I was watching Singapore’s National Day Rally Speech by Prime Minister Lee Hsien Loong yesterday evening where he mentioned oil as one of two examples (the other being terrorism) which will derail Singapore from its economic growth projections:

It’s because of the uncertainties in the Middle East, that is why today oil is $70+ a barrel, and in Singapore, electricity is expensive and bus fares have to go up. It’s not that there’s not enough oil, it’s the fear, the uncertainty, the risks that’s keeping the oil prices high and hurting us. But if something goes wrong in the Middle East, and there is a flare up, oil prices will not stay at $70, it may go to $120, it may double to $150. I think it will have a very big impact on us. It will have a big impact on the whole world, create a global recession. We have to be psychologically prepared for that.

The PM then mentioned how the government will help the poor pull through these difficult times. Next, he talked about how the economy will be affected:

But, as a economy as a whole, if this happens and there is a oil crisis, a oil shock, then we will have to work together and pull through. As we’ve pulled through after the Asian Crisis, as we’ve pulled through after 9-11. Working together, cutting costs, showing that we are different. And, making the adjustments we have to make, to make ourselves competitive again.

On the whole, I am very glad that the oil crisis has been singled out by our Prime Minister in his speech. It means the government has taken notice. Hopefully, we will see the following from our government:

  • Establishing a terms of reference for oil crisis – what exactly is the kind of oil crisis that we are preparing for.
  • Engaging energy consultants (e.g. Dr Samsam Bakhtiari, Dr Colin Campbell)
  • Rollout a national educational campaign on the oil crisis
  • Implement green/sustainability/relocalisation programmes
  • Etc…