SINGAPORE: Attacks on vessels and tankers in the Rea Sea have caused "some delays" in Singapore's imports from Europe, Trade and Industry Minister Gan Kim Yong said on Monday (Feb 5).
These imports include petrochemicals, speciality chemicals and machinery, he said in a written response to parliamentary questions by MP Darryl David (PAP-Ang Mo Kio) and MP Saktiandi Supaat (PAP-Bishan-Toa Payoh) about the impact of the Red Sea attacks.
In response to the attacks, major shipping lines have rerouted long-haul trans-Pacific and Asia-Europe services via the Cape of Good Hope, adding 10 to 15 days of transit.
"The disruptions in the Red Sea have also raised sea freight charges. Businesses have provided feedback that these repercussions are manageable thus far, as the proportion of goods that are shipped from Europe by sea is small compared to Singapore’s total global imports," Mr Gan said.
He added that Singapore's current growth and inflation forecasts have accounted for the current situation in the Red Sea.
However, if the conflict escalates further, "we expect additional downside risks to GDP (gross domestic product) growth and upside risks to inflation", said the minister.
The Ministry of Trade and Industry (MTI) has projected that Singapore’s economy will grow by 1 per cent to 3 per cent this year, while core inflation is expected to moderate to 2.5 per cent to 3.5 per cent, down from 4.2 per cent last year.
"We will continue to monitor developments closely including engaging with our business community," said Mr Gan.
The Maritime and Port Authority of Singapore (MPA) said in December last year that the Port of Singapore remained unaffected by the situation in the Red Sea.
Defence Minister Ng Eng Hen said on January that the immediate impact on Singapore is expected to be limited.
Singapore is a participant in Operation Prosperity Guardian (OPG) - a naval task force formed by the United States and other countries to secure the vital seaway.
Dr Ng said last month that Singapore is deploying a team of planners to work with international partners at their headquarters to formulate plans.
It will also be sending a team from the Republic of Singapore Navy’s Information Fusion Centre to support information sharing and engagement outreach to the commercial shipping community, as well as a senior national representative to the Combined Maritime Forces (CMF) in Bahrain.
In a separate written answer on Monday, Dr Ng said it is in Singapore's interest to be a part of such international efforts to ensure key sea lines of communication, such as the Red Sea, remain open and safe for the free flow of trade.
He reiterated that the Singapore Armed Forces (SAF) was not involved in a series of strikes by the United States and the United Kingdon on Houthi targets in Yemen, adding that the strikes are not linked to Operation Prosperity Guardian.
The Defence Minister also urged the Houthis to stop their unlawful attacks in the Red Sea.
In a written answer to another parliamentary question, Dr Ng also provided an update on the two-men SAF team serving aboard the French Armed Forces' (FAF) ship FS Dixmude.
The helicopter carrier is a reconfigured hospital ship
The pair – Lieutenant Colonel (LTC) (Dr) Nazirul Hannan Abdul Aziz and Military Expert 3 (ME3) Jimmy Woo Ying Ming – were on the ship as part of Singapore's continued efforts to provide humanitarian assistance to Gaza.
"Working together with the FAF and other international partners, they provided medical aid and post operative nursing care to civilian casualties from Gaza, including oncological and trauma patients with injuries ranging from amputated limbs, fractures and infections," said Dr Ng.
The pair ended their deployment on Jan 27, with the departure of the ship from Egypt.
"The SAF will continue to monitor the situation in the region closely and assess how we can contribute further in humanitarian assistance to Gaza," said the Defence Minister.
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These imports include petrochemicals, speciality chemicals and machinery, he said in a written response to parliamentary questions by MP Darryl David (PAP-Ang Mo Kio) and MP Saktiandi Supaat (PAP-Bishan-Toa Payoh) about the impact of the Red Sea attacks.
In response to the attacks, major shipping lines have rerouted long-haul trans-Pacific and Asia-Europe services via the Cape of Good Hope, adding 10 to 15 days of transit.
"The disruptions in the Red Sea have also raised sea freight charges. Businesses have provided feedback that these repercussions are manageable thus far, as the proportion of goods that are shipped from Europe by sea is small compared to Singapore’s total global imports," Mr Gan said.
He added that Singapore's current growth and inflation forecasts have accounted for the current situation in the Red Sea.
However, if the conflict escalates further, "we expect additional downside risks to GDP (gross domestic product) growth and upside risks to inflation", said the minister.
The Ministry of Trade and Industry (MTI) has projected that Singapore’s economy will grow by 1 per cent to 3 per cent this year, while core inflation is expected to moderate to 2.5 per cent to 3.5 per cent, down from 4.2 per cent last year.
"We will continue to monitor developments closely including engaging with our business community," said Mr Gan.
The Maritime and Port Authority of Singapore (MPA) said in December last year that the Port of Singapore remained unaffected by the situation in the Red Sea.
Defence Minister Ng Eng Hen said on January that the immediate impact on Singapore is expected to be limited.
Related:
Singapore is a participant in Operation Prosperity Guardian (OPG) - a naval task force formed by the United States and other countries to secure the vital seaway.
Dr Ng said last month that Singapore is deploying a team of planners to work with international partners at their headquarters to formulate plans.
It will also be sending a team from the Republic of Singapore Navy’s Information Fusion Centre to support information sharing and engagement outreach to the commercial shipping community, as well as a senior national representative to the Combined Maritime Forces (CMF) in Bahrain.
In a separate written answer on Monday, Dr Ng said it is in Singapore's interest to be a part of such international efforts to ensure key sea lines of communication, such as the Red Sea, remain open and safe for the free flow of trade.
He reiterated that the Singapore Armed Forces (SAF) was not involved in a series of strikes by the United States and the United Kingdon on Houthi targets in Yemen, adding that the strikes are not linked to Operation Prosperity Guardian.
The Defence Minister also urged the Houthis to stop their unlawful attacks in the Red Sea.
MEDICAL TEAM ABOARD FRENCH SHIP
In a written answer to another parliamentary question, Dr Ng also provided an update on the two-men SAF team serving aboard the French Armed Forces' (FAF) ship FS Dixmude.
The helicopter carrier is a reconfigured hospital ship
The pair – Lieutenant Colonel (LTC) (Dr) Nazirul Hannan Abdul Aziz and Military Expert 3 (ME3) Jimmy Woo Ying Ming – were on the ship as part of Singapore's continued efforts to provide humanitarian assistance to Gaza.
"Working together with the FAF and other international partners, they provided medical aid and post operative nursing care to civilian casualties from Gaza, including oncological and trauma patients with injuries ranging from amputated limbs, fractures and infections," said Dr Ng.
The pair ended their deployment on Jan 27, with the departure of the ship from Egypt.
"The SAF will continue to monitor the situation in the region closely and assess how we can contribute further in humanitarian assistance to Gaza," said the Defence Minister.
Continue reading...