Attributed to Mark Lee, Chairman of Singapore Business Federation (SBF)

The Singapore Business Federation (SBF) notes the outcome of the United States Trade Representative’s (USTR) Section 301 determination on forced labour. The USTR has imposed a 12.5% tariff on imports from Singapore, with exclusions for certain pharmaceutical, aerospace and other specified products. The determination reflects the USTR’s assessment that Singapore does not currently have a forced labour import prohibition regime in place.

Impact on Businesses

Businesses should first determine whether their exports are covered by the tariff or fall within the stated exclusions before assessing the impact. Companies with U.S. market exposure should review product classifications, engage customers early, and assess any implications for pricing, contracts and supply chains. SBF will work closely with affected businesses to understand the impact and support them through this period.

SBF’s Position

Singapore businesses do not condone forced labour and support efforts to uphold responsible and ethical supply chains. At the same time, any new regulatory requirements should be carefully studied and developed in close consultation with industry, given the potential implications on business operations, supply chains, compliance costs and Singapore's position as a trusted global trading and transshipment hub.

Mr Mark Lee, Chairman of Singapore Business Federation (SBF), said: “Businesses recognise the importance of addressing forced labour risks in global supply chains and are prepared to play their part. Singapore has not introduced an import prohibition on goods produced with forced labour, and we appreciate that the government has been mindful of the potential impact on our companies and Singapore's position as a global trading hub. Clear guidance and adequate transition periods will be essential to help businesses to comply effectively. SBF stands ready to work closely with the government and industry stakeholders and provide feedback from the business community.”