Singapore plans to expand the support measures announced in its budget and fast-track some of them to cushion more quickly the fallout from the conflict in the Middle East, which is putting pressure on energy supplies.
The government is preparing targeted assistance for the most vulnerable sectors and will also introduce compensation aimed at easing the burden of rising electricity tariffs, Prime Minister Lawrence Wong said in a video address on Thursday. Details, he said, will be presented next week during a parliamentary session.
“We are entering a more uncertain and unstable phase, one that will carry wide-ranging consequences for regional security and global energy flows,” Wong said. “The risks are considerable, and the worst may still lie ahead.”
Hopes for a swift end to the conflict and an easing of disruptions to energy supplies faded after President Donald Trump’s evening address, in which he effectively undercut such expectations. Equity and bond markets fell in response, reflecting expectations that oil prices would remain elevated.
A substantial share of the energy supplies flowing into Asia, including Singapore, passes through the Strait of Hormuz, Wong said. He added that energy prices are likely to stay high even in the event of a ceasefire. The conflict has also disrupted supplies of fertilizers and helium, heightening risks for food production.
The prime minister said he had convened an interagency crisis committee to coordinate the response to the war’s fallout. Singapore is working to diversify supplies by stepping up engagement with global producers and deepening cooperation with countries such as Australia—one of its key LNG suppliers—and New Zealand to secure stable deliveries of energy, food, and other essential goods.
The authorities are revising their economic forecasts, while the central bank said it would update its inflation assessment at its next meeting, scheduled for later this month.