Fear-mongering over US tariffs necessary because S'poreans are complacent

Singapore’s economy is heavily reliant on global trade, with exports accounting for a significant portion of its GDP (about 170%) — think electronics, shipping, manufacturing.

U.S. tariffs, even at 10% on Singapore’s exports, could disrupt supply chains. Growth forecasts? Down 1.5%.

If U.S.-China tariffs spike, China’s economy slows, and Singapore suffers. Fewer ships, quieter factories, jobs on the line. With living costs up 4%, families are already stretched.

PAP say "be worried"; PPP say "don't bluff"

Prime Minister Lawrence Wong has described the tariffs as marking a “seismic change” in the global order, signaling the end of rules-based globalization. Senior Minister Lee Hsien Loong echoed this, noting that Singapore can no longer rely on a stable global trading system, raising the risk of a recession.

People's Power Party chief Goh Meng Seng calls PM Wong's statement "fear-mongering". They call the PAP’s warnings “scare tactics” to spook voters into sticking with the safe bet.

Crises usually send Singaporeans running to the PAP, but Goh’s betting on change. Voters are livid about housing costs and stagnant wages—why obsess over tariffs when you can’t afford a flat?

PAP has historically benefited from a “flight to safety” during crises, where voters favor stability. However, according to Goh, this strategy may be less effective now, as voters are more polarized and focused on local issues like housing affordability.

PPP: US tariffs on Singapore is "ikan bilis"

The PPP’s claim that the government is overreacting could stem from the fact that Singapore’s 10% tariff is relatively low compared to others (e.g., 26% for India). They might argue that Singapore’s diversified trade partnerships (e.g., with ASEAN, EU, and Japan) and free trade agreements could cushion the blow.

But they miss the forest for the trees. Tariffs aren’t just about U.S. trade—they disrupt global flows.

A slowdown anywhere hits our ports, factories, and wallets. Brushing it off as “ikan bilis” is reckless, like ignoring a leak in a ship.

The PPP’s skepticism taps voter frustration, but it underestimates a real economic storm.

Additionally, some opposition figures may believe the government’s messaging exaggerates immediate risks to rally voters, when the full economic impact might take time to materialize.

COVID-19 measures were also an overreaction but look at where it got Singapore

PM Wong referenced the COVID-19 response, where early government action was criticized as overreach but later proved necessary. This suggests a pattern: proactive warnings about external risks (like tariffs) aim to prepare Singaporeans for tough times, even if the full impact isn’t immediate.

According to Goh, he said to "let the big boys (US and China) hash it out" - reiterating that the tariffs are temporary and for Singapore to focus on domestic issues.

Goh rightly highlights domestic pain—housing and jobs are urgent—but dismissing tariffs ignores how global shocks amplify local struggles.

Some analysts argue that Singapore’s agile economy and government interventions (e.g., support for SMEs) could mitigate damage. The PPP might be banking on this resilience -- an irony seeing that PAP's policies created this resilience - to argue that panic is premature.

Election noise means opinions from political parties need to be taken with a grain of salt

With the General Election (GE2025) set for May 3, opposition parties are differentiating themselves by challenging the PAP’s narrative. Calling out “fear-mongering” appeals to voters frustrated with the PAP’s dominance. The PPP’s critique is partly electoral posturing.

Conversely, the PAP’s emphasis on unity and preparedness could be seen as leveraging the crisis to bolster its campaign.

However, dismissing the tariff threat as “fear-mongering” overlooks the broader economic stakes that affect the livelihood of all Singaporeans, and is nothing short of myopic.