Amid the current climate of geopolitical uncertainty, Mr Wong said that the world has changed, “and it’s not changing back anytime soon”.
“This is not just about what one country does. The fact is, trade barriers are going up and the rules keep shifting. The tensions between the major powers, especially America and China, are heating up and will continue to do so.” he said.
Tariffs between the two powers remain sky-high, he said, noting that even China-built ships heading to the US are being taxed.
“America is also targeting other regional countries they think are bypassing their rules,” he said, referring to how solar panels from several Southeast Asian countries have been slapped with tariffs as high as 3,500 per cent.
Mr Wong said this “new storm” will be similar to the COVID-19 pandemic, though “no one can tell” how long it might last.
“But it’s not going to be a one-year affair, so we have to be mentally prepared for the longer term,” he said.
The uncertainties will add to the challenges Singapore faces today, Mr Wong said, pointing to cost-of-living pressures as one example.
“Cost pressures is a problem that started earlier because of global inflation – due to conflicts abroad, due to global supply chain disruptions,” he said.
“Inflation everywhere has started to ease … But these recent global developments may cause further disruptions and may cause further price shocks.”
Jobs will also be impacted, Mr Wong said, adding that he knows many people are worried about this.
To deal with this, a “comprehensive package” of measures was unveiled in this year’s Budget, he said.
These include measures to ease cost-of-living concerns for households, uplift workers’ wages and boost their skills, and restructure and transform businesses to help them stay competitive.
RAYS OF LIGHT IN THE STORM
While the challenges ahead may be immense, it is not all doom and gloom, said Mr Wong.
“Even in the darkest of storms, there are rays of light – new opportunities for those who are prepared. And I want to make sure that every worker in Singapore is prepared,” he said.
Listing the opportunities ahead, Mr Wong said that the Asian growth story continues to unfold and many countries in Asia, including parts of the Middle East, are among the fastest-growing economies today.
There is also potential in emerging regions like Latin America and Africa, although ties with countries there are limited due to the geographical distance.
But…
