Gan Kim Yong, Singapore’s deputy prime minister, throughout a panel session, on the World Financial Discussion board (WEF) in Davos, Switzerland, on Tuesday, Jan. 21, 2025. The annual Davos gathering of political leaders, high executives and celebrities runs from January 20 to 24.
Bloomberg | Bloomberg | Getty Pictures
Singapore will probably see solely a “restricted” direct impression from U.S. tariffs because the nation runs a commerce deficit with the U.S., the nation’s deputy prime minister mentioned.
In 2024, the U.S. had a commerce surplus with Singapore of $2.8 billion.
Nevertheless, Gan Kim Yong, Singapore’s deputy prime minister and minister for commerce and business mentioned that the city-state “can not underestimate” the impression of tariffs in the long run.
Talking in an unique interview with CNBC’s “Squawk Field Asia,” Gan highlighted that firms might determine to alter their manufacturing base. In flip, provide chains and commerce patterns will shift, inflicting “better friction and better price” within the international financial system which will sluggish it down.
When requested if tariffs will have an effect on Singapore’s development projection, Gan mentioned that Singapore doesn’t take its financial forecast without any consideration and frequently works in direction of assembly, and even exceeding, its goal.
“We attempt to push the financial system a bit of bit additional and hope that we are able to carry out higher than we projected,” Gan mentioned, including that the nation may even “put together to offer some room, ought to there be any disruptions to the financial system.”
Singapore’s financial system is closely depending on commerce, with the nation boasting a trade-to-GDP ratio of over 300%, one of many highest globally.
Gan’s feedback come a day after Singapore Prime Minister Lawrence Wong introduced the nation’s finances for its 2025 fiscal 12 months. It unveiled a slew of assist measures for households and companies to deal with cost-of-living pressures, in addition to schemes to assist the event of native firms.
One notable announcement made by Wong within the finances speech was that Singapore would research the potential deployment of nuclear energy within the nation, after having initially assessed in 2010 that standard nuclear vitality was unsuitable for the city-state.
Gan informed CNBC that the primary consideration for Singapore was the security and maturity of nuclear know-how, additionally noting that Singapore’s small land dimension prevents it from having a big security buffer zone, reminiscent of these in conventional nuclear vegetation.
The island of 456.3 sq. miles depends on primarily liquified pure fuel to gas its vitality wants. In 2023, round 95% of its vitality technology got here from LNG. Most of Singapore’s pure fuel comes from Malaysia and Indonesia.
The remaining 5% of electrical energy provide is generated by a mixture of of coal, oil, photo voltaic and waste.
Therefore, Singapore is observing the event of small modular reactors, or SMRs, to evaluate if they’re appropriate for the nation.
“All of it depends upon the event of know-how, for instance, how we are able to commercialize the SMRs to ensure that they’re viable and they’re appropriate for us?,” Gan mentioned.
Whereas he didn’t specify how lengthy it could be earlier than Singapore implements nuclear vitality, if in any respect, Gan mentioned, “It would take time for ourselves to be prepared for the SMRs when the know-how is obtainable,” he mentioned. “Even preparation of websites will take time.”