SINGAPORE, April 28 — Singapore Prime Minister Lawrence Wong said today a "major restructuring” of the economy was needed to weather a "new storm” generated by US President Donald Trump’s trade war.

Wong was campaigning ahead of Saturday’s election, where he faces his first major test against a rejuvenated opposition as frustration grows over the rising cost of living.

The wealthy city-state relies heavily on international trade and faces a turbulent global economy upended by the tariffs Trump has imposed on friends and foes alike.

Wong took over as premier in mid-2024 from his People’s Action Party (PAP) predecessor Lee Hsien Loong and is seeking a strong mandate in his first electoral test as leader.

He warned Singapore would be hit hard if Trump went ahead with the tariffs he announced and then paused for most countries, with the exception of China, and needed to stay open and competitive to counter their effects.

"All this will require a major restructuring of the economy, which we will have to carefully manage,” Wong told a lunchtime rally in the central business district.

"So I say to all Singaporeans, please consider carefully. This is not a gamble. This is your family, your future, our Singapore.”

He said Asia as a growing market would create opportunities for Singapore, with companies wanting to reconfigure their supply chains as they seek solutions to the trade war.

"Singapore can position ourselves to benefit from these opportunities but to do so, we must keep our business and political environment stable,” Wong said.

The opposition has lambasted Wong and the PAP—which has governed since 1959 -- for not curbing the rising cost of living and housing prices and said more alternative voices were needed in parliament.

The PAP has an overwhelming majority of seats in parliament and is unlikely to lose power but the opposition Workers’ Party has steadily attracted more support and seats in recent years. — AFP