Singapore, May 1: Singapore’s Prime Minister Lawrence Wong has warned that supply disruptions caused by the ongoing Middle East crisis may persist for several months. He indicated that the situation could worsen, increasing the risk of recession for several economies.
Addressing a May Day rally, Wong stated, “Global inflation will rise, starting from energy to food items and then to other essential goods. Some economies may fall into recession, and this will directly impact Singapore.”
He emphasized that even if the Strait of Hormuz reopens, it would be incorrect to assume that the crisis will 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 noted, “It will take at least several months for the situation to normalize.” He mentioned that the Strait of Hormuz has been closed for over two months, leading to rising prices and tightening supplies. 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 will not be limited to energy alone; the supply of fertilizers, food items, and other essential raw materials may also be impacted. He predicted that Singapore’s economic growth will slow this year, while inflation will rise, exerting real pressure on businesses, workers, and families.
Meanwhile, United Nations Secretary-General Antonio Guterres has also 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. Now is the time for dialogue, solutions, and steps towards peace.”
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