Amid global trade uncertainties, PM Lee urges S’poreans to build up economy, skills and productivity

PARIS — In the face of uncertainties wrought by trade tensions around the world, Prime Minister Lee Hsien Loong has urged Singaporeans to build up the country's economy, investments, skills and productivity.

He also called on Singaporeans to watch out for one another, and maintain their links with fellow citizens wherever they may be in the world.

Speaking to about 300 overseas Singaporeans and their families at the Les Salon de l'Hotel des Arts et Metiers in Paris on Saturday evening (July 14), Mr Lee said tit-for-tat trade wars affect Singapore as a trading nation.

"There is tension in the air… If trade is down, I think that strikes at the root of our prosperity and our economic vitality," said Mr Lee, who pointed to trade tensions between the United States and China, as well as the US and Europe.

Earlier this month, Washington imposed hefty tariffs on billions of dollars of Chinese imports, sparking a tit-for-tat trade war with Beijing.

The Trump administration last week announced new tariffs on Chinese imports, with antiques, paintings, drawings and pastels among a list of thousands of items that could be subject to an extra 10 per cent duty on entry to the US. It has also slapped tariffs on the European Union's metal imports, and threatened a 20 per cent levy on cars imported from the region.

Mr Lee said: "We can't do a lot about it, but we can be psychologically prepared and make sure that we build up our own economy, investments, skills, productivity, upgrading — all the mantras and codewords which we do every National Day, but which are in fact eternal, relevant concerns for all Singaporeans if we want to thrive and prosper."

Over the years, government leaders including Mr Lee have urged Singaporeans to sharpen their skills so as to stay competitive and ready for a new world, including nudging workers to pick up new skills under SkillsFuture, the national movement for lifelong learning.

Despite the uncertain environment, Mr Lee struck an optimistic note, saying that Singapore's economy is expected to perform reasonably well this year after doing "quite well" last year. Based on government estimates, Singapore's economy is expected to expand between 2.5 per cent and 3.5 per cent this year after growing by 3.6 per cent in 2017.

In the second quarter of this year, Singapore's economic growth slowed and missed forecasts, as manufacturing activity cooled and worsening US-China trade tensions clouded the outlook, preliminary data from the Trade and Industry Ministry showed on Friday. The economy expanded 3.8 per cent from April to June from a year earlier, shy of economists' median forecast of a 4 per cent expansion.

Mr Lee also cited Singapore's hosting of the Trump-Kim Summit last month as a source of pride for Singaporeans.

"We held our head high and we did Singapore proud, and I think Singaporeans everywhere got the thrill, because now people know where Singapore is," he said to laughs from the audience.

Earlier on Saturday, Mr Lee had a front-row seat to the French National Day parade, where he was a guest of honour — a first for a Singapore leader. As part of the celebrations, a Republic of Singapore Air Force (RSAF) M-346 Advanced Jet Trainer roared across the Parisian sky in a combined flypast with five French Air Force Alpha Jets. A four-man RSAF contingent also carried Singapore's flag during the parade in downtown Paris.

"The flag fluttered and I think it was a moment of pride for anybody seeing it in Singapore," said Mr Lee, noting Singapore's good friendship with France which spans co-operation in the areas of defence, science, education and cultural exchanges, among others.

Also at the reception were Trade and Industry Minister Chan Chun Sing, Defence Minister Ng Eng Hen and Senior Minister of State (Communications and Information, and Culture, Community and Youth) Sim Ann. Mr Lee departed Paris for Singapore on Sunday.