Middle East conflict pushes up energy prices, rising costs put pressure on Singapore's catering industry

The Middle East conflict has led to rising energy prices, with a sharp increase in energy costs driving up transportation expenses and raw material prices, putting significant pressure on industries such as Singapore’s catering sector. Zhou Jiameng, Chairman of the Singapore Tongle Catering Group and Vice President of the World Chinese Cuisine Association, stated that there is indeed a noticeable impact, as electricity and gas account for about 5% to 8% of restaurant costs. Especially for imported ingredients, such as seafood, beef, and dairy products, the price increases are more apparent, mainly due to rising energy costs that have driven up transportation, cold chain logistics, and production expenses. Additionally, exchange rates and global supply tensions are also contributing to the impact. Because Singapore’s catering market is highly competitive, although costs are rising, most businesses have not yet increased prices. They are also working to expand supply channels to ensure food sources. (CCTV News)