In an increasingly volatile global trade environment, businesses in Singapore are facing new challenges, from shifting tariff regimes to evolving supply chain dynamics. To stay competitive, many companies must adapt quickly and strategically. Recognizing this need, Singapore has announced the launch of the Business Adaptation Grant (“BAG”), a new support measure to help businesses navigate these challenges.
On 10 July 2025, the Singapore Economic Resilience Taskforce announced the upcoming BAG to help enterprises adapt to the evolving global tariff landscape.
Set to launch by October 2025 and available for two years, BAG offers funding of up to S$100,000 per firm and is designed for:
Enterprises who export to and/or have operations in overseas markets and are impacted by tariff measures, to obtain advice on:
free trade agreements and trade compliance;
legal and contractual matters; and
supply chain optimization and market diversification.
Enterprises with manufacturing operations overseas or locally who can also receive support for reconfiguration costs, such as logistics and inventory holding costs.
The BAG complements existing schemes like the Market Readiness Assistance, the Enterprise Development Grant and the Enterprise Financing Scheme.
What should businesses do next?
Singapore remains subject to a baseline 10% tariff, which is expected to come into effect on 1 August 2025, barring any last-minute trade deals.
Many businesses are no longer adopting a “wait-and-see” approach, and instead, are taking proactive steps to strategize and mitigate the impact of tariffs. Given the cross-jurisdictional nature of international trade, the matter should be considered from an international perspective.
As a global law firm for successful people and businesses, Withers can assist you and your businesses in navigating the new tariff environment. Our teams are available to provide a wide range of legal services, including:
| Contractual Review & Re-negotiation | Evaluating and restructuring contracts impacted by tariffs or operational shifts. |
| New Market Entry | Legal setup, JVs, regulatory licensing, and local compliance. |
| Business Reconfiguration | M&A, business closures, divestments, and restructuring. |
| Trade Regulatory Compliance | Customs law, FTA eligibility, licensing, and record-keeping. |
| Tax Strategy | Cross-border tax optimisation and tariff mitigation approaches. |
| Commercial and/or contractual disputes management strategy | Mitigating litigation or arbitration risk that may result from re-evaluating existing contractual bargains in the light of tariffs. |
| Investor protection and/or investment treaty disputes strategy | Exploring investor-state dispute settlement mechanisms as potential recourse for tariff-caused loss of investment. |
| Trade-related Disputes | Resolving commercial, customs, or contractual disputes arising from tariff impact. |
Your business could be impacted by upcoming tariffs, or you may be planning to reconfigure operations or expand overseas. Contact us to explore how we can support your plans.
For further information, please contact:
Gary Beh, Partner, Withersworldwide
grace.rajah@withersworldwide.com
