Manufacturing is one of Singapore’s pillar industries and is highly dependent on energy imports. According to the Singapore Manufacturers Association (SMA), the recent Middle East conflict has impacted sectors such as crude oil refining, petrochemicals, and semiconductors within Singapore’s manufacturing sector.
As the world’s third-largest oil refining center and a major oil trading hub, Singapore’s refining industry is heavily reliant on Middle Eastern crude oil supplies. Following the Middle East conflict, there have been numerous delays and cancellations of crude oil deliveries from the Gulf region, leading to a significant drop in the operating rates of Singapore’s refining companies.
The SMA President stated: “It is estimated that with the recent rise in oil prices, the costs for energy-intensive enterprises have increased by approximately 2% to 6%. Due to insufficient crude oil supply, many refineries are currently operating at only around 50% to 60% capacity utilization. This has disrupted the supply chain and affected operational efficiency.”
The continued rise in fuel prices has led more consumers to favor electric vehicles. Coupled with Singapore government subsidies and policy guidance, electric vehicle sales in Singapore have continued to grow.
The SMA President stated: “We have indeed seen significant growth in electric vehicles. In fact, according to our understanding, about half of the new cars purchased by consumers in the past year were electric vehicles.” On the 2nd, Singapore Prime Minister Lawrence Wong said that the Singapore government will take more action to mitigate the impact of the Middle East conflict on Singaporean families and businesses.