Singapore’s economic growth outlook faces rising risks from ongoing wars and geopolitical tensions, with knock‑on effects for local businesses and the tourism sector, deputy prime minister (PM) Gan Kim Yong said in parliament on 7 April (Tuesday).
Delivering his remarks during a parliamentary sitting, the deputy PM said that while Singapore’s economy remains on a growth path, external headwinds have intensified. He pointed to the impact of the wars on global demand, trade and investment flows, and noted that this has implications for an open and trade‑dependent economy such as Singapore.
Deputy PM Gan said the conflicts have weighed on business confidence in some markets, and added that companies in Singapore are watching developments closely. He highlighted that sectors linked to external demand are particularly exposed, and that businesses are having to navigate a more uncertain operating environment.
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Tourism was also flagged as an area of concern. Deputy PM Gan noted that the wars and geopolitical tensions have affected travel sentiment and could influence visitor flows into Singapore. While Singapore continues to attract travellers, he said the government is monitoring the situation and its potential impact on tourism‑related industries, including hospitality, retail and services.
At the same time, the deputy PM said Singapore’s fundamentals remain sound. He reiterated that the government will continue to support businesses and workers as they adjust to the external challenges, and will work to keep Singapore an attractive and reliable hub for trade, investment and tourism.
“The crisis is unlikely to be over anytime soon, and we must be prepared for its effects to persist for some time,” he said, adding:
Periods of disruption such as this will test the resilience of countries and economies, but they also create impetus for firms to transform, diversify and deepen their capabilities.
Deputy PM Gan added that the government would support firms to diversify and internationalise, and accelerate enterprise transformation through technology and innovation “so our economy remains resilient and competitive in a more challenging global environment”.
“If we stay disciplined, deepen our trust in each other, preserve our capabilities, and use this period to sharpen our competitive edge, Singapore will be well placed not only to weather this crisis, but to emerge from it stronger,” he said.
The deputy PM’s comments come as volatility increasingly becomes a defining feature of the global business landscape. A new B2B growth agenda report by Bain & Company, based on a survey of more than 1,100 senior executives across 18 industries, described volatility as a “constant condition” rather than a temporary disruption, with geopolitical uncertainty and rapid advances in AI making it harder for companies to translate ambitious targets into actual performance.
Many firms are still operating with commercial models that cannot keep pace with shifting markets and new technology, contributing to a widening gap between growth ambition and results.
This focus on resilience and transformation echoes earlier messages from the government on the need to prepare for a more volatile world.
In February, Singapore prime minister and finance minister Lawrence Wong similarly warned that global conditions would remain “more uncertain and more challenging”, and outlined a raft of measures in Budget 2026 to help firms adapt. These include enhanced support for companies to expand overseas, upgrade capabilities and harness AI, so they can stay competitive even as volatility persists.
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