SINGAPORE, Feb 28 — Senior Minister Lee Hsien Loong warned that escalating tensions in the Middle East could impact energy prices and ripple across the global economy, including Singapore.
“Because businesses and companies will find it impossible to plan for what will happen tomorrow, what they can rely on, where they can safely invest, what they should do in order to make sure that the company will be okay the day after tomorrow.
“And this is going to affect us too. As a small and open economy, we rely on global trade and investment,” he was quoted as saying by Singapore-based news outlet CNA.
The former Singapore prime minister said the joint strikes by Israel and the US on Iran, which retaliated, marked the start of a conflict with unpredictable outcomes.
He noted that global uncertainty has also been heightened by recent US tariffs, which briefly fluctuated before settling at 10 per cent.
The senior minister said Singapore must be prepared and resilient.
“We can’t tell what will happen in the world. We can’t help what will happen in the world, but we can make sure that within Singapore, we prepare ourselves and we make the best of whatever situation comes,” he was quoted as saying at a Chinese New Year dinner at Teck Ghee Community Club on February 28.
Lee highlighted that Singapore’s economy grew 5 per cent in 2025, exceeding expectations, but warned that stability cannot be taken for granted.
He urged workers to upgrade their skills, particularly in artificial intelligence, while companies should adapt and transform to remain competitive.
Lee said Singaporeans should take advantage of government support and work together to navigate global uncertainties and build a stronger future.
The Singapore government has announced measures to support households and businesses, including cost-of-living payments, Community Development Council vouchers, and U-Save rebates for utilities.
