Singapore Senior Minister of State Sim Ann on navigating geopolitics
Singapore will develop strategies that align with national interests, said Sim Ann, Senior Minister of State, Ministry of Foreign Affairs and Ministry of National Development of Singapore.
- Singapore has, and will continue, to advocate for and strongly support efforts to strengthen the rules-based international system.
- ASEAN has the potential to be a center of gravity of the global economy, and where many companies will want to be situated.
- Changes in free trade have serious implications for small, open economies such as Singapore that rely on trade and investments.
The global economy is being reshaped at a scale that has not been seen since the end of the Cold War, said Sim Ann, Senior Minister of State, Ministry of Foreign Affairs and Ministry of National Development of Singapore. There is increasing geopolitical contestation, notably between the US and China. The Taiwan Strait and South China Sea continue to be flashpoints, and the ongoing conflicts in Ukraine, Gaza, and the Red Sea continue to attract global attention, she said, speaking at Nomura Investment Forum Asia 2024 on June 5.
The international consensus supporting multilateralism and globalization is fragmenting. Countries are increasingly prioritizing domestic and national security considerations. There is growing protectionism as countries increasingly employ tariffs and export restrictions to protect their domestic industries. Increasing on-shoring or friend-shoring, as well as policies such as sanctions, export and import controls, and investment restrictions, have forced businesses to restructure their operational models and shift supply chains. Changes in free trade have serious implications for small, open economies such as Singapore that rely on trade and investments, said Ms. Sim.
Amid heightened geopolitical risks, she said Singapore is guided by the following:
- Singapore will develop strategies in line with its national interests. Singapore has extensive and substantive relations with both the US and China. A world in which the two can coexist peacefully is a safer and more prosperous world for many countries, including Singapore. The island nation has been encouraged by open dialogue between the US and China, including their defense ministers’ meeting on the sidelines of the Shangri-La Dialogue in Singapore, she said.
- Singapore has, and will continue, to advocate for and strongly support efforts to strengthen the rules-based international system. As a small state, it stands ready to help keep the multilateral system functioning, or better yet, help improve it. For example, it is eager to work towards the restoration of a fully functioning Dispute Settlement System of the World Trade Organization.
- Singapore is looking at other ways to support the rules-based international system. It is pursuing novel economic partnerships that go beyond traditional trade agreements, such as the Indo-Pacific Economic Framework for Prosperity and the Digital Economy Partnership Agreement. These help to address new and emerging economic issues and facilitate broader economic cooperation.
- Singapore will continue its efforts to diversify its economy and strengthen its international position. Southeast Asia remains a bright spot with its robust economic growth. Despite the geopolitical environment, ASEAN has the potential to be a centre of gravity of the global economy, and where many companies will want to be situated.
The global situation remains uncertain and Ms. Sim acknowledges that the transition from a unipolar to multi-polar world could take decades. Singapore, a country where its trade is three times its GDP, is prepared for the long haul and its government has been very active in engaging individuals, communities, organizations, and stakeholders in the economy on what they can do together to navigate an increasingly uncertain world, she said.
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