STRUCTURAL IMPACT OF CRISIS
Global energy supply chains have been disrupted by Iran’s blockade in the Strait of Hormuz, after the United States and Israel began the war against Iran on Feb 28.
Member of Parliament Liang Eng Hwa (PAP-Bukit Panjang) asked the minister about structural changes to the economy wrought by the conflict, especially the damage dealt to oil and gas infrastructure.
To this, Dr Tan said it was “premature” to make conclusions about the long-term impact, but that the crisis was likely to accelerate structural shifts that are already under way in the global economy.
This refers to supply chain diversification, digitalisation, the adoption of artificial intelligence and the energy transition, he told parliament.
