Singapore must remain 'key node' in global supply chains amidst uncertainty: Chee Hong Tat, Singapore News
Minister for Transport Chee Hong Tat said that Singapore must remain a "key node" in the global supply chain amid ongoing uncertainty.
Speaking to media at PSA Pasir Panjang Terminal on Friday (May 16), Chee said that despite greater turbulence, uncertainty and shifts in the world, Singapore's container volumes have grown by 6.1 per cent during the first four months of 2025, compared to the same period last year.
Singapore handled 14.2 million twenty-foot equivalent units (TEUs) – which is a measure of cargo capacity – from January to April this year.
"Container (throughput) has remained strong despite what's happening," he said, adding that this is something he hopes can continue.
Chee added that companies have boosted trade activity in recent months due to the pause in higher tariff rates and this increase in activity has benefitted Singapore.
"There is actually a boost in terms of companies trying to do some front loading and catching up, trying to make full use of this window," he said.
On Monday, United States and China agreed to pause the massive tariffs they imposed on each other's goods for 90 days.
The US also shaved its earlier tariff of 145 per cent on Chinese goods to 30 per cent on May 12 after a temporary deal for 90 days was brokered after talks in Geneva.
Chee also said: "I think we will have to stay very nimble, keep in close contact with our key customers."
"No matter how global supply chains were to shift, what's key is for Singapore to remain an important hub port and a key node in the global supply chain."
He continued that while companies may shift the origin, destination or the way cargo is transported, the Government wants to ensure Singapore puts forth a strong value proposition to its customers.
This is so that no matter how these shifts happen, companies will still want to pass through Singapore.
"So yes, there will be negative impact in some areas, on some sectors, but there could be new opportunities that...emerge too," he said, adding that the government will intervene to help local companies and workers where necessary.
Chee, who is part of the new Singapore Economic Resilience Task force (SERT), also said that the uncertain trade situation is being closely watched.
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"Part of the work in this task force is also to identify and seize these new opportunities," he said, adding that a further update will be given by SERT chairman Deputy Prime Minister Gan Kim Yong. Autonomous vehicles in trial phase
On Friday, Chee was also given a tour of PSA Singapore's new Autonomous Prime Movers (APM), which are currently being tested.
The APMs come from two vendors: Venti Technologies and Westwell, and use artificial intelligence to transport containers around Pasir Panjang Terminal. Being fully automated allows them to generate a route and follow it when given a destination.
During this trial period, movers are monitored by PSA personnel from a control room, who can intervene remotely should any technical issues arise.
PSA Singapore will be hiring more than 2,500 employees this year in different roles such as frontline port operations, IT and data science.
These jobs will be created to support its growth and expansion such as operations in the new Tuas Port, which currently has 11 berths in operation.
One more berth is planned by the end of this year, four more in 2026 and a further two in 2027, said Chee.
When fully completed in the 2040s, Tuas Port will have a handling capacity of 65 million TEUs. Global maritime sector to face choppy waters: SM Lee
While speaking at the Singapore Maritime Lecture on March 24, Senior Minister Lee Hsien Loong said that choppy waters lie ahead for the global maritime sector due to geopolitical tensions and climate change straining the world's trade system.
However, globalisation is unlikely to completely reverse itself.
"The world still needs to trade, and countries still need to do business with one another," said SM Lee.
He explained that trade is "existential" for Singapore, as the maritime sector is a major part of the nation's economy, contributing to over six per cent of its gross domestic product and about 140,000 jobs.
"Being so small, we have no choice. But we are not alone. Even with globalisation in retreat, many countries still believe that trade can be a win-win proposition, and want to preserve as much of the benefits of the multilateral trading system as possible," SM Lee said.
bhavya.rawat@asiaone.com
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