Singapore, New Zealand sign deal on fuel, food security

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Singapore: Singapore and New Zealand have entered into a formal agreement to ensure the continued exchange of refined fuel and essential food supplies, as the ongoing conflict in the Middle East continues to disrupt global trade.

Signed on Monday during New Zealand Prime Minister Christopher Luxon’s visit to the city-state, the Agreement on Trade in Essential Supplies commits both nations to avoiding unnecessary export restrictions, even during significant supply chain volatility.

The deal addresses critical vulnerabilities for both partners: New Zealand currently imports approximately one-third of its refined fuel from Singapore, a supply of diesel that is vital for its domestic farming and freight sectors. In return, Singapore relies on New Zealand for roughly 14 per cent of its total food imports, making the partnership a cornerstone of regional food and energy security.

Singapore’s Prime Minister, Lawrence Wong, noted that the agreement is essential to prevent countries from "looking inward" during difficult times. He cautioned that even if the Strait of Hormuz—a primary global transit point for crude oil and gas—were to reopen, it would likely take months to clear mines and repair damaged energy infrastructure following the military campaign against Iran that began in February.

This bilateral pact follows a similar non-binding agreement signed last month between Singapore and Australia.

As a major global refining hub, Singapore continues to play a pivotal role in regional energy security, providing roughly a quarter of Australia’s refined fuel while sourcing 32 per cent of its own liquefied natural gas (LNG) requirements from Australian markets.