Trade and investment can support jobs in both Singapore and the US, says DPM Gan

SINGAPORE – The longstanding economic relationship between Singapore and the US shows that trade and investment can support jobs in both economies, said Deputy Prime Minister Gan Kim Yong.

Speaking at the 2026 Regional Economic Conference organised by the American Chamber of Commerce in Singapore (AmChamSG) on Sept 8, DPM Gan said that since the US-Singapore Free Trade Agreement entered into force in 2004, bilateral trade has grown significantly, benefiting businesses and workers in both countries.

Today, bilateral trade and Singapore’s investments in the US support around 350,000 American jobs. Meanwhile, the US has maintained a substantial trade surplus with Singapore for more than two decades.

In 2025, that surplus exceeded US$33 billion (S$42 billion).

DPM Gan said that with around 6,600 American companies based here, the US is Singapore’s largest investor. And the Republic – despite its small size – is the third-largest Asian investor in the US, behind Japan and South Korea.

More than 250 Singapore companies operate across 45 US states, in sectors ranging from logistics and agribusiness to aerospace and shipbuilding.

“Our partnership shows that trade and investment can strengthen capabilities and support jobs in both economies,” he said.

And even as the US pursues today a renewed effort to rebuild its industrial capacity, strengthen strategic industries, and secure critical technologies and supply chains, DPM Gan said, strengthening capabilities at home and deepening engagement with trusted partners need not be competing objectives.

“American companies will be better placed to sustain growth and investment at home when they can also reach growing markets abroad, draw on reliable regional networks and deploy their technologies at scale.”

Hence, US economic renewal and more profound US engagement in South-east Asia can reinforce one another.

However, DPM Gan also noted that the US tariffs now in place, as well as the prospect of further measures, are weighing on business decisions and adding to uncertainty globally and in the region.

In July, Singapore became subject to a 12.5 per cent tariff, following a US Trade Representative investigation into 60 trading partners regarding their alleged failure to enforce prohibitions on imports made with forced labour.

Separately, US sectoral tariffs – with rates ranging from 25 per cent to 50 per cent – on steel, aluminium, copper and automotive parts also apply to some Singapore exports. Singapore is also on the list of countries that may face US tariffs aimed at excess manufacturing capacity in the future.

“We cannot remove every source of uncertainty. But by keeping channels open and working together, we can give businesses greater confidence to address these uncertainties and invest for the long term,” said DPM Gan, who is also the Minister for Trade and Industry (Trade).

US Ambassador to Singapore Anjani Sinha, who was present at the AmChamSG event, lauded Singapore’s investments in the US and hoped the Republic will continue to invest even more.

In a fireside chat at the event, DPM Gan said Singapore businesses will have to learn to live with the US tariff regime and the resultant rise in costs, as the levies are unlikely to go away any time soon.

While the tariffs will not stop Singapore from trading and investing in the US, he added that the disruption caused by them has opened the opportunity for Singapore to trade more within ASEAN, as well as with other regions such as the Middle East and Europe.

He said American companies would also do well by engaging more with ASEAN.

While South-east Asia is already an important market for American businesses, the region is now moving into higher-value activities which will require more of what American companies do well. This includes advanced manufacturing systems, digital infrastructure, energy, healthcare, financial services and logistics.

“The opportunity is to connect American strengths with the region’s needs – creating demand for US products and services – while building capabilities and supporting jobs on both sides of the Pacific.”

And Singapore can help make this partnership work better.

“Our trusted business environment, skilled workforce, and financial, logistics and digital connections can be a critical competitive advantage for companies operating across this diverse region,” DPM Gan noted.

The timing favours increased US-ASEAN engagement.

In 2027, which will mark 50 years of ASEAN-US dialogue partnership, Singapore will assume the chairmanship of ASEAN and serve as its coordinator for relations with the US.

DPM Gan said: “We would like to explore connecting the ASEAN Single Window with the US, so that electronic trade documents can be exchanged more seamlessly and securely.”

ASEAN is also working towards signing the Digital Economy Framework Agreement at the grouping’s summit in November. This will establish common rules to support digital trade, trusted data flows and cooperation in emerging technologies.

“These efforts can reduce the time and cost of doing business, and make it easier for companies to operate across South-east Asia,” said DPM Gan.

Singapore can also bring American AI companies together with regional enterprises, governments and researchers to develop and test solutions, and support deployment of the technology across the region.

“(For us) as ASEAN chair, our goal will be to move from frameworks to implementation, and put into practice AI for the Public Good.”

DPM Gan said Singapore will continue to be a reliable partner, working with the US, fellow ASEAN members, AmChamSG and the wider business community to strengthen economic ties, build resilience and create new opportunities for businesses and Singaporeans.

At the event, AmChamSG also unveiled its 2026 ASEAN Business Outlook survey titled Advancing ASEAN Into The Agentic Era.

Agentic AI refers to artificial intelligence systems designed to act as autonomous, goal-oriented agents that can think, plan and take actions independently to achieve a specific outcome.

The survey – conducted jointly with Accenture and Google and based on responses from 180 firms – showed that 87 per cent of large ASEAN businesses are using AI agents, but only 7 per cent have the capability to capture value across the enterprise.

This means AI deployment is running ahead of readiness.

The survey also noted that companies across the region are grappling with governance, operating model redesign, data readiness and workforce transformation.

“The companies pulling ahead are distinguished by their ability to translate AI capability into market-specific execution across ASEAN’s 11 diverse operating environments,” it said, adding that “the challenge has shifted from access to capability”.

Anoop Sagoo, chief executive officer at Accenture South-east Asia, said: “South-east Asia is among the most dynamic, diverse and opportunity-rich regions in the world, and right now, AI is amplifying every one of those advantages.

But even as everyone has access to artificial intelligence, fewer have results – showing the “AI execution paradox” in the region, he added.

Mark Micallef, Google Cloud’s managing director for South-east Asia, said: “The enterprise AI debate in ASEAN has matured from ‘Which single frontier model is best?’ to ‘How do we architect an agile, multi-model portfolio?’”

He added: “Navigating this requires a true full-stack approach – spanning scalable AI infrastructure, open foundation models and robust orchestration platforms – that allows companies to match the right model to the right task at the optimal cost and risk profile, without accruing legacy tech debt.”