Singapore set to be hit by global energy crisis as it unveils countermeasures

Storage tanks and oil refineries in Jurong Island, Singapore.

Photo: Reuters Singapore’s economy will inevitably be hit by the global energy crunch even though it is in a better position to deal with the crisis compared with its neighbours, according to analysts, as the city state unveiled a raft of measures to help households and businesses.

The conflict in the Middle East has roiled supply chains and sent fuel prices soaring in Southeast Asia, with governments scrambling to enforce measures such as fuel caps and work-from-home mandates.

Singapore ministers in parliament on Tuesday announced steps targeted at easing the burden on citizens and the economy, but stopped short of fuel and diesel subsidies that some of its neighbours, like Malaysia and Indonesia, have rolled out.

Jeffrey Siow, acting transport minister and senior minister of state for finance, announced an increase of S$200 (US$155) to a cost-of-living cash payment to eligible Singaporeans, first announced during the budget in February.

Disbursement of S$500 in vouchers under the Community Development Council scheme will also be brought forward from January 2027 to June.

These vouchers can be used by Singapore households at local food stalls and supermarkets.

Siow said that while several lawmakers had asked if Singapore would implement fuel subsidies, such a move was unsuitable for the country.

A Singapore HDB housing estate.

The government has unveiled measures to help households cope with the energy crisis.

Photo: Getty Images “It is too blunt an approach, and it could also be regressive … As an open economy, we must allow fuel prices to reflect market realities.

If prices are artificially suppressed, importers may choose to divert fuel to where prices are higher, and over time, this can tighten supply and leave us worse off,” he said.

K Shanmugam, coordinating minister for national security, who is chairing a ministerial committee looking into the city state’s response to the war in Iran, said Singapore had to continue to diversify its fuel supply.

About 95 per cent of Singapore’s electricity is generated with imported natural gas.

According to Shanmugam, more than half of the city state’s total crude oil imports were from the Middle East, and before the crisis, about 9 per cent of its natural gas was from Qatar.

The state would continue to deploy solar energy in the short term and assess alternatives, like nuclear energy, for the medium to long term, he said.

Shanmugam said

原文链接: 南华早报