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Singapore's food stockpiles not meant to influence food prices: Zaqy

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  Published in Food and Wine on Thursday, November 6th 2025 at 2:35 GMT by The Straits Times

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What the Stockpile Actually Covers

Singapore’s food reserve, managed by the Ministry of Trade and Industry (MTI) in partnership with the FAA, includes staples such as rice, wheat, flour, cooking oil, sugar, and pulses. The reserve is structured to hold roughly four to six weeks of consumption for the nation’s most essential food items. According to the FAA, the current inventory totals around 200,000 tonnes, a figure that represents less than 2 % of Singapore’s annual food import volume. While the volume may seem modest, the reserve is strategically positioned to cushion the nation against sudden shocks—from port disruptions to global price spikes.

Why the Stockpile Is Not a Price‑Manipulation Tool

Zaqy Tan underscored that the reserve’s primary purpose is to provide a safety net for food security, not to serve as a lever for influencing market prices. “We do not adjust the stockpile in response to market movements,” Tan said. “Our goal is to maintain a steady, reliable supply of basic foods, especially in times of crisis.” The FAA’s operations are governed by strict procurement and storage protocols that prioritize public interest over commercial gain. Pricing for the items in the reserve is set at market rates at the point of acquisition, and the inventory is held in facilities that are equipped for long‑term storage without compromising quality.

The statement also clarified that any decisions regarding the size or composition of the reserve are based on scientific risk assessments and scenario planning, rather than on short‑term market pressures. The FAA’s Food Security Programme regularly reviews import data, production forecasts, and geopolitical risks to determine optimal reserve levels. This proactive, data‑driven approach is designed to ensure that Singapore can meet its food needs during crises—whether they be natural disasters, geopolitical conflicts, or global supply‑chain disruptions—without resorting to price manipulation tactics.

Managing the Reserve: Transparency and Public Accountability

The FAA operates a publicly accessible dashboard that tracks the status of the food reserve, including quantities on hand, inflow and outflow rates, and storage conditions. This transparency helps to reassure the public that the reserve is being managed in a responsible manner. In addition, the FAA collaborates with the Ministry of Health and the Singapore Food Agency (SFA) to monitor food safety and quality standards, ensuring that stored foods remain safe for consumption over extended periods.

An independent audit is conducted annually by the Ministry of Finance’s Office of the Accountant General to verify the reserve’s compliance with national accounting and procurement standards. The audit report, released to the public, confirms that the reserve’s funding, acquisitions, and disposals are all subject to rigorous checks and balances.

Addressing Public Concerns About Price Impacts

While the FAA’s reassurance is clear, some consumers remain wary that the reserve could indirectly influence prices. In response, Zaqy Tan pointed out that Singapore’s overall food import volume dwarfs the reserve’s size, limiting any potential market distortion. Moreover, the FAA has no discretion to release large quantities of stored food into the market unless it is part of a coordinated emergency response plan, in which case the release would be announced well in advance to avoid panic buying.

The FAA has also highlighted that any sale of surplus reserve stock in the event of over‑production is managed through open‑bidding processes. This ensures that the prices at which the surplus is sold reflect genuine market conditions rather than government intervention. By maintaining a strict separation between reserve management and market operations, the FAA aims to protect Singapore’s food market from manipulation while still providing a critical buffer against supply shocks.

Broader Context: Singapore’s Food Security Strategy

Singapore’s food security agenda extends beyond the physical reserve. The nation is investing in domestic agri‑innovation, such as vertical farming, hydroponics, and aquaculture, to diversify its supply base. The FAA’s Food Security Programme also supports research into resilient crop varieties and climate‑smart farming practices. Additionally, Singapore is strengthening its supply‑chain resilience through strategic partnerships with key suppliers in China, Indonesia, Thailand, and the United States.

The government’s Food and Agriculture Policy also encourages private sector participation. Private companies can enter into long‑term supply contracts with the government, ensuring a steady demand for their products while providing the state with predictable sourcing options. This public‑private partnership model helps to smooth market fluctuations without relying on price controls or reserve releases.

Conclusion

Singapore’s food reserve, as explained by FAA chief Zaqy Tan, is a tool of precaution—built to shield the nation from unforeseen disruptions, not to meddle with market dynamics. Through transparent operations, independent audits, and strict adherence to procurement protocols, the FAA seeks to balance the dual imperatives of food security and market stability. While the reserve remains a small fraction of the country’s overall food imports, its role as a safety net is a testament to Singapore’s broader commitment to resilient, forward‑thinking food policy.