SINGAPORE: Free-trade agreements (FTAs) have benefitted Singapore, but it is becoming more challanging to negotiate new ones amid today’s global environment, Deputy Prime Minister Gan Kim Yong said on Wednesday (Sep 17).
The multilateral system has morphed into something bilateral or even unilateral, he said.
“We decide how much tariff you have to pay, and there's nothing you can do about it. You can negotiate, but eventually each country decides,” said Mr Gan, adding that this mindset makes trade challenging.
Mr Gan, who is also the Trade and Industry Minister, was speaking at a dialogue session at Enterprise Singapore’s (EnterpriseSG) Scale-Up Ignite event. The moderator had asked him
“Increasingly, it's going to be very difficult to negotiate new FTAs," said Mr Gan, pointing to tariffs as one of the stumbling blocks.
Singapore has been subjected to a universal 10 per cent tariff on goods entering the United States since April. While it is still possible for different countries to come together, he said, there may also be unique challenges.
He cited the Association of Southeast Asian Nations (ASEAN) as an example, in which the member states are on the cusp of signing a third upgrade to the ASEAN Trade in Goods Agreement. The agreement aims to facilitate the free flow of goods in ASEAN to establish a single market and production base for the region to have deeper economic integration.
“The fact that we are able to upgrade our free trade agreement goes to show that we are committed to free trade. I think this is a very important signal to our enterprises and to the rest of the world,” said Mr Gan.
DPM Gan Kim Yong visiting the Scale-Up Ignite 2025 exhibits after his dialogue in Parkroyal Collection Marina Bay on Sep 17, 2025. (Photo: CNA/Jeremy Long)
However, pushing other agreements – such as ASEAN's Digital Economy Framework Agreement – past the finish line has also been challenging, with member states at different stages of digital readiness, he said.
The deal aims to improve rules in areas such as digital trade facilitation, payments, standards and data, and address emerging issues like artificial intelligence.
The plan, therefore, is to reach a “variable geometry agreement”, said Mr Gan. That means while all members will agree to a baseline agreement, the more advanced countries can be a part of an “advanced tier”. The others can join in when they are ready, as long as they meet the requirements.
“That's why it's taking longer than expected to negotiate, because it is new architecture that we are experimenting (with) … we are not familiar with it, and many countries are not familiar with it, and we need to persuade them, to bring them along, to nudge them along,” said Mr Gan.
His comments came the day after Singapore and 13 other countries announced the establishment of the Future of Investment and Trade Partnership, which aims to support open and fair trade even as global markets are increasingly fragmented.
Prime Minister Lawrence Wong said in June that countries should promote integration, break down barriers and strengthen multilateralism in response to weakening global norms.
The US announced a baseline tariff of 10 per cent on goods entering the country in April, and so-called reciprocal tariffs on certain countries.
The reciprocal tariffs were later suspended for 90 days, before some countries received letters announcing that tariffs would kick in on Aug 1. India and the US are still holding trade talks.
As part of Wednesday's event, trade promotion agency EnterpriseSG also gave an update on the impact of
The programme aims to help accelerate the growth of high-potential companies.
The first seven cohorts of participants reported S$2.5 billion more revenue – an increase of 37 per cent – within three years of joining the programme.
The 80 companies in those cohorts also saw a 53 per cent increase in overseas revenue in the same time period, amounting to S$1 billion. 70 per cent of the companies entered new markets, including Indonesia, the Philippines and Thailand.
More than 800 jobs were created in these companies over three years.
Businesses that have participated in Scale-Up come from various sectors, including services, manufacturing, trade and connectivity. Over 100 companies have participated in the programme.
"While we celebrate the journey thus far, our work for Scale-Up is never done. Our mission remains crystal clear, that we want to nurture Singapore global enterprises that will drive economic growth and create quality jobs for Singaporeans," said Ms Cindy Khoo, managing director of EnterpriseSG.
"It's only been six years. We have quite a long way to go," she said.
Speaking to CNA,
“We were doing … US$60 million, US$70 million in terms of revenue, and we were finding it a little bit difficult to break through that barrier,” he said.
The company also wanted to launch a few innovations but was not sure how to do so, as these were outside its core business.
Mr Eric Leong, chairman and CEO of Mlion Corporation at Parkroyal Collection Marina Bay on Sep 17, 2025. (Photo: CNA/Jeremy Long)
Since joining the programme, Mlion has doubled its staff and nearly quadrupled its revenue.
EnterpriseSG also encouraged Mlion to expand to Saudi Arabia.
“We were not very keen to go to Saudi, to be honest, simply because we felt that there was already enough (of a) market in Southeast Asia,” said Mr Leong, adding that the unfamiliarity of a new market also contributed to the hesitance.
An exploratory trip to the kingdom opened his mind to the opportunities, and Mlion set up an office in Saudi Arabia last year, he said.
“Like what DPM mentioned today, it’s important that Singapore companies, SMEs … look abroad for bigger opportunities, apart from just staying in Singapore,” said Mr Leong.
In the dialogue session, Mr Gan said many countries and companies are taking a wait-and-see approach given the global uncertainty. He advised against this, suggesting instead a "see and act" strategy.
Companies should keep an eye on global developments, but also invest in their staff so that they are ready for the future and explore new markets and opportunities, said Mr Gan.
“When the time comes … we have to act very quickly, there’s no time for you to sit back and start to negotiate and start to think about reorganising yourself, because by that time, many competitors would have moved ahead.”
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The multilateral system has morphed into something bilateral or even unilateral, he said.
“We decide how much tariff you have to pay, and there's nothing you can do about it. You can negotiate, but eventually each country decides,” said Mr Gan, adding that this mindset makes trade challenging.
Mr Gan, who is also the Trade and Industry Minister, was speaking at a dialogue session at Enterprise Singapore’s (EnterpriseSG) Scale-Up Ignite event. The moderator had asked him
“Increasingly, it's going to be very difficult to negotiate new FTAs," said Mr Gan, pointing to tariffs as one of the stumbling blocks.
Singapore has been subjected to a universal 10 per cent tariff on goods entering the United States since April. While it is still possible for different countries to come together, he said, there may also be unique challenges.
He cited the Association of Southeast Asian Nations (ASEAN) as an example, in which the member states are on the cusp of signing a third upgrade to the ASEAN Trade in Goods Agreement. The agreement aims to facilitate the free flow of goods in ASEAN to establish a single market and production base for the region to have deeper economic integration.
“The fact that we are able to upgrade our free trade agreement goes to show that we are committed to free trade. I think this is a very important signal to our enterprises and to the rest of the world,” said Mr Gan.
DPM Gan Kim Yong visiting the Scale-Up Ignite 2025 exhibits after his dialogue in Parkroyal Collection Marina Bay on Sep 17, 2025. (Photo: CNA/Jeremy Long)
However, pushing other agreements – such as ASEAN's Digital Economy Framework Agreement – past the finish line has also been challenging, with member states at different stages of digital readiness, he said.
The deal aims to improve rules in areas such as digital trade facilitation, payments, standards and data, and address emerging issues like artificial intelligence.
The plan, therefore, is to reach a “variable geometry agreement”, said Mr Gan. That means while all members will agree to a baseline agreement, the more advanced countries can be a part of an “advanced tier”. The others can join in when they are ready, as long as they meet the requirements.
“That's why it's taking longer than expected to negotiate, because it is new architecture that we are experimenting (with) … we are not familiar with it, and many countries are not familiar with it, and we need to persuade them, to bring them along, to nudge them along,” said Mr Gan.
His comments came the day after Singapore and 13 other countries announced the establishment of the Future of Investment and Trade Partnership, which aims to support open and fair trade even as global markets are increasingly fragmented.
Prime Minister Lawrence Wong said in June that countries should promote integration, break down barriers and strengthen multilateralism in response to weakening global norms.
The US announced a baseline tariff of 10 per cent on goods entering the country in April, and so-called reciprocal tariffs on certain countries.
The reciprocal tariffs were later suspended for 90 days, before some countries received letters announcing that tariffs would kick in on Aug 1. India and the US are still holding trade talks.
COMPANIES SCALE AND EXPAND OVERSEAS
As part of Wednesday's event, trade promotion agency EnterpriseSG also gave an update on the impact of
The programme aims to help accelerate the growth of high-potential companies.
The first seven cohorts of participants reported S$2.5 billion more revenue – an increase of 37 per cent – within three years of joining the programme.
The 80 companies in those cohorts also saw a 53 per cent increase in overseas revenue in the same time period, amounting to S$1 billion. 70 per cent of the companies entered new markets, including Indonesia, the Philippines and Thailand.
More than 800 jobs were created in these companies over three years.
Businesses that have participated in Scale-Up come from various sectors, including services, manufacturing, trade and connectivity. Over 100 companies have participated in the programme.
"While we celebrate the journey thus far, our work for Scale-Up is never done. Our mission remains crystal clear, that we want to nurture Singapore global enterprises that will drive economic growth and create quality jobs for Singaporeans," said Ms Cindy Khoo, managing director of EnterpriseSG.
"It's only been six years. We have quite a long way to go," she said.
Speaking to CNA,
“We were doing … US$60 million, US$70 million in terms of revenue, and we were finding it a little bit difficult to break through that barrier,” he said.
The company also wanted to launch a few innovations but was not sure how to do so, as these were outside its core business.
Mr Eric Leong, chairman and CEO of Mlion Corporation at Parkroyal Collection Marina Bay on Sep 17, 2025. (Photo: CNA/Jeremy Long)
Since joining the programme, Mlion has doubled its staff and nearly quadrupled its revenue.
EnterpriseSG also encouraged Mlion to expand to Saudi Arabia.
“We were not very keen to go to Saudi, to be honest, simply because we felt that there was already enough (of a) market in Southeast Asia,” said Mr Leong, adding that the unfamiliarity of a new market also contributed to the hesitance.
An exploratory trip to the kingdom opened his mind to the opportunities, and Mlion set up an office in Saudi Arabia last year, he said.
“Like what DPM mentioned today, it’s important that Singapore companies, SMEs … look abroad for bigger opportunities, apart from just staying in Singapore,” said Mr Leong.
In the dialogue session, Mr Gan said many countries and companies are taking a wait-and-see approach given the global uncertainty. He advised against this, suggesting instead a "see and act" strategy.
Companies should keep an eye on global developments, but also invest in their staff so that they are ready for the future and explore new markets and opportunities, said Mr Gan.
“When the time comes … we have to act very quickly, there’s no time for you to sit back and start to negotiate and start to think about reorganising yourself, because by that time, many competitors would have moved ahead.”
Continue reading...