West Asia Conflict May Intensify, Weigh On Economy: Singapore PM Wong

SINGAPORE, May 1 (Bernama) -- Singapore’s Prime Minister Lawrence Wong warned that the impact of the West Asia conflict is likely to persist and intensify, with prolonged supply disruptions and rising global pressures expected in the months ahead.

“Globally, inflation will rise, spreading from energy to food and then other essentials, and some economies may well slip into recession.

“Singapore will feel the impact directly,” he said, adding that the strain will weigh on businesses, workers and households.

Speaking at the May Day Rally Friday, Wong said the two-month closure of the Strait of Hormuz has driven up global energy prices and tightened supply, with Asia particularly exposed due to its reliance on Gulf imports.

“In Asia, we are especially affected because of our high dependence on energy and other critical supplies from the Gulf,” he said.

In response, Wong said Singapore is working with like-minded countries to strengthen supply chain resilience and mutual support.

“We are securing our supply lines for energy and other essential goods, while stepping up support for Singaporeans,” he added.

He said the government is also rolling out targeted measures to help households and businesses cope with rising costs. In April, Singapore introduced a S$1 billion support package, including assistance for businesses facing higher energy costs and additional support for households through U-Save rebates and Community Development Council (CDC) vouchers.

Wong added that Singapore is better prepared to weather the crisis, citing prudent fiscal management and investments in energy resilience.

“We made the hard choices early, managing our finances prudently and building up our reserves. At the same time, we invested in strengthening our energy resilience,” he said.

-- BERNAMA