SINGAPORE: Manoj Daryanani moved to the Middle East after his business expanded into Dubai in 2024.
The founder of Singapore-based furniture retailer Bless Brothers said of the impact of the US and Israel’s Feb 28 military strikes on Iran: “There have been port disruptions, delays in logistics and flight cancellations.”
His company makes furniture with fabric from Belgium, which is flown to its factories in China and Malaysia. The finished products are then transported to stores in Singapore and Dubai.
Manoj said he is not too worried about his supply chain as he has several logistical workarounds, including alternative freight routes within the Gulf.
He is focused on supporting his family and 10-person-strong team in Dubai – keeping up with developments and staying in constant communication.
Manoj happened to be in Singapore for a business trip when Iran was struck.
“My wife and children are in Dubai. With flights suspended, I am unable to fly back in, and they are unable to travel out for now,” he said.
“On a personal level, it has been challenging.”
The Middle East conflict could also set back the expansion plans of Aureus Group, which launched two music schools in Dubai in 2026.
It was working towards opening a third school in the emirate tomorrow, but this will likely be delayed, the company’s chief technology officer Julius Holmefjord-Sarabi said.
Drawing on lessons from the Covid-19 lockdowns, the firm has erred on the side of caution by proactively cancelling lessons to protect staff and students.
Despite this, Holmefjord-Sarabi said Aureus remains committed to the United Arab Emirates (UAE).
He said: “We see this as a short-term timing issue rather than a deeper concern. The underlying opportunity in the UAE is still very compelling.
“Naturally, the key uncertainty is duration. It is difficult to predict how long regional developments may last or what secondary effects might arise.”
The UAE is Singapore’s largest trading partner and investment destination in the Middle East and North Africa, with more than 600 Singapore businesses present in sectors such as financial technology, healthcare and education.
The attacks on Iran have caused the effective closure of the Strait of Hormuz, a crucial waterway, which handles a fifth of the world’s oil and large volumes of gas. It is bounded to the north by Iran and to the south by Oman and the UAE.
Reports of traffic largely being halted along the important shipping route has fuelled a surge in oil prices.
Daniel Sanvicente, head of Asia-Pacific at supply chain logistics platform Flexport, said vessels headed to the Suez Canal are being rerouted around the Cape of Good Hope, adding approximately 10 to 14 days to Asia-Europe transit times.
Meanwhile, cargo inside the Persian Gulf, a shallow marginal sea of the Indian Ocean, has effectively been paused.
Sanvicente said the disruptions, along with the shutdown of critical Middle Eastern airspace, is affecting Singapore and South-East Asian businesses exposed to the Gulf or which rely on Middle Eastern hubs for transshipment, where goods pass through the region on the way to other markets.
“If the situation persists, we expect secondary effects such as equipment imbalances, congestion at alternative gateways and sustained rate pressure,” he said.
Singapore Business Federation chief executive Kok Ping Soon said businesses, including small and medium enterprises (SMEs), are already feeling the impact of developments in the Middle East.
He said: “As a highly open and trade dependent economy, Singapore feels these effects quickly through higher logistics costs, energy price volatility and supply chain disruptions.
“Volatility in oil prices will feed into transport, utilities and input costs, affecting margins across multiple sectors, particularly for SMEs.”
Association of Small & Medium Enterprises president Ang Yuit noted that the Middle East was often used as a gateway to Africa, which has drawn the interest of businesses.
He said that certain firms, such as those targeting the halal market, would be more reliant on the Middle Eastern region, which accounts for less than 30% of the international footprint of Singapore SMEs.
“Would the conflict grow? Would more countries be involved? That would be a concern,” Ang said.
Lennon Tan, president of the Singapore Manufacturing Federation, said that while US tariff developments in February resulted in widespread uncertainty, the conflict involving Iran has “introduced physical supply chain breaks that create a more immediate inflationary spike”.
Energy prices have surged without a clear timeline for stabilisation, while air and sea freight rates have climbed due to emergency conflict surcharges and widespread flight cancellations, he said.
“This represents a structural disruption that appears likely to last far longer than a typical short-term market shock,” he added.
Businesses could also experience a holding back of capital expenditure and discretionary investment decisions tied to the Middle East, because of a higher risk premium.
Tan said: “Credit committees and project sponsors typically become more conservative when geopolitical risks rise, and that can slow the pace of new project awards, site expansions and cross-border commitments.” — The Straits Times/ANN
