Asia is a growth lighthouse in the midst of the commercial war, says the deputy of the Prime Minister of Singapore

Asia will continue to be a “lighthouse of growth opportunities” despite increasing world commercial tensions, according to the Vice Prime Minister of Singapore, Gan Kim Yong.

“Even if some of us in Asia can not be directly affected, the impact of the increase in rates and trade wars could cause large interruptions in supply chains, slow down commercial and investment flows and significantly establish the growth of the global economy,” Gan said in the converge of CNBC in Singapore on Wednesday.

He added that “many of us in Asia observe with anxiety with the tariffs of President Donald Trump about the three largest commercial partners of the USA., And their plans for more, including reciprocal tariffs so that they coincide with the tasks of US exports.”

Gan’s speech is produced after the United States Tariff increase, then reversed course In the exports of steel and aluminum of Canada at dawn on Wednesday, after Ontarium reversal of reciprocal energy rates In the United States today.

The Deputy Prime Minister said that there is a “good reason” to stay optimistic in Asia, noting that it is projected that Asia’s economy will expand from about 50% of the world’s GDP today to approximately 60% by 2030.

It is projected that Southeast Asia, where Singapore is located, will become the fourth largest economy in the world by 2030, he said.

Talking to CNBC last monthGan said that while the direct impact of US tariffs in Singapore will probably be “limited” as the country manages a commercial deficit with the United States, ramifications cannot be underestimated in the long term.

In 2024, the United States had a commercial surplus with Singapore of $ 2.8 billion.

Supply chains and commercial patterns will change, since companies evaluate the locations for their production base, causing “greater friction and higher cost” in the global economy that can stop it, he said.

Singapore’s economy ended last year with a positive note with the gross domestic product that expanded 4.4% in 2024, its fastest growth since 2021, driven by the wholesale sector of trade, finance, insurance and manufacturing.

The strong rebound of last year can fail this year since it is one of the economies most exposed to trade in the region, with operations that represent three times of GDP, which makes it vulnerable to the increase in protectionism.

This is a development story. Update the updates.