SINGAPORE: Amid a war in the Middle East that has strained global markets, President Tharman Shanmugaratnam warned of a "long storm" of instability as he approved the government’s spending plans for the coming financial year.
In a Facebook post on Wednesday (Mar 18), Mr Tharman highlighted the “major new stress point in the global economy” as the Strait of Hormuz remained closed in the third week of the conflict.
“Yet these economic problems are not the gravest challenge we face. We are looking at a long storm of global political instability.”
“For every week that the war continues and the Strait of Hormuz remains closed, the higher fuel prices will go and the longer they stay high,” he said, adding that the war will also disrupt supplies of fertiliser and other critical commodities such as aluminium and helium, with knock-on effects on food supply and prices.
However, Mr Tharman pointed to the strategic buffers that Singapore has in place to navigate these turbulent times.
“We have built up reserves that will help us deal with major crises, as we have done before,” he said.
“We have Singapore Budgets that enable us to invest boldly in every needed skill and capability, and to preserve some finances for future needs.
"And we are trusted by countries around the world, which opens up new opportunities for mutual benefit, and enables us to diversify our trade and sources of energy."
February’s Budget debates in Parliament saw People’s Action Party (PAP) Members of Parliament calling for prudence amid global uncertainties.
This came as Singapore recorded a surplus of S$15 billion (US$11.6 billion) in the 2025 fiscal year, exceeding forecasts and prompting Workers’ Party chief Pritam Singh to call for greater accountability and disclosure.
Prime Minister Lawrence Wong defended fiscal projections, adding that “the reason why things did not turn out as badly as we feared was partly due to factors beyond our control, but also partly because of the decisive steps we took”.
In his post, Mr Tharman also stressed the importance of “keeping to the Singapore way, being “always prepared for a world where things may not go as we hope”.
“That must remain the Singapore way … Investing in the future for every Singaporean. Contributing our part to the global good. And standing up for what we believe in – a fair, open and humane world order.”
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In a Facebook post on Wednesday (Mar 18), Mr Tharman highlighted the “major new stress point in the global economy” as the Strait of Hormuz remained closed in the third week of the conflict.
“Yet these economic problems are not the gravest challenge we face. We are looking at a long storm of global political instability.”
“For every week that the war continues and the Strait of Hormuz remains closed, the higher fuel prices will go and the longer they stay high,” he said, adding that the war will also disrupt supplies of fertiliser and other critical commodities such as aluminium and helium, with knock-on effects on food supply and prices.
However, Mr Tharman pointed to the strategic buffers that Singapore has in place to navigate these turbulent times.
“We have built up reserves that will help us deal with major crises, as we have done before,” he said.
“We have Singapore Budgets that enable us to invest boldly in every needed skill and capability, and to preserve some finances for future needs.
"And we are trusted by countries around the world, which opens up new opportunities for mutual benefit, and enables us to diversify our trade and sources of energy."
February’s Budget debates in Parliament saw People’s Action Party (PAP) Members of Parliament calling for prudence amid global uncertainties.
This came as Singapore recorded a surplus of S$15 billion (US$11.6 billion) in the 2025 fiscal year, exceeding forecasts and prompting Workers’ Party chief Pritam Singh to call for greater accountability and disclosure.
Prime Minister Lawrence Wong defended fiscal projections, adding that “the reason why things did not turn out as badly as we feared was partly due to factors beyond our control, but also partly because of the decisive steps we took”.
In his post, Mr Tharman also stressed the importance of “keeping to the Singapore way, being “always prepared for a world where things may not go as we hope”.
“That must remain the Singapore way … Investing in the future for every Singaporean. Contributing our part to the global good. And standing up for what we believe in – a fair, open and humane world order.”
Continue reading...