Forum: Treat energy security as a whole-of-economy issue

The withdrawal of the United Arab Emirates from the OPEC and OPEC+ oil exporting groups should remind Singapore and the wider region that energy security is no longer only about oil prices.

For import-dependent Asian economies, the bigger concern is the growing uncertainty around supply coordination, maritime routes and infrastructure resilience. If major oil producers pursue more independent national strategies, markets may become more volatile even when physical supply remains available.

Singapore is not a major energy producer, but it is deeply connected to global energy flows through refining, trading, shipping, finance and logistics.

Disruptions in the Strait of Hormuz, the Suez Canal, the Red Sea or the Strait of Malacca can affect freight costs, insurance, fuel prices and regional supply chains.

This is why energy security should be treated as a whole-of-economy issue. Strategic reserves, diversified suppliers, stronger grids, renewable energy deployment and maritime security all matter.

The UAE’s move also reflects a broader shift.

Gulf states are no longer just oil exporters. They are becoming energy-transition investors, logistics hubs and strategic economic players.

South-east Asia should engage them not only as suppliers, but also as partners in infrastructure, clean energy and regional resilience.

The old oil order may not disappear overnight. But it is becoming more fragmented.

For Singapore and the rest of Asia, the best response is not alarm, but preparation.

Wang Zhihong