Red Dot United (RDU) has issued a detailed statement in response to the United States’ decision to impose a 10% tariff on Singaporean exports.
The tariffs, effective from 9 April 2025, represent a significant development in international trade relations.
RDU emphasised that trade is foundational to the nation’s economic philosophy.
According to its statement, “free and fair global trade” is embedded in the Constitution and essential to the country’s future.
Although Singapore’s exports are less affected than those from Taiwan and South Korea, which face even steeper tariff hikes, the party warns that Singapore remains highly vulnerable due to its heavy reliance on external markets.
RDU asserted that this is not a moment for panic, but for purposeful pivoting. Drawing an analogy to flowing water, the party emphasised trade’s adaptability and called on Singapore to respond with strategic foresight.
Among its key recommendations is a shift towards fortifying domestic economic foundations. Central to this are Singapore’s small and medium-sized enterprises (SMEs), micro-businesses, and the broader workforce.
To support these businesses, RDU proposed four immediate measures.
These include legislation to prevent late payments to SMEs, prioritising qualified local firms in public tenders, moderating commercial rents—particularly by government-linked landlords—and offering a time-bound utilities discount to reduce operational costs.
The party also stressed the need to bolster job security, particularly in light of recent layoffs. It recommended enhancing unemployment insurance and allowing CPF members to borrow from their accounts as a short-term financial relief measure.
In addition, RDU called for the rollback of the recent 2% Goods and Services Tax (GST) increase, restoring it to 7%. The party argued that increasing consumption taxes during uncertain times stifles demand and disproportionately impacts those already struggling.
“Putting more money into people’s pockets is vital,” the party stated, underlining the importance of consumer spending in sustaining local economic activity.
The party also called for a broader recalibration of national priorities. It proposed adopting new national metrics beyond GDP to measure quality of life, sustainability, and community health—hallmarks of what it terms a “wellbeing economy.”
Internationally, RDU urged the Singaporean government to utilise available mechanisms under the US-Singapore Free Trade Agreement and World Trade Organization to resolve disputes.
It encouraged diplomatic engagement through entities like the Congressional Singapore Caucus and ASEAN, as well as enhancing regional leverage through trade blocs such as RCEP and CPTPP.
Particular focus was given to ensuring that exporters in sectors like electronics and telecommunications can benefit from the relatively lower-tier tariffs, compared to regional competitors.
Ravi Philemon, Secretary-General of RDU, stressed the importance of political evolution. Drawing an analogy with Nokia’s failure to innovate, he warned that Singapore risks stagnation if it continues to sideline opposition voices and alternative ideas.
“Singapore risks becoming like Nokia,” Philemon said, “if the ruling party continues to shut out third-party ‘apps’—in this case, clear-minded, reasonable opposition parties.”
He argued that inclusivity and innovation must go hand-in-hand, and that real resilience requires political as well as economic adaptability.
As the global economic landscape becomes increasingly protectionist, RDU maintained that Singapore must not turn inward. Instead, the country should invest more deeply in its people, strengthen its local economic ecosystems, and embrace political pluralism to meet the challenges ahead.
In its closing remarks, RDU framed the situation not as a crisis, but as an opportunity for courageous change. “This is a storm we can weather—and perhaps emerge stronger from,” the statement concluded.
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