Singapore has already witnessed a slash in business investments amidst the looming trade wars.
Finance minister Heng Swee Keat thinks that Singapore may have to look out on its economic growth projects for 2019 amidst the escalating US-China trade tensions that have pumped up uncertainty for business investments.
“In the short run, the impact is not fully felt yet," with Singapore retaining its growth forecast for this year at 2.5% to 3.5%, Heng said in an interview with Bloomberg Television. "But any trade tension that sets back globalization will affect everyone, including the countries that are directly involved, but also collateral damage right across all economies."
Heng acknowledged that the Lion City had already witnessed the effects of the trade war through increased uncertainty and reduced investment by businesses, noting that next year’s situation will depend on how the situation will unfold in the next few months.
The ‘global production frontier’ being diminished could allow a prolonged trade war to severely disrupt the global supply chain thereby hitting countries with long-term growth challenges, the minister said.
“Our priority areas remain for economic restructuring," Heng explained. "The other big area is looking at infrastructure development" with urbanization being a major trend in Asia.
Here’s more from Bloomberg.
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