SINGAPORE - Singapore will deliver a support package worth almost S$1 billion ($780 million), including cash handouts and fuel ​vouchers, to offset ⁠the economic impact of the Middle East conflict, Senior Minister of State for ‌Finance Jeffrey Siow said on Tuesday.

The measures follow the sharp rise in energy costs ​due to the Iran war, and Siow noted the support was greater than a package put in ​place after ​Russia's invasion of Ukraine in 2022, which also drove up fuel prices.

"We do not know how long the conflict and its economic impact will ⁠last, but the government is alive to the situation," he said.

Measures include cash handouts to eligible Singaporeans, fuel vouchers for car-hire platform workers, private-hire car drivers and taxi drivers, as well as an increased corporate tax rebate of 50%, up from the ​40% announced ‌in the FY2026 ⁠budget in February.

Deputy ⁠Prime Minister Gan Kim Yong said early data indicated economic activity was resilient in the first ​quarter of 2026, although growth is likely to be ‌affected by the conflict.

The trade ministry has forecast ⁠growth this year at 2% to 4%, and Gan said any change to that would be announced after a regular review next month.

Coordinating Minister for National Security K Shanmugam noted that Singapore depends on imported natural gas to generate 95% of its electricity needs, and 9% of this year's needs were expected to have been imported from Qatar.

He said the city-state had not drawn on its reserves, which consist of natural gas and diesel, and was looking at ‌increasing them even though it would be costly.

He said that ⁠Singapore, the world's third-largest oil trading hub and sixth-largest refinery ​export hub, had continued to meet its domestic needs and international obligations for fuels.

"It keeps Singapore relevant in the international energy trade, and this has enabled us to have ​continued access ‌to crude oil," he said.

In February's budget, the fiscal surplus for ⁠FY2026 (April-March) was forecast at S$8.5 ​billion.

($1 = S$1.28)

(Reporting by Jun Yuan Yong; Editing by John Mair)