Tharman Shanmugaratnam has approved the Government’s spending plans for the coming year at a critical moment — one defined not by stability, but by rising global uncertainty.
This is not business as usual. It is a time that calls for clarity, discipline, and foresight.
A Rapidly Changing Global Landscape
Reflecting on recent developments, President Tharman noted that in just a few short weeks, the global landscape has shifted dramatically. The ongoing conflict in the Middle East and disruptions to vital arteries like the Strait of Hormuz are not distant events — they are immediate economic threats.
The implications are clear: higher inflation, tighter supply chains, and a growing risk of a global downturn.
Beyond Economics: A More Fragile World
But the greater concern goes beyond rising prices or slower growth.
President Tharman points to a more profound shift — a world that is becoming less stable, less predictable, and less governed by rules. The increasing resort to conflict, and the erosion of respect for international law and norms, signal a dangerous drift.
This is the kind of environment that does not resolve quickly. It is a “long storm of global instability” and a more fragile world.
Singapore’s Strategic Buffers
In the face of this uncertainty, Singapore is not without strength.
Years of careful governance have built up significant reserves — not as a luxury, but as a necessity for moments like this. Our national Budgets are not just about meeting today’s needs, but about investing in capabilities that will carry us through tomorrow’s challenges.
Just as importantly, Singapore’s credibility on the global stage gives us options. As a trusted partner, we are able to diversify trade, secure energy supplies, and stay connected even as the world becomes more fragmented.
Upholding the Singapore Way
President Tharman underscored that these strengths reflect a consistent and deliberate approach — the Singapore way.
This means always preparing for uncertainty, continuing to invest in the future of every Singaporean, contributing constructively to a fair, open, and rules-based global system, and standing up for what we believe in – a fair, open and humane world order.
Risks from Prolonged Disruptions
He also cautioned that prolonged disruptions could have far-reaching consequences.
“For every week that the war continues and the Strait of Hormuz remains closed, the higher fuel prices will go and the longer they stay high. But the problems go beyond oil and gas markets. Supplies of fertiliser have been sharply reduced, which will impact food supply and prices, and so too, supplies of many other critical commodities like aluminium and helium that the world depends on.”
Steady and Forward-Looking
In a more turbulent and uncertain world, Singapore must remain steady, resilient, and forward-looking — holding firm to the principles that have guided it through past challenges while continuing to prepare for the future.
