Singapore businesses to brace for higher energy costs, supply chain disruption from Gulf conflict

[SINGAPORE] The conflict between the US, Israel and Iran will likely result in higher costs for businesses on volatile energy prices, disrupting supply chains, said observers.

“The escalation of conflict in the Middle East is a concern for Singapore businesses, less because of direct exposure to the region, but because of its impact on global energy markets, shipping routes and business confidence,” said Kok Ping Soon, CEO of the Singapore Business Federation (SBF).

As a highly open and trade dependent economy, Singapore is vulnerable to external shocks, with effects quickly transmitted through higher logistics costs, energy price volatility and supply chain disruptions, he added.