Middle East conflict disrupts energy supply, Singapore manufacturing industry hit hard

Manufacturing is one of Singapore’s pillar industries and is highly dependent on energy imports. According to the Singapore Manufacturing Federation, affected by the recent Middle East conflict, sectors such as crude oil refining, petrochemicals, and semiconductors in Singapore’s manufacturing industry have been impacted. As the world’s third-largest refining center and an important oil trading hub, Singapore’s refining industry relies heavily on Middle Eastern crude oil supplies. Since the outbreak of the Middle East conflict, a large number of crude oil deliveries from the Gulf region have been delayed or canceled, causing a significant drop in the operating rates of Singapore’s refineries. Singapore Manufacturing Federation President Chen Zhanpeng stated that with recent oil price increases, the costs for energy-intensive companies have risen by approximately 2% to 6%. Due to insufficient crude oil supplies, many refineries are currently operating at only about 50% to 60% capacity. This has disrupted supply chains and affected operational efficiency. (CCTV News)