PM Lawrence Wong said that countries increasingly want to trade with those they feel are friendly to them. - ST
RIO DE JANEIRO: Singapore has to be realistic and adapt to the current shape of global trade, as it continues to work with like-minded countries to strengthen support for multilateralism, said Prime Minister Lawrence Wong on Tuesday (Nov 19).
This means bringing Asean countries closer together and linking up with other regional groups, such as the Mercosur bloc in Latin America, he told reporters on the last day of the Group of 20 (G-20) Summit in Rio de Janeiro, Brazil.
“The reality is that trade is continuing, but it is being reconfigured,” PM Wong said in an interview to wrap up his trip, where he spoke on the impact of changes to global trade flows and why the Republic’s participation at international meetings like the G-20 summit makes a difference.
Singapore is not a member of the G-20, which comprises 19 major and emerging economies, along with the European Union and the African Union. However, it is regularly invited to take part in the group’s meetings.
On trade, PM Wong said countries increasingly want to trade with those they feel are friendly to them.
Regional groupings also become more important as countries seek to reduce dependency and vulnerability, he said.
“(It is) an era of re-globalisation, a different form of globalisation where trade flows, perhaps, will become more regional in nature,” PM Wong added.
This is why Asean is important for Singapore, he noted, adding: “Number one, we have to strengthen our own neighbourhood”.
He outlined the work being done in several areas to make Asean closer and more competitive, such as digital connectivity, payment systems and a regional power grid.
At the same time, Asean should link up with other regions, PM Wong said.
He noted that Singapore has free trade agreements with Mercosur and the Pacific Alliance, another Latin American trade bloc, and is also connecting with the Middle East and the African continent.
“We want to then plug to all the different regional groupings and make sure that, however, trade flows are being reconfigured, Singapore and Asean can still be at the heartbeat of that reconfigured trade flows, and we can continue to remain relevant,” PM Wong said.
The Prime Minister was also asked about the role of the G-20, given ongoing criticism that it has failed to produce concrete, binding outcomes on key issues. This year’s summit, for instance, was marked by differences over climate action and the war in Ukraine.
PM Wong replied that the G-20 and similar platforms are very important for Singapore, because they give it insight into what is being discussed on the international stage.
“As the saying goes: If you’re not at the table, you’re on the menu,” PM Wong said. “We don’t want to be on the menu. We want to be at the table, we want to have a say.”
He added: “Participating actively in platforms like this gives us a sense of what new initiatives are being developed, what are new emerging areas of cooperation, and then we can, because we are involved, we can shape these emerging processes in ways that we think are useful.”
Even if Singapore cannot get its preferred outcomes, it is at least aware of what is happening and can adapt and adjust accordingly, he said.
PM Wong also spoke more broadly on the role of the G-20, saying that there “is nothing like it around the world, where countries can come together to think through economic and financial issues”.
He acknowledged that getting countries to cooperate has become more difficult, now that many have become more inward-looking, but said it does not mean they should stop trying to find common ground.
“I think (it is) all the more important, under such an environment, for us to have more engagements, more opportunities to talk with one another, rather than to even abandon such platforms and end up with more misunderstanding and a higher risk of conflict and confrontations.”
He also said such international forums give him the opportunity to meet his counterparts from around the world and strengthen bilateral ties.
Asked about the importance of Singapore engaging countries such as France and Germany, PM Wong said both countries are economic powerhouses and leaders in their own right, in areas such as science, technology, defence and security.
Singapore has good ties with both countries in these areas, and strengthening these relationships is a matter of mutual interest, he added.
On Nov 18, Singapore and Germany announced that they would elevate ties to a strategic partnership.
Singapore and France had in April 2024 announced that they would work towards a comprehensive strategic partnership.
PM Wong said there is strategic alignment between Singapore and both France and Germany, as both European nations approach engagement with China in a pragmatic way.
“They look at China as a competitor, but they also want to chart their own course, separate from America, in engaging China,” he said.
Both also want to engage South-east Asia more, he observed.
This is important for Singapore, which wants the region to be open and inclusive, and able to engage all major parties and powers, not dominated by any single party, he said.
“We think, by doing so, we have a framework that allows more countries to have stakes in the region, more economic interdependency, and that will help to reduce the chances of conflict and will maximise the likelihood of us being able to maintain stability and prosperity in the region.”
Asked about his priorities for the rest of 2024, PM Wong said he is planning a visit to Thailand.
He also highlighted the upcoming leaders’ retreat between Singapore and Malaysia, saying: “There are important issues bilaterally that we want to take stock and hopefully make progress on.”
These two visits will wrap up his engagements for 2024, PM Wong said, adding that domestic priorities “continue to be top of our mind”.
On the upcoming People’s Action Party conference, the Prime Minister said he will prepare his speech for Nov 24.
The biennial conference is where the party’s cadres gather to elect its top decision-making body, the central executive committee.
It is this committee that screens potential candidates ahead of each general election and decides which MPs will be retired.
Senior Minister Lee Hsien Loong is currently the PAP’s secretary-general. The question is whether PM Wong will take over this post after Nov 24’s election.
PM Wong also said a lot of work has already started for Budget 2025.
He had earlier outlined four broad themes for 2025’s Budget – economic strategies for the next bound; opportunities for skills upgrading and jobs for workers; support for Singaporeans across different life stages; and strengthening Singaporeans’ sense of solidarity and unity as the country marks SG60.
“We will start to ramp up as the Budget date gets closer,” he said. - The Straits Times/ANN
