Singapore Prime Minister Lawrence Wong stated that the current crisis will not end soon, and pressures from all sides may intensify, but Singapore can prepare itself to respond to challenges calmly and confidently.
According to Lianhe Zaobao, Wong delivered a speech at the May Day Rally organized by the National Trades Union Congress on the 1st, pointing out that the evolving situation in the Middle East and the fact that the Strait of Hormuz has been blocked for over two months have led to rising prices and tight supplies. Asia has been particularly affected since the region is highly dependent on energy and other critical materials from the Gulf region.
Wong said that we should not expect this crisis to end quickly. In fact, the pressure may intensify, supply disruptions will continue, and may worsen in the coming months. Global inflation will rise, and Singapore will directly feel the impact. Singapore’s economic growth will slow this year, inflation rates will rise, and this will put pressure on businesses, workers, and families.
During the oil crisis of the 1970s, the world experienced 'stagflation,' that is, economic stagnation, high unemployment, and high inflation. That was the worst scenario with the drawbacks of both sides, which hit businesses and workers hard. The International Energy Agency is now warning that the current crisis may be even more severe.
Wong said: “We must pull ourselves together and get ready to face more difficult times ahead. But we can also look forward with calm and confidence. We are not facing this crisis in a weakened position. We are much better prepared and in a stronger position.”
He pointed out that this position was built over many years, including prudent fiscal management and the accumulation of reserves, strengthening energy resilience, developing Jurong Island, and developing the refining and petrochemical industries. Today, Singapore is a key node in global energy flows. This brings a significant advantage to Singapore. Leading global energy companies operate in Singapore. They are connected to a diversified supply network around the world. When one source of supply is disrupted, they are able to utilize other sources.
Prime Minister Wong said that this is an advantage Singapore has built up over decades, not by chance, but through thoughtful, sustained effort and discipline.
Wong said that we should not expect this crisis to end quickly. In fact, the pressure may intensify, supply disruptions will continue, and may worsen in the coming months. Global inflation will rise, and Singapore will directly feel the impact. Singapore’s economic growth will slow this year, inflation rates will rise, and this will put pressure on businesses, workers, and families.
During the oil crisis of the 1970s, the world experienced 'stagflation,' that is, economic stagnation, high unemployment, and high inflation. That was the worst scenario with the drawbacks of both sides, which hit businesses and workers hard. The International Energy Agency is now warning that the current crisis may be even more severe.
Wong said: “We must pull ourselves together and get ready to face more difficult times ahead. But we can also look forward with calm and confidence. We are not facing this crisis in a weakened position. We are much better prepared and in a stronger position.”
He pointed out that this position was built over many years, including prudent fiscal management and the accumulation of reserves, strengthening energy resilience, developing Jurong Island, and developing the refining and petrochemical industries. Today, Singapore is a key node in global energy flows. This brings a significant advantage to Singapore. Leading global energy companies operate in Singapore. They are connected to a diversified supply network around the world. When one source of supply is disrupted, they are able to utilize other sources.
Prime Minister Wong said that this is an advantage Singapore has built up over decades, not by chance, but through thoughtful, sustained effort and discipline.