BUSINESSES here must remain agile, nimble and resilient in the face of challenges that are likely to impact growth outlook in 2025.
Speaking at a Chinese New Year event on Jan 29, Deputy Prime Minister Gan Kim Yong said the new US administration’s position on trade has created significant uncertainty – in particular, the risk of trade frictions.
“This will impact our manufacturing and trade-related services sectors, and could result in new cost pressures,” he added.
US President Donald Trump, who took office on Jan 20, had announced plans to increase tariffs by as much as 20 per cent on imports from all trading partners.
Gan, who is also Minister for Trade and Industry, said growth in gross domestic product (GDP) is expected to moderate to between 1 per cent and 3 per cent, and core inflation to be maintained at 1 to 2 per cent.
Still, he said, businesses can face these challenges with optimism and confidence.
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Speaking in Mandarin at Spring Reception 2025, a Chinese New Year celebration held in the Singapore Chinese Chamber of Commerce & Industry (SCCCI) building in Hill Street, Gan said businesses must remain agile to better seize opportunities in the region.
He added: “Today, Asia’s economy makes up close to 50 per cent of the world’s GDP. This is expected to expand to about 60 per cent by 2030.”
He noted that within Asia, South-east Asia has a growing middle-income segment, favourable demographics and widespread digital transformation, and is expected to become the fourth-largest economy in the world by 2030.
“I hope our businesses will leverage the opportunities brought about by the region’s development to grow and expand.
“This is why we have been working closely with our South-east Asian neighbours and key economic partners to deepen regional integration,” he said.
Gan noted that the China-Singapore Free Trade Agreement Further Upgrade Protocol has recently entered into force.
“This will provide businesses with better market access into China, especially its services sectors,” he added.
Gan said Singapore is also planning to finalise and sign the upgrade of Asean-China Free Trade Area 3.0, which will further facilitate trade flows and open up opportunities in the digital and green economies.
“We also recently signed the agreement with Malaysia on the Johor-Singapore Special Economic Zone.
“This will facilitate the movement of goods and people between our borders and strengthen the business ecosystem within the region, so that our businesses can tap the complementary strengths that Johor offers,” said Gan.
To aid businesses in adapting quickly to changes and opportunities in the operating environment, Singapore has set up a number of initiatives for the government to better understand and solve systemic issues in the regulatory framework.
He added: “The government has also set up a committee, chaired by me, to review agencies’ rules and regulations so as to alleviate regulatory burden on our businesses, and allow businesses to innovate and create new solutions.”
Gan said businesses can strengthen their competitiveness through both enterprise and workforce transformation.
“Digitalisation is one such area. We also encourage businesses to adopt AI (artificial intelligence) and other emerging technologies, to improve productivity and develop new products and services,” he added.
Gan said that to help businesses use emerging digital technologies to transform and break new grounds, Singapore plans to develop 15,000 AI practitioners through place-and-train efforts with companies, and reskill 18,000 tech professionals in AI and other domains.
In his speech, Gan noted that Singapore’s economy had performed fairly well in 2024, with full-year real GDP growth coming in at 4 per cent – higher than the 1.1 per cent growth the previous year.
Core inflation had also eased to 2.7 per cent, lower than 2023’s 4.2 per cent.
He said it is well known that those born in the Year of the Wood Snake are courageous, positive and resilient, and maintain their drive and confidence in the face of adversity.
“So as we celebrate the start of the Year of the Wood Snake, I hope that our enterprises will similarly maintain their agility, nimbleness and resilience,” he added.
About 350 guests, comprising representatives from clans, trade associations and business organisations, attended the event on Jan 29 hosted by SCCCI and Business China.
Also in attendance were Education Minister Chan Chun Sing and Minister for Culture, Community and Youth Edwin Tong.
As part of the celebration, guests tossed pieces representing ingredients into a 2m wide centrepiece in the shape of a hotpot, which SCCCI president Kho Choon Keng said symbolised unity and togetherness.
“Whether there is meat or only vegetables, the delicious broth brings warmth to our hearts.
“Similarly, when there is trust, sincerity, and a spirit of sharing among people, we can overcome challenges together and enjoy the fruits of our collective efforts,” said Kho. THE STRAITS TIMES
