The next few years will be very difficult & it's not fearmongering: Heng Swee Keat on tariff war

"It's not fearmongering," said Deputy Prime Minister Heng Swee Keat, on the Singapore government's warnings about the ongoing tariff war.

The former finance minister was responding to questions at an Apr. 12 morning walkabout at Bedok 85 Fengshan in East Coast.

Asked if he had anything to say about comments on Apr. 6 from the Progress Singapore Party's Tan Cheng Bock and Leong Mun Wai on tariffs.

Heng said that he was "astounded" by the comments that had been made.

"This is not about politicking. This is a serious policy issue affecting the whole of Singapore; affecting every worker, every business in Singapore," he said.

Leong, PSP's secretary-general, had put up a Facebook post on Apr. 9 that PSP had "no intention of downplaying the new tariffs".

Difficult times ahead

Echoing the warnings of Prime Minister Lawrence Wong in Parliament on Apr. 8, Heng said that he believes the next few years will be "difficult years".

"Having been managing the economy for the last 20-odd years, I am very concerned about the tariff war, how the trade war is going to affect us," he added.

He also pointed out that many economists in the U.S. itself have been warning of recession.

"Financial markets have reacted sharply, and I don't think that it is something we should dismiss," he said.

"And if countries like China, like the European Union are worried, I think we as a tiny, very open economy should be very concerned."

Heng also said he believes that the impact of this tariff war will not be "a short walk".

"This is going to be a fairly protracted contest," he said.

"And in such a protracted contest, Singapore must remain nimble, agile, as well as neutral and trusted, so we can continue to collaborate with everyone in the world," he added.

"Trade is three times our GDP, so even a small change in the global economy will affect Singapore deeply."

Top image by Mothership