Singapore’s Strait Stalemate
Issue 43 — Key Developments Across the Philippines, Singapore, and Vietnam
Editor’s Note
by Karen Ysabelle R. David, Lead Editor - Pacific Corridor Desk
More than a month into the war in Iran, the countries of the Pacific Corridor are still grappling with the blowback of a distant conflict. For the small city-state of Singapore, there is little it can do about the closure of the Strait of Hormuz aside from diplomatic overtures. Just like most of the rest of the world, it is locked in a stalemate by a war it did not ask for and one that it has no stakes in.
The repercussions of the war are being felt not just by states. In the Philippines, ordinary Filipinos are buckling under the strain, as round after round of fuel price hikes have led to higher transportation costs that are beginning to spill over to the cost of everything else. In response, the Philippine government has turned to stopgap measures to try and alleviate the problem.
Meanwhile, in Vietnam, a look at the start of a new regulatory era for its property sector. Can new laws put into place succeed in turning a long-languishing sector into an economic driver for the country?
Singapore 🇸🇬
Singapore’s Navigation of the Strait
by Nurul Aini, in Singapore
When a disruption happens someplace far away from the nation, there are two possible responses: 1) to dismiss such events as beyond our domain of concern and relegate it to yet another event in foreign affairs; or 2) to care but only to the extent of their practical implications on our daily lives. The latter is an understandable reaction, especially for many who are trying to survive with the high cost of living while juggling daily responsibilities. The closure of the Strait of Hormuz tests the awareness, principles, and adaptability of a small nation like Singapore to a changing world order.
In a statement made by Prime Minister Lawrence Wong on 19 March 2026 regarding the Middle East conflict, he reiterates that a break in international law, which may be perceived as an abstract issue, could signal grave tangible implications for small states, as countries become more inclined to use force as a means to gain rather than through peaceful engagements.
Additionally, in a doorstop interview in Japan, Wong spoke about navigating through historical sensitivities in the name of diplomacy, as he hopes that Japan can, “clearly articulate its position on these issues and put to rest these outstanding historical issues.” He explained that Singapore-Japan relations are part of maximizing strategic space, all while emphasizing ASEAN centrality with “an open and inclusive regional architecture with ASEAN at the center, while we in ASEAN engage with all the major powers,” thus making for “a stabler and more inclusive architecture that will maximize our chances for peace and shared prosperity.”
Lawrence Anderson, a former Singapore diplomat, foregrounds the importance of recalibration, where increased cooperation with regional and extra-regional partners become significant to “strengthen global commitment to international law and respect for rules,” diversifying such relationships beyond being purely for economic means.
The practicality in Singapore’s approach remains as it closely monitors the situation while providing help to relevant businesses and individuals affected. The U-Save and Service & Conservancy Charges (S&CC) rebate outlined in Budget 2026 is set to be rolled out in April, which will offset expenses for utilities for lower- and middle-income households. The effectiveness of its impact remains to be seen as the closure of the Strait continues. Community Development Council (CDC) voucher handouts, which can be spent in supermarkets and shops involved in the scheme, will be given in June 2026 instead of the original planned disbursement in January 2027. Businesses will receive an increase in Corporate Income Tax rebate to 50%. As of 7 April 2026, government assistance that includes a SGD200 increase in the Cost of Living Payment payout and additional help for eligible platform workers adds another SGD1 billion to what was announced during the recent Budget.
Additionally, according to the chief executive of the Maritime and Port Authority of Singapore (MPA), Mr Ang Wee Keong, the closure of the Strait is an opportunity for Singapore to explore cleaner maritime fuel. Yet, Singapore is not excluded from lingering worries in other domains such as disruptions to food supply chains and fuel reserves. While the war may initially feel distant, the effects on Singapore are gradually felt through daily ‘small’ disruptions, where adjustments to policies and budgets become necessary, inevitably propelling us to be concerned and aware about global politics.
Aini is currently pursuing a master’s degree in English literature at Nanyang Technological University. She has experience working in youth groups, contributing to the planning and management of outreach activities.
The Philippines 🇵🇭
Fueling Hardship
by Arianne De Guzman, in Bulacan
As the Holy Week concluded, Filipino motorists, commuters, and Micro, Small and Medium Enterprises (MSMEs) braced for another round of fuel price hikes, with gasoline, diesel, and kerosene prices rising again last 7 April 2026, marking the 13th consecutive week of price increases for gasoline and the 15th for diesel and kerosene.
The Philippines, the first country to declare a state of national energy emergency and one of the most oil-dependent economies in the Southeast Asia region, is heavily reliant on imported oil, sourcing 98% of its supply from the Persian Gulf. This dependence leaves the country susceptible not only to the ripple effects of the United States (US) and Israel’s war on Iran but also to the challenges caused by its negligible domestic production.
Beyond this broad outlook, risks and issues also became a daily calculation for many Filipinos. In the transportation sector, one of the largest consumers of oil products, jeepney drivers are among the most immediately affected. Mr. Romeo Esmenda, a jeepney driver in Quezon City, shared that prior to the US and Israel’s bombing of Iran, he often spent around PHP3,000 (US$49.91) while still earning PHP1,500 (US$24.96) in profit. Currently, filling his jeepney tank costs PHP6,000 (US$99.83), yet his profit has decreased to just PHP300 (US$4.99).
They are not alone.
Mr. Mike Olea, a Filipino who owns a small, family-owned food shop, also shared that the prices of cooking gas, meat, and other key ingredients have increased sharply in recent weeks, prompting him to rethink his spending and business strategy. He added that his food shop relies on an 11-kilogram cylinder of cooking gas every week; however, the 30% increase has induced significant pressure on his business expenses. Mr. Olea revisited raising menu prices and reducing meat and vegetable servings, as he observed fewer customers visiting due to rising living costs.
Commuters, too, are feeling the impact.
Ms. Emma Almadrones reported higher spending on transportation costs, often taking extra rides or seeking alternative ways to get to work, stating that some jeepney drivers are now making fewer trips than usual or have completely stopped operating. With food prices also increasing, she prefers to bring lunch to work and walk home instead of waiting for a ride.
In response, President Ferdinand Marcos Jr. signed an executive order (EO) activating the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT), a program focused on providing fuel subsidies, commuter assistance, and expanding public transportation services. Sonny Africa, an economist and Executive Director of IBON Foundation, stated that his policies are contingent on existing government funds, raising doubts whether it will be sufficient if prices continue to rise. President Marcos also signed Republic Act No. 12316, allowing the suspension or reduction of fuel excise taxes, which is expected to take effect this April. Senator Panfilo “Ping” Lacson noted that the Philippine government could lose around PHP200 billion in revenues, with a potential recommendation to suspend the value-added tax (VAT), which could reach over PHP320 billion.
For many Filipinos, the oil crisis illustrated how global economic events intersect with local realities. It also highlights the importance of human-centered policies, not just market stabilization, to sustain livelihoods and strengthen communities. While recent diplomatic efforts alleviate the oil crisis, community resilience and support for vulnerable sectors remain central to how the Philippines weathers the ongoing crisis.
Arianne has experience in policy research at De La Salle University’s Jesse M. Robredo Institute of Governance, where she contributed to projects on systemic reform. She earned a degree in Political Science from Colegio de San Juan de Letran. Currently, she works in government relations, specializing in advocacy strategy, legislative monitoring, and stakeholder engagement. Beyond her professional work, she is actively involved in youth development and grassroots initiatives through the Rotaract Club of Santa Maria.
Vietnam 🇻🇳
The Laws of the Land
by Tri Vo, in Ho Chi Minh City
As the first quarter of 2026 comes to an end, the release of comprehensive market reports by major international consultancies provides the most definitive look yet at Vietnam’s property sector operating under a fully modernized legal framework. The set of regulations — comprising the revised Housing Law, the Real Estate Business Law, and the Land Law 2024 — officially took effect in August 2024, aiming to resolve years of legal ambiguities. Now, more than eighteen months into this new regulatory era, Q1 data reveal that the market has transitioned from a long period of paralysis into a time of relatively sustainable growth. But this time is different. Vietnam’s real estate sector is not experiencing a speculation frenzy; instead, macroeconomic conditions and stringent new compliance standards are reshaping the landscape to favor well-capitalized developers with high legal compliance.
A central catalyst for this structural shift is the overhaul of land valuation. The new Land Law abolished the rigid, state-mandated land price framework, requiring provincial authorities to implement market-aligned land prices starting from 1 January 2026. While this transition increases the financial obligations for developers, it effectively de-risks the sector for foreign institutional investors by establishing a predictable, market-driven mechanism for land acquisition and compensation.
The practical effects of this legislative environment are reflected in regional absorption rates. In Hanoi, apartment prices have continued to rise alongside robust sales volumes, with market activity overwhelmingly dominated by large-scale, integrated mega-projects from established developers. Conversely, Ho Chi Minh City has a slower trajectory, dominated by new supply constraints but steady price appreciation, now driven (in the suburban areas) by resilient owner-occupier demand rather than just speculative flipping.
Beyond the residential segment, the commercial and industrial real estate segments remain the indisputable engines of the market. This resilience is underpinned by Vietnam’s broader macroeconomic stability, highlighted by an impressive inflow of foreign direct investments of over US$38 billion in the previous year. Industrial park owners, in particular, are capitalizing on the new legal provisions that allow for more flexible rental arrangements. Indeed, such regulations allow for easier subleasing to multinational manufacturing tenants seeking to rapidly set up operations in the country.
Ultimately, the Q1 2026 property data signals a maturation of the Vietnamese real estate market. This is done by flushing out less-qualified actors, leaving a consolidated arena of larger players capable of navigating the higher compliance costs. As the government aggressively pursues its ambitious double-digit economic growth mandate for the year, a legally transparent and structurally sound real estate market has transformed from a systemic vulnerability into a stabilized pillar of Vietnam’s long-term economic expansion.
Tri has experience in management consulting and strategy, having worked with institutions such as the UNDP, The Asia Group, and ARC Group. He has provided strategic, legal, and operational insights to clients in sectors including manufacturing, energy, and technology. He holds both academic and professional experience related to Southeast and East Asia, with a focus on regional development and policy.
Editorial Deadline 07/04/2026 11:59 PM (UTC +8)
