Singapore pharma awaits US tariff exemption

Singapore’s pharma exports to the US averaged $3.7 billion a year between 2022 and 2024. The exports are primarily active pharmaceutical ingredients, which refer to the raw materials used to make the finished product, rather than finished products like tablets and capsules.

In her reply to questions filed by seven MPs on the latest pharmaceutical tariffs, Ms Gan said Singapore is still in talks with the US administration on a preferential tariff arrangement for the country’s pharma exports to the US.

Deputy Prime Minister Gan Kim Yong had attended a virtual meeting with US Secretary of Commerce Howard Lutnick recently to work out a broad framework, said Ms Gan in response to a question by Workers’ Party MP Louis Chua (Sengkang GRC) on whether zero tariffs on pharma exports are possible.

The details of the discussion are being followed up on, she added.

Mr Chua also pointed out that some countries already have their own tariff deals with the US, to which Ms Gan said these countries, namely Japan and South Korea, have been able to secure preferential tariff rates for pharma exports as part of boarder negotiations with the US on reciprocal tariffs.

“We are working our best to negotiate for the good of our Singapore economy and the companies here,” she said.

US drugmaker Pfizer,

secured a three-year reprieve from the tariffs on Sept 30 by agreeing to slash some of its US drug prices by as much as 85 per cent, as well as sell directly to the American public.

Ms Gan noted that the pharmaceutical industry is a key contributor to Singapore’s economy, with eight out of the top 10 global pharma companies having manufacturing and R&D activities here.

Besides Pfizer, major industry players such as Amgen, Merck & Co, Novartis and AbbVie have facilities in the Republic.

During the sitting, Mr Ang Wei Neng (West Coast-Jurong West GRC) asked whether the Economic Development Board will consider implementing measures to attract global pharmaceutical companies to invest in Singapore.

Ms Gan said: “Our economic agencies continue to attract new manufacturing and R&D investments from global companies, provide support to our local enterprises, and create good jobs for Singaporeans.”

She added that the US tariffs and related global developments point towards a changed world with greater uncertainty.

Singapore has responded with the formation of the Singapore Economic Resilience Taskforce, chaired by DPM Gan, to help businesses and workers navigate uncertainties arising from the US tariffs.

Five committees were formed to develop recommendations to strengthen the country’s competitiveness and improve its start-up ecosystem.

The committees will publish a final report with a list of key recommendations by mid-2026.