Post by : Shakul

Manufacturers in Singapore are facing severe financial pressure due to the ongoing energy crisis linked to disruptions in the Middle East. Industry leaders say the current situation is even more challenging than the Covid-19 pandemic, as rising fuel prices are impacting nearly every aspect of production and logistics.

According to business owners, the surge in oil-related disruptions has significantly increased costs across packaging, transportation, production, and freight. Thomas Pek noted that the crisis has created widespread cost inflation, making it difficult for companies to maintain stable pricing.

Pek highlighted that industrial diesel prices have surged sharply, rising from around $1.20 per litre in February to nearly $3 per litre in April. In addition, shortages of PET resin have driven up packaging costs, further adding to the financial strain faced by manufacturers.

As a result, some companies are now considering price hikes. Pek indicated that his company may increase soy sauce prices by 10 to 15 percent if the current cost pressures continue, reflecting the broader impact on consumers.

Raymond Tan explained that many firms are currently managing the situation by relying on existing stockpiles. However, he warned that once these inventories are depleted, the full impact of higher input costs will become unavoidable.

Manufacturers have already begun adjusting their operations to cope with rising expenses, including consolidating deliveries and rescheduling production to reduce fuel consumption. At the same time, freight costs have become increasingly unpredictable due to higher insurance charges and surcharges linked to global risks.

Experts also point to rising fertiliser prices, with global urea costs increasing sharply due to supply disruptions and trade restrictions. This could have a ripple effect on agriculture and food production, potentially leading to further price increases in the coming months.

#Singapore News #Economy #Asia #Business