Singapore has announced nearly S$1 billion in new economic support to help businesses and households cope with rising costs due to the Middle East conflict.
The move comes as energy and electricity prices surge due to global disruptions. The government aims to prevent broader inflation and growth impacts by acting early.
Key measures include cash assistance for workers, temporary aid for essential services, expanded energy-efficiency programs, and accelerated CDC vouchers for households.
Economists warn that inflation expectations are critical. Without stable expectations, cost pressures could become embedded in behavior and policies, making them harder to reverse.
This package reflects a proactive strategy to manage both inflation risks and slowing growth, especially in light of ongoing uncertainty in the Middle East.
Chua Yeow Hwee, Assistant Professor at Nanyang Technological University, emphasizes the importance of early intervention to anchor expectations and mitigate long-term economic damage.