Govt to bring forward Budget measures, provide targeted support to cushion Iran war’s impact: PM Wong

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SINGAPORE – Some support measures announced at Budget 2026 will be brought forward to provide earlier relief and cushion the Middle East conflict’s impact on Singapore households and businesses, said Prime Minister Lawrence Wong.

The Government will also provide targeted support to sectors hit hardest by the conflict, and enhance existing measures, he said on April 2.

Ministers will give more details when Parliament sits next week, said PM Wong, who is also Finance Minister. Measures announced at the Budget in February include utility rebates for households.

“Given the spike in oil prices and the uncertain outlook, the Government will do more,” he said.

To coordinate Singapore’s national response, PM Wong said he has convened the Homefront Crisis Ministerial Committee chaired by Coordinating Minister for National Security K. Shanmugam, with Deputy Prime Minister Gan Kim Yong as adviser.

The team has begun work and is updating existing contingency plans and developing new ones, he said in a video message posted to social media.

While the Government hopes talks to end the war succeed, it expects the impact of the conflict to persist, said PM Wong.

Energy production and distribution infrastructure have been damaged and it will likely take several months to restore full capacity, and prices are therefore expected to remain elevated for some time, he said.

PM Wong noted that if critical Middle Eastern energy sources and supply routes remain constrained for an extended period, the consequences will be severe.

It will not just mean higher prices but could also mean a global energy crunch – disrupting daily life and production activity and putting significant pressure on economies everywhere, he added.

“Output would weaken sharply, even as prices continue to rise. It’s what economists describe as stagflation. Once that takes hold, it is deeply damaging and very hard to bring under control.”

Singapore must also be prepared for further escalation in the coming days and weeks, he said, citing the risk of new fronts opening and widening the conflict.

The Government is taking active steps to strengthen Singapore’s energy and supply chain resilience, and the country has so far been able to manage the immediate disruptions, said PM Wong.

Singapore’s refineries and chemical companies are adjusting by scaling back production, and sourcing crude oil and feedstock beyond the Middle East, and its liquified natural gas (LNG) importers are securing alternative supplies from global producers, he noted.

It is also working with trusted partners to build further resilience and will deepen cooperation with Australia as a key supplier of LNG which already accounts for more than one-third of Singapore’s supply.

Singapore is also working with New Zealand to ensure supply lines for essential goods and food remain open during crises.

“These partnerships are vital to our long-term security. I spoke to both prime ministers recently to strengthen our coordination and ensure these arrangements remain robust,” PM Wong said. The Republic recently upgraded ties with both countries in late 2025.

What is most important is for Singaporeans to stand together, he said, adding that the country’s strength lies in its unity in times of crisis. “Government support matters. But so does the resolve of our people – to look out for one another, to act responsibly, and to pull together as one society.”

National resilience does not depend only on the Government but also on every citizen, said PM Wong, who urged businesses and households to take practical steps to conserve energy and reduce waste.

For businesses, this means reviewing operations and improving energy efficiency. For households, it means being mindful of daily energy use, he said.

“These may seem like small steps but, taken together, they make a real difference.

“The Government will support you. But our collective response will be far stronger if each of us plays our part too,” he said.

PM Wong said his message is meant to help Singaporeans prepare for what lies ahead. The situation is highly uncertain and the Government cannot predict exactly how events will unfold, he said. “But the risks are significant, and the worst may not yet be behind us.”

Even after the US eventually ends its military campaign, the geopolitical situation in the Middle East would have been adversely affected, he added.

US President Donald Trump said on April 1 that the American military had nearly accomplished its goals in Iran but offered no clear timeline for ending the month-long war which began on Feb 28.

PM Wong said the region is entering a more uncertain and unstable phase, with wide-ranging implications for regional security and global energy flows. In such an environment, the risk of disruption is significantly higher, he noted.

More worrying still is the possibility of a prolonged closure of the Strait of Hormuz, as well as other key shipping routes in the region, including the Red Sea, he added.

Globally, industries are already drawing down fuel inventories and turning to alternative sources, he said. “But these are only temporary buffers. They cannot fully make up for a prolonged shortfall.”

Singapore cannot be insulated from such global upheavals – no country can, least of all a small island nation, PM Wong said. “But I assure you: We have the plans, the capabilities and the resilience to navigate this together.”

The Homefront Crisis Ministerial Committee is activated during times of national crises. Several teams of public servants report to it, including the Homefront Crisis Executive Group (HCEG), crisis management groups and incident managers.

The HCEG comprises senior civil servants and is chaired by Mr Pang Kin Keong, Permanent Secretary for Home Affairs. It was convened during the Covid-19 pandemic to support the multi-ministry task force fighting the virus, and was also chaired by Mr Pang then.

The war has begun to push up energy prices here, with a further spike expected in the coming months. Electricity tariffs will increase from April to June, up 2.1 per cent from the previous quarter, to 29.72 cents per kilowatt-hour (kWh).

The average monthly electricity bill for those living in four-room HDB flats will increase by $1.96. The gas tariff will also increase from April to June to 23.89 cents per kWh, from 23.63 cents per kWh.

About 95 per cent of Singapore’s electricity is produced from imported natural gas, which is also the main raw material for the production of town gas.

The full impact of fuel price hikes due to the war will only be felt down the line, due to a lag time between tariffs and fuel costs. Tariffs for each quarter are determined based on the average fuel costs in the first 2½ months of the preceding quarter.