March 14, 2025
SINGAPORE – Singapore will work with US companies invested here to improve the lives of Singaporeans and Americans, said Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong on March 13.
DPM Gan told the American Chamber of Commerce in Singapore (AmChamSG) that the two countries must work closely to seek win-win outcomes amid rising economic nationalism and protectionism.
“This is why Singapore will continue to work with like-minded partners to strengthen the international, rules-based trading order… for continued growth in trade and investment,” he added, noting that it is now more important than ever for like-minded countries and businesses to redouble their efforts in mutually beneficial collaboration.
Speaking at the launch of a newly expanded AmChamSG hub in Shaw Centre, he noted there are some 6,000 US companies in Singapore, many of which use the country “as a base to sell American products and services to the region”.
“At the same time, there are currently over 250 Singapore companies in around 45 states in the US, and despite our size, we are the third-largest Asian investor in the US, after Japan and South Korea.”
The income generated by US companies from investments in Singapore almost doubled to US$51.4 billion (S$68.5 billion) from 2020 to 2023, based on US government data.
This made up more than 40 per cent of the total income from US investments in the Asia-Pacific, DPM Gan noted, adding: “This income benefits US companies and contributes to the American economy.”
In Singapore, these investments helped with building strong industry ecosystems and created good jobs for locals, he said. He also encouraged US businesses to explore how both sides can continue to work together to strengthen supply chains and the talent pipeline.
“Local companies and SMEs (small and medium-sized enterprises) can play a role in helping you build a stronger supply chain for your businesses in the region. In time, they can also support you as you expand your operations globally.”
Mr Casey Mace, Charge d’Affaires of the US embassy in Singapore, characterised US-Singapore economic relations as “enduring and dynamic”.
“It is in large part because of that growth of the markets here that the United States, and indeed the rest of the world, will only pay more and more attention to developments in Singapore,” said Mr Mace.
“Based on what I have seen over the last few years, the Lion City will remain the most desirable spot in South-east Asia for US companies to do business,” he said.
The remarks by DPM Gan and Mr Mace come a day after new tariffs on all US steel and aluminium imports went into effect, resulting in swift countermeasures from the European Union.
The US has already imposed tariffs on China and its free-trade partners Canada and Mexico. China and Canada have also retaliated with levies on US imports.
While US President Donald Trump is convinced his campaign of tariffs will bring back manufacturing and jobs to the world’s largest economy, trade partners and many economic experts believe the resultant trade war will crimp economic growth and job opportunities while reigniting inflation worldwide.
However, Mr Mace said: “Achieving a balanced reciprocal and mutually beneficial trade relationship is at the heart of what the Trump administration’s America-first trade policy seeks to pursue. Tariffs are but one tool the administration is using to pursue these goals.”
He said previous efforts to restore balance and faith in the global trading system yielded little progress.
“When a country pours over a trillion dollars in state subsidies to lower the cost of production and manipulates its currency to lower the price of its goods, as China has for years, the system will break.
“If we fail to recognise what has brought us to this current moment in history, we will have a hard time finding a new and globally beneficial equilibrium,” Mr Mace said.
He also urged South-east Asia to be more focused on China’s trade surplus, which has more than doubled in the last three years to US$190 billion with the region, adding that China’s exports are now more concentrated in finished goods, representing a real threat to domestic industries.
“South-east Asia’s best trade minds will need to focus policymakers on this challenge or faith in trade will only plummet further,” he noted.
Mr Mace said the Trump administration has also directed US agencies to identify bilateral and sector-specific agreements that can obtain export market access for American workers, farmers, ranchers, service providers and other businesses.
“So, I can assure you that the United States remains committed to expanding trade and growing prosperity. But it is also incumbent upon all nations to ensure that there is a level playing field and that the terms of economic agreements are adhered to.”
DPM Gan said Singapore and its Asean partners are deepening economic integration by enhancing free-trade agreements to further reduce tariff and non-tariff barriers, and address new areas of trade such as supply chain resilience. Asean will also be enhancing cooperation in emerging areas such as artificial intelligence, digitalisation and the low-carbon transition.
Recent initiatives include the signing of the Johor-Singapore Special Economic Zone (JS-SEZ) with Malaysia earlier in 2025.
The agreement is meant to facilitate the cross-border movement of people and goods, improve the ease of doing business and support talent development.
Singapore is also in talks with Indonesia to explore new avenues of cooperation such as in Batam, Bintan and Karimun.
“These efforts will also open up more opportunities for US businesses to benefit from the growth of our region,” said DPM Gan.
He further affirmed that Singapore will continue to be a trusted and reliable partner, with the country’s strong rule of law serving as a central tenet of economic competitiveness, “especially for critical and emerging technologies”.
“We act firmly and decisively against individuals and companies that flout our laws,” he said.
“We also do not condone businesses taking advantage of their association with Singapore to circumvent the export controls of other countries, and we will work with our counterparts to address their concerns in accordance with our laws.”