SINGAPORE, March 19 — Singapore President Tharman Shanmugaratnam yesterday warned that a prolonged conflict in West Asia and a closure of the Strait of Hormuz could trigger a major global economic downturn and push inflation higher.

In a post on his official Facebook page, Tharman said that recent global political events have shown how much more troubled the world has become.

“For every week that the war continues and the Strait of Hormuz remains closed, fuel prices will rise further and stay high for longer.

“It adds up to a major new stress point in the global economy and financial markets, which were already under strain,” Tharman said as he approves the government’s spending plans for the coming year.

According to the President, the problems could go beyond oil and gas markets, as it will also impact food supply and prices, as well as other commodities.

Nevertheless, he noted that Singapore has some strategic buffers in place as it navigates the turbulence as a small nation.

“We have built up reserves that will help us deal with major crises, as we have done before.

“We have Singapore Budgets that enable us to invest boldly in every needed skill and capability, and to preserve some finances for future needs,” he added. — Bernama