In contrast with neighbouring nations like Indonesia, Malaysia, the Philippines, Thailand and Vietnam, Singapore is probably going most susceptible to an exterior slowdown brought on by the tariffs, stated Mr Suan Teck Kin, head of analysis at UOB.
If the US imposes sector-specific tariffs, equivalent to on prescription drugs or semiconductors, the direct drag to Singapore might be significantly pronounced, he added.
Development has already softened in early 2025, with key sectors equivalent to manufacturing, commerce and logistics slowing down.
Ms Selina Ling, chief economist of OCBC, stated the broad-based nature of the tariffs might imply there are knock-on implications on Singapore’s transport, logistics and monetary hub actions.
If China and Southeast Asian nations see slower commerce and financial development, Singapore will undergo, she stated.
Quite a lot of the availability chain, commerce and funding actions relating to those nations occur in Singapore, she added.
Funding into Singapore may dip, stated Ms Sheana Yue, an economist at Oxford Economics, pointing to tariffs impacting commerce and enterprise selections.
The amount of commerce going by means of Singapore could also be lowered because the demand for items from nations with excessive tariffs falls. US demand for Singapore items would additionally fall.
POTENTIAL BENEFITS
Nevertheless, analysts pointed to potential silver linings. With tariffs on Singapore items remaining comparatively low, the nation might emerge as a extra engaging supply of imports for US patrons looking for alternate options to closely taxed suppliers.
Whereas Singapore’s exports to the US might decline, the drop is more likely to be much less extreme than different Asian exporters, stated Ms Yue.
This might even enhance Singapore’s share of US imports, particularly since a “fair proportion” of its exports are exempted from tariffs.
Nevertheless, Singapore’s small land space means it can not simply scale up output to fulfill any elevated demand, and this is able to restrict a possible enhance in exports.
Its excessive working and labour prices may mood its attractiveness as a provide chain different, stated Mr Yeap Jun Rong, a market strategist at buying and selling platform IG Asia.
