Singapore, April 8 -- Singapore's Deputy Prime Minister Gan Kim Yong has warned that the country's economy may slow in the coming quarters, while inflation could exceed earlier forecasts, as the prolonged conflict in the Middle East continues to weigh on the global outlook.

He told Parliament on April 7 that the impact of supply disruptions and higher prices of energy as well as raw materials will cascade through the economy, pushing up business and transport costs and consumer prices.

With the conflict involving the US, Israel and Iran entering its sixth week, Singapore is already suffering from higher petrol prices and electricity tariffs. If the conflict is protracted, higher inflation in Singapore's source markets could also lead to...