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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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
This refers to supply chain diversification, digitalisation, the adoption of artificial intelligence and the energy transition, he told parliament.<\/p>\n
While the crisis will test the resilience of economies, it also creates new opportunities for firms to transform, diversify and deepen their capabilities, he said.<\/p>\n
Energy has become an “existential” issue because of the need to power data centres for the compute required for AI.<\/p>\n
At the same time, there is an abundance of new discoveries in oil and gas, and developments in green energy sources are accelerating, he said.<\/p>\n
He pointed to Prime Minister Lawrence Wong’s recent commitment that Singapore will not restrict fuel exports amid the energy crisis.<\/p>\n
Mr Wong said this on Apr 10, during a press conference with his Australian counterpart Anthony Albanese who was visiting Singapore.<\/span><\/p>\n “Our sense is that many countries are not just thinking about diversification, but they are also moving into a just-in-case mode, rather than just-in-time,” said Dr Tan.<\/p>\n “This crisis will test us, and if we are able to prevail, I think it would cement, it would reinforce and consolidate our position as a trusted hub.”<\/p>\n<\/div>\n