Singapore, a key trading and financial hub in Asia, on Monday, August 4, said it will be reviewing its economic strategy in view of structural changes, including global geopolitical shifts and rapid technological disruptions.
The development comes days after US President Donald Trump announced sweeping new tariffs on over five dozen countries.
“Significant uncertainties” remain even with the latest announcement on tariffs from Washington, cautioned Deputy Prime Minister Gan Kim Yong at a press conference, citing how negotiations between the US and several major countries, including China and India, are still ongoing.
The review will chart an economic blueprint aimed at keeping the country globally competitive in the long term, with good opportunities for businesses and workers, Channel News Asia quoted Yong as saying.
The latest economic strategy review will be driven by five committees, each co-chaired by two political office holders and involving stakeholders from the private sector, unions and other organisations.
Singapore faces the baseline 10 percent tariff, according to the report.
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The US has said it will levy a 40 percent tariff on so-called transshipments. Singapore is a known Asian transshipments point, according to diplomatic observers, the report said.
The new US tariff directive will take effect on August 7.
Yong said the latest tariffs will “raise the aggregate US tariff rates from above 2 percent at the start of the year to about 15 percent or higher”.
“There will be long-term implications on the multilateral rules-based trading model that will inevitably affect Singapore and the rest of the world. We intend to continue to engage the US administration on these matters,” Yong said.
He said five appointed committees are likely to provide an update of their work and some key recommendations by “early next year”, and publish a final report by mid-2026.
