GE2025: Shanmugam warns of job risks amid US tariffs, says Budget measures address cost-of-living concerns (2025)

SINGAPORE: Job concerns in Singapore are real in light of the United States’ sweeping tariffs, and worries about cost of living were among the reasons the government took action in this year’s Budget, said Minister for Home Affairs and Law K Shanmugam on Tuesday (Apr 29).

But when the opposition suggests that many things can be given for free, it would be wise to ask questions, he added.

"We are successful because we always tell the truth directly. We face reality,” said Mr Shanmugam at a People’s Action Party (PAP) rally at Yishun Stadium.

He then pointed out the approach taken by others, and said voters should assess whether what they said can be trusted.

“When politicians tell you, ‘Vote for me, you don't have to pay for anything, and everything can be free’, when they say that, I think you better ask some questions, whether you can trust that,” he said.

“Because that might work for a few years. After that, you see what is happening in all the other countries."

Mr Shanmugam was the last to speak at the rally on Tuesday evening. Other speakers include his fellow Nee Soon Group Representation Constituency (GRC) candidates Jackson Lam, Lee Hui Ying, Syed Harun Alhabsyi and Goh Hanyan.

Four guest speakers were also present: former Nee Soon MP Lee Bee Wah, Fintech Nation Fund co-founder Vanessa Ho, ex-national footballer Yakob Hashim and TV host Dasmond Koh.

GOODS AND SERVICES TAX

Mr Shanmugam also addressed concerns about the cost of living, which he said was one of the reasons the Budget this year offered “a lot of” benefits.

On the Goods and Services Tax (GST), Mr Shanmugam said that healthcare expenses are rising, the population is ageing, and these challenges need to be addressed financially.

Mr Shanmugam reiterated that the GST is paid by the top-income earners and foreigners, and the tax revenue is then channelled to those in the lower-income groups.

“Who pays the GST? Mostly paid by the top 20 per cent (of earners) and foreigners who come into Singapore, they pay most of the GST, and what do we do? We take that money and we distribute that to all those people who are less well off,” he said.

He also pointed out that government transfers offset at least five years of additional GST expenses for the majority of Singaporean households, and for lower-income households, they will receive more, covering about 10 years’ worth of additional expenses due to GST.

Mr Shanmugam also said that the opposition is not being truthful, as they “make you frightened”, and claim that inflation was due to GST.

“The opposition says: This one can be free, that one can be free. No need for GST, no need for any tax. Some people say (we) have reserves,” he noted.

Ultimately, Mr Shanmugam stressed that it was a question of Asian and Singaporean values – spending what we earn.

“We don’t say ‘we can spend if you don’t put the money aside.’ When people tell you, ‘you can spend without having to pay for something’, in a few years, your future, your children’s future, and the country’s future will go down.”

US TARIFFS WILL AFFECT JOBS

Mr Shanmugam said that the US tariffs are affecting everyone, and jobs, businesses and investments in Singapore will not be spared.

After speaking with people on the ground, he said businesses – whether small and medium-sized enterprises or multinational corporations – have expressed concerns such as a lack of orders, excess manpower, export difficulties, and in some cases, a 50 per cent drop in business.

Some have also called for restructuring support, he added.

“Mr Trump has said that the tariffs are suspended for three months, maybe after three months, the position will become clearer. But … it all depends on what America does. We don’t control what America or China does.

“What we can control is prepare ourselves. We are not a country that waits for trouble. We prepare beforehand,” he said.

Mr Shanmugam said this was why the prime minister has formed an inter-ministerial committee chaired by Deputy Prime Minister Gan Kim Yong.

“When we had COVID-19, the prime minister worked closely with DPM Gan. He knows what the man can do – quiet but very effective … We’ve saved lives and jobs during COVID-19.”

Mr Shanmugam said the government is engaging with multiple countries in an effort to establish a new framework for trade.

Additionally, Mr Gan is actively engaging US officials, such as US Secretary of Commerce Howard Lutnick, as part of ongoing discussions to address the situation, he added.

“(He is) talking to them about the tariffs on Singapore, on pharmaceuticals, on chips. These are very important exports from Singapore to the US.

“And I can say without going into details, the first few discussions between DPM Gan Kim Yong and Secretary Lutnick have been good because that is trust.”

However, Mr Shanmugam warned that although the discussions have been good, a long journey lies ahead.

“DPM Gan and Secretary Lutnick agreed that we should try to find a solution. If we can find a solution, it saves jobs. It saves businesses.

“So we can hope that if DPM Gan remains in government after May 3, he can play the role of saving jobs in Singapore.”

PAP SLATE

The PAP’s slate comprises four newcomers, following the departure of former MPs Louis Ng, Carrie Tan and Derrick Goh from politics. Another former Nee Soon MP Muhammad Faishal Ibrahim is now at the newly formed Marine Parade-Braddell Heights GRC.

Speaking at Tuesday's rally, Dr Syed Harun assured residents that the PAP team will take care of those who are struggling with rising costs, and for all residents young or old.

“Just as we build covered walkways to shield you from the rain, from the lightning and the heat, we also want to build paths of life that offer shelter, protection, and hope. We want to be your shelter,” he said.

“In Yishun, the PAP reassures you that no one will be left exposed to the storm and none of you will walk alone.”

Ms Goh, who has three young children, said that she understands the concerns of Singaporeans who have to straddle multiple roles and responsibilities.

She shared that she believes in a society built on kindness, and families and caregivers should not journey alone.

“To all those who are juggling multiple responsibilities in life, we are here with you,” said Ms Goh.

Mr Shanmugam, Mr Lam and Ms Lee, both long-time volunteers in Nee Soon, also spoke about facilities and developments in Nee Soon GRC.

Nee Soon GRC, which has 151,634 voters, is one of five GRCs left unchanged from the last election.

The PAP team faces a Red Dot United team comprising secretary-general Ravi Philemon, 56, party chairman David Foo, 60, company director Pang Heng Chuan, 56, senior consultant in the IT sector Sharon Lin, 40, and teacher and theoretical physicist Syed Alwi Ahmad, 57.