100% Tariff on Pharmaceutical Imports to the US and its Impact on Singapore Economy

Ms Poh Li San asked 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 asked 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 asked 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 asked 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 asked 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.

Mr Speaker, 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.

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.

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.

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. [Please refer to ​"Impact of US Tariffs on Singapore Companies and Economy, Update on Negotiations and Support for Key Sectors", Official Report, 22 September 2025, Vol 96, Issue 2, Written Answers to Questions for Oral Answer not Answered by End of Question Time section.]

We are closely monitoring the situation and stand ready to provide further support as needed.

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 (ESR) are developing recommendations on the strategy to grow our economy for the longer term and will provide an update in due course.

Mr Speaker, Sir. I thank the Minister of State for her response. I have two supplementary questions. One, what proportion of Singapore's pharmaceutical exports to the US comprises active pharmaceutical ingredients or intermediates? And two, are these categories subject to the same 100% tariffs or eligible for any exemptions?

I thank the Member for her supplementary questions. As of 2024, 13% of our domestic exports to the US were pharmaceutical products. And this makes up 19% of our pharmaceutical exports to the US. It is unclear at this point on the details of the tariffs, differentiating between the patented and the non-patented products.

Thank you, Speaker. Thank you, Minister of State. I would like to ask, what the long-term knock-on effects are on the pharmaceutical industry, given that the Government has invested quite a lot of money in this area. Would there be any strategies to diversify our investments?

It is actually really too early to tell if there would be a change in the manufacturing and R&D investments in Singapore arising from this set of new tariffs on the pharmaceutical products. But also, I think we have to understand that beyond tariffs, companies will consider a range of other factors in making their investment decisions in Singapore, including our political stability, rule of law and the pro-business environment that we have here, global and regional connectivity that we will continue to enhance, and best-in-class infrastructure and access to skilled workforce.

We will continue to look at how we can diversify our sectors in our economy. As I said earlier on, the ESR is looking into this and will be providing an update on the strategy going forward.

Thank you, Mr Speaker. I thank the Minister of State for her answer. How would the new US pharmaceutical tariffs affect our healthcare system, particularly medicine availability and drug pricing? Are Singaporeans seeking care likely to face higher costs and will the Ministry of Trade and Industry (MTI), together with the Ministry of Health and Health Sciences Authority, conduct a formal assessment of near-term risks to common medicines and how tariff costs may pass through to consumers?

The Singapore Government is still currently in discussion with the US on preferential tariffs arrangement for our pharmaceutical exports to the US. I think it is really too early for us to tell whether the prices of pharmaceutical products in Singapore will be affected. But we will certainly make sure that healthcare will continue to be accessible and affordable for Singaporeans.

Thank you, Speaker. Just two supplementary questions for the Minister of State. First, I think, as early as in May, the Deputy Prime Minister has mentioned that Singapore is pursuing preferential tariffs to the extent of even zero tariffs on pharmaceutical exports. And so, from that perspective, now that we are already in October, is the idea of having zero tariffs still a possibility, given the current environment? And secondly, more from a longer-term perspective, while companies like AstraZeneca, Pfizer and some of these big pharmaceutical companies are able to negotiate their own deals with the US, but more broadly for Singapore as a whole, and given that the European Union (EU) and Japan do already have their own tariff deals with the US, from Singapore's perspective, if the Minister of State can share the latest updates and what are some of the impediments to a deal with the US administration?

We are still having negotiations with the US administration. In particular, Deputy Prime Minister Gan just had a virtual meeting with US Secretary Lutnick last week on a broad framework and the details are being followed up. The negotiation details are confidential. I am sure Speaker and Members in this House will clearly understand this point.

I think we also have to take note that the preferential tariff rates secured by countries like Japan and Korea for their pharmaceutical exports were part of broader negotiations with the US on reciprocal tariffs. We have to be realistic at this point, but at the same time, we are working our best to negotiate for the good of our Singapore economy and the companies here.

Thank you, Sir. My concern is more about how we can continue to attract investments, especially pharmaceutical investments into Singapore with this announcement. So, can I ask the Minister of State whether MTI or the Economic Development Board (EDB) see that to have an impact on how we attract new investments, whether it is from existing companies or from new companies?

And secondly, how would that also impact our aspiration to be the R&D centre for drugs and vaccines discovery, whether that that will impact that aspiration as well.

I will answer both questions together. Indeed, it is in our interest to try to continue to be an attractive place for investments and R&D in the pharmaceutical sector under the Research, Innovation and Enterprise 2025 Plan.

We have committed $28 billion for research and innovation with the intent to accelerate human health and potential as one of the key focus areas. This includes funding to drive research and translational efforts in the biotech and life science sectors. We will be announcing the research funding under RIE 2030 later this year. At the same time, we will continue to invest in talent development, both our local as well as drawing foreign talent, so that we can have a competitive sector to attract businesses and R&D to Singapore.

I thank the Minister of State for the statement. I just want to clarify that if there are any companies right now that are looking to coming to Singapore, but because of these tariffs, they are deterred or still just considering?

I seek Speaker and also Members' understanding that the negotiations are still ongoing. And I think it is sensitive for us to disclose information about companies that are considering coming to Singapore at this point.

Thank you, Speaker. Presumably, MTI has a plan for what it will do should negotiations end up being somewhat less fruitful than we will all hope. Would the Minister of State be willing to share if their plans expand to third markets that they hope to target with our pharmaceutical exports? And if that was the case, whether she would be willing to share more details about which ones these may be?

Regardless of the outcome of the tariffs negotiation, I think Singapore will continue to look at how we can go to more markets where we think it makes business sense for our pharmaceutical exports.