Ministerial committee to tackle energy crisis, wider supply shocks from Middle East conflict: Shanmugam
"Inevitable" price increases for food and other products are among the issues the Homefront Crisis Ministerial Committee is dealing with, said Mr Shanmugam.
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SINGAPORE: A ministerial committee convened to respond to the ongoing Middle East conflict will focus not just on energy disruptions and rising fuel prices, but also the wider supply shocks, security and diplomacy issues arising from the conflict, Coordinating Minister for National Security K Shanmugam has said.
Outlining the broad scope of the committee's work on Saturday (Apr 4), Mr Shanmugam gave the example of how there could be "inevitable price rises" for food and other products affected by supply disruptions.
Mr Shanmugam was giving the media his first update as chair of the Homefront Crisis Ministerial Committee, which was announced on Thursday.
The committee was convened by Prime Minister Lawrence Wong to coordinate Singapore’s response to energy disruptions. The conflict in the Middle East constrains shipping through the Strait of Hormuz, which Mr Shanmugam said has affected a significant part of the world's supply of oil and gas.
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"It's not clear when that situation will change, and even when the war stops very soon, doesn't mean supply disruptions will go away," Mr Shanmugam said to the media at a community event in Chong Pang.
Mr Shanmugam said the Homefront Crisis Ministerial Committee has been stood up for "a few weeks", and has been working with an executive group comprising permanent secretaries and heads of various government agencies.
Deputy Prime Minister Gan Kim Yong acts as adviser to the committee.
The committee also comprises the Ministry of Sustainability and the Environment for food issues, the Ministry of Trade and Industry for energy issues, the Ministry of Foreign Affairs, the Ministry of Defence and the Ministry of Home Affairs.
The committee's structure was set up many years ago, and it is activated in times of crisis, said Mr Shanmugam, who is also Minister for Home Affairs. It reports to the Cabinet.
KNOCK-ON EFFECTS
Aside from prices of fuel, food prices will also be affected, he said.
"One obvious area related will be food because we import everything. Fertiliser prices have to go up. And the cost of bringing those food products, transportation to Singapore, that will go up. It will have an impact," he said.
Mr Shanmugam did not provide more details, but said parliament will discuss the committee's efforts in more detail when it sits next week.
"It's a serious situation all around the world. You've seen in many parts of the world, many countries have taken measures to cut back on use of electricity, use of fuel.
"We haven't taken those measures yet, and we will explain how we approach it," said Mr Shanmugam.
Manpower Minister Tan See Leng said on Mar 11 that Singapore’s stockpile of liquefied natural gas and diesel is "enough to last for months".
Beyond economic and supply chain issues, Mr Shanmugam said the committee is also assessing the implications for Singapore's security and diplomacy.
"That's why you have an inter-ministerial committee," he said in response to a question on why the committee is being convened now.
On the need for coordination, he said the government must be ready to manage the impact on the ground. "If the lights go off and you haven't thought about fuel, and you haven't thought about how you're going to keep the electricity going, your businesses going."
Delivery riders, for example, are also facing higher costs, he added.
"The government is there to deal with these issues," said Mr Shanmugam.
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