Singaporeans should prepare themselves for a period of growing volatility and uncertainty, Prime Minister Lawrence Wong said in a recent address, warning that the relative peace and order the world once enjoyed is unlikely to return soon.
In a YouTube message released on Friday (April 4), he cautioned against complacency, noting the world is entering a "troubled" phase marked by rising protectionism and geopolitical tension .
"We cannot expect that the rules which protected small states will still hold," Wong said, urging citizens to be mentally prepared. "Let us not be lulled into complacency. The risks are real. The stakes are high."
His remarks followed a sweeping move by US President Donald Trump earlier in the week, in which the United States imposed steep new tariffs on nearly all its trading partners — triggering widespread retaliation and fears of a global trade war.
"This latest move by the US leaves 'no room for doubt'," Wong said. "It marked a 'seismic change' in the global order, one where rules-based globalisation and free trade is over, to turn into one that is 'more arbitrary, protectionist, and dangerous'."
Although Singapore was hit with the lowest tier of tariffs — 10 per cent — the economic and strategic ramifications could be serious. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong echoed these concerns on Thursday, stating that while the direct impact may currently appear modest, Singapore "may need to make adjustments in time to come."
He added that the government will roll out additional support measures if needed, stressing that “households and businesses have to be prepared for rough waters.”
Wong underlined the urgency for Singapore to maintain its resilience by investing in its capabilities and strengthening its international alliances . "We will stay vigilant. We will build up our capabilities. We will strengthen our network of partnerships with like-minded countries," he said. "We are more ready than many other countries, with our reserves, our cohesion, and our resolve."
Senior Minister Lee Hsien Loong also addressed the growing concern, noting in a Facebook post that Singapore's economy is likely to feel the pain from these global developments. "Our growth will be hurt, though it is too early to tell by how much," he wrote.
Trump's tariff hikes include a 34 per cent duty on Chinese imports — which comes on top of a prior 20 per cent levy — raising the total tariff rate to a massive 54 per cent. Key allies and Asian economies were not spared, with the European Union hit with 20 per cent, Japan with 24 per cent, and India with 26 per cent.
Vietnam faces a 46 per cent tariff, while countries like Indonesia, Thailand, Malaysia, Myanmar and Cambodia saw reciprocal tariffs ranging from 24 to 49 per cent. Though Singapore’s 10 per cent tier appears less aggressive, the knock-on effects on global supply chains are already beginning to concern local businesses and trade associations.
"The WTO (World Trade Organization) system brought unprecedented stability and prosperity to the world – and to the US itself," said Wong. “To be clear, the system is not perfect. Singapore, and many others, have long called for reform – to update the rules and to make the system better. But what the US is doing now is not reform. It is abandoning the entire system it had created. Its new approach of reciprocal tariffs, country by country, is a complete rejection of the WTO framework.”
Business leaders in Singapore are already warning of rising operational costs in the short term and growing fears of a US recession in the long run. Many are scrambling to reassess their outlook as global supply chains buckle under the weight of retaliatory trade measures.
Wong acknowledged that some previously doubted his concerns over how the changing geopolitical order might disadvantage smaller economies. But now, he says, the dangers are becoming undeniable. "I am sharing this with you so that we can all be mentally prepared," he said. "So that we will not be caught off guard."
The last time such trade upheaval occurred, the consequences were devastating — escalating into global conflict in the 1930s. "We risk being squeezed out, marginalised and left behind," Wong warned.
As international norms erode and major powers prioritize narrow self-interest, Singapore will have to adapt quickly. “This is the harsh reality of the world today,” the Prime Minister said.
In a YouTube message released on Friday (April 4), he cautioned against complacency, noting the world is entering a "troubled" phase marked by rising protectionism and geopolitical tension .
"We cannot expect that the rules which protected small states will still hold," Wong said, urging citizens to be mentally prepared. "Let us not be lulled into complacency. The risks are real. The stakes are high."
His remarks followed a sweeping move by US President Donald Trump earlier in the week, in which the United States imposed steep new tariffs on nearly all its trading partners — triggering widespread retaliation and fears of a global trade war.
"This latest move by the US leaves 'no room for doubt'," Wong said. "It marked a 'seismic change' in the global order, one where rules-based globalisation and free trade is over, to turn into one that is 'more arbitrary, protectionist, and dangerous'."
singapore pm with some of the most sensible analysis responding to us tariffs i’ve seen from a global leader. pic.twitter.com/60Lqn26yhF
— ian bremmer (@ianbremmer) April 5, 2025
Although Singapore was hit with the lowest tier of tariffs — 10 per cent — the economic and strategic ramifications could be serious. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong echoed these concerns on Thursday, stating that while the direct impact may currently appear modest, Singapore "may need to make adjustments in time to come."
He added that the government will roll out additional support measures if needed, stressing that “households and businesses have to be prepared for rough waters.”
Wong underlined the urgency for Singapore to maintain its resilience by investing in its capabilities and strengthening its international alliances . "We will stay vigilant. We will build up our capabilities. We will strengthen our network of partnerships with like-minded countries," he said. "We are more ready than many other countries, with our reserves, our cohesion, and our resolve."
Senior Minister Lee Hsien Loong also addressed the growing concern, noting in a Facebook post that Singapore's economy is likely to feel the pain from these global developments. "Our growth will be hurt, though it is too early to tell by how much," he wrote.
Trump's tariff hikes include a 34 per cent duty on Chinese imports — which comes on top of a prior 20 per cent levy — raising the total tariff rate to a massive 54 per cent. Key allies and Asian economies were not spared, with the European Union hit with 20 per cent, Japan with 24 per cent, and India with 26 per cent.
Vietnam faces a 46 per cent tariff, while countries like Indonesia, Thailand, Malaysia, Myanmar and Cambodia saw reciprocal tariffs ranging from 24 to 49 per cent. Though Singapore’s 10 per cent tier appears less aggressive, the knock-on effects on global supply chains are already beginning to concern local businesses and trade associations.
"The WTO (World Trade Organization) system brought unprecedented stability and prosperity to the world – and to the US itself," said Wong. “To be clear, the system is not perfect. Singapore, and many others, have long called for reform – to update the rules and to make the system better. But what the US is doing now is not reform. It is abandoning the entire system it had created. Its new approach of reciprocal tariffs, country by country, is a complete rejection of the WTO framework.”
Business leaders in Singapore are already warning of rising operational costs in the short term and growing fears of a US recession in the long run. Many are scrambling to reassess their outlook as global supply chains buckle under the weight of retaliatory trade measures.
Wong acknowledged that some previously doubted his concerns over how the changing geopolitical order might disadvantage smaller economies. But now, he says, the dangers are becoming undeniable. "I am sharing this with you so that we can all be mentally prepared," he said. "So that we will not be caught off guard."
The last time such trade upheaval occurred, the consequences were devastating — escalating into global conflict in the 1930s. "We risk being squeezed out, marginalised and left behind," Wong warned.
As international norms erode and major powers prioritize narrow self-interest, Singapore will have to adapt quickly. “This is the harsh reality of the world today,” the Prime Minister said.
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