S’pore Govt to address concerns over impacts of Middle East conflict: PM Wong

HONG KONG – The Singapore Government will provide updates at the next parliamentary sitting on April 7 on how it is preparing for “all possible contingencies” relating to the Iran war and how it has impacted the economy, Prime Minister Lawrence Wong said.

These include ways to strengthen Singapore’s energy and supply chain resilience, he added.

For now, a lot of the concerns surrounding the ongoing conflict are about its impact on prices, he said.

“But we are also concerned about what might happen if the situation in the Middle East continues for a prolonged period of time, or even escalates.”

PM Wong was speaking to the Singapore media from Hong Kong at the end of his visit to China on March 28.

The US and Israel attacked Iran on Feb 28. Iran later retaliated with its own strikes and has since also disrupted shipping through the strategic Strait of Hormuz, which accounts for the passage of a fifth of the world’s supply of oil.

The blockage of the vital waterway has hit global oil supply, sending prices soaring, with affected businesses passing on their increasing costs to consumers. This in turn threatens to raise inflation, and Singapore is not spared.

Asked if the Government was planning to roll out any specific immediate measures to cushion the impact, PM Wong said it is monitoring the situation very closely, looking at how the conflict is unfolding in the Middle East as well as the impact on Singapore’s economy.

If the Strait of Hormuz continues to be blocked for much longer, he warned, the impact on the economy would not be limited to just higher energy prices.

“We are talking about tremendous impact on supply chains, on energy markets, which will have a huge impact on the global economy and on Singapore,” he said.

“We’re talking downstream supplies in a whole range of different industries, not just in the oil markets, but in diesel, which is used for many industries, in jet fuel, which is used for aviation.”

He added: “Our officials are working very hard to prepare for all possible contingencies and to look at ways to strengthen our energy and supply chain resilience.”

There will be a chance to provide more updates during the upcoming parliamentary sitting, he said.

On March 18, PM Wong said the Government is ready to roll out measures beyond what was announced at Budget 2026 should the need arise, in the light of the situation in the Middle East.

Singapore has the resources to do so decisively and quickly, he said at the time.

The assistance already announced at Budget 2026 includes utility rebates and various business assistance measures.

The Prime Minister said that over the last few days, he has held discussions with the leaders of Malaysia, Hong Kong, Australia and New Zealand, among others, on the situation in Iran.

Everyone in Asia is very concerned, he said.

While those in the region hope that the ongoing talks will lead to a de-escalation and a resolution of the crisis, there is also a need to prepare for all eventualities, he said.

“For Asian countries, many of whom are energy importers, we do not really have good solutions, because we rely on imported energy.

“Within Singapore, to the extent possible, we will look at how we might be able to diversify our supply sources and secure our energy supply chain resilience.”