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SINGAPORE: Amid a <\/span>war in the Middle East<\/span> that has <\/span>strained global markets<\/span>, President Tharman Shanmugaratnam warned of a “long storm” of instability as he approved the government\u2019s spending plans for the coming financial year.<\/span><\/p>\n In a Facebook post on Wednesday (Mar 18), Mr Tharman highlighted the \u201cmajor new stress point in the global economy\u201d as the <\/span>Strait of Hormuz<\/span> remained closed in the third week of the conflict.<\/span><\/p>\n \u201cYet these economic problems are not the gravest challenge we face. We are looking at a long storm of global political instability.\u201d<\/span><\/p>\n \u201cFor every week that the war continues and the Strait of Hormuz remains closed, the higher fuel prices will go and the longer they stay high,\u201d he said, adding that the war will also disrupt supplies of fertiliser and other critical commodities such as aluminium and helium, with knock-on effects on food supply and prices.<\/span><\/p>\n However, Mr Tharman pointed to the strategic buffers that Singapore has in place to navigate these turbulent times.<\/span><\/p>\n \u201cWe have built up reserves that will help us deal with major crises, as we have done before,\u201d he said.\u00a0<\/span><\/p>\n \u201cWe have Singapore Budgets that enable us to invest boldly in every needed skill and capability, and to preserve some finances for future needs.<\/span><\/p>\n “And we are trusted by countries around the world, which opens up new opportunities for mutual benefit, and enables us to diversify our trade and sources of energy.”<\/p>\n February\u2019s Budget debates in Parliament saw People\u2019s Action Party (PAP) Members of Parliament calling for <\/span>prudence amid global uncertainties<\/span>.<\/span><\/p>\n This came as Singapore recorded a <\/span>surplus of S$15 billion<\/span> (US$11.6 billion) in the 2025 fiscal year, exceeding forecasts and prompting Workers\u2019 Party chief Pritam Singh to call for <\/span>greater accountability and disclosure<\/span>.<\/span><\/p>\n Prime Minister Lawrence Wong <\/span>defended fiscal projections<\/span>, adding that \u201cthe reason why things did not turn out as badly as we feared was partly due to factors beyond our control, but also partly because of the decisive steps we took\u201d.<\/span><\/p>\n In his post, Mr Tharman also stressed the importance of \u201ckeeping to the Singapore way, being \u201calways prepared for a world where things may not go as we hope\u201d.<\/span><\/p>\n \u201cThat must remain the Singapore way \u2026 Investing in the future for every Singaporean. Contributing our part to the global good. And standing up for what we believe in \u2013 a fair, open and humane world order.\u201d<\/span><\/p>\n<\/div>\n