Global uncertainty over security will affect jobs, wages and prices in S'pore: Chan Chun Sing

An increasingly volatile global security environment will reinforce economic uncertainty, which will have implications on jobs, wages and prices in Singapore, said Defence Minister Chan Chun Sing.

- Ng Wei Kai

Developments on the security front are closely intertwined with the economy, Mr Chan told reporters on June 25 in an interview with local media ahead of SAF Day on July 1.

When businesses see greater uncertainty, they are less likely to invest — leading to fewer jobs.

Mr Chan cited the conflict in Iran, which escalated in mid-June with Iran and Israel trading air strikes.

The US has waded into the fray, bombing Iranian nuclear facilities on June 22.

"If you look at the Iran conflict, the volatility of the oil prices feeding into the economic system — that again caused quite a lot of uncertainty and perturbations," he said.

The war in Ukraine, which began with Russia's full-scale invasion in 2022, has also disrupted the global supply chain for many food products.

Such disruptions are likely to increase prices, Mr Chan said.

"If prices go up, jobs go down, wages don't grow," he added, noting that the impact of such wars should not be underestimated.

Positioning Singapore as an "oasis of calm" amid the global volatility requires tremendous effort, he said.