An upcoming grant will defray a portion of the costs of advisory services for local businesses affected by the US’s tariffs. The Business Adaptation Grant, set to be launched by October, will be offered to eligible enterprises with overseas exports or operations affected by the tariff measures, says Minister for Manpower Tan See Leng on July 10.
In addition, local firms with manufacturing operations here or abroad can also receive two years of subsidies for “reconfiguration costs”, such as logistics and inventory holding costs, adds Tan at the Singapore Economic Resilience Taskforce’s (SERT) first update since its launch in April.
SERT, a taskforce comprising government leaders and tripartite partners, was set up to help Singaporean businesses and workers navigate the uncertainties arising from tariffs announced by US President Donald Trump.
Based on feedback from SERT’s engagement with more than 3,000 business leaders, workers, union leaders, fresh graduates and career coaches since April, Tan says many local businesses “cannot predict with certainty what would happen” under Trump’s tariffs.
Trump has sent tariff demand letters to various world leaders, including a 20% rate on goods from the Philippines, 25% on Malaysia, 32% on Indonesia and 40% on Laos and Myanmar.
“Over the next couple of months, with the letters being issued out, there may still be changes across the different market geographies,” says Tan, underscoring the uncertain environment.
The Business Adaptation Grant targets two groups of businesses. One set of measures will support advisory services in Free Trade Agreements, trade compliance, supply chain optimisation and legal and contractual issues.
Another set of measures offers subsidies to manufacturing firms to “facilitate diversification” and “pivot in some way”, says Tan.
While it is “not possible” for the government to “cover every aspect or to reach out to every business”, Tan says the government “will be more generous” to small- and medium-sized enterprises (SMEs) here, which employ some two-thirds of Singapore’s workforce.
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According to Tan, eligible SMEs will receive a higher proportion of subsidies than their larger peers under the “co-funding initiative”, with a cap of $100,000 per firm. More details will be announced before the grant is launched “in September or October”, he adds.
While Tan says it is “not realistic, nor is it possible” to completely shield firms from the impact of Trump’s tariffs, the Business Adaptation Grant’s “two-year window” is designed to tide businesses over until Singapore successfully brokers a deal with the US.
“[It] provides some form of reassurance for businesses. Should there be a protracted period of negotiations, it would cover that length. I think anything beyond that, really, there will be other measures that will kick in,” says Tan.
The new grant complements existing schemes like the Market Readiness Assistance Grant, Enterprise Development Grant and Enterprise Financing Scheme, which continue to support businesses in entering new markets, transforming and innovating their operations and accessing financing to support growth.
DPM Gan to visit the US
The US’s 10% baseline tariff on imports from Singapore came into effect on April 5.
Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong, who chairs SERT, says he will travel to the US “later this month” for talks with his counterparts in the Trump administration.
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“This will allow us to get a better understanding of the US’s concerns, their priorities [and] their interests; and to explore opportunities that we can work together to strengthen the bilateral relationship that has so far been mutually beneficial,” he adds.
Gan said in May that Singapore and the US were in talks for preferential or zero tariffs on pharmaceutical exports from Singapore. Speaking at the July 10 media briefing, Gan says talks are still ongoing. “We are in discussions with our counterparts from the [US] Department of Commerce to better understand their expectations and to explore [a] practical and implementable approach for our companies.”
More broadly, Gan says “signs point to the fact that the tariffs are here to stay” but “on the whole, businesses have been preparing to adjust to the new tariff realities”, even after Trump introduced a 90-day pause on levies that ended on July 9.
“Some have taken advantage of the pause in the reciprocal tariffs to front-load exports to the US. As a result, the economy is likely to hold up relatively well in the first half of this year,” he adds. “However, given the expectation of higher tariffs going forward, as well as the diminishing front-loading effect, we will likely see slower economic growth over the next six to 12 months.”
In April, the Ministry of Trade and Industry cut Singapore’s 2025 growth forecast to 0%-2% from 1%-3% previously, citing the impact of the US’s tariffs. According to Gan, this projection for the rest of the year “remains the same”.
Anjani Sinha, Trump’s pick for ambassador to Singapore, appeared to struggle when quizzed about trade and relations between both countries at a July 9 Senate confirmation hearing.
Sinha, a US-based surgeon specialising in orthopaedics and sports medicine, failed to answer questions about the US’s trade surplus with Singapore in 2024, among others.
Asked about the Singapore government’s reaction, Gan says: “We certainly look forward to the appointment of the American ambassador here in Singapore, so that we can work with him to see how we can continue to further strengthen a mutually beneficial bilateral relationship between Singapore and [the] US.”
Gan adds: “It’s not just our economics [and] our collaboration; our relationship is very broad-based — that includes defence, that includes culture, that includes people-to-people exchanges. There are many aspects of collaboration between Singapore and the US, and we look forward to working with the new ambassador here in Singapore.”
Fresh grads
Addressing recent concerns over employment prospects for fresh graduates, Tan says the employment rates for the 2025 graduating cohort in June were comparable to that for the 2024 cohort.
In 2024, 79.5% of fresh graduates from universities secured full-time employment, down from 84.1% the year before, according to data released in February. The number of fresh polytechnic graduates who found full-time jobs also fell in 2024 to 54.6% from 60% in the previous year.
Tan says he recognises the anxiety among fresh graduates and students who are about to graduate. “We understand, but we want them to be assured that there is support available.”
Still, Tan says there is "some silver lining", citing preliminary data from June that shows a 4% improvement in the employment rate of the 2025 graduating cohort compared to the previous year.
There are still more job vacancies than jobseekers, says Tan, with 1.64 vacancies per unemployed person as of March. "The vacancies that are likely to be filled by residents accounted for about seven in 10 of these total job vacancies."
Tan adds a caveat that this is early data. "We are only looking at a very small snapshot."
According to Tan, “evergreen” industries with ample job openings include the care industry, the sustainability sector and teaching.
There are “about 2,400 immediate vacancies available” in the public service, says Tan, including roles in engineering and software development. “Graduates can learn more... through a public service career fair in August, the Careers@Gov job portal or social media.”
Career support
To better support workers, the government and NTUC's Employment and Employability Institute (e2i) will offer career guidance services to more workers and jobseekers.
In 1Q2025, Workforce Singapore launched the Polaris suite of personalised career guidance programmes, which include personalised support by a certified career coach along with action plans and guided career road maps.
From this, Tan notes that “over 85% of respondents” reported gaining “clearer direction” and “higher confidence” in planning their own careers after undergoing the Polaris suite of programmes.
In addition, the government will also temporarily increase funding for basic human resources (HR) certification. This will help employers better manage and support their workforce amid the volatile environment, and Tan says more details will be “shared in due course”.
Three workstreams
Gan chairs SERT, while its remaining seven members are divided across three key workstreams.
The first workstream of “sensemaking and communication” is led by Singapore Business Federation (SBF) Chairman Teo Siong Seng and Minister for Digital Development and Information Josephine Teo.
This workstream will be responsible for regular three-way communication between government, businesses and workers on the latest developments. The workstream will also keep the public and businesses informed of the Taskforce's work.
Teo replaced former SBF Chairman Lim Ming Yan as the SBF representative in May.
The second workstream on “addressing immediate challenges” is co-led by NTUC Secretary-General Ng Chee Meng, Singapore National Employer’s Federation (SNEF) President Tan Hee Teck and Minister Tan. It will build on the work of the first workstream to identify pain points and immediate challenges faced by businesses and workers, and review and enhance support measures as needed.
Acting Minister for Transport and Senior Minister of State for Finance Jeffery Siow replaced Minister for Education Desmond Lee to co-chair the third workstream on “longer-term strategies and responses” with Minister for National Development Chee Hong Tat, supported by partners across the taskforce and other government agencies.
This workstream will develop strategies to transform businesses and workers to seize opportunities and strengthen resilience in the new economic landscape.
This includes longer-term efforts to promote partnerships with like-minded countries and organisations; strengthen and build resilience in Singapore's status as a global hub in air, sea, trade and finance; work with businesses to enter and grow in new markets and diversify their supply chains; ensure continued attractiveness to local and international investors, founders and talent; and accelerate the transformation of Singapore's enterprises and workforce to overcome land and labour constraints through productivity and innovation.
