SINGAPORE \u2013 Even though the global economy did not succumb to the \u201cLiberation Day\u201d tariffs imposed by the US in April, many countries, including Singapore, are now in a worse off position.<\/p>\n
And they will be so for a long time to come, said Senior Minister Lee Hsien Loong on Dec 6 at the official reopening of Cheng San Community Club.<\/p>\n
This means less growth and progress for Singapore, more friction with other countries and a more troubled world, SM Lee said.<\/p>\n
This is even as Singapore\u2019s economy is projected to perform better than expected in 2025, he noted.<\/p>\n
The Ministry of Trade and Industry had upgraded the country\u2019s growth forecast to 4 per cent, from the 1.5 per cent to 2.5 per cent range projected in August. The economy is projected to grow between 1 per cent and 3 per cent in 2026. <\/p>\n
Singapore was among the countries hit by a 10 per cent baseline\u00a0tariff, or taxes imposed on imported goods, that <\/p>\n US President Donald\u00a0Trump\u00a0announced on April 2<\/p>\n <\/a>.<\/p>\n SM Lee said the US is now taking a very different attitude towards international trade and investment, and towards its relationship with other countries.<\/p>\n \u201cIt no longer believes in win-win cooperation or in rules which apply to countries big and small,\u201d he said.<\/p>\n Instead, the US now prefers to deal with countries on a bilateral basis, using its relative strength to maximise benefits for itself, the Senior Minister said. <\/p>\n He added: \u201cIt believes that if it imposes tariffs, then it can reduce its trade deficits and get some extra benefits from other countries.\u201d <\/p>\n In such a less certain and more troubled world, everybody loses, with smaller countries left the most vulnerable, he noted. <\/p>\n The Republic\u2019s relations with its neighbours are generally stable, good and cordial, he said, pointing to the recent <\/p>\n 12th\u00a0Singapore-Malaysia\u00a0Leaders\u2019 Retreat.<\/p>\n <\/a><\/p>\n \u201cThe retreat went well, but between neighbours, there are always issues,\u201d SM Lee said, noting that such longstanding issues will not be easily resolved. <\/p>\n Water, airspace and maritime boundaries were cited as three main issues during the retreat.<\/p>\n SM Lee added: \u201cWe have to make sure that within ASEAN, among close neighbours, our relations stay on track. Because if we go off track in a world which is already troubled, that is bad news for us.\u201d<\/p>\n He noted that during the general election in May, Prime Minister Lawrence Wong and the PAP had won a good mandate. <\/p>\n He said Singaporeans must work with the Government, which will do its part by working to keep Singapore\u2019s economy growing by retraining the workforce and keeping the country safe and secure. The Government will also strengthen relations with its neighbours and other countries. <\/p>\n PM Wong <\/p>\n announced in April<\/p>\n <\/a> that the Republic will open new diplomatic missions in Africa and Latin America over the next few years.<\/p>\n In 2026, <\/p>\n Singapore will open an embassy in Mexico City<\/p>\n <\/a> \u2013 its first in the Spanish-speaking world and second in\u00a0Latin\u00a0America.<\/p>\n