Oral reply to PQs on US tariffs

Questions 

Dr Choo Pei Ling: To ask the Deputy Prime Minister and Minister for Trade and Industry what is the expected impact of the new tariffs imposed by the United States particularly for (i) Singapore’s pharmaceutical sector and (ii) future investments in Singapore.

Mr Lee Hong Chuang: To ask the Deputy Prime Minister and Minister for Trade and Industry in view of the US decision to impose 100% tariffs on pharmaceutical products, (a) what is the impact on Singapore’s pharmaceutical exports; (b) whether any Singapore-based pharmaceutical companies are eligible for exemptions and what are the criteria involved; and (c) what are the initiatives to support Singapore’s pharmaceutical sector in maintaining access to US market.

Ms Poh Li San: To ask the Deputy Prime Minister and Minister for Trade and Industry how will the new pharmaceutical tariffs imposed on branded or patented drugs imported into the United States affect Singapore Government’s long term development plans and jobs for Singaporeans in the biotechnology industry.

Mr Yip Hon Weng: To ask the Deputy Prime Minister and Minister for Trade and Industry given the new US tariffs especially the 100% tariff on pharmaceuticals products (a) what is the assessed short and long-term impact on Singapore's economy and key export sectors; and (b) what specific measures are being developed to help Singapore businesses cope with the immediate costs and navigate long-term uncertainty created by these policies.

Mr Chua Kheng Wee Louis: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) in each year over the last three years, what is the value of Singapore's pharmaceutical exports to the US with a breakdown by branded and non-branded pharmaceutical products; (b) what is the estimated impact of the latest US pharmaceutical tariffs on Singapore; and (c) whether negotiations are still underway on tariff concessions for Singapore’s pharmaceutical exports.

Mr Liang Eng Hwa: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what is the impact of the 100% tariff imposed by the US government on pharmaceutical products on Singapore's pharmaceutical sector and to the economy; and (b) what supporting initiatives are available to help pharmaceutical companies in Singapore manage the impact.

Mr Ang Wei Neng: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) what is the impact on the Singapore economy arising from the 100% tariff on pharmaceutical imports to the United States; (b) whether EDB will consider implementing additional measures in order to attract global pharmaceutical companies to continue investing in Singapore; and (c) if so, what are these measures.

Oral Answer (to be attributed to Minister of State for Trade and Industry Ms Gan Siow Huang) 

1. Mr Speaker, may I have your permission to answer Oral Questions No. 1 to 7 in today’s Order Paper together as they are on the US pharmaceutical tariffs?

2. On 25 September 2025, the US announced a 100% tariff on any branded or patented pharmaceutical product with effect from 1 October 2025, unless companies are building manufacturing plants in the US. It is unclear whether they will be subject to the tariff once their building works are completed. The implementation of this tariff has since been delayed to allow time for pharmaceutical companies to negotiate exemptions with the US Administration.

3. The pharmaceutical industry is a key contributor to Singapore’s economy, with eight of the top 10 global pharmaceutical companies having manufacturing and research and development (R&D) activities here. Between 2022 and 2024, Singapore’s pharmaceutical exports to the US averaged S$3.7 billion per year. These are primarily active pharmaceutical ingredients instead of finished products like tablets and capsules. We do not have a breakdown by branded and non-branded pharmaceutical products.

4. We have been engaging Singapore-based pharmaceutical companies on the impact of the US tariffs. Many already have plans to build new capacity or expand their existing facilities in the US, and are awaiting further details from the US Administration to confirm that their plans would qualify for the tariff exemption. We are also in discussion with the US Administration on a preferential tariff arrangement for Singapore’s pharmaceutical exports to the US, and will provide an update when ready.

5. On the immediate support measures for Singapore businesses, including pharmaceutical companies, a written reply had been provided to a similar question raised by Mr Saktiandi Supaat at the Sitting on 22 September 2025. We are closely monitoring the situation and stand ready to provide further support as needed. 

6. Our economic agencies continue to attract new manufacturing and R&D investments from global companies, provide support to our local enterprises, and create good jobs for Singaporeans. However, the US tariffs and related global developments do point towards a changed world with greater uncertainty. The five committees undertaking the Economic Strategy Review, or ESR, are developing recommendations on the strategy to grow our economy for the longer term, and will provide an update in due course.