Singapore faces significant energy security challenges stemming from its geographic and demographic constraints combined with recent geopolitical disruptions. As the second-most densely populated country globally after Monaco, the city-state struggles with limited land availability for energy infrastructure while maintaining substantial energy demands. The nation currently sources approximately 65 percent of its energy from imported oil and gas, creating vulnerability to international price fluctuations and supply disruptions.
The military conflict between the United States and Israel in Iran during February highlighted these vulnerabilities when the Strait of Hormuz closed, disrupting a major global energy corridor through which roughly one-fifth of worldwide oil and gas trade typically flows. The closure severely impacted Asian markets, which receive approximately 85 percent of the approximately 18 million barrels per day that transit the strait, leaving Singapore in a precarious position. Rising global energy prices have compounded these pressures on the island nation’s economy and infrastructure.
In response, Singapore’s government has begun pursuing a diversified energy strategy to reduce import dependency. Prime Minister Lawrence Wong stated in May that Singapore’s approach must be “more deliberate, more diversified and more forward-looking than before,” emphasizing that no single solution exists for the nation’s energy needs. The government is simultaneously expanding clean energy imports from neighboring Southeast Asian countries including Lao PDR and Malaysia, though experts caution that importation alone cannot guarantee long-term energy security.
Nuclear energy has emerged as a primary focus of Singapore’s energy transition efforts. The International Atomic Energy Agency is scheduled to conduct an official assessment next year regarding Singapore’s readiness to develop nuclear power capabilities, both through conventional fission technology and potentially through nuclear fusion. Additionally, Singapore announced its intention to become a frontrunner in global nuclear fusion supply chains, leveraging existing expertise in precision engineering, advanced manufacturing, and plasma diagnostics. However, officials have emphasized that no final decisions regarding nuclear deployment have been made, with the government maintaining flexibility as it evaluates various energy pathways.
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