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Crude Oil
April 21, 2026
By Mia Pei
Editor:
HIGHLIGHTS
Hormuz disruption exposes choke point vulnerabilities
Strait of Malacca trade works under cooperative framework
Singapore pushes for trust, digital standards in trade
The right of ships transiting through international straits is "not negotiable," Singapore's Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong said, highlighting the importance of navigational freedoms under UNCLOS amid disruptions around the Strait of Hormuz.
Speaking at the Singapore Maritime Week 2026, Gan said April 21 the recent disruption in Hormuz was "not just a regional disruption" but "a systemic shock," showing how instability at a single maritime choke point can quickly cascade through energy prices, transport costs and supply chains, and how rule-based trading systems come under strain as multilateralism is challenged.
"UNCLOS has specified that ships and aircraft traveling to these straits must have the right transit passage ... this is something that we have to recognize and have to preserve, and that's why we need to continue to uphold rules and regulations in this regard," said Gan in a fireside chat at the conference opening.
He said Singapore could not negotiate over passage rights protected under UNCLOS, even when questions were raised during the discussion about the safety of ships and cargoes caught up in the Middle East crisis.
"This is a matter of right. This is not negotiable," he said, adding that accepting conditions for passage would undermine the principle that transit rights through international straits are unconditional.
The episode had reinforced the need for Singapore and other like-minded countries to uphold transit passage rights and the broader rules-based trading system amid rising geopolitical fragmentation, said Gan.
Diminished economic connectivity and an undermined rules-based system are a "very critical challenge" for Singapore, an open, small economy.
"We depend on trade for our economy to grow," said Gan.
Like Hormuz, the Strait of Malacca, where Singapore sits, is also a critical waterway for international navigation. About one-third of global seaborne oil trade passes through the straits of Malacca and Singapore, with about 100,000 ships transiting the route each year, said Gan.
Uninterrupted passage through the Strait of Malacca is equally vital for Singapore, neighboring littoral states such as Malaysia and Indonesia, as well as global trade flows linking East and West, he said.
"I'm happy to say that all three countries that surround the straits have been working very closely together," said Gan.
Singapore, Malaysia and Indonesia had worked closely under a cooperative framework to ensure the safety of navigation, the welfare of seafarers and environmental protection in the straits, describing the waterway as a "shared responsibility," he said.
The answer to a more fractured maritime system was not only to defend legal rights, but also to strengthen the connective infrastructure that keeps trade functioning, according to Gan.
At his opening lecture, Gan said: "In a fragmented system, trust carries a premium."
That trust, he said, is the foundation on which Singapore's maritime ecosystem is built.
Referring to Singapore's recent maritime initiatives mentioned by Acting Minister for Transport Jeffrey Siow, Gan said one example is OCEANS-X, a unified digital platform intended to enable more seamless interaction between government and industry, as well as across maritime stakeholders, using "common, standards-based data" to improve efficiency and support future innovation.
The city-state has partnerships through green and digital shipping corridors to accelerate maritime cooperation on both emissions reduction and digitalization.
"Standards enable interoperability. They improve efficiency, and increasingly, they build trust," Gan said, adding that this would become even more important as artificial intelligence is deployed at scale across shipping, ports and logistics systems.