from straitstimes.com:
Keeping global trading system conflict-free and fair is a critical challenge, says DPM Heng
DPM Heng Swee Keat said the world needs to come together to face global challenges. ST PHOTO: KUA CHEE SIONG
Ovais Subhani
Senior Business Correspondent
UPDATED
AUG 21, 2024, 10:44 PM
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SINGAPORE – Avoiding conflict and maintaining a free and fair global trading system is the foremost challenge of our time, said Deputy Prime Minister Heng Swee Keat on Aug 21.
DPM Heng told the 2024 Regional Economic Conference, organised by the American Chamber of Commerce in Singapore (AmChamSG): “Going into conflict in order to get a better life for the people is not the solution.
“The solution is to have a system of free trade that is fair, so that we can help each other to bring a better life for our people. This is the critical challenge of our time.”
DPM Heng said the world needs to come together to face global challenges such as climate change, disruptions caused by technological advancements, and health security issues such as another pandemic.
Such global cooperation is unlikely if geopolitical tensions and protectionism are on the rise, he said, referring to the intensifying US-China trade war.
He referred to Mr Lee Kuan Yew’s address to a joint session of the United States Congress in 1985, in which Singapore’s founding father and first prime minister made a powerful case for free trade and investment.
In those days, the world had just emerged from a recession and high inflation, and many US legislators were calling for protectionist measures to address trade imbalances, job losses and budget deficits.
Mr Lee, addressing the Congress, said: “Does America wish to abandon the contest between democracy and the free market on the one hand, versus communism and the controlled economy on the other, when she has nearly won this contest for the hearts and minds of the Third World?”
He went on to urge the US to continue to maintain its position as the “anchor economy of the free market economies of the world”, in an open, peaceful and rules-based international order.
DPM Heng said that, in some ways, the US today faces the same choice. The fate of the global trading system is critical for Singapore, given the economy’s dependence on trade.
The AmChamSG event at the Grand Copthorne Waterfront hotel also marked the 20th anniversary of the US-Singapore Free Trade Agreement. Bilateral trade between the two nations since 2004 has almost tripled, hitting a peak of US$207 billion (S$271 billion) in 2021.
US investment in Singapore stood at US$309.4 billion in 2022. American businesses in Singapore employed about 191,400 workers here in 2021.
DPM Heng said Singapore looks forward to upgrading the free-trade pact with a deal on the digital economy.
“We cannot be looking back; we should be looking forward and looking forward. I think (the) digital economy will be important.”
Singapore has concluded five digital trade agreements, including one with the European Union in July.
In 2023, the US-Singapore Critical and Emerging Technology Dialogue was launched. The initiative was followed in 2024 with the Roadmap for Digital Economic Cooperation, identifying priority areas of mutual interest such as artificial intelligence (AI), quantum computing and cyber security.
DPM Heng said scientific and technological advances in generative AI and mRNA vaccines have reshaped entire industries, and our lives, in recent years.
He said: “The nature of these breakthrough technologies is such that it is very easy to overestimate their value in the short term and underestimate their value in the long term.”
Hence, Singapore has decided to harness such innovation and keep its economy and workers competitive.
He said given that US businesses are among the most innovative in the world, he expects them to play their role to help unlock new innovations and transformation in Singapore and across the Asean region.
AmChamSG chief executive Lei Hsien-Hsien said US businesses would like to work more closely with the Singapore authorities to help impart training to the workforce in Singapore and across the region.