Impact of Middle East Conflict on Singapore's Trade, Investments and Cooperation Initiatives with Regional Countries
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the tangible impact of the Middle East conflict on Singapore's trade, investments, and economic cooperation initiatives. Mr Saktiandi Supaat asked about project delays, viable sectors for cooperation, and plans to sustain long-term economic engagement with the region. Minister Dr Tan See Leng responded that while firms are managing uncertainties by buffering inventory, diversifying routes, and delaying expansions, government engagements remain active. Singapore continues negotiating an upgraded Bilateral Investment Treaty with Saudi Arabia and pursuing partnerships with the United Arab Emirates in areas like energy resilience, water sustainability, genomics, and space. Additionally, Singapore is supporting businesses through overseas centres in Riyadh and Dubai while advancing plurilateral trade initiatives, including the Future of Investment and Trade Partnership, CPTPP, and DEPA.
Transcript
44 Mr Saktiandi Supaat asked the Minister for Trade and Industry (Energy and Industry) (a) what tangible impact has the Middle East conflict had on Singapore's trade, investment and economic cooperation initiatives with countries in the region since February 2026; (b) whether any agreements, investment missions or projects have been delayed, suspended or cancelled; (c) which sectors of cooperation remain most viable despite the conflict; and (d) how Singapore intends to sustain its longer-term economic engagement with the region.
Dr Tan See Leng: The ongoing conflict in the Middle East has introduced uncertainties, which our companies are factoring into their plans. According to a survey done by the Singapore Business Federation (SBF) in April 20261, firms are actively adapting to the heightened uncertainty, taking measures which include inventory buffers, diversifying suppliers or routes and delaying investment or expansion plans in the region.
Singapore remains confident in the economic potential of the Middle East and are maintaining the momentum of our government engagements. For example, we are continuing our negotiations to upgrade our Bilateral Investment Treaty with the Kingdom of Saudi Arabia, and are exploring collaboration in the built environment and connectivity sectors. We are cooperating with the United Arab Emirates (UAE) across areas, such as water sustainability, genomics and space collaboration. We are also engaging our partners in the Middle East on ways we can support each other's energy resilience.
Singapore companies are also identifying new opportunities in sectors, such as infrastructure and logistics. We will continue to support Singapore businesses through Enterprise Singapore's overseas centres in Riyadh and Dubai, and SBF's Singapore Enterprise Centre in Dubai.
Beyond bilateral cooperation, Singapore and the UAE are working to advance plurilateral trade and investment initiatives. Both are members of the Future of Investment and Trade Partnership (FITP), which recently expanded to 19 economies. The UAE will host the next FITP Ministerial Meeting in early 2027. Singapore is also engaging the UAE as it seeks accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the Digital Economy Partnership Agreement.