‘Worse than Covid-19 pandemic’: Local food manufacturers on fallout from Middle East energy crisis – The Straits Times

Singaporean businesses and food manufacturers are facing severe financial strain as the Middle East energy crisis drives up electricity rates and commodity prices, with some operators describing the fallout as worse than the Covid-19 pandemic.

Rising Operational Costs for Businesses

Electricity prices for Singapore businesses are increasing as retailers raise their rates. This spike is attributed to climbing tariffs linked to the conflict involving Iran.

The food and beverage sector is particularly hard hit. Chef Bob reported that his eateries are “bleeding” due to soaring costs, specifically noting that cooking oil prices have risen by 54%.

Local food manufacturers have expressed that the current economic pressures stemming from the energy crisis have surpassed the difficulties experienced during the Covid-19 pandemic.

Calls for Policy Intervention

The PSP has stated that current support measures are inadequate to address the pressures caused by the Middle East conflict. The party is calling for the implementation of targeted relief and jobs reform.

The crisis has also prompted discussions regarding energy conservation among the public, including polls on whether residents will set their air-conditioners to at least 25°C to manage energy consumption.