US-China Economic Impact on Singapore
PM Lee believes that tensions between China and the United States will have a negative impact on the global economy. “This will not only disrupt the supply chain, but also limit investment and R&D, as well as influence private exchanges,” he said.
With Singapore being a small and open economy, globalization has brought great benefits. On that note, PM Lee commented: “If China and the United States cannot establish mutual trust and the world continues to divide, then Singapore’s economic growth will be dragged down and the prospects will become even more bleak.”
In fact, he believes that many local companies which has China as their main market will be affected. For example, companies that set up factories in China and export goods to the United States will suffer. Commenting further, PM Lee said: “Some people think that foreign companies that don’t want to set up factories in China will consider investing in Singapore, but this is not the case.
“These foreign companies will choose to set up factories in lower-cost countries or closer to the United States and China,” he added. On that note, he advises the nation to be prepared to adapt to this new international landscape.