Singapore faces slower growth, higher inflation as Middle East conflict disrupts global supplies: Gan Kim Yong

WEATHERING THE CRISIS

The government will provide support measures to households and businesses, and Singaporeans also need to do their part, Mr Gan said.

Households can conserve electricity by using fans instead of air-conditioning and taking public transport instead of driving. They can also use climate vouchers to buy more energy-efficient appliances, he said.

Businesses can tap the Energy Efficiency Grant to invest in more efficient equipment.

“The crisis is unlikely to be over anytime soon, and we must be prepared for its effect to persist for some time,” he said, adding that the situation could escalate further.

It is a reminder that the global system is interconnected and fragile, and Singapore should be ready for more frequent inflation shocks and supply chain disruptions amid heightened geopolitical contestation.

Mr Gan said Singapore must press on with the recommendations of the Economic Strategy Review to build global leadership in key growth sectors and support firms as they internationalise so that the economy remains resilient and competitive.

“Periods of disruption such as this will test the resilience of countries and economies, but it also create impetus for firms to transform, diversify and deepen their capabilities,” he said.

Singapore also needs to keep its energy and supply chains resilient and stay connected to the global economy.

“If we stay disciplined, deepen our trust in each other, preserve our capabilities, and use this period to sharpen our competitive edge, Singapore will be well placed not only to weather this crisis, but to emerge from it stronger,” said Mr Gan.