Singapore can’t afford to be “passive bystander” amid global economic tensions: PM Lawrence Wong

Key Concepts

• Stable rules-based global order
• Multipolar world
• Global commons
• Multilateralism
• ASEAN cohesion and integration
• Regional architecture
• Diversified partnerships
• CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)
• RCEP (Regional Comprehensive Economic Partnership)
• FTAs (Free Trade Agreements)
• ASEAN Outlook on the Indo-Pacific (AOIP)
• Blended finance

Global Developments and Singapore's Response

The speech addresses the worrying global developments that threaten the stable, rules-based global order that Singapore's prosperity depends on. The speaker notes the emergence of a new, more multipolar, less coordinated, and more contested world order. Singapore, despite its limitations as a small state, cannot be a passive bystander and must actively shape its own destiny. Singapore is better resourced, more capable, and more connected than in 1965, has strong friendships, a well-regarded brand, and international goodwill. Singapore is not alone and will deepen and expand networks with like-minded countries to preserve multilateral frameworks and lay the groundwork for a more stable global order.

Stewardship of the Global Commons

Singapore will actively contribute to the stewardship of the global commons, addressing challenges like AI governance, climate change, and future pandemics through global cooperation. The speaker emphasizes that Singapore's support for international law and multilateralism is not passive but active, understanding that its interests are best protected when rules apply equally to all. Singapore plays a constructive role in multilateral forums by building consensus and finding solutions.

• Example: Ambassador Reena Lee led the successful UN negotiations on the high seas treaty on biodiversity, a landmark agreement strengthening global governance over marine areas beyond national jurisdiction.
• Nomination: Reena Lee has been nominated as a candidate to serve as a judge at the International Court of Justice, reflecting Singapore's commitment to the rule of law.
• Initiatives: Singapore founded and co-chaired the Friends of COVID-19 Vaccines Global Access (COVAX) facility to promote vaccine multilateralism. It also launched the Financing Asia's Transition Partnership (FAST-P), a blended finance platform to mobilize private capital for Asia's decarbonization.
• Singapore Cooperation Program: Since 1992, the Singapore Cooperation Program has benefited more than 155,000 officials from over 180 countries, territories, and intergovernmental organizations.
• New Development Partnership Unit: A new Development Partnership Unit in MFA has been established to coordinate efforts across government agencies, strengthen collaborations, and focus on areas where Singapore can make a meaningful impact.
• Geographic Focus: While continuing to focus on Southeast Asia, Singapore will allocate more resources to partners in Africa, the Middle East, Latin America, the Pacific, and the Caribbean, expanding work in areas like the digital economy and renewable energy.

Deeper Regional Cohesion and Integration (ASEAN)

ASEAN remains central to Singapore's foreign policy. Regional unity is crucial in a fragmented world. If ASEAN stays cohesive and proactive, it will help members navigate geopolitical tensions and maintain collective relevance.

• Quote: "If we do not hang together, we will end up hanging separately" - S Rajaratnam, at the founding of ASEAN.
• Economic Integration: ASEAN is now the world's fifth-largest economy, with a virtually tariff-free ASEAN Free Trade Area.
• Future Goals: Aim for 100% tariff elimination across the region, boost intra-ASEAN trade, reduce non-tariff barriers, conclude the ASEAN Digital Economy Framework Agreement, and upgrade FTAs with key partners like China, India, and the Republic of Korea.
• ASEAN Power Grid: Accelerate the development of the ASEAN Power Grid to facilitate cross-border electricity trade, promote green energy transition, attract investments, create jobs, and strengthen energy security.
• Regional Architecture: ASEAN has built an open and inclusive regional architecture through forums like the East Asia Summit (EAS), bringing major powers to the same table.
• ASEAN Outlook on the Indo-Pacific (AOIP): The AOIP emphasizes openness, inclusivity, and cooperation, rejecting zero-sum competition or dominance by any single power. Singapore will work with the Malaysian chair of ASEAN and EAS partners to translate the AOIP's vision into concrete projects.
• ASEAN Chairmanship: When Singapore takes over the ASEAN chair in 2027 (ASEAN's 60th anniversary), it will deepen regional integration and ensure ASEAN remains a vital anchor for peace and prosperity.

Strengthening Global Network of Partnerships

In an increasingly multipolar world, Singapore must develop more varied and deeper relations with multiple partners to enhance resilience and navigate uncertainty.

• Economic Networks: Singapore is plugged into major networks like the CPTPP, RCEP, and an extensive network of FTAs, providing market access and insulation against protectionism.
• International Cooperation: The speaker has spoken with counterparts from Malaysia, Japan, New Zealand, the UK, and the EU, all agreeing on the need for more cooperation and the avoidance of protectionism and isolationism.
• CPTPP and EU Collaboration: Pursuing greater collaboration between the CPTPP and the EU, as the UK is already in the CPTPP and other economies are keen to join. A formal partnership could facilitate trade and investment flows and uphold the rules-based trading system. The CPTPP and EU combined represent around 30% of the world's GDP.
• ASEAN-EU Strategic Partnership: Strengthening the ASEAN-EU strategic partnership, building on existing FTAs with Singapore and Vietnam, and pursuing trade arrangements with other ASEAN countries. Deeper collaboration on concrete projects can help progress towards an ASEAN-EU FTA, unlocking a combined market of over 1 billion people.
• Strategic Partnerships: Deepening and expanding strategic partnerships with like-minded countries including Australia, New Zealand, India, France, Germany, Republic of Korea, Saudi Arabia, the UK, and Vietnam.
• New Frontiers: Reaching out to new frontiers in the Middle East, Africa, and Latin America.
• Middle East: The Gulf countries are growing rapidly and positioning themselves as key geopolitical players. Singapore has a comprehensive partnership with the UAE and has upgraded relations with Saudi Arabia to a strategic partnership. Dialogues with Qatar and Oman have been institutionalized.
• Africa and Latin America: Stepping up efforts to develop closer ties with Africa and Latin America, regions with significant potential. Singapore will open new diplomatic missions in Africa and Latin America over the next few years to facilitate trade, investment, and partnerships. Currently, Singapore has only two diplomatic missions serving the entire continent of Africa (Cairo and Pretoria) and only one in Latin America.

Synthesis/Conclusion

Singapore recognizes the shifting global landscape and the challenges it presents. The nation's strategy involves actively contributing to global governance, strengthening regional integration within ASEAN, and diversifying its partnerships worldwide. By focusing on multilateralism, regional cohesion, and strategic alliances, Singapore aims to navigate the complexities of the new world order and secure its future prosperity. The emphasis is on proactive engagement, collaboration, and a commitment to a rules-based international system.