Senior Minister Lee Hsien Loong stated on Saturday that escalating tensions in the Middle East will inevitably impact global energy prices and affect countries far from the conflict zone, including Singapore. He noted the recent escalation involving Iran and the significant US military presence in the region, creating an atmosphere of deep uncertainty.
Mr. Lee also highlighted the unpredictable nature of US trade policies, specifically mentioning tariffs that have seen rapid changes in short periods. This climate of instability makes it exceedingly difficult for businesses worldwide to plan investments and operations, directly impacting Singapore's open economy, which relies heavily on global trade and investment.
Speaking at a Chinese New Year celebration, Mr. Lee assured that the Singaporean government is preparing to support its citizens and businesses. Prime Minister Lawrence Wong's recent Budget statement outlined measures to assist workers, households, and vulnerable groups, including cost-of-living support payments, CDC vouchers, and enhanced U-Save rebates.
Despite Singapore's economy growing 5 percent last year, Mr. Lee stressed the need for continued vigilance. He emphasized the government's commitment to strengthening the economy, particularly by supporting Singaporean workers in acquiring new skills, such as artificial intelligence. He urged individuals and companies to proactively upgrade, learn new skills, and transform their businesses to remain competitive amidst global challenges.