Mr. Speaker, we have known for some time that the world is in flux. The familiar signposts are fading, but the contours of a new global system have yet to take shape. So, we are in a period of transition, uncertain, unsettled, and increasingly unstable.
The recent Liberation Day tariff announcements by the US confirm this stark reality. The era of rules-based globalization and free trade is over. This marks a profound turning point. We are entering a new phase in global affairs, one that is more arbitrary, protectionist, and dangerous.
For nearly 80 years since the end of World War II, America was the anchor for the free market economies of the world. It championed free trade and open markets and led efforts to build a multilateral trading system. This WTO system ushered in decades of global growth and stability. It allowed trade to flourish and lifted millions out of poverty. It benefited the world and contributed to America's own economic strength.
And objectively, America continues to enjoy unrivaled economic heft. In fact, the US rebounded more quickly than other advanced economies from the COVID pandemic. It has surged ahead of all its major competitors in the advanced industrial world. But not all Americans feel this way about their economy. There are hollowed-out towns in what was once America's thriving industrial belt. There are workers whose jobs have disappeared and whose incomes have stagnated. They believe that the American economy is fundamentally broken. Discontent was already visible in the 1990s when protesters disrupted the WTO meeting in Seattle. Frustrations deepened following the global financial crisis of 2008 and more recently after the COVID pandemic.
To be clear, the global economic system is in need of reform. Singapore and many others have called for changes, and we have been working with like-minded countries and partners at the WTO to reform its processes. A key concern in America is China — the sense that the US had given away too much in allowing China to join the WTO and that China competes on an unfair basis, for example, by heavily subsidizing its own companies, putting up non-tariff barriers, and restricting market access to US firms. These concerns should be addressed within the WTO framework.
In particular, the trade arrangements and concessions made in the past when China was only 5% of the world's economy should be updated when China now makes up 15% of the world's GDP. And if there are disagreements, they should be resolved through the WTO's dispute resolution settlement system, which has been paralyzed and urgently needs to be restored and reformed.
But what the US is doing now is not reform. It is rejecting the very system it created. The US has imposed a blanket 10% tariff on imports for nearly all countries. On top of that, it has layered on higher tariffs, up to 50%, for selected countries, especially those that run a trade surplus with the US. According to the administration, the sweeping tariffs are needed to fix America's trade imbalances. But there is nothing inherently wrong about running a trade deficit. It simply means that American consumers are buying more from the world than the world is buying from America. Moreover, the focus has been solely on the goods trade. That only gives a partial picture. In fact, the US runs a surplus with many of its trading partners in services, exporting software services, education, entertainment, financial and business services. But this fact has been completely ignored.
In Singapore's case, we have an FTA with America. We impose zero tariffs on US imports and we actually run a trade deficit with the US, meaning we buy more from them than they do from us. If the tariffs were truly reciprocal and if they were meant to target only those with trade surpluses, then the tariff for Singapore should be zero. But still, we are being subjected to the 10% tariff.
We are very disappointed by the US move, especially considering the deep and long-standing friendship between our two countries. These are not actions one does to a friend. Asia bears the brunt of the US tariff increase within the region. China is the hardest hit, facing a 34% tariff this round. And this is on top of the 20% tariff increase imposed over the last two months and the 20% from the first Trump administration. So taken together, the average US tariff on Chinese products now exceeds 60%. In Southeast Asia, the tariff rates range from 10% to 49%. These measures will accelerate the fracturing of the global economy. Instead of flowing based on economic efficiency, capital and trade will increasingly be diverted based on political alignment and strategic considerations.
Several members have asked about the impact of the tariffs on specific industries in Singapore. We are assessing the situation carefully, but our deeper worry is not the direct impact that these businesses face. It is the wider implications for the global trading system and the world economy. So let me explain. First, the reciprocal tariffs are a fundamental rejection of the WTO rules. One of the cornerstones of the WTO multilateral trading system is a most favored nation principle, or MFN. Most favored nation sounds like giving special privileges. Actually, it means the opposite — that every member must treat all other members equally. In other words, if a country extends more favorable terms or imposes additional restrictions to one trading partner, it must do the same to all other WTO members. There are some carve-outs and exceptions to the MFN rule, for example, to allow free trade agreements. But MFN has long been the bedrock of the multilateral trading system. It ensures a level playing field, prevents discrimination, and enables countries big or small to compete fairly in global markets. This has helped to liberalize trade amongst more than 100 WTO members, each with different economic and political and social concerns.
America's new tariff regime is a complete repudiation of the MFN principle. It opens the door to selective, country-by-country trade relations based on unilateral preferences. If other countries adopt the same approach as the US, the rules-based trading system will unravel. This will spell trouble for all nations, but smaller countries like Singapore will face greater pressures, because small countries have limited bargaining power in one-on-one bilateral negotiations. So the major powers will dictate the terms and we risk being marginalized and sidelined.
Second, the likelihood of a full-blown global trade war is growing. Singapore has decided not to impose retaliatory tariffs. Doing so will only lead to increased cost for Singaporeans. But other countries may not be guided by the same considerations and may have different perceptions and views. China has already imposed retaliatory tariffs on US goods. Others, like the European Union, are considering their next steps. Some think that the new tariffs are a negotiating tactic, a negotiating tool by the US to extract concessions in other areas. This was what President Richard Nixon did in 1971. He slapped a 10% surcharge on imports to pressure Germany and Japan to devalue their currencies. And when they did, the tariffs came off. Indeed, there is a brief window for countries to negotiate and get some reprieve from the US before the higher tariffs take effect. And it may be possible for some rates to be lowered, but we have to be realistic. Once trade barriers go up, they tend to stay up. Rolling them back is much harder, even after the original rationale no longer applies.
Even if some partial accommodations are eventually worked out, the uncertainty generated by such a drastic move will dampen global confidence and growth. It will be very hard to restore the previous status quo. And in particular, it doesn't look like the 10% universal rate is open for negotiation. This seems to be the fixed minimum tariff regardless of a country's trade balance or existing trade arrangements. Furthermore, there are other forces that could maintain the momentum for tariffs. In particular, many European countries are eager to protect their critical industries like electric vehicles, green technologies, and semiconductors from Chinese competition. They do not want to be a dumping ground for exports from China or other countries. There is also a growing push across the West to strengthen their domestic manufacturing capabilities and to reduce dependence on global supply chains, especially in strategic industries. So this round of tariff increases by the US may just be the beginning of more increases to come globally.
And we've seen this play out before. The US enacted sweeping tariff increases through the Smoot-Hawley Act in 1930. Many countries protested and a number retaliated with their own trade restrictions and tariffs. This deepened and extended the Great Depression. In some ways, today's risk may be greater. The new US tariffs, if fully implemented, are higher than the ones in Smoot-Hawley. Trade is now a much bigger part of the American and global economy compared to the 1930s. Supply chains are also more deeply connected than they were back then. Any disruption to trade flows will have wider knock-on effects on the world. Now, this brings me to the third point, which is the impact on the global economy.
Business and consumer confidence has already been hit by the tariffs. International trade and investments will suffer. Our economic agencies got in touch with several multinational enterprises and local businesses after the tariff announcement. Even those who were not directly affected by the tariffs are worried about weakening demand from their consumers. Some have put new projects on hold while they assess the full implications of the tariffs. These are reactions from companies based here, but I'm sure the same conversations are happening in boardrooms elsewhere.
Over the recent days, we have seen sharp negative reactions in global stock markets. It is too early to tell if all this will spill over into the real economy, but the downside risks are clearly rising. What's troubling is not just the tariffs themselves, which are already damaging, but the fact that this new wave of protectionism is unpredictable and unstable. Protectionism is already bad; unstable protectionism is even worse. Businesses don't know what to expect. Many are holding back, fearful that changing rules will leave them with stranded assets. And all this creates an environment of deep uncertainty, one that could tip both the US and global economy into recession.
The consequences extend far beyond economics. More and more countries are turning away from win-win cooperation and deeper integration. Instead, we see a rising me-first, win-lose mindset where it's every country for itself. Some are even prepared to use aggressive or coercive means to get what they want at the expense of others. Meanwhile, global institutions are getting weaker and long-standing norms of cooperation are breaking down. One major concern is the US-China relationship. America views China as a strategic competitor and threat which must be dealt with now while America still has the advantage. China says it is ready for a tariff war, a trade war or any other type of war. The US has now threatened an extra 50% tariff on China and China says it will fight to the end. There are fewer channels for dialogue which can serve as guardrails to manage the relationship. So if the disputes escalate and destabilize the US-China relationship, the consequences for the world would be disastrous.
We must be mentally prepared. The predictable and rules-based order we once knew is fading. The new era will be more volatile with more frequent and unpredictable shocks. We must be ready to stand firm and protect our interests no matter how the external winds may blow. What does all this mean for Singapore? In the near term, we expect weaker global growth, which means external demand for our goods and services will fall. The outward-oriented sectors of our economy will suffer the brunt of the impact. They include manufacturing, especially segments like electronics and semiconductors, biomedical sciences which have higher export exposure to the US, wholesale trade and transport will be impacted. The global uncertainty and dampened sentiments will also impact some services industries including finance and insurance. Singapore may or may not go into recession this year, but I have no doubt that our growth will be significantly impacted. We had originally projected GDP growth of 1 to 3% for 2025. MTI is reassessing the growth forecast and will likely revise it downwards.
Slower growth will mean fewer job opportunities and smaller wage increases for workers. And if more companies face difficulties or relocate their operations back to the US, there will be higher retrenchments and job losses. For now, the measures announced in this year's budget will provide support for any short-term strain. We have a comprehensive package of measures for households and individuals. They will receive CDC vouchers, SG60 vouchers, and U-Save rebates to help with their cost of living. And there are targeted measures like increased ComCare assistance for the more vulnerable groups. We are also supporting workers through investments in SkillsFuture, and those who find themselves involuntarily unemployed will receive help to get back on their feet through the SkillsFuture Jobseeker Support, which will start later this month. We have also rolled out measures in the budget to help businesses. There are short-term support measures through corporate income tax rebates as well as schemes to boost their productivity and competitiveness and to pivot to new markets.
Our economic agencies are also engaging the firms impacted by the tariffs to better understand their responses and see how we can support them and assist them with any specific issues they face. Nevertheless, the situation is fluid and can change quickly. We will therefore set up a task force chaired by DPM Gan to help businesses and workers address the immediate uncertainties, strengthen their resilience and better adapt to the new economic environment. In addition to our economic agencies, the task force will include the Singapore Business Federation, the Singapore National Employers Federation, and the NTUC.
We will continue to monitor developments closely. The government stands ready to do more if and when necessary. We have the resources to do so because of the financial discipline and prudence we've exercised over the decades. In this new environment, Singapore must redouble our efforts to remain a key node in global flows and a trusted business hub. We will forge closer links with like-minded partners who share our commitment to open and free trade. The US may have decided to turn protectionist, but the rest of the world does not have to follow the same path. We will identify other partners to join us and work around this to ensure resilience and maintain critical parts of the multilateral system while laying the foundations for a possible new and different global system that can be achieved later. And this is why I've made the effort to engage and visit my counterparts in different countries. I touched base with the UK Prime Minister Keir Starmer yesterday and have a few more conversations lined up in the coming weeks. They are all keen to do more with Singapore and to expand our economic cooperation including in new areas like the digital and green economies.
In particular, we will strengthen our collaboration and integration within ASEAN. Last Friday, I spoke with Malaysian Prime Minister Anwar Ibrahim. Malaysia is also the ASEAN chair this year. We agreed to accelerate ASEAN's integration efforts to make our region more attractive and competitive. A special ASEAN economic ministers meeting will be convened later this week. They will discuss further ways that ASEAN can work together to strengthen intra-ASEAN trade and to send a strong signal of ASEAN's commitment to regional economic integration. As a group, ASEAN will also continue to strengthen our links with like-minded partners in areas of mutual interest.
Mr. Speaker, we are entering a changed world. The only way Singapore can make it through the gathering storm is to stay united, pool our resources, our resilience, and our resolve. The government will do everything we can to steer Singapore through the choppy waters and make sure no one is left behind. We will keep our economy open, our society cohesive, and our institutions strong. We will create new value propositions for businesses and investors. We will act boldly and decisively when needed to ensure Singapore continues to succeed. Above all, we will put the interests of Singapore and Singaporeans at the center of everything we do. The road ahead will be harder. The dangers are real, but so too is our determination.
In many ways, we are in a better position than we were 60 years ago when we became independent. We've built deep reserves as a strategic buffer. We've forged a strong compact built on solidarity and trust in each other. And most of all, we have our ingenuity and wit, our grit and gumption, and never-say-die spirit that has seen us through every crisis and will carry us through the ones to come. So, Mr. Speaker, I say to this House and to fellow Singaporeans: do not fear. Now, more than ever, we will stay resolute and united. Our little red dot will continue to shine in a dark and troubled world. Singapore will hold our ground as a beacon of stability, purpose, and hope. Thank you, sir.
Leader of the Opposition, Mr. Pritam Singh.
Thank you, Mr. Speaker. I thank the Prime Minister for his ministerial statement which expands on the video message that he shared with Singaporeans on the 4th of April. I refer to that video message and of course the Prime Minister's statement today. There was reference to vigilance and building up capabilities in the video message that the Prime Minister shared with Singaporeans. Even though I accept it's early days and there's a lot of moving parts at the moment and there's observation of how world economies are assessing their own positions and pivoting to a new reality, there have been references to de-risking, decoupling that have been in the global economic lexicon for some years now, and I would be grateful if the Prime Minister could share, when he refers to building up capabilities, is the Prime Minister looking at local consumption, improving local consumption notwithstanding our small market, measures to boost productivity? Earlier on during parliamentary questions, the Senior Minister of State for Manpower suggested that companies should reduce their reliance on cheap foreign labor. Do we foresee major structural changes in the way the Singapore economy is shaped to deal with the new future that we see, which in the Prime Minister's words is far more unpredictable than before? Secondly, the Prime Minister spoke of a task force. I think similar announcements have been made by the Malaysian government. I'd like to confirm whether there is going to be a period of time before the Prime Minister makes more announcements with regard to exchanges that he's had with stakeholders in both the private and public sectors for Singaporeans to better understand the way forward and which industries will be more affected. Thank you, Prime Minister.
Sir, we are certainly going to be taking steps to build capabilities. It's an ongoing endeavor and in this year's budget we set aside more resources to doing so, especially to strengthen our economy, to build up our capabilities in innovation and new technologies which are the key drivers for any economy to be strong, dynamic and vibrant. At the same time, we are building capabilities in our people, investing in human capital, investing in our workers, upgrading the skills of our workers through SkillsFuture. And we are putting significant resources into this effort to make SkillsFuture a key part and a key pillar in our social compact. So the capability building efforts will continue. In fact, we will redouble our efforts in this area. And the key reason why we are able to do all this is precisely because we have the fiscal resources to set aside. It's because we have over many decades exercised discipline and prudence in managing our resources. And that's why in these difficult times, we are able to put in place the resources to build up the necessary capabilities to see us through the storms ahead. On the task force, I may also ask DPM Gan to say a little bit more later, but certainly we are going to engage industries. We will continue the review and the monitoring of the global situation and if there is a need we will provide further updates to Singaporeans as and when we are ready and as and when there is a need. Perhaps DPM Gan can elaborate.
DPM Gan, thank you. With the permission of Mr. Speaker, I just want to respond that this task force has just been announced. We are still working out the detailed composition as well as the task forward. But one of the key focus of the task force is going to be in terms of communication and information sharing. We will be engaging the private sector. So that's why the Prime Minister announced the conversation will include private sector representatives. So the idea is to gather information from the ground, understand the challenges faced by the enterprises on the ground and to also discuss with them how we can lean forward to support them, to help them navigate through these uncharted waters as we move ahead under this new landscape. We also will include the union representatives because we do expect jobs may be affected, may not be immediately, but I think in the medium to longer term I think there will be a major restructuring of the economy that will result in the restructuring of the workforce as well. And I think as the Prime Minister emphasized, the focus on training is always the key to our transformation journey and therefore unions and employers and enterprises will play a key role. As I said many times before, our main guiding principle is really to be as transparent as possible. When we know something important, we'll share with the population, with the businesses, with the workers, with the unions and with members. And when we don't know yet, we'll tell you honestly, we do not have the information yet. So I think this is still early days as the Leader has also acknowledged. I think it will take time for us to get a better understanding, better assessment of the total impact of what's going to happen. We also have to bear in mind that what would happen also has to take into account the reaction from the countries other than America. So their reaction will also add on to the potential impact on the tariffs and on Singapore's economy. At the same time, we are also reaching out to our trading partners to share our information, our assessment of the situation to see how we can find different ways of working together to continue to do business with one another, to continue to provide opportunities for businesses and for our enterprises.
Before we proceed, I would just like to take this opportunity to remind members that pursuant to Standing Order 23, members may seek clarification on the ministerial statement, but no debate shall be allowed thereon. Members can certainly seek clarifications by way of asking questions. So I seek members' understanding to keep your clarifications clear and concise. Mr. Tan Wu Meng.
Thank you, sir. So while we are disappointed with the imposition of the tariffs, the 10% tariff by the US, the United States remains our key relationship that goes beyond economic space but also to defense and others. So can I ask the Prime Minister whether we continue to have access to the key administration officials in the US to negotiate on the tariffs and where can we land with this discussion, this negotiation, and also whether the other initiatives that we are working on, for example in the military, in the energy space, are these going to be affected by this increase in the tariffs? The second question to the Prime Minister is if we indeed do trade less with the United States because of the tariffs, can I ask where else can we do the, where else, what other markets and corridors can we make up? For example, in the other groupings like RCEP, the CPTPP, whether ASEAN and so on and EU, are they new corridors, new markets that we can develop more trade relations? Okay. Prime Minister.
Sir, we will actively engage members of the US administration to better understand their concerns about our trade relationship, to see if we can address any misperceptions about our bilateral trade with them, and then to discuss what's the best way forward. Of course, if the US decides that the baseline rate is universal across all countries, then it's a different consideration altogether. It's not bilateral. It's their view of the world and they have decided that every country should at least have a 10% tariff. But we are continuing to have these conversations with the US administration and also with other countries on the other aspects of our overall relationship with America. They continue to be important. We value the relationship. We believe the US values it too. In areas like security and defense, we have such a close relationship built up over many decades and we will continue to maintain that. And we will also discuss cooperation in new areas like critical new technologies as well as energy. So these areas of cooperation remain and we certainly want to continue advancing them as well. On where else will there be new markets for our exports? Well, we will continue to find export markets. We will help our companies identify new markets including areas that they may not be so familiar with. And that's why we are redoubling our efforts to strengthen our links including in areas in the Middle East, in Latin America, areas where we may not have such close links, but we think there's potential and opportunities to do more. But fundamentally we have to be prepared that if trade barriers around the world are higher than they were before, then ultimately we are entering a world where there will be slower growth, less demand for our goods and services. So structurally we are in for a more difficult ride. Not to mention that if economic activities are going to be configured in a way that's not so much based on efficiency but security, geopolitical and political considerations, then costs will be higher and at the end of the day the world ends up operating on a higher cost base. So these are the harsh realities that we have to be prepared for.
Thank you, Mr. Speaker. I thank the PM. I have two clarifications. Given that many local businesses operate within global supply chains, how will the anticipated pass-through effect of increased cost to Singapore consumers look like? And two, for firms that lack the skill to absorb the sudden cost increase, what tailored support is the ministry considering to ensure that they remain competitive and can continue to meet consumer demand without raising prices significantly? I assume this is something that DPM Gan's task force will look into. Thank you, Prime Minister.
Sir, in the near term, if global demand slows down, it may actually mean less inflationary pressures because global demand is coming off. It's a reason why you see oil prices coming off in the near term. But as I mentioned just now in my response to Mr. Yip, overall, if the entire global economy is going to be configured on a less efficient basis, it must mean higher cost and this will impact Singaporeans as well. So we are watching for that and we will continue to monitor that closely. The impact on Singaporeans, the impact on businesses, and as the member said, as Mr. Yip said, what additional measures may be needed. For now, we think that the budget measures are adequate, but the task force chaired by DPM Gan will monitor, will assess, and will put up recommendations when ready. Also, Professor Jamus Lim.
So, just a few questions. The first is on international trade and the other is on domestic economic policy for trade. I wonder if the government will be looking to negotiate within the broader rubric of ASEAN or the CPTPP as a bloc. Now I understand that this may mean greater difficulty in arriving at a consensus position, especially with harder economies like Vietnam potentially lowering the common denominator. But at the same time it greatly strengthens our bargaining position as an economic bloc.
entity. ASEAN, for example, is the world's fifth largest economy. For the domestic economy, beyond the existing slate of vouchers, I wonder what other policies the government will be considering in order to shore up consumer demand and to help rebalance the economy toward domestically driven demand, at least in the short run. Now, I understand that our small domestic market will never be sufficient alone as a driver of growth, but some short-run stabilization, I feel, may be valuable. And then finally, has the minister also considered the possibility of anti-dumping procedures that may be enacted if indeed nations with surpluses choose to export at low prices to Singapore?
Prime Minister or DPM Gan.
Thank you, Speaker. First, on external trade relationships, indeed, we are working with ASEAN members as well as our fellow CPTPP members as well as other trade organizations to see how we can come together to discuss our strategy towards the United States. How can we negotiate and discuss as an organization? So, as I think we announced, we are going to have an ASEAN economic ministers' meeting shortly, if I'm not wrong, on the 10th of April. And subsequently, then we can discuss, then we can share with members what is the outcome of that discussion. The idea is really to come together to share our information, our assessment of the situation, and to explore ways that we can work together moving forward, including discussions with the US as well as how to further strengthen and deepen regional integration, which will be helpful to our economies as well. And on the, in terms of domestic demand, I should just sound a word of caution that if we are over-stimulating demand, you will end up with inflationary pressures. So it's something that you have to always be careful. It needs to strike a balance. And as Professor Lim pointed out, we have a very small economy. It will not be able to move the needle. And in terms of anti-dumping duties, it is a possibility provided under the WTO. But you just also have to bear in mind that if by imposing anti-dumping duty, that means the consumers in Singapore will be paying the duty for the imports, and that will add cost to Singaporeans. So I think we just have to bear in mind, and usually anti-dumping duties are introduced in order to protect local domestic industries that are facing an onslaught of imported prices and imported products at very low prices, and this is to balance the trade between imports and our local production. But if our industries are competitive, and in fact they are mostly export-oriented, I think therefore we have to be very careful in considering introducing anti-dumping duties.
Mr. Speaker, I want to thank the Prime Minister for his ministerial statement. The labour movement has, of course, surveyed our unionists. They are rightly worried about growth issues, loss of jobs, cost of living, but they've also expressed confidence that the PAP government will steer us through these difficult times. I would like to ask the Prime Minister how should the tripartite partners conduct themselves during this period of time to prepare themselves in both the short and medium term for the impact that will certainly hit them in terms of jobs, lower wage growth, and in fact some of them might lose their jobs. How can we continue to prevent anti-foreigner sentiments from setting in, especially during such times? Thank you, Prime Minister.
Sir, we do so best by upholding that strong base of trust, mutual trust and understanding that we have developed over so many decades amongst our tripartite partners, working closely together, engaging one another, being upfront with the concerns we all share, and addressing the problems together. So in the near term, whatever issues there are, whatever information the government has, we will share with the unions, with the businesses, with workers through the task force and other mechanisms. If there are specific concerns, we will try our best to deal with them. And if we feel that the budget measures we have or existing measures are not adequate, we will certainly be ready to introduce new measures. I think it's that spirit of working together which has enabled us to overcome previous crises and will enable us to get through the current difficulties as well.
Mr. Mark Lee, I know you filed a PQ on this. You have the floor.
Thank you. Prime Minister, you have rightly pointed out that global conditions are turning increasingly uncertain, and many businesses are now facing or bracing for a downturn. I just want to highlight three key concerns that have surfaced in recent engagement before my supplementary question. I think the first is that there is a clear anticipation of a drop in global demand. Some US-based consumer brands are already advising their supply chain partners to prepare for a mid-term volume reduction of up to 30%. Long-term, no one knows for certain, and this will have a ripple effect on Singapore-based companies. Second, Singapore businesses are facing margin erosion, especially clients requesting their supply chain partners to absorb part of the cost shock from the new tariffs because these tariffs are too large to pass through via pricing adjustments in the short term. This will hit cash flow for our businesses. And third, Singapore firms have adopted a China-plus-one strategy, investing in Vietnam, Cambodia, Indonesia, but now they are even hit with tariffs higher than the baseline of 10%. So these companies are now under renewed pressure to diversify further, adding another base to stay competitive, and it is costly and complex. I hope DPM Gan's task force will be looking at near-term support, and I would like to clarify that this support will include measures to help Singapore companies in cash flow, relocating or restoring their supply chains, as well as taking a longer-term view to seize new opportunities arising from these global supply chain shifts.
Sir, I thank Mr. Mark Lee for sharing the very real and genuine concerns among businesses. We've heard similar feedback amongst our businesses. It's not just businesses based in Singapore who are impacted, because as Mr. Lee says, some businesses have diversified, expanded, built factories in places like Vietnam, China, and now they are hit with even higher tariffs. And so it will have an impact on their operations, and in the end, all this will spill over and impact growth this year and also our prospects for future growth. That's why we are concerned. That's why we think the concerns have to be dealt with quickly. And so DPM Gan's task force will continue to engage businesses to better understand the full extent of the impact, because this situation is still unfolding, and eventually to work out what additional measures we need.
Ms. Hup, earlier on you had raised your hand. You're okay. I just want to give those who had raised their hands earlier, but if it's no longer the case, Mr. Sakthi.
Mr. Speaker, I'd like to thank the Prime Minister for sharing his thoughts and highlighting to us about the setting up of the task group. I've got three clarifications, Mr. Speaker. First is whether the PM can share with us a bit more about his negotiations within ASEAN, because PM, you mentioned that you had a chat with the Prime Minister of Malaysia, and how the ASEAN negotiations would actually go ahead in terms of dispute resolution or in terms of the trade tariffs that have been introduced. Second is in terms of the, I know the situation is still fluid, but there are concerns about the semiconductor tariffs that might come on stream. And given that Singapore is a re-export hub, semiconductors are a significant proportion of our manufacturing sector. Can PM and whether DPM Gan can share on a sectoral basis the impact of the semiconductor tariffs if it does come in, its impact on jobs and GDP in Singapore? And the last clarification is whether PM or DPM Gan can share at the interim, at the start, whether there has been done macro counterfactual simulations of existing tariffs that have been introduced, and whether there's an additional 5% or 10% tariffs or semiconductor tariffs, the impact on growth and jobs for Singapore. Thank you.
