Hormuz reopening won’t end global crisis, but Singapore enters it from position of strength: PM Wong

“Here in Asia, we are especially affected because of our high dependence on energy and other critical supplies from the Gulf. Some countries in our region are already facing fuel shortages,” Mr Wong said, describing the situation as a storm “more severe” than anything Singapore has faced in recent years.

Even when the Strait reopens, a return to normal will not be immediate, he added, citing damaged energy infrastructure, uncleared mines in shipping lanes and the need to restore confidence for safe passage.

Supply disruptions could persist or worsen, with Singapore facing slower growth and higher inflation this year.

“All this will put real pressure on businesses, workers and households,” he said.

HARD CHOICES MADE EARLY

Singapore is not facing this crisis from a position of weakness, Mr Wong said. “Singapore is better prepared and in a much stronger position today.”

He pointed to the reclamation of land, the development of Jurong Island and its refining and petrochemical industries, and the creation of underground storage in the Jurong Rock Caverns.

“We made the hard choices early – managing our finances prudently and building up our reserves. At the same time, we invested to strengthen our energy resilience.”

Today, Singapore is a key node in global energy flows, with the world’s leading energy companies refining, storing and trading oil here, connected to diverse supply networks that allow them to draw on alternative sources when one is disrupted.

Singapore is also working with like-minded countries to strengthen supply chain resilience and secure essential supplies.

The government has meanwhile rolled out a S$1 billion (US$777 million) support package, including higher Cost-of-Living special payments for Singaporeans, cash relief for platform workers, an increased corporate income tax rebate and an expanded Energy Efficiency Grant extended to all sectors through Mar 31, 2028.