SINGAPORE: The Singapore government is monitoring developments in Iran “closely” and will reassess its GDP and inflation forecasts if necessary, Trade and Industry Minister Gan Kim Yong said on Monday (Mar 2).
Noting the closure of the Strait of Hormuz, a key shipping route for crude oil and liquefied natural gas, Mr Gan said in parliament that global energy prices could rise if the conflict continues.
“Higher energy prices could lead to higher costs for businesses and consumers, and weigh on the global and Singapore economies,” said Mr Gan, who is also Deputy Prime Minister.
“We are monitoring the developments closely and will reassess our GDP and inflation forecasts if necessary.”
Mr Gan was speaking in parliament during a Committee of Supply debate session as part of the Ministry of Trade and Industry.
The Monetary Authority of Singapore (MAS) on Monday said that Singapore’s foreign exchange and money markets are continuing to function normally.
“The Singapore dollar nominal effective exchange rate (S$NEER) remains within its appreciating policy band, which will continue to dampen imported inflationary pressures,” MAS said.
The central bank added that it is closely monitoring developments arising from the ongoing situation in the Middle East and is assessing the impact on the domestic economy and financial system.
“MAS is in an appropriate position to respond, if necessary, to risks to medium-term price stability,” it said.