Impact of the Middle East Situation on Singapore

Mr Speaker: Order. Ministerial Statements. Deputy Prime Minister and Minister for Trade and Industry.

1.35 pm

The Deputy Prime Minister and Minister for Trade and Industry (Mr Gan Kim Yong): Mr Speaker, Coordinating Minister for National Security K Shanmugam, Senior Minister of State for Finance Jeffrey Siow and I will deliver a Ministerial Statement each on the impact of the Middle East situation on Singapore.

Our Ministerial Statements will address Parliamentary Question Nos 1 to 62 in today's Order Paper, as well as written Parliamentary Question Nos 1 to 12, and related Parliamentary Questions (PQs) filed for subsequent Sittings. May I have your permission to take clarification at the end of the three Statements? And as this is a whole-of-Government approach, may I also seek your permission to allow relevant political officeholders to respond to clarifications pertaining to their respective areas of responsibilities?

Mr Speaker: Yes, you may proceed.

Mr Gan Kim Yong: Thank you, Mr Speaker. Sir, the conflict between the United States (US)/ Israel and Iran has entered its sixth week and spread across the wider Middle East. Within days of the conflict, Iran effectively closed the Strait of Hormuz. It has also attacked close to 20 vessels. Last month, only about six vessels on average passed through the Strait of Hormuz each day, compared to around 135 in normal times. President Trump has said recently that the US has almost accomplished its goals in Iran, but it is still not clear when the conflict will end and when the Strait will be reopened.

In the near term, the closure of the Strait has caused a global shortage of energy supplies, including crude oil and gas.

Before the conflict, one quarter of the world's supply of seaborne oil and one-fifth of its gas transited through the Strait. More than 80% of these flows were bound for Asia. Such a severe choking off of supply is unprecedented. It is the worst disruption since the 1973 oil embargo.

The fuel shortages have caused a surge in global energy prices. Since the onset of the conflict, Brent crude oil prices have doubled from US$71 per barrel just before the conflict, to a peak of US$141. Similarly, spot liquefied natural gas (LNG) prices have also doubled, from US$11 per million British Thermal Units (MMBtu) to as high as US$22/MMBtu.

The disruption extends to other key products too, particularly those that use oil and natural gas as feedstock or starting materials. One example is fertilisers.

Most fertilisers are made using natural gas – and the Middle East is a key global producer of fertilisers, second only to Russia. Nearly a third of the world's fertiliser trade is shipped through the Strait. The supply disruption has led to soaring fertiliser costs. If farmers reduce or stop fertiliser use, crop yields will fall, raising global food prices.

Other industries are also affected. This includes aluminium, which is used to manufacture cars, airplanes and many other products, as well as helium, which is needed for producing semiconductor chips and cooling magnetic resonance imaging (MRI) machines.

These disruptions are cascading through the global economy.

Higher fuel and raw material costs will raise business costs, some of which will pass through to consumers through higher prices. Higher energy prices have also increased transport and shipping costs. Airfreight rates between Asia and Europe have almost doubled since the conflict began. This will eventually push up costs of other items including food and grocery supplies.

Rising business costs and consumer prices will, in turn, dampen demand and slow down the global economy. Many Asian currencies have weakened against a stronger US dollar, compounding inflation and growth risks in these countries. All of these pressures could intensify further in the coming weeks.

As a small and highly open economy, Singapore will not be able to insulate ourselves completely from this crisis. We must respond with a coordinated, multi-agency effort to cushion the impact on our people and our economy.

This is why we have convened the Homefront Crisis Ministerial Committee (HCMC), chaired by Coordinating Minister for National Security K Shanmugam and comprising several Ministers.

We will focus on the following areas. First, securing our supplies, such as LNG and diesel for power, as well as other essential fuel products like jet fuel and motor gasoline; strengthening our economic resilience, by helping businesses to preserve their productive capacity and capability, and facilitating their transformation where necessary; providing targeted help for those most affected by the crisis, including businesses in the energy and chemicals cluster, platform workers and low-income families; and helping workers with training and employment support, as well as providing households with broad-based help to address cost-of-living concerns. Minister Shanmugam will share more later on how we are organising ourselves to coordinate our national response.

Mr Speaker, Sir, what do these developments mean for our economy?

In February this year, the Ministry of Trade and Industry (MTI) upgraded Singapore's gross domestic product (GDP) growth forecast for 2026 to 2.0% to 4.0%, on the back of the strong growth momentum seen in the fourth quarter of 2025, supported by robust artificial intelligence (AI)-related demand. Early data indicates that economic activity continued to be resilient in the first quarter of 2026. However, growth in the coming quarters is likely to be affected by the ongoing conflict.

While the conflict impacts many sectors, some sectors will feel it more than others.

In manufacturing, the most direct impact will be on industries that rely on natural gas, crude oil and crude oil derivatives as feedstock. Our refineries have adjusted by reducing their run rates and brought in shipments from sources outside of the Middle East. Downstream chemical firms will also be affected. Some firms, such as PCS have already declared force majeure due to upstream supply disruptions.

Beyond the energy and chemicals cluster, higher fuel and electricity prices will also affect a wider range of industries, including electronics, precision engineering and other energy-intensive clusters.

In services, outward-oriented sectors like air and sea transport, as well as tourism, will be affected by higher costs and weaker demand. On the other hand, domestically-oriented sectors, such as retail, food services and private land transport will face higher operating costs, including utilities and fuel.

Taken together, these sectoral impacts will weigh on economic activities in the coming quarters, although the extent remains uncertain as the conflict is still unfolding. MTI will continue to monitor developments closely and will update our GDP forecast in May.

Let me now move to the impact on Singaporeans. As we import nearly all our energy, the spike in global oil and natural gas prices will inevitably raise fuel and electricity costs for Singapore. About 95% of Singapore's electricity is generated from natural gas, whose price is mostly pegged to market prices.

The regulated electricity tariff, which most Singapore households pay, increased by 2.1% to about 27.27 cents per kilowatt hour (kWh) for the second quarter of 2026. The increase is modest relative to the spike in fuel prices. But that is because the tariff is based on fuel prices from the first 10 weeks of the preceding quarter, from January to the middle of March. That means only a small portion of the recent surge in fuel prices has been captured in this tariff adjustment. Fuel makes up about half of the tariff, so higher fuel prices will flow through to electricity prices. We should therefore expect a much sharper increase in the next tariff adjustment, which will fully reflect the higher costs of fuel.

These cost increases will feed through to broader inflation in Singapore. We had earlier forecast Consumer Price Index (CPI)-All Items and Monetary Authority of Singapore's (MAS') Core Inflation to come in at 1.0% to 2.0% in 2026, after inflation broadly eased in 2025. However, the Middle East situation has driven up global energy and commodity prices, which will drive up global inflation. Consequently, we now expect Singapore's overall inflation for 2026 to be higher than earlier projected.

If the conflict is protracted, higher inflation in our source markets could also lead to further increases in import prices over time. These pressures will be felt by households in more expensive electricity, transport and daily necessities. Lower-income households will be more affected, as a larger share of their spending goes towards essentials. MAS will take these developments into account in its upcoming assessment of the inflation outlook, which it will release on 14 April 2026.

Mr Speaker, the crisis is unlikely to be over anytime soon, and we must be prepared for its effects to persist for some time. Even more worrying is the risk of escalation, including further damage to energy infrastructure, or a prolonged blockade of the Strait of Hormuz. This could trigger a global energy crunch – slowing global growth and pushing up inflation worldwide.

This crisis has reminded us again of how interconnected and how fragile the global system is. We need to be prepared for more frequent inflation shocks and supply chain disruptions in a world of heightened geopolitical contestation.

We will strengthen our resilience by building up inventories and diversifying our sources of supply, but Singapore will always remain dependent on imports for our supplies. It is therefore critical that we continue to strengthen our partnerships with like-minded countries and uphold an open and rules-based trading system. As a trading nation, keeping faith with our partners and maintaining our credibility is crucial. We must foster the free flow of energy and goods as far as possible.

Prime Minister Lawrence Wong has spoken to Australian Prime Minister Anthony Albanese. They jointly affirmed our commitment to support the flow of essential goods, including petroleum oils, such as diesel, and LNG between our two countries. Prime Minister Wong has also spoken to New Zealand Prime Minister Christopher Luxon to reaffirm our commitment to strengthen supply resilience and mitigate disruptions. Singapore and New Zealand concluded an Agreement on Trade in Essential Supplies last October, which is a timely framework to ensure the continued flow of critical goods between our two countries.

The Association of Southeast Asian Nations (ASEAN) Foreign Ministers and Economic Ministers have discussed and underscored the importance of maintaining stable, open and reliable global energy supply chains, as well as the importance of minimising disruptions to the flow of essential supplies, including food. Singapore and 10 fellow members of the Future of Investment and Trade Partnership also issued a Joint Statement last week, reaffirming the importance of not imposing restrictive trade measures, including ex port restrictions, tariffs and non-tariff barriers, on essential goods.

Mr Speaker, may I now say a few words in Mandarin, please.

(In Mandarin): Mr Speaker, this crisis will not end in the short term, and Singapore must prepare early and not be complacent. As a small open economy, we cannot be completely unaffected. Rising external costs will ultimately impact businesses, households and prices.

We will strive to ensure stable energy and food supplies, strengthen economic resilience to cope with the crisis and provide necessary assistance to the most severely affected businesses, platform workers and low-income families. We will also provide training and employment support for workers and help families cope with cost-of-living concerns. Most importantly, whether businesses or individuals, all must respond calmly to changes.

The Government will strengthen inter-agency coordination to safeguard supplies, stabilise the economy and mitigate the impact. As we have done before, let us stay resilient and united, as we weather this crisis together.

(In English): Sir, the Government recognises that the impact of this crisis will be felt by households and businesses. We will do what is necessary to support them through this period. Senior Minister of State for Finance Jeffrey Siow will share more on our support measures.

At the same time, all of us – Government, businesses and households – will need to do our part.

Households can do our best to conserve electricity, use climate vouchers to purchase more energy efficient appliances and adopt simple measures, such as using fans instead of air-conditioning and taking public transport instead of driving. Businesses can also conserve energy by tapping on schemes, such as the Energy Efficiency Grant, and investing in more efficient equipment.

Periods of disruption, such as this, will test the resilience of countries and economies, but they also create impetus for firms to transform, diversify and deepen their capabilities.

We must press on with the recommendations of the Economic Strategy Review – including building global leadership in key growth sectors, such as advanced manufacturing and modern services, supporting firms to diversify and internationalise, and accelerating enterprise transformation through technology and innovation, so that our economy remains resilient and competitive in a more challenging global environment.

This also means making our energy and supply chains more resilient, deepening partnerships with like-minded countries and staying open and connected to the global economy. If we stay disciplined, deepen our trust in each other, preserve our capabilities and use this period to sharpen our competitive edge, Singapore will be well placed not only to weather this crisis, but to emerge from it stronger. [Applause.]

Mr Speaker: The Acting Minister for Transport and Senior Minister for Finance, and the Coordinating Minister for National Security and Minister for Home Affairs, will also be making related Ministerial Statements. I will allow Members to raise points of clarifications on all Statements after Minister Shanmugam's Statement.

Acting Minister for Transport and Senior Minister for Finance.

1.52 pm

The Acting Minister for Transport and Senior Minister of State for Finance (Mr Jeffrey Siow): Mr Speaker, the Deputy Prime Minister has set out how the Middle East conflict will affect Singapore's economy. I will now explain what the Government is doing to support our businesses, our workers and our households through this period.

On 12 February 2026, the Prime Minister and Minister for Finance presented our largest Budget on record, at $155 billion. We could not know about the conflict that would break out in Iran, but we could see many uncertainties ahead and therefore, the need to provide greater reassurance and support in this Budget.

Hence, Prime Minister Lawrence Wong announced substantial broad-based support measures, including a Corporate Income Tax rebate, Community Development Council (CDC) vouchers and the Cost-of-Living Special Payment. We provided more support for lower-wage workers and households, such as enhancements to the Progressive Wage Credit Scheme, and better support for lower-income families through ComLink+.

We also enhanced U-Save rebates, giving 1.5 times the regular amount – or up to $570 this financial year. The first tranche of U-Save rebates will be disbursed in April. This will help defray the increase in utility bills from April to June. A second tranche of U-Save rebates will be disbursed in July. This should help to defray the much sharper increase in utility bills from July to September that we expect with the spike in oil prices.

Sixteen days after the Budget, the US and Israel launched coordinated airstrikes on Iran. This current situation in the Middle East remains highly uncertain. We cannot predict how exactly events will unfold or when the conflict will end.

What we do know is that Singaporeans are already feeling some of the effects on the ground. In Singapore, petrol and diesel prices have already risen sharply in tandem with global oil prices and are likely to remain elevated for some time. And while the impact has not yet fully filtered through for items, such as electricity and food, we have to brace ourselves because we know, from experience, that this will come.

The Government is not waiting to act. We will supplement what was announced at the Budget with a further package of support measures. These provide targeted support to those who are the most heavily and directly affected. We will also provide broad-based support for businesses and households.

Let me go through each of these in turn.

First, support for the domestic transport sector. The sharp increase in fuel prices had an immediate effect on the earnings of platform workers, private hire car drivers and taxi drivers. The National Trades Union Congress (NTUC) has worked with platform and taxi operators on fuel vouchers and fare adjustments, which have helped to cushion the impact. To provide further relief, the Government will disburse $200 in cash to active platform workers, private hire car drivers and taxi drivers from the end of the month.

For certain essential bus services, such as those for school students, seniors and persons with disabilities, the Government will provide temporary assistance to co-fund cost increases, to enable these services to continue operating without disruption. The respective Government agencies will provide more details.

Several Members have asked if the Government will consider reducing fuel or diesel subsidies across the board. [Please refer to clarification later in the debate.]

We do not think this is the right move. It is too blunt an approach and it could also be regressive. At the same time, we want to preserve the price signals for consumers to use energy more efficiently.

More fundamentally, as an open economy, we must allow fuel prices to reflect market realities. If prices are artificially suppressed, importers may choose to divert fuel to where prices are higher and over time, this can tighten supply and leave us worse off. Instead, our targeted approach provides direct support to those who are directly affected and this allows us to channel more help to those who need it most.

Second, let me talk about support for businesses.

Higher energy and logistics costs will continue to be felt by businesses across the economy for some time. Our small and medium enterprises (SMEs), in particular, are more vulnerable to sudden cost increases.

To help businesses manage cashflow, we will enhance the Corporate Income Tax rebate announced at Budget from 40% to 50% for the Year of Assessment 2026. We will also raise the minimum benefit that a company with at least one local employee will receive, from $1,500 to $2,000. The total benefits cap for each company will be raised from $30,000 to $40,000. We will disburse this enhancement quickly, as early as the end of this month.

Even as we roll out immediate relief, this challenging period is also a timely reminder for all our businesses to build longer-term resilience against high and sustained energy prices. We will support them to do so.

Businesses that invest in energy efficiency will reduce their exposure to volatile energy prices and lower their long-run operating costs. We currently have an Energy Efficiency Grant which applies to six designated sectors, for example, food services, retail, manufacturing and construction. Companies in these sectors can make use of the Grant to invest in new, energy-efficient equipment.

We will now expand the base tier of this grant to all sectors and extend this support for another year, to 31 March 2028, so that more companies can benefit.

Additionally, some companies in the Energy and Chemicals sector have been badly affected by feedstock supply disruptions. Our agencies are engaging these firms and assessing how best to provide targeted support to preserve critical capabilities for our economy.

Finally, as a responsible buyer, the Government is prepared to share the cost increases directly related to fuel costs, for critical Government projects where any delays or stoppages would clearly affect the public interest. This includes major Government infrastructure projects, such as the Cross Island Mass Rapid Transit (MRT) Line and new Housing and Development Board (HDB) Build-To-Order (BTO) projects. The Building and Construction Authority (BCA) will issue a circular with more details shortly.

Third, let me talk about support for households.

We are tracking the prices of food and other essential goods and services very closely. So far, rising fuel prices have not yet fully percolated into wider price increases across the economy. But given the uncertainty in the Middle East, it is still too early to update our projections of inflation in Singapore, or to quantify the full impact on households.

But we know the situation has amplified cost of living anxieties for Singaporeans. Therefore, to reassure Singaporeans that the cost increases in the impending months can be managed, we will bring forward the disbursement of the $500 CDC vouchers announced in Budget this year from January 2027 to June 2026.

We will also increase the Budget 2026 Cost-of-Living Special Payment by $200 for all eligible Singaporeans. This will bring the total quantum of the Special Payment to between $400 and $600 per person. About 2.4 million Singaporeans will receive this additional payment in cash, which will be disbursed in September. Mr Speaker, may I now say a few words in Mandarin, please.

(In Mandarin): With tensions in the Middle East and rising energy prices, we understand Singaporeans' concerns.

The Government announced several support measures today to provide timely help for our people. We will also strengthen assistance for those most directly affected. For example, taxi drivers and platform workers will receive a cash relief of $200 from the end of April.

The Government will also provide more help for businesses and households, including by bringing forward the disbursement of the $500 CDC Vouchers from January 2027 to June this year. The Cost-of-Living Special Payment assistance to be distributed in September will also be increased by $200.

We still do not know how long this crisis will last nor do we know how big the impact will be. But the Government will continue to closely monitor the situation and take additional measures when necessary to help Singaporeans.

The Government has always managed national resources prudently and responsibly, building up Reserves first. Therefore, when crises arise, the Government has the capability to help our people, ensuring no one is left behind.

Regardless of what kind of crisis we encounter, as long as everyone unites and works together, we will be able to overcome the difficulties.

(In English): Mr Speaker, the Government has put together a substantial first response to the energy crisis caused by the Middle East conflict. We do not know how long the conflict and its economic impact will last. But the Government is alive to the situation. We have drawer plans, and as events develop, we can put them into action and do more if the situation calls for it.

This package adds up to close to $1 billion in additional measures, on top of what has previously been committed in Budget 2026. It is much larger than our immediate response in 2022, after war broke out in Ukraine and caused a similar surge in oil and gas prices. To fund these measures, the Government will work within the amount approved in the Supply Act last month in the first instance, and seek Parliament's approval for the supplementary budget later on.

Mr Speaker, this is neither the first crisis we have weathered, nor will it be the last. What Singaporeans can count on is a Government that is well-prepared, builds sufficient buffers, anticipates problems and thus is ready and able to respond swiftly with solutions. We will always make sure that no Singaporean is left to bear his or her burden alone. [Applause.]

Mr Speaker: Coordinating Minister for National Security and Minister for Home Affairs.

2.05 pm

The Coordinating Minister for National Security and Minister for Home Affairs (Mr K Shanmugam): Thank you, Sir. Mr Speaker, as the Prime Minister said last Thursday, we stood up the HCMC, soon after hostilities started.

At the Civil Service level, there is the Homefront Crisis Executive Group (HCEG). The HCEG coordinates across Government agencies, to anticipate potential emergency scenarios, ensure the necessary contingency plans are prepared and respond to the impact of any homefront crisis or emergency. The HCEG reports to and receives directions from the HCMC.

The HCMC is a structure that was formalised after the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003. Its role was set out and explained in Parliament in 2004 by then-Minister for Home Affairs Mr Wong Kan Seng. Structurally, and organisationally, from the time it was set up, the Minister for Home Affairs has been designated as the chair of the HCMC.

The Prime Minister asked that the HCMC be stood up some weeks ago to deal with the current crisis. Deputy Prime Minister Gan is the Advisor to this HCMC. The key Ministries and their Ministers all play an important role. We have also brought in newer officeholders to complement the team. They will bring additional perspectives as they deal with specific issues related to the ongoing situation.

With your permission, Mr Speaker, may I ask the Clerks to distribute an Annex, which shows the composition of this HCMC? Members may also access these materials through the MP@SGPARL App.

Mr Speaker: Please proceed. [A handout was distributed to hon Members. Please refer to Annex 1.]

Mr K Shanmugam: There are 13 members in this HCMC and their names are in the Annex.

Over the past month, both the HCMC and the HCEG have met several times. The HCMC has been looking at a broad range of issues, including energy and food resilience, including supply chain resilience; resilience for other essentials; security developments, both domestic and external; support measures for Singaporeans and public communications; and foreign affairs and our diplomatic relations.

In response to the heightened threat environment, from the security perspective, we have put in place additional measures. The Immigration and Checkpoints Authority (ICA) has increased checks at our checkpoints upon the escalation of the conflict, and Police have also stepped up patrols at areas of concern.

We also activated contingency plans to repatriate Singaporeans in the Middle East affected by the conflict. Flights were organised by the Ministry of Foreign Affairs (MFA) and the Ministry of Defence (MINDEF). They were executed at short notice and required close coordination between the Ministries.

MFA began assessing evacuation routes upon the escalation of hostilities, given the possibility of prolonged airport or airspace closures in the region. The Ministry of Culture, Community and Youth (MCCY) and the Islamic Religious Council of Singapore (Majlis Ugama Islam Singapura or MUIS) have also been engaging Singaporean residents in the Middle East, as well as key partners, such as the Association of Muslim Travel Agents Singapore, for Umrah and Haj arrangements in the light of this conflict.

You have heard about the impact of the conflict from Deputy Prime Minister. I will highlight a few points.

More than half of our total crude oil imports comes from the Middle East. Prior to the crisis, about 9% of our natural gas would have been imported from Qatar, if it had carried on as per normal through the year. Many other critical supplies pass through the Strait of Hormuz, including helium and aluminium. We can no longer rely on such supplies in the same way.

I will speak in a little more detail about two key sectors: first, fuel and energy; and second, food supplies.

First, on fuel and energy security. Since the start of the conflict, several countries have announced export restrictions on fuel or implemented fuel rationing measures. We have not done so. So far, there has been no need to do so. Global energy majors and trading companies have a sizeable presence in Singapore. We are the world's third largest oil trading hub and the sixth largest refinery export hub. These capabilities were built up over decades. It is the result of a deliberate long-term strategy.

Today, they underpin our energy and fuel resilience. Because of this, we are deeply connected to global flows of energy. That gives us access to diverse sources of energy and fuel supplies. So, we are able to respond to disruptions more flexibly.

We continue, so far, to have access to crude oil. And we have been meeting our domestic needs and international obligations for fuels. However, we do not know how long the disruptions will last. As Minister Tan See Leng said a fortnight ago, we need to brace ourselves for a bumpy ride ahead. No one can say what the situation will look like, or will be like if there are more serious disruptions and if they last longer.

We have secured crude oil supplies from alternative sources. But we have to pay prevailing prices, which are much higher.

Brent crude has surged as high as 70% since the increase in hostilities on 28 February. Singaporeans are feeling the impact in higher prices as fuel and energy costs rise.

Prices are likely to remain high even after hostilities cease. Damage to infrastructure in the Middle East will take time to repair. We have already seen damage to large oil facilities in Saudi Arabia, Bahrain and other places. Even if the Strait of Hormuz fully reopens tomorrow, global oil and gas export capacity will not return to pre-conflict levels quickly.

In the broader term, we are concerned about broader disruptions to global supply chains which can affect goods critical to Singapore's economy and essential services. MTI is monitoring the situation closely and working with the industries.

As for electricity, we have taken steps to reduce risks to disruption of our supplies, to meet our electricity needs. And there are four aspects to this.

First, our sources are diversified. Apart from the Middle East, we also import LNG from Australia, one of our key suppliers; the US; and Mozambique. GasCo was set up last year to centralise gas procurement for the power sector. GasCo has begun buying replacement natural gas to replace the disrupted supply from Qatar.

Second, while 95% of our electricity is generated from natural gas, our power plants can switch from natural gas to diesel when needed.

Third, and relatedly, we have fuel reserves. These reserves comprise a mixture of natural gas and diesel. Some are owned by the Government. Some are owned by power generation companies.

We are also planning to increase our fuel reserves. It will be costly, but we think it necessary. We have so far not tapped on our fuel reserves nor have we implemented fuel rationing.

The Energy Market Authority (EMA) also requires power generation companies to have pre-arranged contractual access to additional fuel.

Fuel suppliers are required to deliver the fuel to the power generation companies within a set number of days upon activation. And we are prepared, if necessary, to direct the power generation companies to exercise their legal rights to secure the additional fuel. That said, securing the additional fuel by the power generation companies may be subject to force majeure events. Some of the additional fuel may be sourced from overseas and may be subject to supply disruptions again.

Fourth, EMA has strengthened regulatory requirements on electricity retailers in 2023. This ensures that they are sufficiently hedged and will be better able to handle an extended period of gas price volatility.

The position we put ourselves in before the crisis and the steps we have taken since the crisis have helped us remain relatively stable. Nevertheless, if the supply disruptions increase and if more suppliers are unable to supply fuel or gas, then potential disruptions to our domestic energy and electricity supply cannot be ruled out. However, this remains a low-probability scenario for now, though we continue to monitor developments closely.

But prices will go up. The Deputy Prime Minister spoke earlier on the regulated electricity tariff. Even though the cost of gas accounts for almost half of the regulated tariff, this has so far only partially transmitted to the tariff price. If the conflict is prolonged, then we have to expect much sharper increases in electricity prices.

The situation has caused many countries to take a closer look at their energy security. I will make two points on our situation.

First, on refineries. As I said earlier, we are a major refining centre. When countries began imposing controls on their export of fuel, many asked us if we would still be able to supply them with refined fuel products. Some of these countries supply crude oil and other essential products to us. In turn, we supply them with refined products, which they need. This creates a mutual interdependence. It keeps Singapore relevant in the international energy trade. And this has enabled us to have continued access to crude oil.

Some have also questioned the role of refineries over the medium term, given our green transition.

We remain committed to de-carbonising our economy. But as stated before, our path to net zero will depend on technological breakthroughs and sustained international cooperation.

For now, the priority worldwide is energy security. Countries everywhere need to keep the lights on. Fossil fuels remain part of the global energy mix. Because renewable energy is not yet able to meet all of the demand.

In that context, Singapore will continue to play a role as a refining hub. And we will continue to work with our refineries to improve their energy efficiency and reduce their carbon footprint.

Second, we must continue to press on with our efforts to diversify our sources of energy. We have made good progress on domestic solar energy deployment. We have already achieved our 2030 target of two gigawatt-peak in 2025. At the Committee of Supply debate in March, the Government announced that it would raise the target to three gigawatt-peak.

In the near term, we will continue to deploy solar energy domestically and pursue electricity imports from the region. In the medium to long term, we are assessing other sources of energy to diversify our fuel mix.

One potential source is nuclear energy. Advanced nuclear energy technologies have the potential to provide safe, reliable and clean baseload power. Nuclear fuel is energy dense and can be efficiently stockpiled. Five uranium pellets one-inch-tall can generate the same amount of electricity as one Olympic-sized swimming pool of natural gas.

But adopting nuclear energy requires very serious consideration. It needs to be studied very carefully to ensure that it is safe for deployment in or around Singapore.

We have been building up the technical expertise to evaluate the technology as it develops. And we are partnering overseas governments and companies who are leaders in this field. We really need the best expertise on this. We will continue to study this very carefully and rigorously. And there are dedicated teams in the Government that are doing this.

Let me now turn to food security.

Our primary concern is with inflationary pressures on our food products. Natural gas is a key feedstock for fertilisers. With disruptions to gas supply, fertiliser prices will go up. Food crops and animal feed will therefore cost more, and the price of our imported food products will rise. As fuel costs go up, it will also cost more to transport and store food products.

Singapore maintains strategic food stockpiles. That will help us mitigate the impact of any unforeseen supply disruptions. Meanwhile, we are relooking at our supply chains with a view towards strengthening them.

However, we are only able to maintain stockpiles of essential food types. Singaporeans should be prepared for supplies of some foods from some countries to be unavailable and will have to exercise flexibility in choosing alternatives.

There have been questions about the extent of Singapore's fuel reserves and food stockpiles. As a policy, we do not disclose these. That is deliberate. Disclosing such details would reveal where our limits lie and that could be used against Singapore in times of crisis.

What matters is that we have sufficient buffers and contingency plans in place. And we regularly review and strengthen these arrangements to ensure that they remain robust.

Sir, in conclusion, the HCMC will continue to closely monitor the situation. We will respond as a whole-of-Government to take care of Singapore and Singaporeans. We will work together to get through the crisis and emerge stronger – as we always have. [Applause.]

Sir, the questions will be taken by the Ministers who deal with their respective areas.

Mr Speaker: Senior Minister of State Jeffrey Siow.

2.24 pm

Mr Jeffrey Siow: Mr Speaker, I would like to make a clarification for my speech. I earlier said that several Members have asked if the Government will consider reducing fuel or diesel subsidies.

I misread. What I meant to say was that several Members have asked if the Government will consider reducing fuel or diesel duties. It is the exact opposite of what I actually said, so I thought I should clarify.

Mr Speaker: That is an important clarification.

Before I call on hon Members for clarifications, I just wish to point out that pursuant to Standing Order No 23, Members may seek clarification on the Ministerial Statements, but no debate shall be allowed thereon.

Members can seek your clarifications by way of asking questions. So, I seek Members' understanding to keep your clarifications clear and concise so that the Ministers can answer as many clarifications as possible. Likewise, I will ask the Ministers to also keep your answers clear and concise.

To make our discussions clearer, more focus and efficient, I propose to structure our clarifications as follows.

Firstly, clarifications on energy and trade-related matters. These could include petrol, electricity and their impact on trade and the economy.

The second group of clarifications will include the impact on local businesses and households and the support measures for them.

And the third group of clarifications will be on general security issues and related matters.

So, I ask for Members' cooperation to group your clarifications according to the subject matters I have listed. This will give clarity to our discussions, make it easier to follow and understand the answers provided, and allow for deeper and more focused examination of the issues and suggestions from Members.

I assure Members that I will give you sufficient opportunity to make your clarifications on the different topics. There is no need to make all your clarifications at once.

Once again, the first basket of clarifications will be energy and trade-related matters. I will then move on to the second group of clarifications on the impact on local businesses and households and the support measures for them. And finally the third group of clarifications will be more security issues and related matters. I thank Members for your cooperation.

The first group of clarifications. Mr Saktiandi Supaat.

2.27 pm

Mr Saktiandi Supaat (Bishan-Toa Payoh): Thank you, Mr Speaker. I have three clarifications related to the first set of questions, Mr Speaker.

My first supplementary question: Singapore is a price-taker. I am very concerned about inflation pass-through. With the Middle East situation, there are unknowns. I would like to ask the committee and Government for their view about the risk of export restrictions of energy supplied by our partners, especially in the region.

Second, can the Government share its view on food resilience, especially with some concerns about seafood and fish supply, with the risk that diesel shortages for fishermen in the region may affect supply? The concern is whether seafood is regarded also as an essential in the Government's definition.

Third, I noticed that our measures, as the Senior Minister of State has shared earlier, are calibrated in some ways. For now, it looks very sound. It is also a testament to our long-term focus in terms of macro policy mix. My question is, our macro policy mix to address this supply shock is very clear, but what is the likelihood of the inflation pass-through continuing into 2027 and even into 2028, and if there is a need for off-Budget measures where further tranches are needed? I think the Senior Minister of State mentioned there is always a possibility and ability to do that, but what is the possibility of off-Budget measures coming?

Lastly, on our ability to maintain our strong Singapore dollar policy to mitigate imported inflation. That has always been the case, but I think going forward, I am aware that MAS will be releasing its policy statement in April later on. But I think it is very important for us to continue to maintain our strong Singapore dollar policy to control inflation pass-through. As I have stated earlier, inflation pass-through is of utmost importance.

Mr Speaker: Minister Tan See Leng.

The Minister for Manpower (Dr Tan See Leng): Speaker, given the brevity of time, I will dispense with the thanking. I will take the first question on energy and his point about the fact that we are price-takers and how we are thinking of the possibility of the risks of export restrictions by some of our partners.

Perhaps to curate the point more, I think you are referring specifically to natural gas, because that is how we are powering up our entire country and our economy.

As everyone knows, 95% of our electricity comes from natural gas. We import natural gas primarily through piped natural gas from our immediate neighbours like Malaysia, as well as LNG from around the world.

At this particular point in time, there is no upstream disruption from the piped natural gas supply. For LNG, we continue to source the whole world through GasCo, which, if Members recall, it was the previous Government, in this Chamber, that we pass an amendment to our Electricity Act, allowing us to form GasCo and then to centralise the procurement of gas. So, this has come in quite presciently, so that today, we are able to, through GasCo, source for supplies of LNG from all over the world.

We have now diversified our LNG supplies beyond the Middle East. We source them from Australia, from the US, from Mozambique and even as we speak, we continue to look for new markets.

For us, diversification has always been one of the key strategies. Of course, we also now look for alternative sources, renewable energy or otherwise, but that will take a bit more time.

Having said that, we have also ensured that our generation system, our generation companies (gencos) can run both on natural gas and on diesel. So, in the event that we do not have enough natural gas, the gencos will be required to switch to diesel to run and power up. We have conducted regular audits every quarter on these gencos to ensure that the advanced combined cycle gas turbine can switch to diesel. Thus far, our audit statistics have shown that we are 99.9% ready in switching. [Please refer to ​"Clarification by Minister for Manpower", Official Report, 7 April 2026, Vol 96, Issue 27, Correction By Written Statement section.]

We have also established stockpiles, but as I have also shared before, given the constraint of land that we have within our country, there is a fiscal limit as to how much stockpiling we can do. Of course, we have also explored whether we could put it on the waters, get these very large crude carriers or use the floating storage regasification units. But then again, space and the cost to maintain these very large crude carriers would not be, at this particular point in time, that economically feasible.

But I want to assure the Member and all Members of the House that we constantly establish close relationships, dialogues, conversations with like-minded partners.

The key in point, as the Deputy Prime Minister shared, our Prime Minister has also issued a joint statement with the Prime Minister of Australia, Prime Minister Albanese, to establish ties and to ensure that we can continue to get supply of LNG from Australia. I hope that reassures the Member.

Mr Speaker: On resilience, Senior Minister of State Zaqy.

The Senior Minister of State for Sustainability and the Environment (Mr Zaqy Mohamad): I thank the Member for his question. On seafood specifically, we do not see immediate risk. We have diversified our food imports. We have also got local production of seafood readily available.

At this point, as both the Deputy Prime Minister and Coordinating Minister have shared, our main risk for agriculture lies in fertiliser. And in the short term, no impact, but we think there could be secondary impact, as the Member has shared with diesel and other energy prices, just with other sectors. So, we are monitoring the situation and we will keep everyone posted as things happen.

Mr Speaker: Mr Supaat, your question on the support measures, I will defer it to the next bucket for Acting Minister Siow to respond. Mr Pritam Singh.

Mr Pritam Singh (Aljunied): Mr Speaker, for this first part of questions, I have two clarifications, which are directed at Ministers who are dealing with questions pertaining to energy security.

In a Facebook post about a week ago, the Minister-in-charge of Energy, Science and Technology warned about the possibility of fuel shortages that could not be ruled out in the medium to long term, and that Singaporeans and businesses should prepare for significant turbulence in the months to come; and the Minister also projected up to a five-year repair time for Qatar's LNG facilities.

My first clarification, notwithstanding the expiry of LNG contracts with Indonesia in 2028, is the Government in touch with both Indonesia and Malaysia, which supply close to half of our piped LNG, to potentially increase supplies, and have there been any deliberations in this regard?

The second question pertains to energy security more generally. Does the war in the Middle East present an opportunity to potentially bring forward Singapore's plans of acquiring more renewable energy sources, such as hydroelectricity from our neighbours and in larger quantities than had been previously planned?

Dr Tan See Leng: I mentioned the fuel shortages potentially ahead, because the threat of the escalation of the crisis in the Middle East is very real. If we follow the tweets, if we follow all of the news that is coming out, whether it is from the US or from Iran, from Israel, we can pretty much come to that same conclusion.

So, it is important for us as a country that while we can take some calm, but we should also be very pragmatic and very real about what the challenges are. And the fact is that because we do not produce any of these natural resources on our shores, we therefore have to be prepared for a possible worse-case scenario, not worst case, but a worse-case scenario compared to what it is today.

And to that end, we constantly reach out to our immediate neighbours to talk about piped natural gas (PNG), the continuous supply of PNG. Some of them are expiring in 2028. But at the same time we also establish a more diversified source country strategy so that it strengthens our position in terms of our resilience.

Some of the existing fields that we are drawing from, inherently, are also faced with dwindling reserves, within those reservoirs that we are tapping from. Of course, we are also discussing with our neighbours about the potential of exploring new areas for us to tap into.

Those conversations happen contemporaneously with our discussions on renewable energy imports. And to that end, if the Member recall, we have already awarded both conditional approval or conditional licensing of up to about 8.35 gigawatts of renewable energy. Our original target was six gigawatts – we have exceeded that.

Today, given this uncertainty, we are indeed ramping up the negotiations, the discussions with our counterparts to see how we can expedite both the completion of the feasibility studies as well as the commercial feasibility of laying of the subsea cables. Those are happening in progress.

So, I hope to give some positive news, but we are stepping up. Today, I am not at liberty to share that first.

Where we are, I cannot predict how long more this war will take. And what I think we should be sure about is that because we are open, we are connected. While this is an advantage for us, given the 150 oil majors that we have here, the third largest oil trading hub in the world, the sixth largest refinery complex in the world, but upstream, the crude still has to come from somewhere. [Please refer to ​"Clarification by Minister for Manpower", Official Report, 7 April 2026, Vol 96, Issue 27, Correction By Written Statement section.]

And if the Middle East as a source is choked, we will still not necessarily have that significant impact, but the impact downstream is that it will take a longer time for crude from other parts of the world to bypass the Middle East to come to us.

The quality of the crude, they are also different. And because of the differences in the quality of the crude, the run rates of our refinery complexes would also therefore have to be optimised. So, it is this whole cascade of the different refinery processes that we also have to take into account that is contributing, in some cases, amplifying this crisis.

But our modus operandi has always been, we do not impose export restrictions and we will still abide by the rules-based global trading framework.

Mr Speaker: Mr Edward Chia.

Mr Edward Chia Bing Hui (Holland-Bukit Timah): Thank you, Speaker. Given that the current energy crunch is disproportionately impacting Asia, does the Minister see this as opportunity to strengthen regional cooperation in energy resilience, including exploring ASEAN collaboration in nuclear energy, such as joint investments and joint operations in the nuclear power plant?

Dr Tan See Leng: We certainly see an opportunity in every crisis. It is precisely what all of us do. Our entire team, fellow political officeholders, Government Parliamentary Committee members, that we constantly outreach to our like-minded partners to work even more closely with them.

The most recent visit two weeks ago to Japan with the Prime Minister, last week's visit to Australia and there will be many more of such outreach to many of our like-minded partners.

On the nuclear energy collaboration, it is not for want of or lack of trying. I think the Member will appreciate the fact that because we are so small and as the Coordinating Minister for National Security alluded to just now, we have to ensure that these advanced nuclear energy technologies are safe. They indeed are today. The physics work, the engineering work. It is just that there has not been a single site of deployment yet. I mean, there are some that is in the process of being commissioned, for instance, in China, and there are some coming up in the US. But we have not seen a single modular reactor site being put up and operating commercially.

And the Member will appreciate the fact that regardless of how we collaborate with the rest of the ASEAN member states, we will never put our population at risk of adopting a first-of-a-kind technology. We can be a fast adopter, but we cannot be the first-of-a-kind mover. I hope that gives the Member the context of what we are doing.

Mr Speaker: Mr Liang Eng Hwa.

Mr Liang Eng Hwa (Bukit Panjang): Sir, my questions relate to the sharp spike in the diesel prices. Diesel prices are now north of $4 per litre, even more expensive than petrol, very unusual phenomenon, and it is severely impacting many of the transport, logistical business, construction business sectors as well. So, can I ask the Minister if he can share about why this phenomenon of diesel is being more expensive than petrol?

The Minister earlier shared that the Government's gencos can actually switch from gas to diesel. So, is that the reason why diesel has gone up because of the Government procurement of diesel?

More importantly, what can the Government do to help businesses that depend on diesel, which is a low cost fuel for the businesses to do their deliveries, including construction sectors. So, I am particularly happy that the Acting Minister Jeffrey Siow has just said about this construction sector, for the critical public sector projects, we will be co-sharing the cost increases for diesel. So, how can we enable or incentivise our other businesses to do that to help companies that are impacted by the cost increases of diesel?

Dr Tan See Leng: Our diesel prices have risen mainly due to global factors. I mean the ongoing tensions involving Iran, as I have said a few times already, significantly increase the uncertainty and, of course, the risk to oil supply. And it pushes up the crude oil all over the world.

If you compare diesel, diesel is a very versatile fuel mix, because the strong demand from transport, from the shipping industry, and there is also some limited refining capacity that is possible using diesel. And as I have shared with you, even our combined cycle gas turbines, which the gencos use, can use diesel as a back-up. So, it is a very versatile use.

You will appreciate the fact that it is also easier to store diesel compared to natural gas, because the boiling point of natural gas, I think it is probably about minus 150 over degrees Celsius. So, to keep natural gas, you need that energy to keep it at that level. And if you put it in a floating storage regasification unit, there is a lot of boil-off of that gas. So, you got to use it.

LNG is not an easy fuel for you to store unlike diesel. When you talk about stockpiling, of course, a significant proportion of that amount is in diesel. So, you can appreciate that because of the versatility and in farm tractors in many of the agrarian countries around, that emphasis has always been on diesel.

That is why it has risen faster compared to petrol.

As far as the roll-out of support measures, Acting Minister for Transport Jeffrey Siow has already shared what are the measures. MTI will continue to keep a close watch on this space and if need be, the Government will not hesitate to come in, to act, to help.

Mr Speaker: Mr Fadli Fawzi.

Mr Fadli Fawzi (Aljunied): I have several clarifications to make. Firstly, is the Government engaging the Iranian authorities to secure transit through the Strait of Hormuz for Singapore-flagged vessels similar to what other countries like Malaysia has done and will Singapore be open to paying a toll to pass through the Strait of Hormuz?

Secondly, is the Government considering further regulating petrol station operators to ensure that changes in petrol prices, especially increases, are linked to actual market conditions, and if not, why not?

And thirdly, what is the status of Singapore's helium supplies following the closure of the Strait of Hormuz, and whether the Government has contingency plans to help the semiconductor industry access sufficient helium supplies for production and also, does the Government foresee any delays in MRI procedures or increases in the price of MRIs for the rest of the year as a result of shortages in helium?

Mr Speaker: Minister Ong.

The Minister for Health (Mr Ong Ye Kung): Let me address the issue on helium on MRI machines. Helium is used in small quantities as a cooling agent in MRI machines. They do not get topped up very frequently. So, our consumption of helium is actually small, and our supply of helium is largely not from the Middle East. So, MRI operations will not be affected for now.

Mr Speaker: Minister of State Gan Siow Huang.

The Minister of State for Trade and Industry (Ms Gan Siow Huang): I will take the question on helium for semiconductor. For the semiconductor sector, helium is used mainly in wafer fabrication for heat management, cooling and process stability. By and large, the wafer fabs here have a multi-source strategy for helium supplies. And wafer fabs in Singapore, in particular, they have, so far, not expressed immediate operational impact, but have started to activate more alternative supplies. We will continue to work closely with the industry to monitor their needs.

Mr Speaker: The question on security, the part about Strait of Hormuz and Iranian authorities, Minister Vivian Balakrishnan, do you want to answer now or do you want to do it at the last part? I suggest we do at the last part.

Mr Fadli Fawzi, I will direct the question to Minister Vivian Balakrishnan later. Mr Foo Cexiang.

Mr Foo Cexiang (Tanjong Pagar): I declare that I work in the logistics arm of the port. I have two clarifications.

First, will the measures to support the domestic transport and critical sector extend to the logistics and supply chain sector, such as the hauliers, as well as the port, because this is certainly a critical sector during this period?

Second supplementary question: the war accelerates a fundamental global supply chain shift that has been happening for several years, away from cheapest, fastest and the leanest to safest, most resilient, as well as the most trusted. So, the Economic Strategy Review recommendations are timely and should be implemented swiftly. But my question is, are they bold enough and do they go far enough in view of what has just happened in the Middle East? Will Singapore be able to not just survive disruption, but thrive because of it as a reliability hub for our region?

Ms Gan Siow Huang: Speaker, I would like to respond to Mr Fadli Fawzi's earlier question on petrol prices at the petrol stations. Singapore has a competitive and open economy, and prices naturally would fluctuate in response to various factors, including changes in global supply and global demand. The Government does not dictate the prices or price changes of businesses, so long as the prices are set independently. Instead, the Government's approach is to ensure that the market remains competitive.

For the petrol stations, we also know that there are several players in the market. At present, there is no evidence to suggest that the market structure is not competitive. The entry of Cnergy operated by Union Gas is also an encouraging sign, as it provides more choices to consumers. The Competition and Consumer Commission of Singapore will continue to watch closely the pump prices to make sure there is no anti-competitive behaviour by the businesses.

Mr Jeffrey Siow: Mr Speaker, let me respond to Mr Foo Cexiang's two questions. The first is on the port and port services, and whether they can be considered as critical services. As I mentioned in my speech, what the Government agencies will do is to assess whether or not such services are critical parts of what we have to do and whether the direct impact of these services is due to the rise in prices. So, in this case, the Maritime Port Authority of Singapore (MPA) will assess that and make a case to the Ministry of Finance (MOF) for support.

On the Economic Strategy Review, indeed, I agree with the Member that there are opportunities for us to look at. The Economic Strategy Review is a plan for us to remake our economy for the next five to 10 years. It is a long-term strategy. One of the key things that we are looking at through the Economic Strategy Review is how to strengthen Singapore as a hub of flows. I think the energy crisis reiterates for us how important that strategy is. It is precisely because that Singapore is in the middle of energy flows that we are able to have energy security and to be able to be in the position that we are in.

Mr Speaker: Assoc Prof Kenneth Goh.

Assoc Prof Kenneth Goh (Nominated Member): I thank the Ministers for their responses. I just wanted to clarify, in modelling some of these scenarios regarding our fuel sufficiency, I was wondering if these assessments include more materially longer or more severe kinds of scenarios than we typically model. And whether or not, the price reflects supply and demand, whether there is a price threshold and the duration for which the price of the commodities are sustained for that we are monitoring, before we implement more rationing measures.

Dr Tan See Leng: We simulate models across chronological parameters as well as geographical parameters. So, our simulations run, particularly for power generation, our scenarios run on if one region is completely choked versus two regions versus multiple regions. And we build that simulation accordingly. I am not at liberty to share because it is a function of our own national security.

For the other simulation, we have simulated based on a three-month, five-month, one-year window. The parameters go into a lot of details, in terms of which are the sectors that are most exposed and then which are the sectors that get indirectly influenced by the cascading effect, and then to the more domestic sectors getting influenced.

So, there are multiple simulation scenarios. One of the key things is that our civil servants are very, very well adapt in managing all of these different scenarios. Like I said, I cannot go into the details because it is a matter of our own security.

Mr Speaker: Ms Poh Li San.

Ms Poh Li San (Sembawang West): Speaker, I have three supplementary questions.

Supplementary question one: what is the Government's assessment of the overall food supply situation and how the does Government stabilise the prices of essential food items and curb profiteering, so that seniors and also low-income families can still afford their meals and food expenses?

Supplementary question two: the local bus transport companies are badly affected by the surge in diesel prices, and they are running diesel cost increases of more than $1 million per month for some of them. However, they are also bound by the prices locked in their contracts and are not able to increase their prices. These local transport companies are essential to ensure our workers can get to work on time. Other than transportation for school children and people with disabilities, how would the measures help such local transport companies tide through this crisis, especially if the war prolongs?

Supplementary question three: jet fuel supply has been severely affected and fuel prices have surged dramatically. The sustainable aviation fuel levy has been postponed to apply for flights from first January 2027 onwards. How will the impact on fuel supply and fuel prices impact Singapore as an air hub, especially if the war prolongs?

Ms Gan Siow Huang: Speaker, I would like to respond to Assoc Prof Kenneth Goh's question regarding price threshold.

First, in the context of a petrol, which I mentioned earlier on, regulating or capping petrol or diesel pump prices will distort the market and actually will serve to benefit vehicle users and owners that consume more, and possibly people who are more well-to-do. This may not be a fair way of distributing our limited resources. It will also reduce the incentive for Singaporeans, as well as businesses to switch to more energy efficient modes of transport.

Instead, the Government's approach is to ensure that our fuel market remains well-functioning and competitive, so that fuel companies are incentivised to compete, innovate and become more efficient.

On electricity prices, on whether it is a price threshold, the electricity prices is something that the Government will continue to watch closely because it affects households and businesses directly. Again, our priority is to make sure that there are enough support measures, such as U-Save, CDC vouchers and targeted support measures for businesses that are more affected by the electricity price increase.

Mr Speaker: Senior Minister of State Murali Pillai.

The Senior Minister of State for Transport (Mr Murali Pillai): Mr Speaker, Sir, I would like to respond to the hon Member Ms Poh's third question on jet fuel. We are working with the aviation stakeholders to monitor the fuel supply for aviation hubs carefully to ensure that it remains stable.

There are no significant supply shortages for now as we have adequate fuel supply from the diversified sources. But if higher fuel prices persist, this will lead to increased cost pressures, which may filter to passengers and consumers in various sectors. We note that some airlines have made commercial decisions to raise ticket prices in response to the soaring cost of fuel. These remain commercial decisions which we do not intervene in. However, we will continue to work closely with the industry to monitor the situation and assess whether there is a need for the Government to take further measures.

Mr Zaqy Mohamad: Speaker, our Singapore Food Story 2 mitigates the impact of food supply disruptions on Singapore through its four pillars working together, which is diversification, global partnerships, stockpiling and local production.

Due to our efforts in partnership with other governments, for example, Thailand and Vietnam for rice cooperation, New Zealand and Australia for other food areas, as well as working with the industry to diversify our food sources over the years, importers can now pivot more readily to alternative sources, if needed.

If the situation worsens and food imports are severely disrupted, the stockpile of essential food items, as shared by the Coordinating Minister, that we have been maintaining and expanding will provide us time to restore food flows and sustain our population.

Finally, local farms can increase their production and provide us with a regenerative source of fresh food that is maintained during prolonged disruption.

This multi-pillar approach ensures that Singapore is able to meet our food needs and Singaporeans can continue to experience reasonable normalcy during disruptions. However, we also have to recognise that in a crisis, we will have to prioritise our efforts. It will not always be possible to have everyone's favourite food or favourite brand in every disruption, but what we can do is to provide the assurance of food supply where it matters most.

The Government is monitoring the developments in the Middle East and its impact on Singapore's food supply closely. Singapore imports most of our food and from many different sources – we have 180 countries and regions that we import from. The Middle East accounts for less than 1% of our total food imports. And food coming from major ports, such as the Strait of Hormuz, accounts for even less, at less than 0.5%.

In the near term, there is no imminent risk of food supply disruption to Singapore. However, as global food supply chains are interconnected, we cannot rule out eventual disruptions to our food supply if the conflict persists.

In his Ministerial Statement, the Deputy Prime Minister mentioned that the closure of the Strait of Hormuz would have an impact on other key products, including fertilisers. This, in turn, could translate to lower agricultural yield down the line and potential supply disruptions.

So, we are monitoring this and the food supply situation very closely. We will keep up our diversification, global partnerships, local production and stockpiling efforts as required. Since the start of the Middle East conflict, the Singapore Food Agency has also stepped up our engagements with importers and retailers to share information on possible risks to food supply, so that they may activate alternative sources early and when needed.

We stand ready to activate our existing arrangements with partner countries to ensure that food continues to flow as needed too.

We want to support our local farmers, especially now, to weather this crisis, and we will help them to increase their market share for certain food types, which will strengthen Singapore's food resilience in the long term. And as they say, never waste a good crisis.

Mr Speaker: Senior Minister of State Zaqy, have you finished?

Mr Zaqy Mohamad: Mr Speaker, allow me to speak in Malay.

(In Malay): With regards to food, we do not expect a risk of food supply disruptions in the near term for Singapore. However, there is an impact today on fertilisers because fertiliser is a by-product of oil and supply has been affected due to the closure of the Strait of Hormuz. Therefore, fertiliser costs have increased, and this will impact food prices.

For now, the Government will help citizens through support measures, such as CDC vouchers and also the Cost-of-Living Special Payment. However, we need to be prepared for what happens next. It may begin as an energy crisis, but it could develop into larger supply disruptions across many sectors, including the food sector.

Our cooperation with other governments as well as industries has given us the opportunity to further diversify our food sources, and this means that food importers can pivot to other sources easily. If the situation worsens, we have food supplies – our stockpile – to sustain our population. Local farms can also increase their production further and provide fresh food supply to us. So, we still have food supply to meet our needs.

As the Government increases our diversification efforts, global partnerships, local production and stockpiling efforts as needed, we will get ready to try to diversify our sources and make adjustments to our habits and lifestyle.

Mr Jeffrey Siow: Mr Speaker, I would like to just quickly respond to Ms Poh Li San's question on local bus services. We have received feedback from transport associations on the impact on local bus services and we are working very closely with them to smoothen out the impact on these bus services.

As I mentioned, where the bus services are critical, we will co-share the cost of these services, but for others that are more general, we will work with them to smoothen out the impact. We will expect some pass-through of the cost to the consumers, just like my colleague Senior Minister of State Murali mentioned, through airfares. And broadly, we will support the bus companies through the business measures, for instance, like the Corporate Income Tax rebates that I had talked about in my speech.

And on the consumer side, we are also supporting through the payments like the Cost-of-Living Special Payment, which can be used to defray some of these costs.

Mr Speaker: There are still many Members who have raised their hands. Can I again request Members for this first bucket, keep it to the energy, trade and industry matters? We will move on to support measures after this. Mr Gerald Giam.

Mr Gerald Giam Yean Song (Aljunied): Sir, the International Energy Agency (IEA) requires its members to ensure oil stock levels equivalent to no less than 90 days of net imports. While we are not an IEA member state, this is a widely recognised global benchmark for an emergency on energy resilience. Could the Minister confirm if Singapore's oil stock levels meet this international standard to provide greater assurance for Singaporeans and businesses? And I will note that I am not asking for us to reveal all our cards, but just our adherence to this international standard.

Dr Tan See Leng: I am very glad that the Member recognises an issue of our national security. I think suffice to say, I have put it on record that we have supplies to last for months. And we will keep it as that.

Mr Speaker, Sir, if I may, in Mandarin: "能源取之不易, 我们一定要好好珍惜". (In English): "Energy is not easy to obtain. We must treasure it."

Mr Speaker: Mr Yip Hon Weng.

Mr Yip Hon Weng (Yio Chu Kang): Thank you, Mr Speaker. Given the war in the Middle East, there is also the possibility of simultaneous disruptions both at the Strait of Hormuz and the Bab-el-Mandeb Strait of the Red Sea. Could the Government elaborate whether such a double chokehold situation is explicitly considered and what are the consequences? How do these scenarios translate into pre-emptive measures that safeguard both supply continuity and household affordability?

Dr Tan See Leng: On the Strait of Hormuz, it impacts about 9% to 10% of our LNG supplies from Qatar. We think that a simultaneous choke or blockade of the Red Sea near the Gulf of Aden, where the Houthis from South Yemen – which is also something that I did highlight in my Facebook posts about a week ago – would not have a significant impact, because it primarily impacts supplies coming from Europe through the Suez Canal. Many of them are pharmaceuticals. They actually come in through air.

Mr Speaker: Mr Vikram Nair.

Mr Vikram Nair (Sembawang): Thank you, Mr Speaker. I note that amongst the different sources of energy, diesel prices have risen much higher than electricity prices. And diesel fuels many commercial operators, including buses and lorries, which feeds into many other sectors. So, does the Minister think that this is a good time for operators of commercial businesses to switch from diesel trucks and lorries to friendlier, electric vehicle (EV) versions? And if so, would any incentives be given for such switches to make it easier to change capital, which is, of course, a long-term investment?

Dr Tan See Leng: A function of why the electricity tariffs seem to have risen slower compared to diesel is, as I have shared, in fact, Deputy Prime Minister shared early on, how the regulated tariff is calculated – based on last quarter's prices of natural gas, which is benchmark to the Brent crude benchmark index.

From January to February, the war broke out on 28 February, so we have only factored in, at most, about half a month of that price increase. That is why that has not actually come into impact for the regulated tariff for electricity.

I have also given everyone a warning that the next quarter's tariff will see significantly sharper increases.

While I thank the Member for that supplementary question, because I am going to leverage on this supplementary question to let everyone know, and I have put up a harbinger – it is not insider trading, because I think it is an open secret that the prices have gone up significantly – for household consumers, for domestic consumers, if they want to hedge, they may want to switch to a fixed price contract moving forward. I think, suffice for me to say.

For businesses, how they are going to convert the diesel trucks, the diesel vehicles to EVs, I think for them to perhaps move out of their trucks today to convert it physically, I think it would take a lot of time. I am not an engineer, so I would not know what is involved in that. Of course, if they want to trade it off and buy an EV instead, I think that is an option that is available.

As far as any subsidies and so on are concerned, I think this is not something that I can comment on. Suffice to say that for some of the businesses, if they want to convert to more energy efficient measures and so on, there is the Energy Efficiency Grant. For the larger ones, there is also the Resource Efficiency Grant for Emissions as well. I would think that these businesses can find out more about which are the ones that they are eligible for and make the applications accordingly.

Mr Speaker: Mr Alex Yam. Mr Yam, hang on. I think Acting Minister Siow would like to respond as well.

Mr Jeffrey Siow: Thank you, Mr Speaker. I just want to take the opportunity to do a plug for the Singapore's EV scheme for heavy vehicles. We have a grant of $40,000, which we announced, I think in March last year. There are companies that have already made use of the grant. The scheme also covers the provision of funding for chargers, which actually is the chief constraint behind why the adoption of electric heavy vehicles is not as prevalent as say, passenger vehicles. But we have this grant and we will encourage companies to make use of it, to switch to more energy efficient vehicles.

Mr Speaker: Mr Yam.

Mr Alex Yam (Marsiling-Yew Tee): Thank you, Speaker. Building on the point that the Minister-in-charge of energy had raised earlier about fixed rates. There is concern amongst consumers that the gencos and the electricity suppliers may, at some point, invoke a force majeure, and that would affect the supply contracts that are signed with consumers.

Therefore, I seek clarification, what safeguards there are in place to protect consumers and businesses from disruptions and the dramatic price spikes, and how will the Government ensure continuity of supply and fair contractual outcomes for consumers as well as the gencos?

Dr Tan See Leng: Indeed, I think that is a valid concern. EMA has been constantly engaging all the gencos.

Today, supply at this point in time, is not an issue because we have got GasCo, which has sourced for supplies and diversified the various sources of supplies quite broadly.

If anything at all, I think the force majeure portion comes because the pricing of these LNG cargoes coming in, has gone up significantly, compared to pre-crisis times. So, many of the contracts that they were locked in, they can no longer supply, because obviously, the feedstock has gone up significantly. And this is where EMA has stepped in to form the bridge between these large consumers, together with the gencos.

Our sense today is that the domestic consumers, because they form not a very big part of the gencos' exposure, if I am not mistaken, I have to check this, but I think they use less than four megawatts for the entire year. So, I do not think they will be affected that much. [Please refer to ​"Clarification by Minister for Manpower", Official Report, 7 April 2026, Vol 96, Issue 27, Correction By Written Statement section.]

Nevertheless, my exhortation still stays. That is, the next few quarters will see significant increase in the tariffs. It is something that all of us collectively will have to take note of. We should not expect that for the 2.1% increase in tariffs for this quarter, I am able to hold it. This is something that is food for thought for everyone.

Mr Speaker: Assoc Prof Jamus Lim.

Assoc Prof Jamus Jerome Lim (Sengkang): Sir, my clarification actually segues very nicely from the prior one by Mr Alex Yam. Not long after the electricity market liberalisation in the early 2000s, the Government actually favoured vesting contracts as a regulatory safeguard for price spikes over price caps or a capacity market. I believe such contracts were eventually expected to be phased out, once sufficient competition was assured. And I understand that this tool is meant to regulate competitive marketing and not crisis-related shocks.

Nevertheless, given the current development, I wonder if the Minister would be willing to share: if the mechanism is still in play today; whether it covers a full extent of electricity demand in Singapore; if this mechanism is indeed active for the current Strait of Hormuz crisis, and if so, what the current gap between the vesting and wholesale market prices is; and finally, how much he believes the safeguard has passed through to the open retail market, given that price increases observed in February were about 10%?

Dr Tan See Leng: As I have shared earlier on, for those gencos which have entered into very long vesting contracts, I think some of their clients and customers would already find it hard to keep and maintain those kind of pricings. Hence, these are the ones that we are currently managing to try and understand the impact. I do not have the full details. It is actually this group, potentially, that may invoke the force majeure clause.

Having said that, today, a lot of the cargoes that we are buying in are on spot price. That accounts for that huge spike. Because of the Strait of Hormuz, Qatar has invoked force majeure. I think on one or two of the cargoes, Shell has also invoked force majeure. So, for us, for the GasCo, we have to make sure that we can get the replacement cargo. And we have succeeded. We have been successful in getting the replacement cargo. It is just that we are not able to get it at the earlier pricing.

To your question as to how this would impact, we do not have all the necessary details at this point in time. Perhaps, at the next Parliamentary Sitting, I would invite you to file a Parliamentary Question. We can get into a more robust presentation at that point in time.

Mr Speaker: Mr Shawn Loh.

Mr Shawn Loh (Jalan Besar): Thank you, Mr Speaker. My question pertains to early signals.

One, does the Government detect any early signals of job losses arising from the new disruption? Two, does the Government detect any early signals in terms of wealth inflows into Singapore, given our status as a wealth hub? And three, does the Government detect any early signals with regard to Singapore's status as an aviation hub? If the answer is yes, what is the Government's position and what is the Government's response?

Dr Tan See Leng: Mr Speaker, Sir, I can just talk about jobs. In case you are wondering, I am still the Minister for Manpower, notwithstanding, the entire discussion was just on energy.

What we have done is to work very closely with MTI and the Economic Development Board for the affected power generation refinery and the energy-intensive emission sector to ensure that there is no permanent scarring. We will continue to help workers in those particular sectors.

We have not completely ironed out the plans. Again, if the Member is interested, he can file a Parliamentary Question and we can elaborate on that more.

For the rest of the signals, perhaps I can invite my other colleagues to take on the questions.

Mr Murali Pillai: Sir, I would like to answer the hon Member Shawn Loh's question on the status of the aviation hub.

There have been some flight disruptions. Apart from the disruptions, most of Changi Airport's flights have been operating normally. The disruptions have been limited to some Singapore-Middle East passenger and cargo services. Airlines have also added flights between Singapore and other regions, such as Europe, to cater to demand in the wake of the reduction in flights to the Middle East.

The situation now still remains fluid and uncertain. It is too early to determine if longer-term network reconfigurations will take place. We will continue to work closely with the industry to monitor the situation.

Mr Gan Kim Yong: Sir, let me just give a quick answer on the wealth hub.

Singapore has been a financial centre and we have been a centre to receive capital and wealth investment from all over the world. There has been increased interest and enquiries with regard to wealth coming into Singapore. We are happy to see that trend and we are also happy that we are able to provide services to these investors and this capital, that we can allow them to have an alternative location to be able to continue to safekeep their wealth and also, use Singapore as a gateway to invest in this region.

I think we will continue to monitor the situation, and we will continue to ensure that we operate efficiently and reliably as a financial centre.

Mr Speaker: We are still on the first bucket. Quite a lot of the questions that are being asked are rather similar and I can see the answers are also getting rather similar. Can I request that unless you have something really specific which have not been addressed before, please raise your hand? Otherwise, please do not raise your hand.

Mr Christopher de Souza.

Mr Christopher de Souza (Holland-Bukit Timah): Much obliged, Sir. My supplementary questions draw from the fact that the situation displays: one, how Singapore has agency; and two, how Singapore can use the situation as a catalyst.

On agency, how can Singapore use its sterling status as an oil trading hub and a critical oil refinery centre to create agency, to trade with Australia, for example, for enhanced LNG, or New Zealand for food supplies?

Here, I declare that I am a lawyer in private practice who represents oil companies and oil refineries in Singapore.

On the second point, as for us being able to use the situation as a catalyst, how can the crisis offer itself as a catalyst for Singapore to seriously explore nuclear civil energy, provided it is safe?

Dr Tan See Leng: I have answered in quite different parts, but perhaps to just curate it for the Member's utility. First, indeed, this crisis is also an opportunity for us to build even closer ties, with our reputation, our credibility, our consistency, our predictability and our transparency. Our relationship with Australia will hopefully be up a few notches when we reassure them that we will abide by a rules-based multilateral trading system, we will not impose export restrictions, and depending on the upstream feedstock that we are able to get and our refineries continue to refine, notwithstanding the fact that there are different types of crude nowadays, but we still try to optimise the refineries' complex operational capabilities to make sure that the downstream supply of essential fuel products – the diesel, the motor gas, together with the naphtha – they continue to get the supply.

Likewise, they are a major supplier, they are the third largest supplier of LNG, that they would also not in any way curtail their exports to us. I think that is a start.

At the same time, we will expand that to food resilience and food supply. Our Prime Minister has raised the ambition. We have substantively concluded the negotiations on the Agreement on Trade in Essential Supplies. I think Minister Vivian may know that better. At the same time, we are trying to see how we can accelerate the same discussions with Australia and other countries.

On nuclear, I have also shared that it is not a question of us not wanting to do it, we want to make sure that it is safe. The small modular reactors for advanced nuclear energies have proven to be very safe. We just want to ensure that there is a site that has been planted, is operational and that we can use that as a reference site or model.

Mr Speaker: Ms Nadia Ahmad Samdin.

Ms Nadia Ahmad Samdin (Ang Mo Kio): Thank you, Speaker. On food price monitoring, given that we import more than 90% of our food supply, could the Government share more – whether there are ways for data on the monitoring dashboard that is used by the Ministry of Sustainability and the Environment to be shared more proactively so that households and businesses have more timely visibility of emerging price trends for scenario planning and whether more forward-looking indicators can be included to help Singaporeans better cope with potential price fluctuations.

As a second point, I thank Minister Tan for some of his sharing in response to questions earlier on contingency scenario planning as well as the stockpile for LNG and diesel. I understand the need to not disclose sensitive details around our national food stockpile. However, could the Government consider whether there is merit to provide some general indicators of adequacy for certain food items and essentials, such as broad coverage, ranges or scenario readiness, so as to give Singaporeans greater assurance in light of the current uncertainties, similar to the two to three months' data which was shared during COVID-19.

Where I am coming from is while many appreciate these broader updates, there is room to build understanding and make the impact clearer at an individual and household level so that our people have a better understanding how prepared we are but not immune and also a sense of agency that they can still do something amidst this uncertainty.

Ms Gan Siow Huang: Mr Speaker, I will answer the part about monitoring food prices.

The Department of Statistics publishes monthly indices on the import prices of food products. This allows us to assess imported food cost pressures that may in turn feed through some of our domestic food inflation and food and beverage services inflation. The indices cover the non-cooked food price index as well as the food and beverage services price index.

On whether we can have forward-looking indices, I think we will have to continue to monitor the situation and as best as we can, provide timely information to businesses as well as to local households.

Mr Speaker: Minister of State Zaqy, do you want to respond?

Mr Zaqy Mohamad: Mr Speaker, I think Minister of State Gan has covered food prices.

Mr Speaker: Mr Lee Hong Chuang.

Mr Lee Hong Chuang (Jurong East-Bukit Batok): Mr Speaker, I would like to pose my supplementary question in Mandarin.

(In Mandarin): Singapore is highly dependent on energy import. Can Minister tell us whether we will set up and expand our strategic fuel stockpile, and whether our current fuel stockpile is adequate if supply disruption is prolonged?

Dr Tan See Leng: Let me just summarise and translate in a broad gist. The Member is asking whether we can increase our stockpile, whether we have plans to increase the reserves.

As Coordinating Minister for National Security stated, the HCMC together with the HCEG are currently not resting on our laurels. We are studying how to increase the current stockpile provisions.

I want to reassure everyone that if I had the benefit of space, I would stockpile significantly higher amounts. Our very real constraint is the space we have here. If we stockpile in a foreign country, then I do not think that that is really stockpiling for our own needs if the situation gets very, very severe.

I hope that we can understand that these are real constraints that we have here in our country, and hence, my original exhortation is energy is existential for us; energy is precious; let us try to conserve it.

For the scenario planning, as I have shared with Prof Koh earlier on, we have different contingency, different scenario planning, for single-country chokepoints to multi-country chokepoints. I am not at liberty to share that because this is our national security, and I beg for your understanding and your indulgence.

Mr Speaker: Mr Dennis Tan.

Mr Dennis Tan Lip Fong (Hougang): Thank you, Speaker. I would like to ask a Ministry of Transport (MOT) officeholder to answer my Question No 60. Essentially, my question relates to what is the impact of the Middle East conflict on Singapore's air and sea freight, and our transport hubs; we being key maritime and air hubs. I am grateful that Minister of State Murali has given some answers on the air hub.

I wish to declare my interest as a consultant in a shipping law firm. I have one supplementary question relating to the air hub and this refers to the deferral of the sustainable aviation fuel levy. While the pragmatic pause responds to current geopolitical volatility, how is the Ministry working with our SAFCo to secure a long-term fixed-price sustainable aviation fuel supply contracts that might insulate our aviation hub's decarbonisation timeline from fossil fuel price spikes and regional instabilities?

Mr Murali Pillai: Mr Speaker, Sir, in response to the hon Member Dennis Tan's question on maritime hub, I just want to say that for the now, for the current, port operations have been stable. There are no significant fuel supply shortages, and we have adequate fuel and bunker supply.

We expect, however, tanker arrivals may decline the coming months, given the disruption to global energy flows.

In relation to sustainable aviation fuel, at this point in time, it is a bit too early to disclose what our strategies would be. We have made the announcement that the sustainable aviation fuel levy would kick in come 1 January 2027 for contracts entered from October 2026 onwards at this point in time. And as soon as we are able to make further announcements, we will do so.

Mr Speaker: Mr Sharael Taha.

Mr Sharael Taha (Pasir Ris-Changi): Thank you, Mr Speaker. I would like to thank Minister Tan for sharing the dual fuel nature of our power plants. My supplementary question is how quick is this switching? Can it manage the volatility, especially this unprecedented volatility? And do we need to re-optimise our power plants to manage our energy generation resilience?

My second supplementary question is on our refining capability and the feedstock flexibility. How adaptable are our refineries to alternative crude grades? In a prolonged disruption scenario, do we foresee any erosion of Singapore's competitiveness relative to other refining hubs? And similar to what Member Christopher de Souza mentioned, is this an opportunity to strengthen our refining competitiveness beyond the relationships with other countries, but also in our capability to take other feedstock to diversify the source?

Dr Tan See Leng: Our gencos comprise a combination of different combined cycle gas turbines. Some are existing combined cycle gas turbines that would require time for that conversion. Others, for instance, are using the new J-class and H-class type of combined cycle gas turbines, which can also be at least 30% hydrogen ready.

So, because of that spectrum of the number of gencos and the combined cycle gas turbines that we have here, it is not a one size fits all.

If you recall, the Member was part of the same group of Parliamentarians who passed the Bill. What we have done is to effectively strengthen our entire framework since five years ago, where EMA would require the different gencos to show and to indicate to us ahead of time their gas, their supplies, their access to gas supplies, their vesting contracts, and so on. We, holding the stockpile, would then work with them to work out the time that would be required for that switch from gas to diesel, so as to ensure that there is no outage or unnecessary downtime when they switch over. So, that part of it is something that we work very closely with them on.

On your second point, what was the second point? On the refineries? Yes. This is something that I have also learnt over the last fortnight. I think those of you who are in the oil and gas industry may know it better than I do. But we now primarily have access to two types of crude: the sweet crude and the sour crude. Sour crude means that there is a lot more sulphur and it comes mainly from the Middle East. It is more favoured because the downstream products you get, whether it is diesel, naphtha to bitumen, seems to be more versatile compared to the other types of crude.

So, what we have done is that there will be some compromise in the refinery capabilities. There is some percentage loss when you have one predominant fuel, to now, at least two different fuel types, because you then need the space, the caverns, for you to rebalance between sour and sweet crude. So, there is some compromise, but not to the extent that it would impact our competitiveness as a refinery complex and as a refinery hub, at least within the region.

And your third point, which is on?

Mr Sharael Taha: Is this an opportunity to strengthen our refining competitiveness beyond the relationships with other countries?

Dr Tan See Leng: Yes, with our team and myself, we have been working to see how we can strengthen this. I think it also calls for a fundamental pivot in terms of the thinking because we do also at the same time want to decarbonise and work towards a zero-emission target by 2050. So long as you have the energy-intensive sector, we need to think about how, while we build up, at the same time, we need to have a clear pathway towards decarbonisation.

Having said that, actually our refineries are probably one of the most efficient in terms of carbon emissions. But as you step up the refinery, you have to keep up with that level of carbon emissions. It is a balance and a trade-off that we will have to consider over the medium to longer term.

Mr Speaker: I am going to move on to the next group of clarifications. This should cover the impact on local businesses and households, and also the support measures for them. Mr Ng Chee Meng.

Mr Ng Chee Meng (Jalan Kayu): Mr Speaker, I thank the Government for responding to NTUC's and our Platform Work Association's calls to support sectors most affected by the recent fuel price increases. The measures announced for platform drivers and riders will go some way in easing the pressures on their livelihoods. I have two clarifications.

May I clarify if similar support is being considered for other self-employed groups who are significantly impacted likewise, such as Combi bus drivers and limousine drivers? I believe they are currently not covered in the announcement. NTUC will stand ready to partner the Government as a stakeholder to ensure that these workers are not left behind.

Second, may I ask if the Government will encourage service buyers to take a fair and practical approach in reviewing existing contracts where sustained fuel cost increases materially affects the viability of our workers' livelihoods.

Mr Jeffrey Siow: Thank you, Mr Speaker. On self-employed groups, specifically the Combi bus and limousine drivers, in 2002, the Government worked very closely with the NTUC to work out the support measures for this particular group. I think we will be happy to work with NTUC again to see how that can be done. [Please refer to ​"Clarification by Acting Minister for Transport and Senior Minister of State for Finance", Official Report, 7 April 2026, Vol 96, Issue 27, Correction By Written Statement section.]

As for service buyers, and whether or not we can help them with the contracts, the Government has already stated its position as a responsible buyer for its own contracts. We hope that we can also encourage private sector service buyers, as well as service providers, to also come to reasonable accommodations for these purposes.

Mr Speaker: Mr Ng Shi Xuan.

Mr Ng Shi Xuan (Sembawang): Thank you, Speaker. I thank Acting Minister Jeffrey Siow on sharing the support given to local businesses, especially on the extension of the Energy Efficiency Grant, which I have been asking for in my Parliamentary Question. I have two more clarifications on this point as to who may be excluded, and what may be excluded.

On my first point, for SMEs, some of these energy efficiency machines or equipment may be considered large-ticket items for them. So, has the Government considered schemes that can help to co-pay upon purchase orders, or even to pay direct to vendors upon installation of such equipment?

My second point is, as Acting Minister Jeffrey Siow mentioned, it is for base-tier equipment. These are largely pre-approved equipment and machines. My point is, for some SMEs buying, they may have different sources from the pre-approved vendors and equipment. Can the submissions of new models or new equipment be concurrently considered with the application of the Energy Efficiency Grant, especially in this time when we want to scale up adoption of energy efficiency equipment?

Mr Jeffrey Siow: Mr Speaker, I thank the Member for his question. In terms of large ticket items, and whether the Government can co-pay through better financing, that is something we can consider. But I think overall the approach we have for the Energy Efficiency Grant is that we want to first extend the coverage. Second, we want to get the support out there as soon as possible. So, without having to change the scheme parameters significantly, I think what we want to do is just extend the current parameters. But we will certainly consider at a later stage whether there are other things that we can do to enhance this in terms of financing.

Similarly, for pre-approved, the reason why it is pre-approved is because we want to make sure that we get the support to the companies as soon as possible, which is why we have worked very closely with trade associations and business associations to understand which are the types of equipment that businesses use most frequently and are most energy saving. And we are happy to take in inputs together with the applications. I think today's application process is fairly automatic, but I will check with the economic agency to see whether there is room for us to give room for people to give suggestions on what type of equipment.

Mr Speaker: Ms Hazlina Abdul Halim.

Ms Hazlina Abdul Halim (East Coast): Thank you, Speaker, I have two clarifications in English and one in Malay.

In light of wanting more Singaporeans to also be a part of the movement to manage energy consumption and usage, what are some national initiatives that can be brought back, for example, guidelines on lighting usage in public places or even in commercial buildings in terms of managing energy uses?

Second is, what is some of the Government's plan to partner with community organisations to help some residents or Singaporeans who fall through the crack and need a little bit more assistance due to the impact of the crisis in the Middle East? Mr Speaker, in Malay.

(In Malay): Earlier, I asked about the support that can specifically be given to communities that are more affected by the outcomes or impact of the Middle East conflict, and we have already heard details about emotional, spiritual and mental support.

Now, what about the economic perspective? Are there specific platforms or additional support that can be expected, perhaps from self-help bodies as well as MUIS or mosques?

The Acting Minister-in-charge of Muslim Affairs and Senior Minister of State for Home Affairs (Assoc Prof Dr Muhammad Faishal Ibrahim): Sir, I thank the Member for the clarification. I will reply in Malay.

(In Malay): Mr Speaker, as shared earlier, the Government is dealing with this Middle East conflict through a whole-of-Government effort. We realise that this conflict has raised deep concerns among our community. Many may feel alarmed, not just at the human suffering but also about the impact on their families and daily lives, including rising costs.

As a small and open economy, Singapore cannot escape the impact of this crisis. The Straits of Hormuz blockade has resulted in global energy supply shortages, including crude oil and gas, and will impact other essential products, such as raw materials.

In response, Singapore is taking steps to strengthen our resilience. We have diversified our energy sources beyond the Middle East region and maintained strategic food reserves to reduce supply disruptions.

The effects of these increases are already being felt in daily life. This conflict will also be felt by Singaporeans, with higher energy and food prices, leading to increased cost of living. We must be prepared for the possibility that these pressures will continue in the months ahead.

We will closely monitor the prices of food and goods as well as other essential services. Acting Minister Jeffrey Siow has provided details on the support that will be given. We will launch immediate assistance to businesses through enhanced corporate income tax rebates and expand the Energy Efficiency Grant to all sectors.

For individuals, we will issue CDC vouchers earlier and provide an additional $200 via the Cost-of-Living Special Payment from Budget 2026 for eligible Singaporeans to ease daily expenses. The Government is prepared to provide further support if necessary.

For our Muslim community, MUIS is in contact with Singaporean students in the Middle East and providing necessary support. MUIS is also working with partners, such as the Association of Muslim Travel Agents Singapore (AMTAS), regarding umrah and hajj arrangements. We will continue to monitor the situation closely and take necessary measures.

Most importantly, the safety and well-being of Singaporeans remain our priority. As Deputy Prime Minister Gan said earlier, all of us can play our part. We should do what we can to conserve energy, avoid wastage and be more prudent when using resources. If every household practises these measures, it will make a difference, especially during these uncertain times.

Sir, like previous crises, I encourage our people to come together and support one another, based on our strong spirit of mutual support and unity. Let us strengthen our solidarity and remain resilient through these challenging times.

We must ensure that global tensions do not create divisions in our society. This is an opportunity for us to draw closer to one another and exemplify the shared values that guide us as a society, to be the best versions of ourselves and for the common good of all Singaporeans.

Mr Speaker: Mr Pritam Singh.

Mr Pritam Singh: Thank you, Speaker. Moving to the second bucket of questions. Sir, in Budget 2021, support was extended to Singaporeans who rely on vehicles for their livelihoods. This extended to taxis, taxi drivers, private hire car drivers and motorcyclists. The support rendered included road tax rebates and petrol duty rebates. Given the elevated prices of fuel, specifically diesel, now by up to 70%, what thresholds will determine the extension of similar measures today, to assist Singaporeans who rely on vehicles for their livelihoods?

The second question covers a subject that was discussed in the earlier bucket of questions, and this pertains to electricity prices for the upcoming quarters. Given that it is really certain that these prices would be elevated and perhaps significantly elevated, does the Government intend to extend further support to households and businesses in anticipation of these higher electricity prices?

And finally, I would like to make a point with regard to bus drivers and some small operators of transport businesses who are significantly affected by the diesel price hike and who are not included in this tranche of the Government support measures. When can these individuals expect support? Because for some of them, the situation is incredibly dire.

Mr Jeffrey Siow: Thank you, Mr Speaker. We very much understand the concerns of drivers and SMEs who are reliant on diesel fuel and may not have ready alternatives. The suggestion of whether or not to give a road tax rebate or reduction, it is too blunt a measure. We have, as I said in my speech earlier, aside from being a revenue measure, actually, road tax works in tandem with our other vehicle policies to achieve other longer-term outcomes, for instance, pricing in externalities related to public health and pollution, influencing vehicle buyers to choose more fuel-efficient vehicles. These objectives remain relevant and we do not want to go in the opposite direction.

So, therefore, a reduction of road tax is too blunt a tool. And so, what we want to do is be more focused and targeted in who we support, and our approach therefore is to provide directed support to SMEs, companies, drivers – people who are more directly affected by the fuel prices. And the overall package provides that support – whether it is through the Corporate Income Tax rebate, as I mentioned earlier, as well as other targeted support, like the $200, that we are giving to the taxi drivers, the platform workers, which includes the private hire car drivers.

We will continue to assess the situation closely, and if there is a need for us to provide further support, we can consider that at the later juncture.

On the U-Save rebates we had initially sized them, as I mentioned, at 1.5 times the regular rate of what we normally give. It is to indeed cover the immediate tranche of both April to June and also subsequently from July to September, and the tranches will be disbursed in April and July respectively.

At the moment we do not know exactly how much the fuel tariff is going to be. We know it is going to increase. If there is a need for us to do more later, we can look at doing that as well.

We spoke about the bus drivers earlier in relation to the earlier question by Mr Ng Chee Meng. Where there are bus drivers that indeed are not part of the existing package, we will work through the unions as soon as possible to provide support for this group.

Mr Speaker: Mr Ang Wei Neng.

Mr Ang Wei Neng (West Coast-Jurong West): I thank the Deputy Prime Minister for announcing the good news to give targeted help to Singaporeans who are most affected by the Middle East crisis, especially for the escalating fuel prices. I would first like to declare my interest as head of a company that leases out taxis, limousines and private cars, before asking clarification questions.

In particular, I am glad the Government is giving $200 to platform workers, such as food delivery personnel, taxi drivers and private hire drivers. But we note that this $200 is given to all platform workers regardless of their driving hours. There is a full-time driver who drives more than 400 kilometres a day, who apparently will get the same $200 as compared to those who drive part-time or do not drive.

Thus, I would like to ask if MOF and MOT will consider giving additional $100 or appropriate amount to drivers who drive more than eight hours a day on average, for example?

I have a second clarification question for the Ministry of Social and Family Development (MSF). Many Singaporeans who receive financial assistance from a social service office will face the full brunt of the price increases and inflation. I would therefore ask whether MSF would review the quantum of financial assistance provided to mitigate the expected sharp rise in food inflation in the next few months?

Mr Jeffrey Siow: Mr Speaker, let me take the first question by Mr Ang on the $200. We sized the $200 based on the average increase in fuel cost that full-time taxi drivers as well as full-time private hire car drivers experienced in a month. The average is about $150 to $250, so we have chosen a number that is in the middle of that range.

Of course, there are many drivers in the private hire car community that are not full-time drivers. They drive part time for various reasons and so, in some ways, the $200 is sized at the higher end of the range. In addition, we also note that NTUC as well as the Land Transport Authority, have been in discussions with the platform operators to provide support for these drivers and platform operators have given fuel vouchers in the last few weeks to the drivers that are affected. We have also allowed for the fares of these services to also rise to accommodate some of these cost pressures.

So, overall, there is a holistic cost sharing. I think that is reasonable for now. We will continue to observe the situation and if there is a need for us to do more for this group, particularly the vulnerable ones, we will do so.

Mr Speaker: Minister of State Goh Pei Ming.

The Minister of State for Social and Family Development (Mr Goh Pei Ming): Mr Speaker, responding to the Member's question on ComCare, let me enlarge the question to address all lower-income families.

I think the overall broad-based measures announced by MOF, be it the Cost-of-Living Special Payment or the U-Save rebates, although they benefit all households, but actually, they more than proportionately advantage and benefit the lower-income families. On this note, we think that is adequate support on that front.

In terms of the overall ComCare, be it the Short-to-Medium-Term Assistance rates, we have revised the assistance rates about a year ago, in April 2025. During that last review, we have built in projected inflation. Based on what we have observed so far, we are still within the buffer. And therefore, we think the ComCare assistance rates for now suffice.

In addition to that, earlier during the Committee of Supply debates, we also announced enhancements to ComLink+ support. We have also pushed out the Partnership Payout, and through which we do want to encourage many of our lower-income families or ComLink+ families to come onboard the ComLink+ programme. With that, there is also a certain payout that can benefit our lower-income families.

Having said so, I just want to say we are cognisant that our lower-income families are affected by cost of living increases disproportionately. And therefore, we are watching the situation very closely and will be ready to respond should there be a need to in the next few tranches.

Perhaps, also allow me to respond to a question that the Member Hazlina mentioned earlier. I think she was alluding to the fact that many of our social service agencies have very close feelers on the ground and therefore, they understand the challenges on the ground most acutely where the needs are. Indeed, we agree that we want to better support our social service agencies in terms of their work, because they are best able to deliver very targeted support to the households who need those support. We are working closely with the social service agencies and if there is a need to reinforce their work, reinforce the support that they get, we will do so.

Mr Speaker: Mr Mark Lee.

Mr Mark Lee (Nominated Member): I thank the Ministers for their very encouraging response. It is heartening to actually know that the Government has the resources and ability to manoeuvre and assist, as compared to many countries.

Sir, I have four supplementary questions. The first, many SMEs, particular, those with fixed price or longer-term contracts, lack the bargaining power to reprice quickly, even as energy, freight and material costs rise. I am glad to hear that Acting Minister Jeffrey Siow said the Government is taking steps to adjust pricing in major infrastructure and BTO projects. This is an important signal to the private sector.

Building on this approach and as a businessman, with the importance of preserving contract sanctity, if the conflict continues to indefinitely and oil prices remain elevated, whether the Government can work with and support trade associations and chambers by providing guidance, reference frameworks or industry signals that facilitate fair and timely commercial re-negotiation in exceptional circumstances.

Second, many businesses should make use of this time to accelerate their shift to energy efficient equipment. I am glad to hear that the Energy Efficient Grant is expanded to all sectors, and this is the right direction. By increasing the Energy Efficient Grant quantum will help businesses move further as pricing on the ground has changed significantly. Also, can we expand the Business Adaptation Grant to include advisory services that can help businesses rethink and replan their business and processes to be more energy efficient?

My third supplementary question is in relation to tightening credit conditions and rising working capital needs. Will the Government consider recalibrating existing financing schemes, such as the Enterprise Financing Scheme and where relevant, the Long-Term Investment Fund and the Private Credit Growth Fund to better support SMEs facing such short-term liquidity pressures, particularly those managing volatility driven costs, or even firms that want to take this chance to basically do more mergers and acquisitions?

Finally, if U-Save helps household manage unavoidable utility costs, can the Government consider a targeted equivalent for energy-exposed SMEs where utilities are similarly non-discretionary?

Mr Jeffrey Siow: Mr Speaker, I thank Mr Mark Lee for his questions. First of all, we really understand the cashflow concerns of SMEs that are caught in this current energy crisis and the price spike. It is important, therefore, for us to get support to the SMEs as soon as possible. And that is the reason why we have decided, the best way and the fastest way to get support to them is through the Corporate Income Tax rebates and through the cash grant, to provide them support in terms of cashflow considerations. And we are able to disburse and start doing that from April onwards, which should help, even in those cases that the Member mentioned about the contracts being locked in at fixed prices.

Very much appreciative of the suggestion to involve the trade associations and chambers to support and guide businesses to get through this difficult period. Certainly, on behalf of the economic agencies, we will work very closely with the trade associations and chambers to do this.

On the Energy Efficiency Grant, as I mentioned earlier, in response to another Parliamentary Question, what we do want to do is to really get out the support soon. So, we did not want to make significant changes to the parameters. But increasing the quantum of the support is something we can consider at a later juncture. And similarly, we will look at also the Business Adaptation Grant, which Mr Lee suggested.

On financing support, there are not a lot of signs today that the financing ecosystem has severely tightened up. But we will watch this very closely, and if that is the case, indeed, we will then leverage on the existing schemes that we have to provide support to our companies.

Finally, on the suggestions to have a U-Save scheme for companies, what we want to do is to again provide support to our companies broadly and quickly. We do not want to subsidise them necessarily too much on energy, because that will blunt the price signals and slow down the process of encouraging these companies to continue to be energy efficient, at a stage where it is very important for us to reinforce this message. We need to help companies in fact, move through this transition phase quickly, continue to be energy efficient; in fact, to be more energy efficient if they can, and through some of our schemes to encourage them to do so through buying more equipment and things like that, like for example, through the Energy Efficiency Grant.

Mr Speaker: Ms Elysa Chen.

Ms Elysa Chen (Bishan-Toa Payoh): Thank you, Speaker. I am glad to know that we have put together a substantial first response and that the Government has drawer plans to be deployed in the mid to long term to support Singaporeans.

Beyond shorter-term measures, many in the broad middle are concerned about whether their wages can keep pace with the more volatile and uncertain economic and inflationary environment. Could the Government share its plans to work with employers and unions to support sustainable wage growth and job security for mid-career and middle-income workers so that they do not slowly slip towards vulnerability over time?

Going further, will the Government keep track of economic stress indicators among the broad middle, such as rising unsecured debt, mortgage strain or increased reliance on informal help? And how will these signals inform whether more calibrated support for this group is needed if the current Middle East situation drags on for longer than expected?

Before my next clarification, I would like to declare that I am the executive director of a social service agency that serves children from lower-income families.

Passengers, such as lower-income shift workers, caregivers and those in essential services often have the least flexibility to change their travel patterns when global events occur and fuel-linked costs rise, not just for public transport, but also for private hire transport. In its medium- and longer-term plans for navigating this crisis and designing any transport-related interventions, how will MOT and the Government ensure long-term affordability for lower-income or vulnerable transport relief to those with no realistic ability to substitute or reduce usage?

Mr Jeffrey Siow: Mr Speaker, I think the Member's questions are very broad – they go beyond the scope of this current discussion that we are having on the crisis and it goes beyond the Ministerial Statement a little bit.

What I will just say is that these are important concerns for our Government, and from a government's point of view, we will continue to work on these issues to make sure that we have a society that is well-supported and that their needs are well met.

Specifically, on her question on transport affordability especially for families, we do have a comprehensive system to support lower-income Singaporeans, in terms of their transport needs. Today, public transport is very affordable. It is, I believe, about 2% of the average household income for the P30, if I am not mistaken. But more importantly, if there are people who cannot afford transport, we will find ways to support them. Even for large families who need to take private hire vehicles, we have additional subsidies that we have worked in through the Large Family LifeSG Credits.

Overall, we will continue to make sure that transportation is affordable for our Singaporeans.

Mr Speaker: Mr Louis Chua.

Mr Chua Kheng Wee Louis (Sengkang): Thank you, Speaker. Two sets of clarifications.

First, if we look at the fuel prices, petrol prices have gone up by 20% and diesel 70%. And for the diesel vehicles, most are actually commercial vehicles. In this this regard, if you look at the impact to sole proprietorships or micro and SMEs, the impact could be quite hard. In the spirit of not using blunt tools, I was wondering if there are specific measures to small businesses that have diesel vehicles to mitigate the impact of higher fuel costs. I do note the point about the enhanced Corporate Income Tax rebate. And if you look at the cash run component, it has been increased to about $2,000, basically an increase of $500. But some estimates have it that just the monthly fuel cost increase for one diesel van alone is already $172 a month.

Second, Minister Tan last month encouraged all of us to conserve energy. Deputy Prime Minister and Prime Minister have also said the same. But if I look at the electricity demand in Singapore, households represent just about 6% of electricity demand based on the latest numbers. In this regard, in terms of looking at the industrial and commercial uses, which is the overwhelming use of energy demand, what specific measures are there to have targeted measures to encourage these companies to step up on their minimum energy efficiency standards or energy conservation measures?

Mr Jeffrey Siow: Mr Speaker, I had spoken earlier about doing something about the diesel tax expenses. So, I will just add a little bit more to the answer. I think that even if we do cut diesel tax duties, it might not necessarily pass through fully to the end consumer. Therefore, it is not really the best way to try to convey help directly to the people who need it the most.

More importantly, as I said earlier, we do not want to blunt the price signals and reduce the incentive for the longer-term objective, which is to encourage actually businesses to switch to more energy efficient modes of transport, as well as to be more efficient in how they use their vehicles.

Mr Speaker: Mr Patrick Tay.

Mr Patrick Tay Teck Guan (Pioneer): Mr Speaker, Sir, I have two questions for the Minister for Health. Firstly, the rise in energy and related costs will impact our public healthcare clusters. How would the Ministry of Health (MOH) be mitigating this, so that some of these costs are not passed on to consumers, therefore inflating and exacerbating healthcare prices and costs?

The second question is whether in in light of the current situation, is there any impact on whether it is our stockpile or supply of critical medicines, or maybe certain specialty areas?

Mr Ong Ye Kung: We are back to the first bucket. On the impact of the disruption, there is an immediate impact, which is supply we procure that comes through the Strait of Hormuz.

One ingredient is helium, and I explained earlier, the impact is not big because we do not take our helium from there. Second is medical supplies. Our medical supplies that come through the Strait of Hormuz are very low, well below 1% of our medical supplies, and medical supplies in turn, is about 12% of our total healthcare costs. So, the impact is not significant and there is no tap on our stockpiles.

But I think what we need to watch out for is the secondary domino effect. Because if petrochemical products are disrupted, then the raw materials to make gloves, syringes will be affected. Korea is affected because they make their own syringes. We import from suppliers, so, for now, we are not affected.

If chemicals used to make drug substances are impacted, then drug suppliers will be impacted.

The global supply chain is actually not a chain, it is a very intricate web. We need to monitor those downstream domino effects.

As of now, because the immediate impact is not significant, our response should be to maintain our stockpile, especially for essential supplies, watch our usage, minimise wastage, work with our trusted suppliers – and we have very good relationships with them – and then, judge the moment to activate other contingency plans, if and when they are needed.

Mr Speaker: Ms Denise Phua.

Ms Denise Phua Lay Peng (Jalan Besar): I think Acting Minister Jeffrey Siow has mentioned that temporary assistance will be provided for those who need them for essential services. Co-funding will be given as well.

For many of these vulnerable groups, for example, the elderly, the disabled, the younger disabled, those who are in special education schools and so forth, they have very few alternatives in terms of transport mode. I worry that if the measures are too blunt or too low even after co-funding, the service providers who chose to provide essential transport services for this group might choose to exit. That is something that we do not want to see because it does create more hardship.

So, I want to ask if the relevant Ministries, for example, the Ministry of Education (MOE), MSF and MOH, who are supporting this group, before they make their final decision and announce them, can you do a more detailed study in terms of the impact and perhaps look at tiering some of these measures before announcing them, and provide a space to have flexibility for those who are truly undergoing hardship or will create hardship, to protect the vulnerable who have few alternatives and also to preserve those service providers who have other alternatives to make money but choose to serve this group of vulnerable people? For your consideration, please.

Mr Jeffrey Siow: Mr Speaker, I think we fully agree with Ms Denise Phua's exhortation. Indeed, we want to absolutely ensure that these critical services continue to be operated for the vulnerable. And on behalf of those agencies that she mentioned, we will make sure that we take care of the vulnerable and the services continue to be run. And we will consult all relevant stakeholders to make sure that this is so.

Mr Speaker: Mr Kenneth Tiong. I am sorry, Minister of State Goh.

Mr Goh Pei Ming: I just wanted to add that at this current juncture, as we speak, MOF, together with MOE, MSF as well as MOH, are working on the details following up from what has been disseminated today. If you have any feedback, you can relay to us and we can perhaps work that into the details.

I just want to share it that, especially for some of our persons with disabilities, in addition to what has been announced today, earlier at the Committee of Supply last year, we announced enhanced Enabling Transport Subsidy provisions. These provisions will commence in July this year. I think the timeliness of it should allow us to provide increased subsidy rates as well as expanded coverage for families.

My understanding is there for those with per capita household incomes up to $4,800, from July onwards, they will be covered. This, hopefully, will come at a good time whereby it provides additional support for some of these families that we are speaking about.

Mr Speaker: Mr Kenneth Tiong.

Mr Kenneth Tiong Boon Kiat (Aljunied): Thank you, Speaker. The Singapore Department of Statistics publishes retail prices and what consumers pay at the end. I am not sure we track the full cost structure behind the prices – domestic supply chain margins, domestic transport, wholesale margins, retail margins and so on. If you do not have a baseline understanding of the cost structure before the prices rise further, you will not be able to tell later whether a price increase was done by genuine cost pressures or by margin expansion.

Will the Government establish baseline cost structure data now for key categories such as food, transport and energy companies, especially the retail-facing ones?

Mr Gan Kim Yong: Thank you, Speaker. I just want to explain that we operate our economy in a very competitive manner. We just want to make sure that in our retail market and wholesale market, we have sufficient competition to allow businesses to operate in a competitive way. This way is the best way to ensure that our prices are reasonable.

For those who are taking advantage of the market to try to raise the prices, there will be competitors, they will compete to offer alternatives. This is the best way to ensure that our prices are always reasonable and competitive.

Our Competition and Consumer Commission of Singapore will continue to monitor and carry out surveillance in the market to ensure that the market in different areas, whether it is retail or wholesale, whether it is food or energy or any other commodity, we will make sure that there is sufficient competition. If there is a lack of competition, then the Commission will intervene where necessary.

Mr Speaker: Mr Victor Lye.

Mr Victor Lye (Ang Mo Kio): Thank you, Speaker. I am sure many Singaporean vulnerable households and businesses are grateful for the short-term measures that we have announced and brought forward. But as we know, it will never be enough and there will always be opportunities to do more.

At a recent residents' dialogue, I came across some opinions that the crisis is not that severe, having seen other countries where they have had fuel shortages and even electricity supply cuts.

This is something that we need to be mindful of. I am very heartened that among the residents, the younger generation made some very interesting suggestions – that perhaps the Government can go beyond a crisis and a money solution, to go beyond money to rally our people.

This is a crisis that falls not just on Singapore, but across the whole world. Perhaps the Government can consider some measures to bring out people together nationally so that they feel they can also do their part to contribute. For example, to conserve electricity in a more objective way. So, can the Government consider a campaign to bring our Singaporeans together to contribute to this solution, over and above just money being given out?

Mr Gan Kim Yong: I want to thank Mr Victor Lye for his suggestion. Indeed, communication and engagement are an important part of the work of the committee. We do want to reach out to take this opportunity to re-emphasise the importance of conservation and to share with Singaporeans the situation regularly so that they are updated on the situation that we are facing.

This is indeed a crisis and it is a crisis serious enough for us to set up the HCMC to oversee this whole-of-Government effort to manage the crisis. Today, we have three Ministerial Statements, which also signifies the importance of this crisis situation. This is something that we hope to be able to reach out to our people.

The Member's suggestions about campaigns and exercises are something that we will consider. Where practical and where it is meaningful, we will be happy to work with the community or community organisations, we will work with schools, we will work with trade associations to see how we can continue to re-emphasise this message of a crisis situation and that we need to do our part to continue to conserve all our resources – energy, food, water and all the important resources.

Mr Speaker: Ms Lee Hui Ying.

Ms Lee Hui Ying (Nee Soon): Thank you, Mr Speaker. In Budget 2016, there was a one-year freeze in foreign worker levies for the marine and process sectors due to the oil price's downturn. Ten years on, we now face a global oil price surge. Many sectors, especially the construction sector, that rely heavily on diesel for logistics and transport, now face doubling or even tripling of their business operating costs.

Will the Government consider a temporary freeze of foreign worker levies to affected sectors, especially the construction sector? This will directly help to offset the impact of rising costs.

And if the crisis prolongs, were there be alternative support measures to help these businesses manage this cost as well? This include businesses who manage private contracts who will not be able to benefit from BCA's co-sharing of fuel calls for key Government projects.

Dr Tan See Leng: At this particular point in time, we are monitoring the situation very closely. Our first priority would be to support all of our fresh graduates who are graduating. We are also concerned about the potential of AI disruptions on fresh graduates looking and landing jobs.

What we hope to be able to achieve in our graduated tiering of the worker levies is to drive productivity and drive value-add in many of these construction companies and many of the SMEs and companies that are employing these foreign workers. Just by cutting away the levy completely, without any concomitant tie-backs to increase productivity and value-add, I think we are going to set ourselves back.

Mr Speaker: Mr Azhar Othman.

Mr Azhar Othman (Nominated Member): Thank you, Speaker. A couple of clarifications and suggestions, if I may.

Looking at the critical nature of this situation, will the Government be imposing a curb on private transportation use as what other countries have been deploying, in Malaysia and Indonesia? The whole idea is to reduce our consumption and plan further when the urgency is needed. That is number one.

Number two is that if you look at the Energy Efficiency Grant and if we are relying on households to reduce their consumption, if I may recommend that we reward reduced consumption? Because only then will the value of using energy more efficiently be taken into account. If typically, their consumption is $100 a month and they manage to reduce it by $20, a percentage of that can be returned to them as a reward. I think that puts Singaporeans in a mindset of using energy wisely, in terms of how we can encourage the efficiency of consumption.

Thirdly, looking at this situation of energy dependency, it is important to ensure we are energy independent. If I can ask the Ministry, how serious this situation is and how this situation expedites the possibility of deployment of small modular reactor or nuclear energy in the context of being independent?

Mr Speaker: Minister Tan first, then Acting Minister Siow.

Dr Tan See Leng: On the acceleration, the last point from the Member about the deployment of small modular reactors, I believe I have answered it quite extensively. Perhaps just to reiterate: we are doing everything we can. We have shared with everyone here about the four switches in terms of the diversification of our energy sources to achieve some measure of energy independence.

First, natural gas. Second, solarisation. We have exceeded our targets five years ahead of time. We hit the two gigawatt-peak last year, ahead of the 2030 target that we set for ourselves. So, now, we are going to raise the ambition to three gigawatt-peak by 2030 – 50% more – and we are hoping to drive and accelerate solar power adoption here, to double that from last year to four gigawatt-peak by the second half of the 2030s.

We have gone on this Decarbonisation Grand Challenge, which was announced at the Committee of Supply this year to look for low-carbon technologies. And to try to see how we can use biomethane as a sandbox. So, we are trying everything there is, including exploring geothermal.

And the last bit is a question of waiting for the first of a kind to be operational and to be deployed and to be safe before we start to adopt. We want to be the fastest adopter. We have sent our teams to learn from the US. Our teams have gone to the US multiple times to look at the different centres in Idaho, in Oak Ridge and in Boston as well.

At the same time, we have tie-ups with the United Arab Emirates. Of course, at this particular point in time, no one is there from our side.

We have also signed agreements with the Koreans, with the Japanese, with the United Kingdom and the French to learn from them on some of these advanced nuclear technologies. And we are also working very closely with the International Atomic Energy Agency to see how we can self-evaluate through the Integrated Nuclear Infrastructure Review. And we will keep this House posted very regularly on the accelerated pathways that we have adopted to reach that energy independence. Those are the measures that I have articulated many, many times.

To the Member's point about whether we should consider rationing power use, for instance. We are contemplating. These are very early days. We do not want to cause panic because we are actually stable. We also do not want to cause panic to investors, to the world economy, to our downstream partner countries whom we export refined products to. But at some point in time, as part and parcel of Total Defence Day, we may do an exercise to test out the readiness when it comes to power rationing.

If I may borrow your time, since we are here. You are all respectively advisors of your constituencies, your Group Representation Constituencies (GRCs) and so on. If you can adopt energy saving measures across the entire GRC, we would really welcome that. And I want to make a shout-out to the Senior Parliamentary Secretary Shawn Huang. I think in his constituency he adopted energy-saving motion sensor lighting in the HDB blocks.

To also address the Member Louis Chua's point about the fact that domestic use is a very small amount, but it hits the pocket. And we are starting a multi-pronged approach, not just to domestic users that we are encouraging to conserve energy, we are also working with big businesses to get them, to incentivise them to switch, whether it is the Resource Efficiency Grant for Emissions, the Energy Efficiency Grant, to get them to take on these things. We are encouraging contemporaneously our domestic users to use the climate vouchers if they have not used, to switch the aircon appliances, from the three-tick to the five-tick ones, which saves them considerable amount of money every year – about $300.

So, we are trying on multiple prongs to get our population, our businesses, our country, our society as a whole to adopt energy conservation as its core, as its foundation.

Mr Jeffrey Siow: Mr Speaker, just to reply very quickly to the Member's suggestion on curbing private transport use. And in fact, that is the very reason why we do not want to reduce diesel or fuel taxes and duties.

But our context is quite different from other countries. We, as Dr Tan explained, are not facing a shortage of fuel. What we are facing are high fuel prices and that in itself, should be an incentive for people to drive less, and maybe, hopefully to use public transport more.

I would just want to just add very quickly that the situation that we have is a position of strength. It is not by accident. We are here, fortunate that we are discussing how to cope with higher fuel prices, rather than discussing whether we are running out of fuel. As Deputy Prime Minister and Minister Shanmugam explained, we built our position as an energy trading hub over decades, that was a long-term move. We maintain strategic fuel reserves precisely because we anticipated supply disruptions and we do not control prices. We allow the price mechanism to function, so that energy is priced properly in Singapore and used efficiently.

And all these are deliberate. They allow us to be in a strong position to act, not just react, so that we are able to cope with these crises. And it is all because we have a good Government that is prepared, anticipates problems and plans ahead for the future.

Mr Speaker: Acting Minister Siow, I recall earlier, there was a question by Mr Saktiandi Supaat. We agreed to defer it. You might want to respond to his earlier question.

Mr Jeffrey Siow: Yes, Mr Speaker, let me do that. Mr Saktiandi asked two things. One is whether or not the inflationary impact can be mitigated with our use of our monetary policies. And to that end, indeed, MAS will look at this as part of its regular review of monetary policies. I think we will see what they will intend to do in the coming months.

I think his other question was about off-Budget measures and whether or not we have plans to do that. As I have explained in my speech, we do have drawer plans. If the situation changes and if needed, we will indeed activate them and bring them together as off-Budget measures if needed.

Mr Speaker: Ms Nadia Samdin.

Ms Nadia Ahmad Samdin: Thank you, Speaker. On assurances to households, I would like to appeal for my second question earlier on national food stockpile to please be answered.

Mr Zaqy Mohamad: I thank the Member for her question. This was in the earlier bucket. And on national food stockpile, I think this is important, because I just want to assure Singaporeans that we do have sufficient stockpiles. We are constantly calibrating and assessing the current situation. Certainly, at this point in time, there is no need to activate the stockpiles. I am not at liberty to give too much details on what it is, because this is as part of national security; I think we want to keep that on our own books.

Having said that, I think we are in a better position today, having had learnt from COVID-19, from the last energy crisis, to be able to diversify our sources. Today, we have about 180 countries and regions that we have, among our agreements today where we import food sources, so that enables us to diversify and divert food imports when necessary.

Earlier, I also shared that the amount of food imports through the Strait of Hormuz was just less than 0.5%. So, hence, today, while we are not impacted, while we are not likely to see food disruptions in the short term, we cannot fully insulate ourselves from increases in food prices; as a result of increases, such as fertilisers and other food inputs.

So, I think this is where a lot of the measures as covered by MOF earlier, provide assurance in the short term that the Government is looking into this. We are monitoring the situation.

And if I can assure Members too, that perhaps, like Mr Victor Lye had suggested earlier, make this a learning moment. If I can also pitch for our local farmers and local production, this is also a time for us to build our local capabilities, our local farming resilience. For us to also look into buying local produce, that helps our farms to increase capacity at this point, helps them build resilience over time and should there be disruptions or should there be a need for us to divert supplies or look to ramp up local production, I think they would be in a better position if we do what we can today to support them too.

So, this is, I think, one learning moment that we can do. And I hope that the community can come forth and support our local farmers this round.

Mr Speaker: Ms Joan Pereira.

Ms Joan Pereira (Tanjong Pagar): Speaker, one clarification. Will there be any plans to provide targeted support like rental or utility rebates for our hawkers and our stallholders as they strive to continue providing affordable meals for Singaporeans?

Mr Speaker: Who is going to respond to this? Senior Minister of State Zaqy.

Mr Zaqy Mohamad: I think on the hawker front, we keep our rentals as low as possible to sustain our hawkers. But for food prices, we continue to monitor. My colleague, Minister of State Gan mentioned about how we are monitoring food supply of food prices, and I think that we will continue to do so. The current measures are what we look at, in terms of CDC vouchers and special payments. I think that is where we look to support households in the meantime and we will keep everyone posted should there be changes.

But rest assured we are monitoring, we are engaging our hawkers. We will try to keep prices as competitive and low as possible, but I cannot guarantee that there will not be food price increases as a result of, what I shared earlier. We are importing most of our food supply and so, we are not insulated against food hikes or food prices as a result of the global situation right now.

Mr Speaker: Ms Pereira.

Ms Joan Pereira: I was wondering whether there could be some support, like rental or utility rebates for them.

Mr Zaqy Mohamad: Mr Speaker, as I shared, we are monitoring the situation. The Government is monitoring at this point. There is no need at this juncture, because we have not seen the price hikes hit the hawkers in the same way as yet. There will be downstream impact. I think that is quite sure. I think we have already had enough explanations and elaborations from MTI colleagues on energy price hikes at this point. I think we are still in stable mode. So, if the need arises, rest assured that the Ministry will provide the necessary assistance as required.

Mr Speaker: Mr David Hoe.

Mr David Hoe (Jurong East-Bukit Batok): Thank you, Mr Speaker. I have two cluster of questions and one suggestion.

The first is directed to MOE. With rising input costs, how might this translate into food prices in our school canteens? Will MOE work with stallholders to monitor and manage price increase? And should there be any price adjustment, would this be communicated to parents, because what I hear from parents, this is so that they are able to make informed decisions to adjust pocket money for their children.

The second cluster of question relates to MOT. In my interaction with private hires with Minister of State Rahayu Mahzam recently, many of them raised concerns about their fuel costs. And with this $200 support, it will help to cushion these pressures. I would like to clarify whether if this is intended as a one-off measure, or would we be seeing this at a more sustained periodic support until fuel prices are stabilised at an acceptable amount?

Third, it is a suggestion. One thing I have learnt in my role and caring for Clementi residents, is that, in times of need and time of fear and crises, scammers will leverage on this to tell our residents to do things that will put them in a vulnerable position. So, my suggestion is, could we also in this period of time, increase our advisory on scams and also for all of us, as we interact with our residents to let them know to be mindful for any advisories that come to them that they should always double check and also dial 1799 for any clarification.

Mr Speaker: From MOE, who is going to respond? Minister of State Lau.

The Minister of State for Education (Ms Jasmin Lau): I thank the Member for the question. On the question for MOE on canteen stallholders, we are monitoring the utility costs for them. And if need be, we will take a look at how we can come in to support some of them. I think we are also mindful that currently, there are fee guidelines for the prices of the food in our school canteens and therefore, any increases in the utilities or ingredients costs, would have to be borne by many of our students and their families as well.

But as Acting Minister Jeffrey Siow has mentioned, we will do our part to provide financial assistance to the students who need them most.

Mr Jeffrey Siow: Mr Speaker, on private hire car drivers, the $200 is currently a one-off, but we will watch how things develop and if there is a need for us to do more, we can come in again. But more importantly, if fuel prices continue to remain elevated at this price for a long period of time, actually, the market ought to accommodate it in the form of higher fares, which then, consumers will have to adjust their behaviours, including consumption. I think that is the best way to do it, rather than try to blunt the price signals by giving them a long-term fuel subsidy.

Mr Speaker: Senior Minister of State Sun Xueling.

The Senior Minister of State for National Development (Ms Sun Xueling): Mr Speaker, earlier, Member Ms Joan Pereira had a question with regard to rental cost and hawker food prices. That was addressed by Senior Minister of State Zaqy. But I also thought that in relation to what she asked, another area where people might be concerned about could be the HDB coffee shops, because that is also where they buy their meals.

I would like to share that during COVID-19, HDB had provided additional assistance, such as rental waivers for HDB rental shops. HDB had also considered appeals from tenants who are facing financial hardship or poor business conditions by granting instalment payment plans.

So, if like what Senior Minister of State Zaqy said, we would monitor the situation, and if there is a need for us to sync up what we do with regard to rental costs to help with how hawkers or coffeeshop operators are doing, then we will do so.

Mr Speaker: I am going to move to the third bucket, on security and related matters. Ms Mariam Jaafar.

Ms Mariam Jaafar (Sembawang): Thank you, Speaker. I wanted to follow up on the thrust of my Parliamentary Question Nos 15 and 62. First clarification, could the Minister please clarify whether the Government is planning on the basis that the current disruptions are temporary, or are we entering into a period of structurally more permanent and more volatile global environment?

Secondly, in adapting to the shifts, what are the key trade-offs that the Government is managing? For example, between resilience and cost competitiveness, someone has to pay for resilience, or between targeted support and more broad-based coverage. Could the Minister provide specific indications on the thresholds that the Government is monitoring, not in the context of price caps, as Minister of State Gan addressed earlier, but in energy prices, duration of disruptions, cost increases in certain sectors? So, what would trigger a shift in the policy response?

And lastly, beyond the tactical immediate stabilisation measures, what are the longer-term structural changes that the Government is considering, taking into account that we do have the restructuring committee's recommendations that are also coming out, but what are the current assessments on the biggest gaps or limitations that the Government may have, in terms of policies, as we shift to a more permanently volatile environment? And I ask this in the context of both being resilient in a defensive way, but also in an offensive way. So, the current policies are great at making it easy to do business, but do we need to shift more to, for example, thinking about how we assess risks, or how we share risks, as well as rewards, in a more volatile environment?

Mr Speaker: Deputy Prime Minister Gan. Although it is back to the first bucket.

Mr Gan Kim Yong: Not quite. I think this is regarding security and long-term strategy. I will be happy to answer. First and foremost, I think this crisis is temporary – in a sense, and all crises are temporary, But I think the impact of this crisis will be quite long lasting.

First, it reminds us that the geopolitical situation landscape has changed and it is important for us to understand the implications of that.

And that also relates to your second question, with regard to a trade-off between resilience and cost. I think many years ago, our focus has been efficiency. Our focus has been in cost effectiveness, just-in-time delivery and production. But I think over the last few years, with the multiple crises that we have been confronted with, including COVID-19 and now, this oil crisis, energy crisis, it reminds us that it is not just about "just in time", it is also "just in case".

So, therefore, it is important for us to review our policy, our strategy, our approach, to ensure carefully calibrated balance between resilience and at the same time, competitiveness. There will always be trade-offs in terms of cost, if you want to have a greater security. I think even in today's world, when we talk about energy security, we talk about stockpile for our energy requirement, stockpile will cost money. And even if we enter into long-term contracts, long-term contracts will also have a premium versus a spot market in situations when there is a volatility.

At the same time, when we look at the cost increase, as a result of disruptions in supply chain, it is something that we also have to always bear in mind. And if we talk about the security for our oil dependent sectors, particularly our refineries, we talk about the access to crude and the need for us to explore alternative sources, and we talk about supplies from outside the Middle East, which will be more costly and take longer to deliver – all these are balances that we need to recalibrate, in response to the changing environment in the geopolitical outlook.

At the same time, we talk about the long-term strategy: what should we do? We have already set up the Economic Strategy Review Committee and they are finishing their work, and the report will be released shortly. And in that work, we focus on how we can strengthen Singapore's economic resilience, so that is not only to respond to crisis, but to respond to long-term changes in the global economic structure. This will include our emphasis on AI, to give us that edge and that leg-up against our competitors. If we are able to move fast, decisively, into embracing AI and adopting AI, and becoming an AI leader, I think that will give us an added competitive edge versus our competition.

At the same time, I also talked about, in my speech earlier, that we need to continue to strengthen our partnership with our like-minded partners – other countries, other economies – to see how we can cooperate and create more space for us, and by international cooperation, that would also strengthen our economic resilience.

So, I think it is a multi-pronged approach, it is not a single strategy. But all these, what we are putting in place, I also need to remind all of us that these strategies must continue to evolve and change, because the global environment is changing all the time. So, we cannot stay static. The Economic Strategy Review Committee report will not be the final review of our economy; I think it is an ongoing process. We just have to keep running. Hopefully, we run slightly faster than our competitors.

Mr Speaker: Mr Gerald Giam.

Mr Gerald Giam Yean Song: Sir, in light of the conflict since 28 February, has the Government detected any uptake in opportunistic or geopolitically-motivated cyberattacks targeting our critical energy or information infrastructure? And will it be stepping up our cyber defence stance above the baseline level during this period?

Secondly, during the Prime Minister's recent meeting with his Australian and New Zealand counterparts, the focus was on securing long-term LNG supplies. Given that 43% of our gas still comes via regional pipelines, has there been a similar high profile public Ministerial level mission to Jakarta and Kuala Lumpur, to specifically secure these essential energy lifelines? And if so, has Singapore received formal assurances that existing piped natural gas export contracts will be fully honoured, despite escalating domestic industrial demands?

Dr Tan See Leng: We constantly engage our counterparts for piped natural gas, Malaysia and Singapore. I believe you would have read in the news that both our Prime Ministers, Prime Minister Wong and Prime Minister Anwar, they have been in phone calls as well. I make trips. I meet them at the international fora. And every opportunity that we have, we discuss how to collaborate more – between the whole ASEAN member state framework and also, the fact that we are the closest neighbours.

For Australia, just like the ASEAN member states, because of the interdependence, given our position as a global hub and particularly, a Southeast Asia hub for refineries, our downstream products are equally in demand, just like their natural gas is also equally in demand by us.

So, I think that mutual dependency serves both on a multilateral basis well; and we continue to build on those.

Of course, to further expand that collaboration, to further expand the uptake, I think that is also a function of the amount of private sector investments that we need to bring alongside with us, because typically, when it comes to the actual negotiation for the pricing, we typically do not get involved and we leave it to the business-to-business sector to be involved in the direct negotiation.

Those are the measures that we have today and I believe that they have served us well all these decades. Like what Deputy Prime Minister has just shared, the world is also changing rapidly. Right now, everyone is looking at "just in case". I believe that as a result of this particular crisis, some degree of scarring is bound to happen and there will be countries who will start to hoard as well.

But I think for us, we continue to remain clear-headed, consistent in the way we deal with all of our neighbours and with all of our partners. We continue to be transparent and maintain our credibility. I believe that it is not just working within the ASEAN framework, it is also working with Northeast Asia partners – Japan, Republic of Korea, China; working with Oceania, which is Australia, New Zealand; working with the Middle East. Because at some point in time, this crisis will also abate, and of course, opening up new markets. That has always been what we have been carrying out all this while.

Mr Speaker: Minister Josephine Teo.

The Minister for Digital Development and Information (Mrs Josephine Teo): Mr Speaker, the Member asked a question about Singapore's cyber defence posture. When a conflict of this nature takes place, naturally, we have to watch out for potential vectors of attack, even if Singapore is not directly involved in the theatre of action.

Having said that, I think there is another type of risk that we have to watch out for even more. That is the risk of misinformation and disinformation that could threaten our social cohesion, when narratives are being put forward that polarise not only the countries that are directly involved in a conflict, but also have a spillover effect on Singapore.

So, with regard to what we are watching out for, yes, cyber defence, but at the same time, misinformation and disinformation that could also give rise to tensions within our society.

Mr Speaker: Minister Balakrishnan, would you like to respond to Mr Fadli Fauzi's earlier question?

The Minister for Foreign Affairs (Dr Vivian Balakrishnan): Thank you, Mr Speaker, and thank you for the question.

Singapore's position on straits used for international navigation is long-standing and consistent. The Strait of Hormuz, just like the Straits of Malacca and Singapore, are examples of straits used for international navigation. No "ifs", no "buts", no questions – as far as we are concerned, it is so.

What is the international law position on these types of straits? And the position is quite clear. There is a right of transit passage. It is not a privilege to be granted by the bordering state. It is not a licence to be supplicated for. It is not a toll to be paid. It is a right of all nations' ships, to traverse. This right is enshrined in the United Nations Convention on the Law of the Sea (UNCLOS), of which Singapore is a signatory and has ratified.

Article 44 of UNCLOS imposes a direct and an unambiguous obligation on states bordering these international straits. And let me quote, it states "states bordering straits shall not hamper transit passage." It also goes on to state there shall be no suspension of transit passage. There is no exception for security. There is no exception for environment. There is no exception for war.

Singapore also takes the position that this right of transit passage, is also part of customary international law. And in case you are wondering why I am nitpicking about "customary international law", it is because there are some other states that may have signed but have not ratified UNCLOS, and I am stating that, so that I am telling you this is not a "get out of jail free" card for states that have not ratified UNCLOS.

So, we have been closely monitoring the situation in the Strait of Hormuz. The Maritime and Port Authority of Singapore remains in close contact with the ship owners, as well as the operators of Singapore-flagged or Singapore-registered ships in the Persian Gulf.

At both the international and regional levels, our agencies are engaging with the stakeholders to explore potential opportunities to facilitate safe transit of the ships.

And do not forget, there is also a humanitarian issue for the workers, for the maritime sailors onboard these ships. This includes engaging the International Maritime Organization (IMO) and the member states on the potential establishment of a safe maritime corridor following the 36th Extraordinary Session of the IMO Council. In addition, we are also engaging regional counterparts on other possible arrangements that may be explored.

You may be wondering why I am taking such a legal and strict definition. It is not because I am particularly obsessed with law but because the Straits of Malacca and Singapore is, in fact, another critical chokepoint. The Member may be aware that, in fact, if you add up all the maritime oil, crude and refined, you might be surprised that actually, more flows through the Straits of Malacca and Singapore than even the Strait of Hormuz.

If we think about global trade, container trade – there has far more flowing through this place. And the most important geographical fact, which most people are not aware of, the narrowest point in the Strait of Hormuz is 21 nautical miles. Guess what the narrowest point in the Straits of Malacca and Singapore is? It is less than two nautical miles.

So, do you understand now why we have to take a categorical position that international law and the UNCLOS is the constitution of the oceans, and this is a right – freedom of navigation as a right and not a privilege for ships and planes. And this is of profound importance to Singapore.

So, to the Member's specific question, yes, I have engaged with the Iranian Foreign Minister before the war. And yes, I am sure I will engage him in the near future. But as a matter of principle, and not because we are taking sides, I cannot engage in negotiations for safe passage of ships or negotiate on toll rates. Because to do so would be implicitly eroding this legal principle.

So, again, this is another example of Singapore upholding principle, not taking sides.

The larger geostrategic backdrop to this is, whether we realise it or not, the world has become more violent and more volatile, and there is a price to be paid for that.

Second, what the Strait of Hormuz has shown is that even in this digital age, chokepoints and physical delivery still matter.

And the third point which we need to register in Singapore is that it is not enough to be an oasis of safety, security, cohesion, wealth and even having the military ability to protect ourselves – because if our region is aflame and with war and missiles flying, no oasis can be safe.

The upshot of these three observations is that there is an insurance premium to be paid. So, let us be upfront with our people, explain the dangers, no sugar-coating, explain what needs to be done, including paying that insurance premium.

We need to alert our people, but not be alarmist. And we have to walk that fine tight rope.

Mr Speaker: Assoc Prof Kenneth Goh.

Assoc Prof Kenneth Goh: Speaker, I just have a question to the Government about medical supplies. How vulnerable are our supply chains for like medical products and pharmaceuticals, and how price-sensitive are these products, given the current crisis?

Mr Speaker: Looks like we are going back to the second bucket. I thought this was actually answered by Minister Ong earlier. But Deputy Prime Minister Gan, if you wish to —

Mr Gan Kim Yong: That is why I was just standing up to say that that question has been answered by Minister Ong already.

Mr Speaker: So, please, Members, if it has already been asked, please do not ask again. It is your duty to stay in the Chamber throughout the Ministerial Statement. Mr Azhar Othman.

Mr Azhar Othman: Thank you, Mr Speaker. I would like to ask a question regarding security. Looking at our situation right now is not that dire, but taking a worst-case scenario, every country tends to look at itself, tends to look inwards. What is the possibility of a country that agreed to supply gas to us suddenly saying it cannot and that it has to supply to their side first? What is the institution we are taking, in terms of MFA's relations with them, in terms of our position of supporting our supply to our own Singaporeans? Maybe I can get some clarification on that, please.

Dr Tan See Leng: Mr Speaker, Sir, in a crisis like this, I understand the angst, the apprehension of everyone, not just in this Chamber, but outside. There are actually many, many different "ifs". I cannot possibly cover every perceivable permutation or conceivable combination that can come up.

As I said, that is why we maintain the stockpile the way we have maintained. We have taken it upon ourselves to make sure that we have provided contingencies for different scenarios – from single geographical chokepoints to multiple geographical chokepoints. And we have sized up, based on the constraints of our own land size, whether it is single geographical chokepoint to multiple geographical chokepoints, that length of time that is required. And as what the Coordinating Minister for National Security opened up earlier on, we are going to increase that stockpile some more.

I think for us, we have done every possible measure. We have taken it upon ourselves to open up every single diversification measure possible and available to us today.

To the Member's point on what if these countries decide to curtail back the gas supply? Today, there are legal provisions that are enshrined. Of course, people can renege everything. I mean, you are talking about a sort of a "Z" scenario where everything happens and there are burning platforms everywhere. I assure you that even at that point in time, we have made provisions. Of course, how long can we survive if everything is taken away, I think that is something that I cannot share with you. And everyone here would understand why I am not at liberty to share this with you.

I hope that the House can appreciate the very delicate balance we are all in today and how we should all be working closely together as one united nation.

Mr Speaker: Mr Lee Hong Chuang.

Mr Lee Hong Chuang: Mr Speaker, indeed, I have two questions: one question in the second bucket and one question the third bucket. But in view of time, I will send the question in bucket two to Minister of State Jeffrey. So, he will look at it. It is more for the logistics sector.

My question in the third bucket is regarding what Minister Vivian has just mentioned. The Strait of Hormuz is undeniably important to Singapore and the wider region due to its role in the global energy flow. I believe the Strait of Malacca is even more critical to us, as one of the world's busiest shipping lanes and a key artery for trade, any disruption there would have immediate and far-reaching consequences for Singapore's economics and supply chains.

This raises an important question for all of us. Has our Government fully internalise the lesson from potential vulnerability in such strategic chokepoints? In particular, are we sufficiently prepared for a scenario where the Strait of Malacca is disrupted, whether through geopolitical tension, blockages or other crises? And do we have robust contingency plans to mitigate the impact?

Dr Tan See Leng: The answer is yes.

5.11 pm

Mr Speaker: With that, we have had almost three-and-a-half hours of debate on the Ministerial Statements. I think all clarifications have been sought and answered, sometimes more than once.

With that, Order. End of Ministerial Statements. I propose to take a break now. I suspend the Sitting and will take the Chair at 5.30 pm. Order. Order.

Sitting accordingly suspended

at 5.11 pm until 5.30 pm.

Sitting resumed at 5.30 pm.

[Deputy Speaker (Mr Christopher de Souza) in the Chair]