S'pore preparing possible contingencies, strengthening supply chain amid Hormuz blockage: PM Wong

A prolonged blockage of the Strait of Hormuz could affect Singapore’s supply chains beyond fuel prices, with officials already preparing contingency plans and studying ways to strengthen energy resilience, Prime Minister and Minister for Finance Lawrence Wong said on Mar. 28 during a media doorstop in Hong Kong.

Speaking at the end of his official visit to Hainan and Hong Kong, PM Wong also said that it has always been Singapore's approach to engage major powers, deepen cooperation and look for win-win outcomes.

His trip included attending the Boao Forum for Asia in Hainan, where Singapore, as one of its founding members, marked the forum's 25th anniversary, and his first visit to Hainan since the province began full independent customs operations as a free trade port.

Monitoring impact of Middle East tensions

PM Wong said Singapore is closely watching developments in the Middle East, particularly the risk of prolonged situation in the Strait of Hormuz.

He added that a prolonged blockage would affect not just the oil markets, but in diesel, which is used for various industries, in jet fuel, which is used for aviation.

“So we are monitoring all these very closely, and meanwhile, our officials are also working very hard to prepare for all possible contingencies and to look at ways to strengthen our energy and supply chain resilience.”

He said this includes looking at how Singapore can diversify energy supply sources, given that the country depends heavily on imported energy.

PM Wong cited Australia as one example of a reliable supplier of liquefied natural gas to Singapore.

He also said that officials are working hard to prepare for all possible contingencies, and are looking at ways to strengthen Singapore's energy and supply chain resilience.

More updates are expected during the upcoming Parliament sitting in April.

Open engagement with all major powers

Responding to questions about attending the Boao Forum shortly after his Japan work trip, PM Wong said the timing was not pre-planned, but reflected Singapore’s broader approach of maintaining close ties with both countries.

While acknowledging that China and Japan are going through a "difficult phase" in their relations, PM Wong said Singapore intends to remain friends with both, along with other major powers.

“We want to be friends with all of them — China, Japan, America and others.”

He added that this is not unique to Singapore, but reflects ASEAN’s wider position of keeping the region open and inclusive through active engagement with all major powers.

Hong Kong-S’pore rivalry

PM Wong also addressed the longstanding competition narrative between Singapore and Hong Kong, saying the familiar narrative of rivalry between the two cities is becoming less relevant.

He said media coverage often frames gains by one city as losses for the other, particularly in the financial sector, but argued that both economies have evolved in different directions over time.

“But both Hong Kong and Singapore, in a way, are gateways to different Hinterlands. For Hong Kong, it is to the wider Chinese domestic market. For Singapore, it is to Southeast Asia.

“So we also have complementary roles, and if we combine our strengths together, I think we can both be complementary hubs for the entire region and add to the resilience and vibrancy of this entire region.”

According to PM Wong, this opens up room for practical cooperation in areas such as research, innovation, tourism and civil service exchanges.

He added that Singapore is also exploring how it can participate in new projects in Hong Kong, including the Northern Metropolis development.

New opportunities with China in AI

Beyond Hong Kong, PM Wong said Singapore will continue exploring new areas to collaborate with China.

“We will look at different new opportunities, [...] exploring further collaboration in new areas, like artificial intelligence, science and technology, and the green economy, to complement what China itself is doing in its new 15th Five-Year Plan.”

PM Wong said Singapore remains confident in China’s long-term prospects and will continue to invest there, while also studying new opportunities in places such as Hainan.

He added that each visit to China serves as a reminder of how quickly developments are taking place, and why Singapore cannot afford to stand still.

Top images via MDDI