SINGAPORE: A social media account recently received a lot of attention when it noted how well Singapore is faring in comparison to other countries in the region amid the global energy crisis.
“Why is Singapore so calm when the rest of APAC is panicking?” is how a March 31 post on an Instagram account called pov.singapore began.
This calmness and stability are based on Singapore’s backup plans for emergency scenarios, which bolster the city-state’s reputation as a reliable energy hub in the region, the author of the post opined.
The conflict in the Middle East has resulted in the effective closure of the Strait of Hormuz, through which 20% of the world’s fuel supply transits. Before the war, four-fifths of this supply normally went to Asia, which means that countries in the region have had to scramble to obtain fuel. At the same time, the price of oil has gone up by 50% to 70% since Feb 28, when the war started.
“From Pakistan to New Zealand, most countries are facing fuel shortages, forcing petrol stations to close and local flights to be cancelled,” the post reads, adding that even “relatively oil-rich Malaysia and Indonesia are feeling the pressure.”
Indeed, country after country in the Asia Pacific region has suffered the effects of the energy emergency, and while Prime Minister Lawrence Wong warned last week of coming hard times and the government has released additional targeted support, Minister for Home Affairs K Shanmugam said this week that Singapore has sufficient fuel and food reserves and there is no need for rationing or restrictions for now.
pov.singapore also noted that “even such a big country” as Australia has needed Singapore amid the fuel crisis, and added that Singapore has the advantage of being ready for emergencies. It explained that the city-state’s power generation companies must have at least 60-day reserves of gas or diesel and that there are always around 50 to 70 million barrels of oil and its derivatives that can be used in emergencies and can last for six months.
Moreover, Singapore’s power stations can run on either natural gas or diesel and can switch between the two, giving it a wider choice of suppliers, which means it’s less dependent on a single fuel.
All of these “multi-layered measures” are not just to keep Singapore running in cases of emergency, but also uphold its reputation “as a reliable energy hub for the rest of the Asia-Pacific region,” the post author wrote, adding, “This is why we need a backup plan for every scenario.” /TISG
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