Singapore Economy Set to Slow as Hormuz Closure Disrupts Global Supply Chains, PM Warns

01/05/2026

SINGAPORE CITY, May 1: Singapore’s Prime Minister Lawrence Wong has cautioned that the country’s economic growth will slow this year amid ongoing disruptions caused by the closure of the Strait of Hormuz, triggered by the US-Israeli war involving Iran.

Speaking during a May Day address, Wong warned that the conflict is unlikely to end soon, with supply chain disruptions expected to intensify in the coming months. He noted that Asian economies, including Singapore, are particularly vulnerable due to their heavy reliance on energy and essential imports from the Gulf region.

Wong highlighted that several countries are already experiencing fuel shortages, while airlines have reduced flights and factories are facing production delays. He also warned of rising global inflation, beginning with energy costs and potentially spreading to food and other essential goods.

“Some economies may well slip into recession, and Singapore will feel the impact directly,” he said, adding that higher inflation and slower growth would place increased pressure on businesses, workers and households.

While Wong did not provide updated figures, Singapore’s trade ministry had earlier forecast economic growth of 2.0 to 4.0 percent for the year, up from a previous estimate of 1.0 to 3.0 percent.