Singapore announces $780 Million Package to Cushion Impact of Middle East War
Singapore will provide a package of support worth S$1 billion ($780 millions), including cash and fuel vouchers to help 'offset the impact of the Middle East conflict on the economy, said Senior Minister?of State for finance Jeffrey?Siow. The'measures' are a response to the dramatic rise in fuel costs caused by the Iran conflict. Siow said that the package was more generous than the one put in place in 2022 after Russia invaded Ukraine.
He said that the government was aware of the situation. "We don't know how long the conflict will last and the economic impact it will have, but we are not sure."
The measures include cash giveaways to Singaporeans who qualify, fuel vouchers given to car-hire platform employees, taxi drivers and private-hire drivers, and a corporate tax rebate that has been increased from 40% in the FY2026 Budget announced in February. Gan Kim Yong, Deputy Prime Minister of Singapore, said that early data showed the economy was resilient in the first three months of 2026. However the growth will be affected by conflict. The trade ministry forecasts growth of 2% to 4 percent this year. Gan said that any changes to the prediction would be made after a review next month.
K Shanmugam, Coordinating Minister for 'National Security', noted that Singapore relies on imported natural gases to meet 95% of its energy needs. 9% of the electricity needed this year was expected to be imported from Qatar.
He said that the city-state has not yet 'drawn from its reserves of natural gas and Diesel and is looking to increase them, even though it would be expensive.
He said Singapore, which is the world's third-largest oil-trading hub and sixth largest refinery-export hub, has continued to meet both its domestic fuel needs and international obligations.
He said that the oil trade kept Singapore relevant and allowed us to continue to access crude oil.
The February budget forecasted a fiscal surplus of S$8.5 billion for FY2026 (April to March).
(source: Reuters)
