President Tharman Shanmugaratnam formally approved the Government’s budget for the coming financial year.
In a Facebook post on Wednesday (18 March), the President also highlighted the context of the situation, saying Singapore is entering “bracing times” given how the world has become “more troubled”.
He added: “The longer the war in the Middle East continues and the Strait of Hormuz remains closed, the greater the risk of a major economic downturn, as well as of higher inflation everywhere.”
In his post, Mr Tharman noted that the conflict represented “a major new stress point” on the world’s economy.
Source: France24. Image for illustration purposes only.
However, he notes that these issues are not the “gravest challenge” Singapore will be facing.
“We are looking at a long storm of global political instability,” Mr Tharman stated.
The president observed that for the past few years, countries have opted for “wars and destruction” and have forgotten the purpose of the United Nations (UN) Charter and international humanitarian law.
“It is a more fragile world,” he added.
Mr Tharman explained that the ongoing war has led to the closure of the Strait of Hormuz, hiking up fuel prices. This, in turn, will cause the prices to stay high.
Source: Narcisa Olteanus images on Canva. Image for illustration purposes only.
“But the problem goes beyond oil and gas markets,” he expanded.
Mr Tharman added that fertiliser supplies have decreased drastically, meaning that food supply and prices will be affected.
“Critical commodities” such as aluminium and helium will also be impacted.
Reminding citizens of the country’s reserves that have built up over the years, Mr Tharman reassures that these “strategic buffers” will aid Singapore in major crises, something that has been done before.
Image by MS News
“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 reassures that Singapore, being a trusted country by other nations globally, will bring in “new opportunities for mutual benefit”, allowing an expansion in trade and sources of energy.
“That must remain the Singapore way. Always prepared for a world where things may not go as we hope,” Mr Tharman said.
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Featured image adapted from President Tharman on Facebook (left) and MS News (right).