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A new crisis committee, stronger energy and supply chains, and targeted support for households and businesses come as part of efforts to build resilience and help the nation weather the unprecedented geopolitical crisis.
Singapore has launched a three‑pronged national response to the escalating conflict in the Middle East and its impact on global energy supplies, Prime Minister Lawrence Wong said in a recent video message on the situation on 2 April 2026.
He warned that the world could face a severe energy crunch and the risk of stagflation if disruptions persist, and stressed that Singaporeans must be prepared for a highly uncertain period ahead.
Three‑pronged national response
To coordinate Singapore's response, Prime Minister Lawrence Wong outlined a three-pronged national effort to respond to the crisis. shared that the Homefront Crisis Ministerial Committee, chaired by Coordinating Minister for National Security K Shanmugam, with Deputy Prime Minister Gan Kim Yong as adviser, has been convened and work has begun. "It is updating existing contingency plans and developing new ones in the light of these unprecedented developments."
The efforts include:
- First, Singapore is taking active steps to strengthen our energy and supply chain resilience. This is done in two-fold:
- Managing the immediate disruptions through refineries and chemical companies scaling back production, and sourcing crude oil and feedstock beyond the Middle East. In addition, LNG importers are sourcing and securing alternative supplies from global producers.
- Deepening cooperation with trusted partners such as Australia, a key LNG supplier, and New Zealand, to keep supply lines for essential goods and food open.
- Second, the Government is cushioning the immediate impact on households and businesses. Support measures that were announced in this year’s Budget are being rolled out, including additional U-Save rebates to help households cope with higher electricity costs. In light of the spike in oil prices and the uncertain outlook, existing schemes will be enhanced and some brought forward to provide earlier relief, with targeted support for sectors that are more severely affected. Ministers will share more details in Parliament soon.
- PM Wong also urged businesses and households to take practical steps, such as conserving energy, and reducing unnecessary consumption and waste.
- For businesses, this means reviewing operations and improving energy efficiency. For households, it means being mindful of daily energy use.
- Third, PM Wong stressed the importance of national unity. Government support matters, he said, but so does the resolve of Singaporeans to stand together, look out for one another, act responsibly and pull together as one society in the face of unprecedented uncertainty.
Conflict and disruptions to key energy routes
In his address, he underlined the current situation, saying how the conflict continues to unfold on multiple fronts: From the war itself, in which the intensified military conflict with strikes and counterstrikes has resulted in widespread destruction and loss of lives, to the contest over critical supply routes, especially through the Strait of Hormuz.
"Currently, Iran has significantly disrupted shipping through the Strait, sharply curtailing overall flows. Oil and LNG supplies passing through the Strait have been sharply reduced. Supplies of other essential commodities – including fertilisers and helium – have also been affected, with wider consequences, including risks to food production."
As a result, oil prices have increased significantly, by more than 60% since the war started. Further, supply chains are under strain, and countries everywhere are feeling the squeeze, with Asia particularly exposed, as a substantial share of energy supplies passing through the Strait of Hormuz is bound for our region, including Singapore.
Lasting risks and the threat of stagflation
He warned that despite ongoing diplomatic efforts, the conflict is likely to have lasting consequences for global energy supplies. Even with a ceasefire, damaged production and distribution infrastructure will take months to restore, keeping prices elevated for some time.
He further cautioned that further escalation remains possible, including wider regional involvement and a prolonged closure of the Strait of Hormuz, as well as other key shipping routes in the region, including the Red Sea. If Middle Eastern energy sources and supply lines are constrained for a prolonged period, he said, the world could face a severe global energy crunch, weaker economic output and rising prices.
"It’s what economists describe as stagflation. Once that takes hold, it is deeply damaging and very hard to bring under control," he added.
"My fellow Singaporeans, I am sharing all this with you so that we can be prepared for what lies ahead. The situation is highly uncertain and we cannot predict how exactly events will unfold. But the risks are significant, and the worst may not yet be behind us."
"Singapore cannot be insulated from such global upheavals. But whatever comes our way, we will face it as one people, one nation. And we will get through this together," he added in a Facebook post.
Lead image / PM Wong's YouTube
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