SINGAPORE – The longstanding economic relationship between Singapore and the United States 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$41.8 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.
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 our region.
“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,” he added.
He said that 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.”
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 Leaders’ Summit in November 2026. 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.
“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.
