Hong Kong gov’t praised for quick response to fuel crisis, but Singapore has more overall support 

HONG KONG/SINGAPORE: Various governments in Asia have responded in different ways to the energy emergency that has arisen in the wake of the war in the Middle East. With the effective closure of the Strait of Hormuz, along with the destruction of Liquefied Natural Gas (LNG) plants, the price of fuel has risen steeply, and governments have had to ensure their fuel stocks are steady, while also ensuring that citizens and households are supported amid higher living costs.

Over the weekend, the government of Hong Kong was praised in an op-ed piece in the South China Morning Post for diesel subsidies and cuts in tolls for the commercial transport sector, calling these measures “timely, targeted and reasonable.”

“They are exactly what the industries need as they grapple with soaring fuel prices fuelled by conflict in the Middle East,” the piece reads.

Hong Kong’s targeted, short-term relief package includes a diesel subsidy of about HK$3 (S$0.48) per litre for public transport and logistics, among other commercial users. Additionally, there has been a 50% reduction in tolls for buses, taxis, and goods vehicles. All in all, these measures are costing Hong Kong HK$1.96 billion (around S$328 million).

Hong Kong has consistently had the most expensive fuel in the world. For example, a litre of diesel costs approximately HK$34.97 (S$5.69) before discounts. For comparison’s sake, standard diesel costs between S$4.40 and S$4.60 per litre in Singapore.

However, welcome the support the Hong Kong government has extended to the sectors that feel the pinch the most, there has been some concern that private motorists and households have not received direct help.

In comparison, Singapore’s support measures are perceived to be much broader and wider-ranging. The government announced on Tuesday (April 7) that a new support package worth almost S$1 billion is to be disbursed to fund new measures to support Singaporeans amid the effects of the global fuel crisis. 

The measures include an increased Cost-of-Living special payment and cash relief for platform workers. This is in addition to what had been announced when the national Budget was rolled out in February. There are around 2.4 million Singaporeans who will benefit from the support measures, which include an additional S$200 for the one-off special payment in September, S$500 in CDC vouchers, originally set for next January, to be disbursed in June, and S$200 for eligible platform workers, private hire vehicle, and taxi drivers by the end of this month. Additionally, to ease business costs, a 50% corporate tax rebate is also on the table. 

Deputy Prime Minister Gan Kim Yong warned Singaporeans to be prepared for higher costs of food, transport, electricity, and daily necessities. He added that higher living costs will be felt more by low-income family, for whom a larger part of their budget goes toward their everyday needs. /TISG

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