On 2 April 2026, Prime Minister Lawrence Wong released a video message on the Situation in the Middle East. The statement underscored Singapore’s deep concern over escalating instability, energy disruptions, and the risk of global stagflation. In the video, he outlined a three-pronged national response: strengthening supply resilience, cushioning households and businesses, and rallying unity across society.
The Global Shockwaves Of The Middle East Conflict
The Prime Minister began by acknowledging the gravity of the situation. The intensifying war has disrupted shipping routes and caused energy prices to soar. The Strait of Hormuz, a critical artery for global oil and LNG flows, has been severely curtailed by Iranian actions. This has already driven oil prices up by more than 60% since the war began, straining supply chains worldwide. Asia, and Singapore in particular, is highly exposed, given that “a substantial share of energy supplies” bound for our region pass through the Strait.
Diplomatic efforts are ongoing, but PM Wong warned that even if a ceasefire is achieved, damage to energy infrastructure means elevated prices will persist for months. The risk of escalation remains, with groups like the Houthis potentially widening the conflict. More fundamentally, the geopolitical balance in the Middle East has shifted toward instability, raising the likelihood of prolonged disruptions.
Risks Of A Global Energy Crunch
PM Wong highlighted the possibility of prolonged closures of the Strait of Hormuz or other routes, such as the Red Sea, which could trigger a severe global energy crunch. Temporary buffers, such as fuel inventories and alternative sources, cannot fully offset this shortfall. The danger is “what economists describe as stagflation”. This refers to weakening output combined with rising prices, a scenario regarded as deeply damaging and difficult to reverse.
Read Also: 5 Takeaways From PM Lawrence Wong’s Ministerial Statement About The Trump Tariffs
A New Ministerial Committee To Respond To The Crisis
To prepare for these risks, PM Wong has convened the Homefront Crisis Ministerial Committee, chaired by Coordinating Minister for National Security K Shanmugam with Deputy Prime Minister Gan Kim Yong as adviser. The committee is updating contingency plans and developing new strategies. PM Wong outlined three key pillars:
#1 Strengthening Energy And Supply Chain Resilience
Refineries and chemical companies are scaling back production and sourcing crude oil beyond the Middle East. LNG importers are securing alternative supplies, with Australia already providing over one-third of Singapore’s LNG. PM Wong also mentioned partnerships with Australia and New Zealand are being deepened to secure energy and essential goods. Wong personally engaged their Prime Ministers to reinforce coordination.
#2 Cushioning Households And Businesses
PM Wong reiterated that existing Budget measures, such as additional U-Save rebates, are being rolled out to help households manage higher electricity costs. The government will enhance and accelerate support measures, offering targeted relief to sectors most affected by the energy shock. He said the Ministers would share more details in Parliament next week, possibly signalling proactive fiscal intervention.
#3 Rallying National Unity
The Prime Minister stressed that resilience is not just about government action but collective responsibility. He urged businesses to improve energy efficiency and review operations, and households to conserve energy and reduce waste. “Small steps”, he said, can “make a real difference” when taken together.
Lessons From Past Crises
As he has done in the past, PM Wong closed his message by drawing parallels to Singapore’s resilience during the Asian Financial Crisis, SARS, the Global Financial Crisis, and COVID-19. Each time, the nation endured by standing united. He reminds Singaporeans that strong foundations—sound finances, diversified supply chains, tripartite partnerships, and social cohesion—are not abstract strengths but tangible assets that will carry the country through.
Read Also: What You Need To Know About The AI Initiatives Announced In Singapore Budget 2026
