SINGAPORE, March 3 — Deputy Prime Minister Gan Kim Yong has warned that Singapore may need to revise its growth and inflation outlook if the deepening conflict in Iran continues to disrupt global energy flows, CNA reported.
Addressing parliament during the Committee of Supply debates yesterday, Gan said the government is watching the closure of the Strait of Hormuz “closely”, noting its critical role in global shipments of crude oil and liquefied natural gas.
“Higher energy prices could lead to higher costs for businesses and consumers, and weigh on the global and Singapore economies,” he said, according to the Singapore-based media organisation.
“We are monitoring the developments closely and will reassess our GDP and inflation forecasts if necessary.”
The comments reflect rising concern within the Singapore government as tensions escalate in the Middle East and the US-Israeli air campaign against Iran threatens a key artery of the global energy system.
Any prolonged disruption, Gan cautioned, could amplify global price pressures at a time when economies remain sensitive to shocks.
Singapore’s central bank has sought to reassure markets, saying yesterday that the country’s foreign exchange and money markets “continue to function normally”.
The Monetary Authority of Singapore said the Singapore dollar remains within its appreciating policy band, helping “dampen imported inflationary pressures”, even as it monitors developments for potential risks to the domestic economy.
But Gan’s remarks underline the possibility of a more turbulent economic landscape should energy prices surge.
The Strait of Hormuz handles roughly a fifth of the world’s crude supply, and analysts have warned that insurance, shipping and fuel costs could spike if instability persists.
Gan noted that Singapore will continue to calibrate its policies as the situation evolves.
While the government has not signalled any immediate changes, he emphasised that economic projections cannot remain static in the face of geopolitical uncertainty.
