Here's what business leaders think about the STI drop after tariffs

STI fell more than 8% on 7 April.

The Strait Times Index dropped more than 8% on April 7, days after Trump’s trade tariffs. Here’s what Singapore’s business leaders had to say.

Danny Chong
Co-Chairman, Digital Assets Association and co-founder, Tranchess

Confidence remains strong in the mid to long-term fundamentals and resilience of Singapore companies, and we see weakening STI levels as offering increasingly attractive entry points.

Tim Hill
Key Accounts Director, SE Asia, GlobalData

At GlobalData, we've been receiving a surge of calls from clients in the F&B sector who were active in the US market and are now being forced to make rapid decisions about where else to focus in order to hit their 2025 targets. They're specifically looking for markets that can serve as proxies for the US, in terms of size, growth potential, consumer tastes, pricing, and more. Liberation Day has knocked the F&B industry for six. For almost every company, this has been a black swan event, something no one saw coming or believed would unfold so quickly.

Alicia Garcia-Herrero
Chief Economist Asia Pacific, Groupe BPCE – Global Markets Research, Natixis Corporate & Investment Banking

The market reaction is understandable since the Trump administration, coupled with China’s response of full retaliation can be compared to the 2008 global crisis unless action is taken to lower tariffs.

Bear in mind that there could be a next step from the US administration towards a forced weaking of the USD through the Mar-a-Lago accord. This is  not confirmed but it is looming in the market so it is clearly a huge shock.

We need to watch for two things at the current juncture. Firstly, on the positive that the US backtracks given the impact on US stocks. Secondly, that more countries retaliate with China going into a 1929 style scenario.

Meenakshii Singh
APAC Senior Field & Partner Marketing Manager, TabSquare.AI

The STI's sharp drop, mirroring 2008 levels, is a sobering reminder of how interconnected global events are with local business sentiment. In the F&B space, we often feel these shifts early: diners grow more cautious, operators hold off on expansion, and consumer behaviour changes subtly but surely.

Having worked closely with restaurant leaders across the region, I’m already seeing conversations shift from “growth at all costs” to “smart, sustainable growth.” Uncertainty tends to accelerate reflection and reinvention—businesses start rethinking how they run, where they spend, and what truly adds value.

The next few months will be bumpy, but they could also be the start of a much-needed evolution in how we approach F&B in Singapore and beyond.

Josh Bell
General Manager, Guzman y Gomez Singapore

These market movements are definitely concerning to all of us. That said, this is often where the greatest opportunities emerge. These turbulent periods should be approached with caution, making careful, tactical business decisions, but with the understanding that this will pass, and when it does, the best business operators will thrive.

Raquel Lee
Senior Account Manager, SPAG/FINN Partners

The biggest impact is on the cost of living. Coupled with worries of an economic slowdown, the US tariffs are set to make goods even more expensive for everyone. But I see these as short-term shocks. We're already seeing countries in the region stepping up cooperation to counter the effects and reduce reliance on the US.

James Ooi
Market Strategist, Tiger Brokers

The overnight near-6% plunge in the S&P 500 has triggered a broad sell-off across Asian equity markets, including Singapore. As of 12 PM today, the three local banks account for only around 47% of the STI’s 8.12% decline, indicating that the sell-off is broad-based across component stocks rather than concentrated in the banking sector.

This broad-based decline reflects weakening investor sentiment and rising risk aversion, as market participants respond to global volatility, escalating tariff uncertainty, and a deteriorating growth outlook.

Caution is also mounting around the outlook for local bank stocks, driven by growing fears of a global recession and expectations of five U.S. Fed rate cuts by year end - according to the CME FedWatch Tool - which could compress net interest margins (NIM).

It is too early to say definitively whether this is over, as the potential tariff-induced recession risks are still unfolding. Much will depend on how deep and prolonged the economic slowdown becomes, and whether rate cuts are sufficient to cushion the impact. However, following the recent sell-off, valuations of banking stocks are starting to look more attractive to bargain hunters.

Oliver Ellerton
Director, Ellerton & Co.

US President Donald Trump’s move to impose tariffs marks a step back from free trade and open markets. If this trajectory continues, it could have serious repercussions for global trade. Free trade benefits everyone, it raises quality, lowers costs, and allows countries to leverage their comparative advantages to create value and build wealth. These tariffs make that harder to achieve.

While it's still early days, we at Ellerton & Co. remain cautiously optimistic. Our belief in Asia’s growth story has always been strong, it’s why we’ve invested in teams across Singapore, Indonesia, Vietnam, and the Philippines, and built partnerships in Malaysia, Hong Kong, and India. Many of our clients are well-established in the region but rely on us to help them navigate its complex landscape, from varied languages and business practices to cultural nuances.

As the US turns inward, ASEAN is moving in the opposite direction. As of September last year, nearly 99% of all tariff items among ASEAN members had been eliminated. Intra-ASEAN trade now makes up the largest share of the bloc’s total trade, accounting for 22.3% in 2022, according to HSBC’s 2024 report. If Asia continues to double down on free trade and open markets, Trump’s tariffs could ironically accelerate regional cooperation and integration. That would be the silver lining.

Steven Yang
Senior Vice President and Managing Director for the Asia Pacific region, GoTo Foods

I’m a eternal optimist, for sure there are some short term pains, but I believe in the mid to long term, global markets will adjust, adapt and get back on track.