EVEN in a more dangerous and divided world, Singapore need not be pessimistic given its strong position, Minister for Foreign Affairs Vivian Balakrishnan said in Parliament on Monday (Mar 3).
He named three pillars of the Republic’s robustness: economic strength; independence and ability to defend itself; and domestic cohesion.
“On the international stage, if you have to put your hand out for assistance, it means you have no say,” he said. “It is a big advantage for Singapore not to have to beg for aid.”
Singapore has significant reserves and “cannot be bullied or bought”, he added.
“If the biggest criticism that we face in this Budget is Budget marksmanship and having more reserves than anticipated, I think that’s reason for celebration,” he said in the Committee of Supply debate on the Ministry of Foreign Affairs’ Budget.
Still, notwithstanding this “enormous advantage”, Singapore must be realistic and careful in a new global environment that is “difficult, dangerous and tumultuous”, he said.
Implications for Singapore
Dr Balakrishnan outlined three sets of implications that the new world order – one of protectionism, rivalry and lack of trust – has for Singapore.
The first is the impact on trade and growth. Even if US tariffs have not been aimed directly at the Republic, their major impact on world trade will significantly affect Singapore.
“Amid the heightened scrutiny over advanced technology, we may be criticised for working with or hosting companies and officials from one side or the other,” he said. Such pressure would make it increasingly hard for Singapore to operate as an open hub.
The second implication is for war and peace. Dr Balakrishnan noted that global energy and food prices surged after the Russia-Ukraine war began. With the conflict now in its fourth year, it is clear the transatlantic relationship is under strain, he added.
“After the failure of the security guarantees for Ukraine that were given in 1994 in exchange for giving up its nuclear weapons… I doubt any current nuclear or proto-nuclear weapons state will ever give up its nuclear weapons,” he said. “All this makes for a much more dangerous world.”
The third implication is that the world’s ability to respond collectively to threats and safeguard the global commons has been impaired.
He noted the waning of collective commitment to institutions such as the World Trade Organization and treaties such as the Paris Agreement. This has serious consequences for the next pandemic as well as climate change.
Singapore’s foreign policy must always be a balance between realism and idealism, even as the country refuses to adopt a “fatalistic posture”, said Dr Balakrishnan.
While there is a need to “be careful in these dangerous times”, Singapore has good reason to be confident about its future, given its strong position.
He also urged the House not to give up on multilateralism and international law.
“I believe there are still many countries out there like us who want that system to work, and even though we no longer have the patronage or support or the underwriting of major powers that used to do it, we can still make common cause,” he said.
Staying open to opportunities
The foundation of Singapore’s success is staying open and nimble in seizing opportunities, and this must remain a guiding principle, he said.
He noted that Singapore has actively advanced cooperation with like-minded partners – including the US, China, India and so on – on emerging technology, while staying aware of strategic contestation between major powers here.
To attract and retain technology and talent, the Republic’s strong rule of law and trust in its system are crucial, said Dr Balakrishnan. This means all individuals and companies that come to Singapore must “play by the rules”.
“We do not condone companies taking advantage of their association with us to engage in evasive, deceptive or dubious business practices for short-term commercial advantages because that actually sullies and takes unfair advantage of Singapore’s reputation,” he said.
He added that there will be “certain developments on this front” to protect Singapore’s standing as a trusted, open hub, without elaborating.
Last week, three men were charged with fraud in a case allegedly linked to Nvidia. Singapore had come under the spotlight after US investigations suggested that restricted artificial intelligence chips may have been smuggled into China from Malaysia, Singapore and the United Arab Emirates.
Regional and global relations
Amid US-China rivalry, Singapore must be able to work with both powers and ensure mutually beneficial relations, said Dr Balakrishnan. While Singapore may never be either’s largest trading or strategic partner, it can be among their most reliable and consistent collaborators.
“We have maintained our relevance and credibility with both major powers by being consistent, transparent and constructive,” he said.
At the same time, Singapore must continue to strengthen ties with its neighbours, both bilaterally and in Asean. He noted that this year, Asean member states are looking to finish negotiations on the Asean Trade in Goods Agreement Upgrade, and conclude the Digital Economy Framework Agreement.
Further abroad, Singapore must continue to make common cause with as many partners as possible, including India, Japan, the Middle East, Africa and Europe. Dr Balakrishnan noted that the Republic’s network of 27 free trade agreements covers around 90 per cent of its trade.
Elaborating on engagement with emerging markets, Second Minister for Foreign Affairs Maliki Osman said he explored ways to broaden political and economic ties during visits to Latin America last year, by leveraging free trade agreements signed with the Southern Common Market and the Pacific Alliance.
These agreements will not only grow Singapore’s trade with Latin America, but strengthen its food resilience and diversify its access to a range of products and services, including carbon credits.
In Africa, Dr Maliki engaged leaders in Cote d’Ivoire and Nigeria to understand their priorities and where Singapore can fit in. The Republic will also host the Singapore-Africa Ministerial Exchange Visit and the Africa-Singapore Business Forum this year.
Last year, Singapore and India also upgraded their relations to a Comprehensive Strategic Partnership, which will broaden cooperation in areas such as semiconductor ecosystems and next-generation industrial parks.
