S’pore growth under pressure, DBS worst STI performer after Trump triggers market rout

SINGAPORE – Singapore could be looking at slower growth after US President Donald Trump on April 2 announced a decision to impose a 10 per cent tariff on most goods imported into the US from Singapore and its key partners, with higher duties for many other countries, including those in Asean.

“International trade and investments will suffer, and global growth will slow. Singapore will take a bigger hit than others, because of our heavy reliance on trade,” Prime Minister Lawrence Wong said in a five-minute video uploaded to his social media accounts on April 5.

The

10 per cent baseline tariffs for the US’ trading partners

around the world came into effect on April 5, while higher duties for other countries are due to start on April 9.

While Singapore has decided to not impose retaliatory tariffs, PM Wong warned that other countries may not exercise the same restraint.

China has already

retaliated with additional tariffs of 34 per cent on US goods,

and other countries will be weighing how to respond to Mr Trump’s tariffs, which are now at their highest level in more than a century.

A strong global response to America’s tariffs is expected, and this “may well end up with a full-blown global trade war”, PM Wong said.

His warning came after Deputy Prime Minister Gan Kim Yong on April 3 said that

Singapore is reassessing its 2025 growth forecast,

and is prepared to support households and businesses if the situation deteriorates.

The Ministry of Trade and Industry currently has a gross domestic product (GDP) growth forecast for 2025 of 1 per cent to 3 per cent.

Maybank, which on April 3 downgraded its growth forecasts for the six Asean economies it covers, including Singapore, was among the first to lower its GDP estimates for the Republic, by 0.5 percentage point to 2.1 per cent in 2025, and 0.5 percentage point to 1.8 per cent in 2026.

While goods like pharmaceuticals and semiconductors, which are key exports for Singapore, are part of a list of items currently spared from the new tariffs, further levies might be on the way.

Maybank economist Chua Hak Bin warned that the exemption from tariffs on pharmaceuticals and semiconductors will not last long. He expects an announcement on further tariffs to currently exempted goods by the end of April or early May.

Local stocks tanked on the news, with DBS leading the decline on Singapore’s benchmark blue-chip index, which fell over 3 per cent to 3,825.86 points on April 4.

All three banks fell, with DBS leading the slide after falling by almost 5 per cent to $43.30 at the market close on April 4. The bank is down by 7.5 per cent for the week.

Other stocks on the local exchange also took a hit. Seatrium, which builds offshore vessels for clients that include American businesses, fell.

Semiconductor-related stocks like AEM Holdings and those in manufacturing and engineering, such as Grand Venture Technology, dived in the week.

Stocks tied to domestic growth, such as construction company OKP, also fell, as did workers’ accommodation provider Centurion Corporation.

Other market movers

Yoma Strategic tumbled by more than 11 per cent over the week to close at 6.8 cents after a 7.7-magnitude earthquake hit Myanmar on March 28, leaving over 3,300 dead as at April 5.

Yoma Strategic’s spokesperson told The Straits Times last week that Yangon, where the majority of the investment holding group’s business activities are located, saw limited damage.

However, it expects to experience short-term disruptions at Wave Money and Yoma F&B, owing to the quake’s impact on critical infrastructure, such as electricity, telecommunications and transport in the affected areas, which is expected to disrupt telecoms and logistics.

Wave Money is one of Myanmar’s largest mobile payments and remittance providers, while restaurant operator Yoma F&B runs about 70 KFC outlets and the YKKO local fast-food chain in 40 locations across the country.

Two IPOs, one more delisting

The Singapore Exchange could soon see two new listings in 2025 if things go as planned.

Car dealer Vin’s Holdings, which sells new parallel-imported and pre-owned motor vehicles, could be the first to list after lodging its preliminary prospectus with the authorities in March. It is applying for a Catalist listing.

Candy maker YLF Group Marketing, which manufactures and distributes its range of products in Singapore, Malaysia and Thailand, also lodged its preliminary prospectus for a Catalist listing.

If successful, the two companies will be the first to list on the SGX in 2025.

In the meantime, another company has announced plans to delist from the exchange, taking the number of firms seeking a delisting to eight in 2025.

Murata Manufacturing on April 1 announced its intention to voluntarily delist its ordinary shares from the SGX mainboard, where they currently have a secondary listing. The company cited poor trading of its shares on the local bourse as a reason for delisting.

The company will maintain its primary listing on the Prime Market of the Tokyo Stock Exchange.

What to look out for this week

Minutes of the United States’ Federal Open Market Committee (FOMC) meeting will be out on April 10, followed by inflation data for the month of March.

The FOMC minutes are usually published three weeks after the day of the last policy decision, which was on March 19, when the US Federal Reserve left interest rates unchanged. Officials stuck to their previous forecast of two more cuts in 2025 despite telling the country to brace itself for higher inflation and slower growth.

Investors will be looking for clues on how the Fed will act in its next policy meeting, given the uncertainties that will follow Mr Trump’s latest tariff salvo.