
- The Star
Singapore to launch new grant for companies, expand support for workers amid US tariff uncertainties
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
Straits Times
10-07-2025
- Business
- Straits Times
DPM Gan plans US visit to discuss tariffs, business opportunities for Singapore
SINGAPORE - Deputy Prime Minister Gan Kim Yong will travel to the US later in July to hold talks with his counterparts in the US administration and to meet business representatives to explore opportunities for Singapore companies. 'This (trip) will allow us to get a better understanding of US concerns, their priorities, their interests, and to explore opportunities that we can work together on to strengthen the bilateral relationship that have so far been mutually beneficial,' he said during a press conference held by the Singapore Economic Resilience Taskforce on July 10. While details of the trip are still being planned, DPM Gan said there are broadly three key objectives that he would focus on during his US visit. The top priority will be to further the discussions on tariffs on pharmaceuticals being contemplated by the US administration. The US is a major destination for Singapore's drugmakers that include American multinationals such as Pfizer and Johnson & Johnson. DPM Gan said he will explore various ways to 'facilitate trade between Singapore and the US on pharmaceuticals'. Singapore is already in talks with the US Department of Commerce on the issue of pharma tariffs . 'As discussions with the US are ongoing, I will not be able to share more details at this point, but I will continue to keep you updated should developments happen, whenever possible,' he said. ' (The) second area is a broader discussion with the US administration, to better understand their priorities, areas of interest, and to see whether there are opportunities for us to strengthen bilateral economic relationship, both on investment as well as trade, and also to look at the technology cooperation between our two countries,' said DPM Gan. 'I think there are many areas that we can discuss from an economic point of view,' he added. The third objective of his visit is to meet private sector representatives – business leaders as well as academics – to have an exchange of views to better understand their thinking, their plans, and to seek opportunities for cooperation. 'There are potential opportunities that our businesses here in Singapore can explore in the US, such as in AI technology and advanced manufacturing,' he said. Responding to a question, DPM Gan said the discussions with the US Department of Commerce is focused on how the two sides can evolve a system of practices that are practical and implementable. 'Because, as you know, pharmaceuticals have a very complex supply chain and a very long supply chain. So how can we make sure that we are able to continue to facilitate the trade between Singapore and the US with regard to pharmaceuticals – this is the focus of the discussion on pharmaceuticals.' He added that Singapore and the US have not yet commenced any discussions on semiconductors – another major Singapore export that is also the subject of a US tariff investigation. 'I think this is something that will be at the back of our mind, and we will probably touch on semiconductors after we have settled the pharmaceuticals discussion with the Department of Commerce ,' he said. DPM Gan, in response to another query, said: 'We certainly look forward to the appointment of the American ambassador here in Singapore so that we can work with him to see how we can continue to further strengthen the mutually beneficial bilateral relationship between Singapore and us.' Dr Anjani Sinha, US President Donald Trump's nominee for ambassador to Singapore, had a US Senate confirmation hearing on July 9 . 'It's not just economics. Our collaboration, our relationship is very broad-based – that includes defence , culture, and people-to-people exchanges. So there are many aspects of collaboration between Singapore and the US that we look forward to working with the new ambassador here in Singapore.'
New Straits Times
10-07-2025
- Business
- New Straits Times
Singapore to roll out grant to assist businesses adapt to tariffs
SINGAPORE: Singapore is set to launch a new grant by October 2025 to help businesses adapt to the new tariff environment, the Singapore Economic Resilience Taskforce (SERT) announced on Thursday. Manpower Minister Tan See Leng said the Business Adaptation Grant will be capped at S$100,000 (S$1 = RM3.31) per company, with small and medium enterprises (SMEs) likely to receive a higher level of support. "The SMEs, we will be more generous in terms of allocation of the grant itself, because they actually account for about two-thirds of our workforce in Singapore, a significant proportion of them are Singaporeans," he told a media conference, alongside other members of SERT. The scope of the grant will enable enterprises that export to and/or operate in overseas markets and are impacted by tariff measures to conduct free trade agreements and trade compliance advisory, legal and contractual advisory, as well as supply chain optimisation and market diversification. It will also support enterprises with manufacturing operations overseas or locally, who may receive assistance for reconfiguration costs, such as logistics and inventory holding expenses. Tan said additional details on the grant will be announced in due course. Meanwhile, Deputy Prime Minister Gan Kim Yong said the latest series of tariffs announced by the United States (US) will likely prolong uncertainty, volatility, and challenges for global economies. "We hope that negotiations and consultations will continue, and that the US will be able to reach deals with these countries to bring about lower tariffs and trade barriers," he said, adding that Singapore continued to be subject to a 10 per cent baseline tariff. Gan, who also serves as Trade and Industry Minister, shared that he will travel to the US later this month to continue discussions on potential US concessions on pharmaceutical tariffs and hold talks with the US administration on broader economic collaboration between the two countries. US President Donald Trump had previously stated his intention to introduce tariffs on imported pharmaceuticals. "We have not commenced a discussion on semiconductors. We will probably touch on semiconductors after we have settled the pharmaceuticals discussion with the Department of Commerce," Gan said. Meanwhile, Gan noted that the economy is likely to hold up relatively well in the first half of this year, as businesses have been preparing to adjust to the new tariff realities. "However, given the expectation of higher tariffs going forward, as well as the diminishing front-loading effect, we will likely see slower economic growth over the next six to 12 months," he said.
Straits Times
10-07-2025
- Business
- Straits Times
Fresh grads should ‘stay calm' in job search, uptick in hiring seen: Tan See Leng
Sign up now: Get ST's newsletters delivered to your inbox The employment rate for the 2025 graduating cohort was 51.9 per cent in June, which is 4 per cent higher than the June 2024 rate. SINGAPORE – Fresh graduates should press on with their job search even if the future appears uncertain, said Minister for Manpower Tan See Leng. The employment rate for the 2025 graduating cohort was 51.9 per cent in June, he said, which is 4 per cent higher than the June 2024 rate. 'I would really appeal to graduates and parents to stay calm. We have taken a more granular and careful look at the data on jobs and graduate employment this year. While it is still early days... we do see some silver lining in the data,' Dr Tan told a Singapore Economic Resilience Taskforce press conference on July 10. 'If you compare June 2025 with June 2024, actually, the employment rates have gone up,' he added, noting that many graduates may still be in the early phases of their job hunts. 'Rest assured, the Government, our tripartite partners, will continue to support you and walk every step with you.' Dr Tan, who is also the Second Minister for Trade and Industry, also urged businesses to invest in young graduates who will be future leaders of the workforce. He added that the number of entry-level vacancies in Singapore has remained steady. Top stories Swipe. Select. Stay informed. Business S'pore to launch new grant for companies, expand support for workers amid US tariff uncertainties Singapore HDB flats less attainable in 2024 compared with 2022: Report Asia Dr Mahathir at 100: Still haunted by the Malay Dilemma Sport No pain, no gain for Singapore's water polo teams at the world championships World 'Do some homework': 6 key exchanges between US Senator Duckworth and S'pore envoy nominee Sinha World Trump's ambassador nominee to Singapore Anjani Sinha has a rough day at Senate hearing Multimedia 60 objects to mark SG60: Which is your favourite? Within the public service, there were around 2,400 immediately available entry-level jobs, spanning across roles like engineers and software developers, Dr Tan said. Graduates can learn more about these opportunities at the public service career fair in August, the Careers@Gov job portal, or social media, he added. More broadly, employers in the health and social care industries, as well as the sustainability sector, were looking to grow their headcounts. This comes on top of a hiring push in teaching, technology, financial and insurance services, as well as professional services. Closer attention has been given to young job seekers during this time of global uncertainty, said NTUC secretary-general Ng Chee Meng. He said they face four main challenges when looking to enter the labour market: A skills gap, where they would need to acquire technical or soft skills. An expectation gap, where employers and job seekers have different expectations on matters like work-life balance. An opportunity gap, as global instability and artificial intelligence could change the nature and availability of jobs. An experience gap, where some employers may prefer candidates with prior industry experience for entry-level jobs. The experience gap puts first-time job seekers at a disadvantage, as they need a job to gain experience, but may not be able to get a job without work experience, Mr Ng said. Considering this, he urged young graduates to keep an open mind. 'As Minister Tan has highlighted, the labour market remains resilient today. There are job opportunities for our young,' he said. 'We do encourage our young workers, our youth to keep an open mind, consider all the different possibilities and the job offers available, even when they may not feel that the job checks every box. These jobs can open the first doors to experience, networks and potentially new directions,' he added. (From left) Singapore National Employers Federation president Tan Hee Teck, Minister Tan See Leng, NTUC Secretary-General Ng Chee Meng, Deputy Prime Minister Gan Kim Yong, Singapore Business Federation chairman Teo Siong Seng and Minister Josephine Teo at a press conference on July 10. ST PHOTO: GIN TAY On the labour movement's part, Mr Ng said he is looking to scale up the NTUC Youth Excel programme, which offers job search, skills training, networking and mentorship opportunities. Around 12,000 youth have benefited from the initiative since its launch in 2017. He also asked youth to consider signing up for a NTUC Starter membership, which provides access to career programmes that includes one-on-one mentorship. These add to a slate of measures targeted at entrants to the workforce as well as current workers. Earlier in the day, a national initiative, Career Health SG , was launched to support workers in accessing the right mix of training and on-the-job learning. A new one-stop website, Career Health SG, was also unveiled. It offers both workers and employers an overview of the available support measures, to help with career and workforce planning.
