The Authorities’s “preliminary evaluation” is that the quick and direct influence of the invasion of Ukraine on Singapore’s economic system and companies has been “manageable for now”, mentioned Mr Gan.
Singapore corporations have a “restricted presence” in Ukraine, and it doesn’t import many important provides from Ukraine and the area, he famous.
To handle provide chain dangers, particularly for important items, Singapore has diversified its imports and established stockpiles.
The nation additionally produces items domestically the place viable, and works with main importers and retailers to ramp up provide from various sources if needed, mentioned Mr Gan.
“Having mentioned that, the battle continues to be evolving, and the state of affairs might change in a short time. Make no mistake that whereas Ukraine could seem far-off from Singapore, the battle there could have actual and vital influence on all of us,” he instructed the Home.
Earlier in Parliament, Overseas Affairs Minister Vivian Balakrishnan introduced that Singapore will impose sanctions on Russia because of the “unprecedented gravity” of the state of affairs.
The measures will embody imposing export controls on objects that can be utilized immediately as weapons in Ukraine, and blocking sure Russian financial institution and monetary transactions linked to Russia, he mentioned in a ministerial assertion.
Whereas the Ukraine disaster has “clouded” Singapore’s financial outlook, the precise influence on GDP development and inflation is “tough to estimate” now given the uncertainties, mentioned Mr Gan.
“So much will rely upon how the battle unfolds, the worldwide response to the state of affairs, and the longer-term influence on the worldwide economic system,” he added.
“Nonetheless, what is evident is that inflationary pressures are prone to rise additional within the close to time period, particularly by way of a rise within the costs of oil-related objects within the first occasion. The draw back dangers to our economic system have additionally elevated considerably.”
Noting that companies are “understandably involved”, Mr Gan mentioned many have been wanting ahead to “experience the wave of a robust restoration” within the world economic system this yr.
“The battle has added appreciable volatility and stress on what’s an already difficult enterprise surroundings, arising from provide chain disruptions, increased electrical energy and gasoline costs and a good labour market. Households have been equally affected by these inflationary pressures,” he added.
The Authorities will proceed to watch the state of affairs intently and introduce extra measures to assist companies and households deal with the challenges if needed, mentioned the Commerce and Trade Minister.
“The battle in Ukraine is a stark reminder that as a small nation and open economic system, we’re susceptible to the vagaries of worldwide developments, be they army battle, world inflation or provide chain disruptions, or different developments like expertise and local weather change,” mentioned Mr Gan.
“It’s essential that we strengthen our defences towards such exterior shocks. And to do this, we have to construct a vibrant, diversified and resilient economic system, in addition to forge a cohesive and united society.”