Singapore, May 1: Singapore’s Prime Minister Lawrence Wong warned on Friday that supply disruptions caused by the Middle East crisis could persist for several months. He indicated that the situation could worsen, increasing the risk of recession for many economies.
Addressing a May Day rally, Wong stated, “Global inflation will rise, initially affecting energy and food items, and then extending to other essential goods. Some economies may enter recession, which will directly impact Singapore.”
He emphasized that even if the Strait of Hormuz reopens, it would be premature to assume the crisis would end soon. Damage to ports and energy infrastructure, the removal of mines from maritime routes, and the restoration of trade confidence will take time.
Wong remarked, “It will take at least several months for the situation to normalize.”
He noted that the Strait of Hormuz has been closed for over two months, leading to price increases and tightening supply. Asia has been particularly affected, as many economies in the region rely on energy and essential imports from Gulf countries.
He added, “Some countries in our region are already experiencing fuel shortages. Airlines are reducing flights, and factories are reporting delays.”
Wong warned that the crisis would not be limited to energy alone. The supply of fertilizers, food items, and other essential raw materials could also be impacted.
He predicted that Singapore’s economic growth would slow this year, while inflation would rise, placing real pressure on businesses, workers, and families.
Meanwhile, United Nations Secretary-General Antonio Guterres stated that the Middle East crisis is becoming increasingly severe and that dialogue is needed to pave the way for peace.
Guterres wrote on X, “With each passing hour, the consequences of the Middle East crisis are becoming more serious. It is time to take steps towards dialogue, solutions, and peace.”
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