Singapore is injecting $1 billion into measures to help businesses and citizens cope with the energy crisis stemming from the Iran-Iran conflict, while Gan Kim Yong warns that the economy risks slowing down this year.
April 7, 2569 at 13.30:XNUMX, Bloomberg reported that Singapore has unveiled a relief package worth approximately S$1 billion (around US$778 million) to mitigate the impact of rising energy costs. This is a result of the war in Iran.
The measures, introduced in Parliament, include increasing the corporate income tax refund rate from 40% to 50% (under a specified ceiling) and increasing the cost of living allowance by S$200 for eligible citizens.
Jeffrey Siow, Acting Minister of Transportation It was stated that the current situation has increased public concerns about the cost of living, and the government is still unable to assess how long this crisis will last.
Singapore is considered vulnerable to global energy prices because it relies heavily on imported natural gas for electricity generation. Therefore, volatility in global markets directly impacts the country's economy.
Singapore's Prime Minister Lawrence Wong stated that the government has stepped up its response plan by establishing a ministerial crisis committee to assess risks and ensure energy security.
side Gan Kim Yong, Deputy Prime Minister and Minister of Trade and Industry. Warnings have been issued that Singapore's economy is likely to slow down this year amid pressures from inflation and rising electricity costs.
He stated that, in his capacity as... "Small-scale and highly open economy" Singapore cannot avoid the impact of this crisis, and growth in the next quarter is likely to be affected by the ongoing conflict.
However, preliminary data indicates that the economy remained resilient in the first quarter. The ministry will release preliminary GDP figures on April 14 and revise its economic forecast again in May. Previously, Singapore had revised its GDP forecast for this year upward to 2-4% from the previous 1-3%.
The Deputy Prime Minister stated that some manufacturing sectors have been directly affected, particularly industries that rely on natural gas, crude oil, and petroleum products. Some oil refineries have begun reducing production capacity and turning to importing energy from sources outside the Middle East to mitigate the risks from the uncertainty of the situation.
refer : bloomberg.com
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