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As tariff tensions create ripple effects across the world, SERT is working on short- and long-term plans to protect jobs, support companies, and keep the economy strong.
On 16 May 2025, Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry shared that the Singapore Economic Resilience Taskforce (SERT) has been engaging businesses to exchange updates, understand their concerns, and plan support measures in case the economy weakens further.
The Taskforce is focusing on three main areas:
- Making sense of the global situation,
- Helping companies and workers deal with immediate impact, and
- Preparing companies for the future.
Understanding the global picture
DPM Gan explained that trade tensions especially involving the US, China, and other major economies have led to changes in tariffs. While a 10% tariff remains in place for most countries, higher tariffs have been delayed for 90 days to allow time for negotiations.
He called recent developments “encouraging”, such as the US-China agreement to lower tariffs and the UK-US Economic Prosperity Deal. However, he also warned that the situation remains unpredictable, with many negotiations just beginning.
Business concerns: Fewer orders and cashflow worries
Many local businesses, including both MNCs and SMEs, are increasingly worried about the global economic slowdown. They have started to see delayed or cancelled orders, raising concerns over future revenue, payment delays, and cashflow. Some are also facing working capital pressures. These are issues SERT is taking into account to help them deal with the immediate concerns.
To support businesses, the government is reviewing existing schemes such as tax rebates and Market Readiness Assistance. In addition, SERT is working with banks to ensure financing support is available if needed. Enhancements to these schemes may be rolled out if the situation worsens.
Worker concerns: Jobs, job security, and skills
Many workers are concerned about job security, while fresh graduates are anxious about securing good opportunities in the current job market. To address this, the government is working to create more jobs and expand internship opportunities especially for those looking to gain experience or training before securing permanent roles.
SERT is working with Institutes of Higher Learning (IHLs) to boost job support for Singaporeans. This includes expanding job search assistance, offering more career counselling, and organising additional job fairs to help graduates and jobseekers secure employment.
At the same time, efforts are underway to increase training and upskilling opportunities, both for new entrants to the workforce and for in-service workers looking to stay relevant. The recently announced SkillsFuture Level-Up Programme is one such initiative, and more enhancements are being considered.
If the job market becomes weaker, more support will be introduced to help workers find employment and improve their skills.
Supporting households through cost-of-living relief
DPM Gan also acknowledged that households are feeling the impact of higher living costs. He pointed to government support such as the CDC vouchers, with the first S$500 tranche already distributed and another S$300 due early next year. Additionally, SG60 vouchers will be rolled out later this year.
"We want to assure Singapore households that we will be there to support you to make sure that you will be able to cope with the impact of the economic slowdown if it happens," he said.
Long-term plans: Stronger trade links and supply chain resilience
Looking ahead, SERT is focused on helping businesses adapt to a shifting global trade landscape. This includes supporting companies in restructuring and reorganising to remain resilient, while also working to expand markets and diversify supply chains.
A key part of this effort involves deepening trade partnerships starting with ASEAN. Singapore is actively engaging with regional counterparts and is close to concluding negotiations on the upgraded ASEAN Trade in Goods Agreement (ATIGA), expected by the end of this month. This upgrade aims to further lower tariffs and remove trade barriers, signalling ASEAN’s strong commitment to economic integration and cooperation.
Beyond the region, Singapore is also working with ASEAN to explore stronger ties with other trading organisations, including the European Union (EU), Gulf Cooperation Council (GCC), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the Regional Comprehensive Economic Partnership (RCEP).
By expanding trade opportunities and strengthening supply chain links, these partnerships aim to open up new markets for Singapore’s exports, while also securing more diverse sources of supply. This two-way strategy is key to boosting long-term economic resilience.
DPM Gan emphasised that amid ongoing uncertainty, both businesses and workers must stay flexible, plan ahead, and continuously adapt to seize new opportunities in a changing landscape.
DPM Gan concluded: "For the workers, we want to continue to encourage them to stay positive and focus on training and upgrading, because I think the scenario, the landscape after this tariff tension settles will be a new landscape.
"It will be quite different and the skillset that will be needed for new opportunities will be very different from what we are seeing today," he continued, adding that workers should continue to make sure that they upgrade themselves and keep their skills up to date and relevant so that "when these new opportunities emerge, they will be in a strong position to seize these opportunities that will come our way."
This, he affirmed, is the key message to both businesses and workers in Singapore.
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