Singapore Forms 'Economic Resilience' Taskforce Amid Possible Tariff-Induced Recession

Singapore's trade minister said on Wednesday that he cannot rule out a recession for the local economy this year following U.S. President Donald Trump's trade war, as he announced a taskforce to help businesses and workers address challenges.

Trade minister Gan Kim Yong, also the deputy prime minister, said at a press conference that companies in Singapore have already been affected by the trade war between the U.S. and China and warned of a further global economic impact if Trump were to put additional tariffs on semiconductor and pharmaceutical industries.

"Given potential downside risks, we cannot rule out the possibility of a recession this year," said Gan.

"Those who have manufacturing operations in China or sell to manufacturers in China for onward sales to the U.S. are already seeing cancelled orders or deferred orders."

Singapore on Monday downgraded its GDP forecast for 2025 to 0% to 2% from the previous 1% to 3% after preliminary estimates showed the economy contracted in the first quarter.

Separately on Wednesday, Prime Minister Lawrence Wong delivered a lecture saying there was little comfort in the U.S. postponing most of its proposed "reciprocal" tariffs since the changes had already created great uncertainty around the world.

"No company can comfortably plan long-term investments while knowing that the tariff rates could be changed at a moment's notice," Wong said.