The Progress Singapore Party (PSP) has taken a strong stance against the government’s response to the recently announced US tariffs, labelling it as overly alarmist. PSP chairman Dr Tan Cheng Bock expressed concerns that the government’s warnings might be an attempt to induce fear ahead of the upcoming elections.
Government Warnings and Economic Impact
Following the US’s announcement of new tariffs, Prime Minister Lawrence Wong cautioned of a turbulent global trade environment, stating that the likelihood of a trade war is growing. He urged Singaporeans to prepare for challenging times, echoing sentiments from other ministers like Senior Minister Lee Hsien Loong.
- PM Lawrence Wong: “The likelihood of a full-blown global trade war is growing.”
- Senior Minister Lee: “It’s going to affect our economy, it’s going to affect our region… and it’s not good news.”
PSP’s Position and Economic Analysis
At a recent media conference, Dr Tan, along with vice-chairperson Hazel Poa and secretary-general Leong Mun Wai, pushed back against these dire predictions. Dr Tan suggested that the government’s reaction might be an attempt to sway voters to support the incumbent party.
Leong, who has over 30 years of experience in finance, echoed Dr Tan’s doubts about the extent of the tariffs’ impact. He pointed out that Singapore’s exports—targeted by the tariffs—are but a part of the economic equation:
- The US tariffs are likely to affect local prices indirectly but may not hurt Singaporeans as much as initially thought.
- Historical context: Singapore has previously navigated through larger crises, including the global oil crisis of the 1970s.
Call for Unity and Caution
While Dr Tan called for careful study of the tariffs’ impact, Leong highlighted that broader global events should also be monitored. Poa noted the importance of restraint in foreign policy discussions, stressing a united front to protect Singapore’s interests.
Additionally, Foreign Affairs Minister Vivian Balakrishnan and Home Affairs and Law Minister K Shanmugam contributed their insights, with both cautioning that inflation and slower growth could result from the tariffs. They reminded citizens of the need for resilience in facing these challenges.
The discussions around these tariffs come as Singapore prepares for its next General Election. As the PSP rallies its supporters, the focus remains not just on electoral gains, but on fostering national cohesion amid uncertain global dynamics.