Amid rising protectionism and weakened institutions, Singapore must prepare for harsher times ahead, says Prime Minister in national address

As the world enters an increasingly unpredictable and protectionist era, Prime Minister Lawrence Wong has urged Singaporeans to confront these developments with clarity and realism.

In a five-minute video shared on 4 April via social media, PM Wong cautioned against complacency, pointing to weakening global institutions and the erosion of longstanding international norms. He highlighted the growing trend of nations pursuing narrow self-interest, often through coercion rather than cooperation.

“We’re witnessing a shift towards a harsher global reality,” he said. “Institutions that upheld international rules are faltering, and more states are acting unilaterally to secure their interests.”

His remarks come just days after United States President Donald Trump introduced sweeping tariffs—10 per cent on most goods, including those from Singapore. The move signals a fundamental departure from decades of free trade principles, PM Wong noted.

He described the development as a “seismic shift” in global economics, effectively ending the rules-based multilateral trading framework led by the US for generations. “For years, the US championed free markets and helped establish systems like the World Trade Organisation. But now, it appears to be turning away from what it once built,” he added.

Singapore, though placed in the lowest tariff bracket for now, is bracing for potential knock-on effects. PM Wong stressed that if more countries abandon WTO principles in favour of bilateral deals and retaliatory measures, smaller nations like Singapore risk being side-lined.

“This shift doesn’t just affect large economies,” he warned. “Small, open countries stand to lose the most. We may find ourselves excluded or squeezed out in future trade discussions.”

Although Singapore has chosen not to retaliate with counter-tariffs, PM Wong cautioned that other nations may respond differently, increasing the risk of a wider trade conflict. This could damage global commerce, suppress investments, and slow economic growth—outcomes to which Singapore is particularly vulnerable due to its deep reliance on international trade.

Deputy Prime Minister Gan Kim Yong, speaking a day earlier, confirmed that Singapore’s economic forecast for 2025 is being reassessed in light of recent events. The government, he added, is prepared to support households and businesses if conditions worsen.

While calling the US’s actions a rejection of the WTO framework rather than a push for reform, PM Wong acknowledged that the system was never perfect. Singapore, he said, has long supported improvements to the global trading order, but not its abandonment.

Drawing historical parallels, he referred to the 1930s, when protectionist policies and global trade tensions spiralled into war. “We cannot predict the future with certainty, but we must remain vigilant. The risks are real and the consequences profound.”

As the geopolitical climate grows tenser, PM Wong assured Singaporeans that the country is better prepared than many others, citing its financial reserves, strong social cohesion, and longstanding partnerships. Nevertheless, he urged the public to stay alert and united in the face of uncertainty.

“The calm stability we once enjoyed globally will not return soon,” he said. “Let’s not be caught off guard. If we stand firm together, Singapore will navigate these troubled waters with resilience.”