PETROCHEMICAL FEEDSTOCK COST PRESSURES ON PUBLIC HOSPITAL PROCUREMENT AND DIVERSIFICATION OF MEDICAL SUPPLY CHAIN

NOTICE PAPER NO.  749

NOTICE OF QUESTION FOR WRITTEN ANSWER

FOR THE SITTING OF PARLIAMENT ON 05 MAY 2026

Name and Constituency of Member of Parliament

Mr Jackson Lam

MP for Nee Soon GRC

Question No. 1382

To ask the Coordinating Minister for Social Policies and Minister for Health (a) whether rising petrochemical feedstock costs due to Middle East tensions have increased procurement costs for public hospitals and polyclinics; (b) how the Ministry ensures such cost increases are not passed to patients; and (c) whether Singapore has diversified suppliers for plastics-dependent medical consumables beyond Middle East-linked supply chains.

Answer

1.          The Ministry of Health has seen some increases in procurement costs for certain medical consumables used in our public hospitals and polyclinics since the beginning of March 2026.

2.       However, the impact has been manageable. Immediate supply disruption through the Straits of Hormuz are minimal, as medical supplies from this route represent well below 1% of total medical supplies, which constitute about 12% of total healthcare costs. There has been no impact on our stockpiles.

3.       Nevertheless, we are monitoring potential secondary effects. The global supply chain is intricate, and disrupted petrochemical products could affect ingredients for medical consumables like gloves and syringes, as well as chemicals used in pharmaceutical production. We are closely monitoring these downstream effects.

4.       The Agency of Logistics and Procurement Services (ALPS) leverages bulk purchasing across the public healthcare system and works closely with suppliers to negotiate better rates and stabilise prices. MOH has also diversified our supplier base for medical consumables, sourcing from multiple regions including Asia-Pacific, Europe, and the Americas.  

5.       Our current response measures include maintaining stockpiles of essential supplies, monitoring usage, minimising wastage, working with trusted suppliers, and preparing contingency plans. MOH will closely monitor global supply conditions and their impact on public healthcare costs and adjust our sourcing strategies accordingly.