Singapore faces slower growth, higher inflation as Middle East conflict disrupts global supplies: Gan Kim Yong
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Singapore is expected to face slower economic growth and higher inflation due to the ongoing Middle East conflict, which is disrupting global energy supplies and trade. The government has convened a committee to secure essential supplies and strengthen the country's economic resilience, with a focus on supporting low-income households and businesses affected by the conflict.
Singapore's economic growth is likely to slow down due to the Middle East conflict. The conflict is disrupting global energy supplies and trade, affecting manufacturing companies and energy-intensive industries. The government has upgraded its GDP growth forecast to between 2 and 4 per cent. However, growth is expected to be affected in the coming quarters. The Ministry of Trade and Industry will monitor developments and update its GDP forecast in May. Fuel and electricity costs have already risen, with a sharper increase expected for the regulated electricity tariff next quarter. The government has convened the Homefront Crisis Ministerial Committee to secure supplies of essential products. The committee will also provide targeted help to those most affected, including businesses and low-income families. Singapore is strengthening partnerships with like-minded countries to uphold an open and rules-based trading system. The government is also building up inventories and diversifying supply sources to minimize disruptions. The conflict is expected to drive up prices of imported goods, affecting lower-income households. The Monetary Authority of Singapore will factor in these developments when it releases its inflation outlook assessment.
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