SINGAPORE: Prime Minister Lawrence Wong said on Sunday (Oct 25) that Singapore expects all parties to commercial gas supply agreements to “honour their commitments”, following Indonesia’s decision to cut exports.

Speaking at the People’s Action Party (PAP) convention, Mr Wong said Singapore’s gas importer would take the necessary steps to protect its rights and interests under those contracts.

Indonesia began reducing natural gas exports to Singapore on Saturday. In response to CNA queries, Indonesian upstream oil and gas regulator SKK Migas said the reduction was intended to divert more supply to domestic electricity needs.

Singapore’s Energy Market Authority said the cut of 31 million standard cubic feet of gas per day represents less than 2 per cent of the country’s total daily gas demand.

About 95 per cent of Singapore’s electricity is generated using natural gas, with a significant share imported through pipelines from Indonesia.

“The gas supplies are covered by commercial contracts. We expect all parties to honour their commitments, and Singapore’s gas importer will take the necessary steps to protect its rights and interests under these contracts,” said Mr Wong, who is PAP secretary-general.

The prime minister added that Singapore has been preparing for such risks, having invested in liquefied natural gas (LNG) terminals that allow it to import gas from different countries without relying on pipelines, giving it more options to manage supply disruptions.

However, Mr Wong said Singapore must look beyond natural gas to cleaner power sources capable of providing reliable electricity around the clock, which is why authorities are studying the potential of nuclear energy.

“Understandably, there are concerns about the safety of nuclear power in a small and densely populated country like Singapore. We take the concerns very seriously. Safety must come first,” he said.

“But we should not rule out an option simply because it is difficult or controversial. We must assess the risks and trade-offs carefully, engage Singaporeans, and eventually make the right decision to secure our energy future.”

From 2027, Singapore will undergo an assessment by the International Atomic Energy Agency (IAEA) to gauge its ability to make an informed decision on adopting nuclear energy. Known as the Integrated Nuclear Infrastructure Review, each phase sets key milestones to guide countries in understanding the commitments and obligations of developing a nuclear power programme.

Mr Wong said dealing with current concerns is only part of the government’s job, and that Singapore must also prepare for tomorrow by anticipating problems and acting before they become harder to solve.

“Consider the economy of the future. It will still be driven by ideas and talent, but computing power will become increasingly important and that requires enormous amounts of energy,” he said.

Strengthening partnerships

In his speech, Mr Wong noted that the world has become more “dangerous and troubled”, with harder challenges, but said Singapore faces these difficulties from a position of strength.

“We remain a trusted partner, and an attractive place for businesses and investors,” he said.

Singapore is proactively strengthening partnerships across regions, with office holders travelling more frequently to build relationships and deepen cooperation. In the past week, President Tharman Shanmugaratnam made a state visit to Sweden, while Mr Wong recently returned from Qatar and the United Arab Emirates.

“These countries are in different parts of the world, but they all see value in working closely with Singapore. That reflects the trust and goodwill we have built over many years,” he said.

Mr Wong said Singapore’s reputation as a reliable partner, trusted hub and country that delivers on its commitments is a vital asset in a fragmented world, helping it attract high-quality investments that support growth, create jobs and raise incomes.

He also noted that some challenges, such as online scams and haze, cross national borders. Singapore is grappling with its worst haze episode since 2015 and has sent notices to 10 Singapore-based firms and 10 Indonesian firms under the Transboundary Haze Pollution Act.

“We cannot solve these problems through our own efforts alone. We need cooperation from other countries,” Mr Wong said.

“But that does not mean we stand by and do nothing. We are doing everything we can within our power to protect Singaporeans, strengthen our own response and work with partners to tackle these problems at source.”

“Built with Singaporeans”

On governance, Mr Wong said the Singapore people want cannot simply be delivered by the government, but must be “built with Singaporeans”.

“That is the partnership we strive for: a PAP Government that listens, acts and delivers. A people who step forward and contribute and a society where everyone looks out for one another,” he said.

While Singaporeans have given the PAP a strong mandate for another term, Mr Wong said this mandate is not an entitlement but a responsibility to deliver on promises, tackle difficult issues and prepare Singapore for the future.

“That is why we must never take the trust of Singaporeans for granted. After all, no political party has a permanent claim on that trust,” he said.

“Every generation of PAP leaders and activists must earn it afresh. We know what is expected of us. We must listen and deliver. We must hold ourselves to high standards, and we must always put Singapore and Singaporeans first.”

Mr Wong noted that while some sectors of the economy are doing well, others face pressures. Some workers are benefiting from new opportunities, while others struggle to keep up. Lower-wage workers worry about rising costs, and Singaporeans in their 40s and 50s who lose their jobs worry about finding work again.

“We understand these concerns and we will respond to them. Our task is not just to keep the economy growing. It is to make sure that growth translates into better lives for all Singaporeans,” he said.

He added that the government is doing more to ease the burden on parents and give families greater assurance, as seen in measures introduced at this year’s National Day Rally.

Mr Wong acknowledged the government has a full agenda, including tackling cost-of-living pressures and helping Singaporeans secure better jobs, but said everyone has a part to play.

“We will create opportunities and support workers through change, but workers must be prepared to learn and adapt,” he said.

“We will reduce the emphasis on exams and broaden education pathways, but parents must give their children space to grow at their own pace.

“We will strengthen support for families and seniors, but all of us must also look out for one another.”