Ministerial statement: Gan Kim Yong on impact of Middle East situation on Singapore
Singapore’s economic growth in the coming quarters is likely to be affected by the fallout from the ongoing Middle East crisis and the GDP forecast will be updated next month, said Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong. Kicking off three ministerial statements in parliament on Tuesday (Apr 7), Mr Gan said overall inflation for 2026 is also expected to be higher than the earlier projected 1 per cent to 2 per cent. The Iran war has driven up global energy and commodity prices and if the conflict persists, rising import prices could add further pressure. Households will feel the impact, with lower-income groups hit harder as they spend a larger share on essentials. The Monetary Authority of Singapore will take these developments into account when it releases its inflation outlook on Apr 14. Mr Gan said Singapore must be prepared for the effects of the crisis to persist for some time, while what is even more worrying is the risk of escalation slowing global growth and pushing up inflation worldwide. However, he said if Singapore stays disciplined and uses this period to sharpen its competitive edge, it will be well-placed to not only weather the crisis, but emerge stronger from it.
Singapore’s economic growth in the coming quarters is likely to be affected by the fallout from the ongoing Middle East crisis and the GDP forecast will be updated next month, said Deputy Prime Minister and Trade and Industry Minister Gan Kim Yong. Kicking off three ministerial statements in parliament on Tuesday (Apr 7), Mr Gan said overall inflation for 2026 is also expected to be higher than the earlier projected 1 per cent to 2 per cent. The Iran war has driven up global energy and commodity prices and if the conflict persists, rising import prices could add further pressure. Households will feel the impact, with lower-income groups hit harder as they spend a larger share on essentials. The Monetary Authority of Singapore will take these developments into account when it releases its inflation outlook on Apr 14. Mr Gan said Singapore must be prepared for the effects of the crisis to persist for some time, while what is even more worrying is the risk of escalation slowing global growth and pushing up inflation worldwide. However, he said if Singapore stays disciplined and uses this period to sharpen its competitive edge, it will be well-placed to not only weather the crisis, but emerge stronger from it.
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