Prime Minister Lawrence Wong says a prolonged Strait of Hormuz closure would severely impact global trade, food supplies and energy, risking a worldwide economic downturn.
SINGAPORE: Prime Minister Lawrence Wong has issued a stark warning that a prolonged blockage of the Strait of Hormuz would have severe consequences for the global economy, potentially tipping it into a recession.
Speaking at a news conference in Japan, Wong stated the impact extends far beyond disruptions to oil and gas supplies.
He highlighted that the supply of critical commodities like fertiliser would be impacted, creating downstream effects on global food security.
“Even if the military operations were to stop, but the Strait of Hormuz continues to be blocked for a longer stretch, I think there will be severe consequences for the entire global economy,” he said.
Wong emphasised that the Singapore government is closely monitoring the conflict in West Asia.
He said authorities are prepared to implement additional support measures for citizens and businesses if the situation deteriorates.
For now, households and businesses will feel the effects of measures already announced under Budget 2026, including utility rebates and business assistance.
“We are looking at all the different possibilities and contingencies that can happen, but if the need arises, then we stand ready to roll out and implement additional measures beyond what had been announced,” he added.
The Prime Minister assured that the government has the resources to act decisively and quickly to support the economy.
