Steps taken to shore up Singapore's resilience

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Singapore's supply chains are under pressure for four main reasons...First, production levels in supplier countries have dropped; second, these countries have also had their own supply chains disrupted; third, some countries have stopped exports owing to political pressure; and fourth, the frequency of international air and sea freight has been reduced.

The Government has taken a five-pronged approach in tackling these challenges:

1)First, it is diversifying sources of supply, and although this could lead to costlier goods, this is the "price to pay for greater resilience"..."We cannot guarantee that every product won't have price fluctuations, but for the main categories such as rice and vegetables, we will try to limit fluctuations."

2)The Government is also boosting stockpiles, 

3)ramping up local production for certain goods 

4)and also signing long-term contracts with suppliers, he added.

5)Lastly, Singapore is working with like-minded countries to protect the global trading system, and ensure trade and supply chains remain open during the Covid-19 crisis.

Qn: How far should countries aim to be self-sufficient? (Cam. 2011)