Minister for Trade and Industry Urges Businesses to Adapt and Leverage Regional Opportunities Amid Economic Uncertainty
Gan Kim Yong, Singapore’s Minister for Trade and Industry, has urged businesses to maintain agility, resilience, and adaptability in the Year of the Wood Snake, especially amid ongoing global economic challenges. His comments come as US President Donald Trump announced plans to raise tariffs on imports by up to 20%, potentially increasing cost pressures, particularly for manufacturing and trade-related service sectors.
Gan noted that Singapore’s GDP growth is expected to slow to between 1% and 3%, with core inflation remaining between 1% and 2%. Despite these projections, he highlighted Southeast Asia’s growing middle-income demographic, digital advancements, and favourable demographics as key drivers positioning the region to become the world’s fourth-largest economy by 2030.
“We must capitalise on the opportunities this regional growth presents,” Gan remarked, noting Singapore’s efforts to strengthen ties with Southeast Asian nations and its key global partners. Additionally, he pointed out the recent enhancement of the China-Singapore Free Trade Agreement, which promises improved market access, particularly within China’s services sector.
Gan also underscored the importance of the upcoming ASEAN-China Free Trade Area 3.0, expected to boost trade and open new avenues in the digital and green sectors.
To support businesses in navigating these challenges, Singapore is rolling out initiatives designed to facilitate quick adaptation to regulatory changes. A committee chaired by Gan is currently reviewing regulations with the aim of easing burdens and fostering innovation.
He also called on businesses to embrace digitalisation and emerging technologies like artificial intelligence (AI) to enhance productivity, competitiveness, and product development. As part of this push, Singapore plans to train 15,000 AI professionals and reskill 18,000 tech workers in AI and other fields through place-and-train programmes.
Reflecting on Singapore’s economic performance, Gan highlighted a 4% GDP growth in 2024, a significant rebound from 1.1% in 2023. Core inflation also dropped from 4.2% to 2.7%, offering a positive outlook for the year ahead. Gan remains hopeful that this momentum will continue into 2025, despite the global uncertainties.
