MUFG’s Senior Currency Analyst Lloyd Chan argues Singapore’s energy system and fiscal strength materially limit near‑term tail risks from Middle East tensions. The city‑state benefits from deep infrastructure, diversified sourcing, large inventories and untapped fuel reserves, plus the ability to switch fuels and expand reserves. Strong public finances allow further stockpiling and targeted support if disruptions through Strait of Hormuz persist.
Infrastructure and fiscal space support resilience
“Singapore’s energy resilience materially limits tail risks in the near term. The city-state enters this shock with well-established buffers. Deep energy infrastructure, diversified energy sourcing, and strong logistical capacity significantly reduce vulnerability to near-term supply disruptions. Fuel reserves remain untapped, and no rationing measures have been introduced so far.”
