Singapore to launch new grant for companies, expand support for workers amid US tariff uncertainties

Singapore companies will be able to tap a new grant to help them adjust to the new tariff environment, announced the Singapore Economic Resilience Taskforce (SERT).

The Business Adaptation Grant, to be launched by October 2025, will be capped at S$100,000 per company and requires co-funding by firms, Minister for Manpower Tan See Leng said as the task force provided an update of its work so far on 10 July.

Small and medium-sized enterprises (SMEs) will receive a higher level of support, while larger companies will be eligible for a smaller quantum. More details will be announced in October.

Dr Tan said the grant will support two broad groups of businesses.

For firms that export to or operate in overseas markets, it will cover advisory services related to free trade agreements, trade compliance, legal and contractual matters, supply chain optimisation, and market diversification.

For businesses with local or overseas manufacturing operations, the grant can help to defray reconfiguration costs such as logistics and inventory-holding expenses.

Dr Tan noted that it would not be possible for the Government to cover every aspect of business operations or reach every firm with local, regional, or international exposure, but the grant has been structured to differentiate between SMEs and larger firms.

“SMEs will receive more generous support, as they account for about two-thirds of Singapore’s workforce, with a significant proportion being Singaporeans,” he said.

The 10 July press conference was attended by Deputy Prime Minister Gan Kim Yong, who chairs the task force; Minister for Digital Development and Information Josephine Teo, and Dr Tan.
 

Also present were National Trades Union Congress (NTUC) secretary-general Ng Chee Meng, Singapore National Employers Federation (SNEF) president Tan Hee Teck, and Singapore Business Federation chairman Teo Siong Seng.

The meeting comes as US President Donald Trump continued to fire off letters to countries, informing them of their new tariff rates.

Singapore has not received a letter. But eight of the 10 ASEAN countries, barring Vietnam, have received letters with tariff rates, with Laos and Myanmar told to expect 40 per cent.

DPM Gan said that Singapore is one of the top investors in several countries across the region.

He cited the example of Suzhou Industrial Park in China, where the Republic is a major investor.

But with the world’s second-largest economy now facing significant headwinds due to the global tariff situation, some Singapore firms with operations there may need to reconfigure their supply chains to remain competitive in both practical and compliant ways.

“These are our companies’ investments overseas, and therefore it is important to make sure that they continue to survive and do well,” DPM Gan said.

This strengthens the strategic value of the Republic’s businesses and creates more jobs in Singapore, whether in finance, legal services, research and development, or manufacturing, he added.

“So that’s why it’s important for us to have this regional and global perspective, not just a Singapore company doing business in Singapore,” he said.

On the job market front, Mr Ng, the labour chief, said young job seekers currently face four key “gaps” as they transition into the workforce – skills, expectations, opportunities, and experience.

For example, some feel unprepared to take on roles in fast-evolving areas such as environmental, social, and governance or ESG, and have asked for targeted upskilling not just in industry-relevant technical skills, but also in soft skills.

Others are also concerned about job opportunities amid global instability, as well as the impact of artificial intelligence on job availability.

Many employers prefer candidates with prior industry experience, which puts first-time job seekers at a disadvantage, Mr Ng said.

SNEF’s Mr Tan said that most employers are taking a cautious approach. Around 70 per cent have either planned or made workforce adjustments, including team reorganisations, hiring pauses, and prioritising upskilling and reskilling to future-proof their organisations, he said.

“To help alleviate cost pressures and drive transformation, we strongly encourage employers to tap the SERT’s enterprise and workforce support measures,” said Mr Tan.

Still, there are silver linings in the job market.

Dr Tan noted that the employment rate for the 2025 graduating cohort stood at 51.9 per cent as at June, a 4 percentage point increase from the 47.9 per cent recorded in June 2024.

Vacancies for entry-level jobs have also remained steady. For example, there are currently 2,400 immediate vacancies suitable for fresh graduates in the public sector, including roles for engineers and software developers.
 

According to the Ministry of Manpower’s finalised data in its Labour Market Report for the first quarter of 2025, the number of job vacancies stood at 81,100 in March, up from 77,500 in December 2024.

But the Government will continue expanding support for job seekers, with more career guidance services offered through NTUC’s Employment and Employability Institute, he said.

The Government will also provide temporary enhanced funding for basic certification to help human resources professionals better support employers in managing their workforce amid a volatile economic environment.

In his closing remarks, DPM Gan said it is important to plan ahead and take action to ensure that Singapore’s economy continues to grow and remain relevant globally.

“Our focus remains very clear, which is to protect livelihoods, strengthen our resilience, and keep Singapore moving forward,” he said.
 

Source: The Straits Times © SPH Media Limited. Permission required for reproduction.