• Lawerence Wong’s regional diversification plan seeks energy security for Singapore in the midst of supply disruptions.
• Wong is tackling the high cost of living through regional cooperation, while facing new forms of dependence.
• He is changing domestic energy systems as global conflicts are driving prices up.

Why is Wong HOT?

Answer: Lawrence Wong’s HOT energy diversification plan gives Singapore a more secure energy supply, while simultaneously working towards global sustainability goals. 

Since taking office as Singapore’s fourth Prime Minister in 2024, Lawrence Wong has been working towards diversifying the country’s energy supply in an attempt to secure the energy system. The Gulf crisis has made Singapore’s long-standing energy dependence clearer than ever before, as the city-state imports 97% of its energy, two thirds of which comes from the Gulf. Wong has therefore been faced with the task of transforming Singapore’s already vulnerable energy systems in the midst of an energy crisis. 

He has confronted this challenge by diversifying Singapore’s energy system, while also highlighting the importance of increasing sustainable energy sources in the energy mix as Singapore has pledged to reach net zero by 2050. In April, less than two months after the conflicts in the Middle East started disrupting global energy supplies, Lawrence Wong secured a deal with Australia’s Prime Minister Anthony Albanese, confirming that the two countries would support each other’s energy needs during the crisis. 

In 2022, when Wong was the Deputy Prime Minister and the Minister for Finance, he presented the National Hydrogen Strategy. Hydrogen has the potential to supply up to half of Singapore’s power generation mix by 2050. It follows the Energy 2050 Committee Report’s suggested pathway to navigate future uncertainties, where low-carbon hydrogen could contribute around 10% and up to 60% of Singapore’s energy supply mix by 2050. Singapore will take steps to prepare for hydrogen deployment domestically and work with partners to build a hydrogen supply chain in Asia.

Another initiative expanded on by Wong to develop Singapore’s energy systems is the cross-border trade project with the Association of Southeast Asian Nations (ASEAN). In this project, hydropower is transported from Laos through Thailand and Malaysia to Singapore, and it directly increases the share of both regional suppliers and sustainable energy for Singapore. 

Additionally, solar power has been identified as one of the most plausible solutions to increase Singapore’s domestic clean energy production. As the country achieved its goal of 2 GWp of solar deployment ahead of schedule, the target has been increased to 4 GWp by 2035. This demonstrates how Wong is effectively moving the energy sector to reach Singapore’s sustainable diversification goals.

What is changing Wong’s heat level?

Answer: Chinese cooperation is becoming increasingly important for Wong to provide a stable energy supply for the Singaporean population already experiencing high living costs.

Balancing energy security in the midst of crisis with national sustainability goals is no easy feat. The war in the Middle East has fundamentally altered a large share of global energy supply. Through initiatives such as the Australia cooperation agreement and dedication to increasing the share of sustainable energy, Wong has not only proved that he is able to solve crises when they occur, but also that he can keep working towards national goals. 

Increasing regional cooperation is central to Wong’s diversification plan. China is increasingly becoming an important source of energy for Wong. Their partnership is however not limited to fossil fuels, as China controls over 80% of the global solar PV supply chain. This means that dependence on China is inevitable, as the development of Singaporean solar power that Wong seeks must go through China.

At the same time, keeping the energy prices as low as possible is both important for Wong and Singaporean citizens, as Singapore’s cost of living is already amongst the highest in the world. This is another reason why Wong is so adamant about developing the energy systems to be more secure. While fuel prices are not the main driver of the high cost of living, as only 12% of Singaporeans own a car, rising energy prices due to events such as the Middle East crisis affect the whole Singaporean population, making it highly relevant for Wong to address.

What is driving Wong?

Answer: Business owners feeling increased pressure from higher energy prices drives Wong to find regional energy partnerships.

Energy affordability and cost of living have been central to Lawrence Wong’s work as Prime Minister. This is partly due to Singapore being an economy with close to zero natural resources. This puts a lot of pressure on businesses, as they are the ones initially absorbing the price increases of energy. Companies are seeing higher operational and delivery costs which are then eventually pushing up the prices for customers, putting further pressure on the Singaporean population as a whole. As this problem has been one of Wong’s key priorities as Prime Minister, his recent energy diversification advancements are effectively helping citizens against the burden of rising global energy prices.

The Prime Minister is successfully achieving his goal of giving Singapore secure access to affordable energy through his diversification initiatives, as these make the systems less susceptible to supply disruptions from the Middle East. The two years Wong has been in office have, understandably so, not been enough time to change Singapore’s energy systems completely to be in line with his goal of increasing the share of diverse regional suppliers and sustainable sources. However, initiatives such as the Australia energy security deal and the hydropower cooperation with ASEAN show how he has already managed to take meaningful steps towards his goals.

What does this mean for you?

Answer: Wong is one of many leaders having to balance short-term energy security and long-term sustainability for their countries.

Today, more and more leaders and governments are attempting to make their energy supplies more secure due to the increasing risk of energy supply-chain disruptions as a consequence of raging conflicts worldwide. Countries are increasingly turning to renewable energy sources as they are typically subject to far less conflict-related consequences, as shown by the $2.2 trillion out of the total $3.4 trillion in energy investments expected to go to clean energy in 2026. Lawrence Wong pushing for sustainable energy is therefore not unique. At the same time, crises such as the disruptions in the Gulf have meant that providing Singapore with a secure energy supply has become more important than ever, regardless of whether the energy is sustainable or not.