Singapore and rest of world worse off after US tariff; ties within Asean must stay on track: SM Lee


Senior Minister Lee Hsien Loong chatting with members of the public at the official reopening of Cheng San Community Club on Dec 6. - Photo: ST

SINGAPORE: Even though the global economy did not succumb to the “Liberation Day” tariffs imposed by the US in April, many countries, including Singapore, are now in a worse off position.

And they will be so for a long time to come, said Senior Minister Lee Hsien Loong on Saturday (Dec 6) at the official reopening of Cheng San Community Club.

This means less growth and progress for Singapore, more friction with other countries and a more troubled world, SM Lee said.

This is even as Singapore’s economy is projected to perform better than expected in 2025, he noted.

The Ministry of Trade and Industry had upgraded the country’s growth forecast to 4 per cent, from the 1.5 per cent to 2.5 per cent range projected in August. The economy is projected to grow between 1 per cent and 3 per cent in 2026.

Singapore was among the countries hit by a 10 per cent baseline tariff, or taxes imposed on imported goods, that US President Donald Trump announced on April 2.

SM Lee said the US is now taking a very different attitude towards international trade and investment, and towards its relationship with other countries.

“It no longer believes in win-win cooperation or in rules which apply to countries big and small,” he said.

Instead, the US now prefers to deal with countries on a bilateral basis, using its relative strength to maximise benefits for itself, the Senior Minister said.

He added: “It believes that if it imposes tariffs, then it can reduce its trade deficits and get some extra benefits from other countries.”

In such a less certain and more troubled world, everybody loses, with smaller countries left the most vulnerable, he noted.

The Republic’s relations with its neighbours are generally stable, good and cordial, he said, pointing to the recent 12th Singapore-Malaysia Leaders’ Retreat.

“The retreat went well, but between neighbours, there are always issues,” SM Lee said, noting that such longstanding issues will not be easily resolved.

Water, airspace and maritime boundaries were cited as three main issues during the retreat.

SM Lee added: “We have to make sure that within Asean, among close neighbours, our relations stay on track. Because if we go off track in a world which is already troubled, that is bad news for us.”

He noted that during the general election in May, Prime Minister Lawrence Wong and the PAP had won a good mandate.

He said Singaporeans must work with the Government, which will do its part by working to keep Singapore’s economy growing by retraining the workforce and keeping the country safe and secure. The Government will also strengthen relations with its neighbours and other countries.

PM Wong announced in April that the Republic will open new diplomatic missions in Africa and Latin America over the next few years.

In 2026, Singapore will open an embassy in Mexico City – its first in the Spanish-speaking world and second in Latin America.

And in 2027, the Republic will open an embassy in the Ethiopian capital city of Addis Ababa, the third such embassy on the African continent.

At home, the Government will work with grassroots advisers and leaders to deliver good facilities, build strong local communities and improve lives, said SM Lee.

The Cheng San CC reopened at its original Ang Mo Kio Street 53 site after two years of renovations with an expanded four-storey space.

It includes a new community space on the fourth level, where monthly sessions are held for seniors to have breakfast and socialise with active ageing ambassadors, to ease loneliness.

Brewing Wellness coffee workshops, held in collaboration with Allkin Mental Health Services, will provide monthly mental health engagement opportunities for young adults.

Nadia Ahmad Samdin, the MP for the Cheng San division of Ang Mo Kio GRC, said mental health challenges manifested in the community during the Covid-19 pandemic.

Community centres and clubs are natural hubs where people can access mental health support near their homes, said Nadia.

She added: “We know that strong social connectedness and networks are strong protective factors against mental health challenges and can reinforce mental well-being.”

Junior college student Janani Balamurugan, 17, was interested in the new culinary arts studio, which will hold workshops on healthy cooking techniques using produce from community gardens.

She said: “Having this physical space that connects all the residents together is really important for us to slow down, spend some time with the people around us and really build that community spirit.” - The Straits Times/ANN

 

 

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