Senior Minister Lee Hsien Loong speaking at a Chinese New Year dinner at Teck Ghee Community Club on Feb 28, 2026. (Prime Minister Office’s Singapore)
On February 28, Senior Minister Lee Hsien Loong warned that conflict involving Israel, the United States and Iran will raise global energy prices and increase uncertainty, affecting countries like Singapore. He also highlighted instability in US tariff policy, with a flat 10% tariff briefly raised to 15% before reverting it back, creating difficulties for global business planning. Although Singapore’s economy grew by 5% in 2025, Lee stressed that the country remains vulnerable as a small, open economy. The government, led by Lawrence Wong, has introduced cost-of-living support and is strengthening long-term resilience through skills upgrading and digital transformation.
Firms should prepare for sustained energy cost pressures, currency and trade volatility, and weaker global demand. Greater emphasis on financial prudence, diversified supply chains and scenario planning will be crucial. Companies should accelerate productivity improvements, digital adoption and AI capability-building to offset rising costs and remain competitive amid prolonged geopolitical and policy uncertainty.
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