SINGAPORE – Global conditions that had allowed Singapore to flourish and which are now in retreat are not a temporary change, and the country has to be careful and realistic about the profoundly unpredictable and volatile new world order that is taking shape, Foreign Minister Vivian Balakrishnan said on March 3.
But this note of caution is not a call for pessimism, because Singapore has good reason to be confident in its future, provided it stays principled, relevant, and united as a people, he added.
Speaking during the debate on his ministry’s budget, Dr Balakrishnan said this was his 10th year as foreign minister, and he had never seen the world more disrupted, volatile or dangerous.
While generations of hard-working Singaporeans had built up the country into a “beacon of economic and social success”, they had done so in a world of proliferating free trade, global supply chains and multinational enterprises, with countries observing the rules of institutions like the United Nations and international treaties.
But today, big powers are taking a narrower view of their national interests, while the lack of trust and deep anxieties about each other has ushered in an era of sharper rivalry and fracturing supply chains, he said.
“Countries have turned inwards, ostensibly in the name of national security resilience and de-risking, in order to secure their individual interests in this turbulent environment,” said Dr Balakrishnan.
“This is not merely a sudden, temporary change in diplomatic weather. This is geo-strategic climate change.”
The world may in fact be reverting to a time when it was divided into blocks controlled by big powers, which by definition must mean the loss of choice and autonomy for small states, he added.
Responding to questions raised by about 20 MPs on a range of issues from US-China rivalry to Singapore’s relations with its neighbours, Dr Balakrishnan said the problem goes beyond trade and tariffs to the potential weaponisation of financial systems and frontier technology.
Singapore’s model, based on being a vital node in a global network, and enabling interoperability by allowing companies from all over the world to be based here so long as they play by the rules, had let it thrive for six decades.
But this open paradigm is now at risk, as technology has become a focal point for strategic contestation between big powers, with several having imposed restrictions and export controls on semiconductors, critical minerals and data, Dr Balakrishnan said.
Heightened scrutiny over advanced technology means there will be pressure from all sides that will make it harder for Singapore to operate, and will threaten its raison d’etre as an open hub.
But Dr Balakrishnan stressed that Singapore has three core strengths that put it in a strong position to face the future with confidence.
The first is its economic strength and its reserves, which means Singapore does not have to beg for aid or take loans that will subject the country to external pressure, or depend on any one external partner, said the Foreign Minister.
“Because of our strength economically, we cannot be bullied or bought. We have significant national reserves, and if the biggest criticism that we face in this Budget is budget marksmanship and having more reserves than we had anticipated, I think that’s a reason for celebration,” said Dr Balakrishnan.
Second, Singapore has the will and capabilities to defend itself, having invested fiscal resources into defence for six decades.
“The fact that everybody knows that we are good for our money and we put our blood where we stand on is the core of deterrence and respect,” he said.
But most importantly, Singapore has stayed united, and its diplomacy works because it has painstakingly forged and maintained a domestic consensus on core long-term interests and foreign policy priorities, said Dr Balakrishnan.
The country’s diversity means that from time to time, Singaporeans will have different views on global developments, such as the disaster in Gaza, he said. “We have to provide space for this diversity to be expressed, but without letting it become a means to divide us as a country.”
Given these dangerous times, Singapore’s foreign policy must continue to be anchored by longstanding principles that have kept it afloat for six decades, said Dr Balakrishnan. He added that this means the Republic must maintain an omnidirectional, balanced and constructive engagement with all partners, even though it will be more difficult when they are quarrelling with one another.
Singapore can be among the most reliable and consistent partners of both the US and China, and that is valuable and appreciated by both of them, he added.
“We have maintained our relevance and credibility with both powers by being consistent, by being transparent and being constructive,” he said. “We don’t simply tell them what they want to hear, but we are principled, we are trustworthy, and we play a straight game.”
Singapore will also strengthen its ties in the region, most intensively with Malaysia and Indonesia, and also with Asean, he added.
With Malaysia, both sides will continue to work on the delimitation of maritime boundaries and also continue negotiations on airspace and water, he said, noting that both Prime Minister Lawrence Wong and Malaysian Prime Minister Anwar Ibrahim have committed to not allowing any single issue to overshadow the overall positive agenda.
With Indonesia, PM Wong was the first foreign leader to visit Jakarta after President Prabowo Subianto took office, and both sides are making good progress in areas like renewable energy, human capital development, education and healthcare, he added.
On how Singapore will maintain its access to frontier technology, Dr Balakrishnan said the short answer is openness and trust.
While remaining clear-eyed about big power contestation and how that complicates its efforts to create an open platform, Singapore has to actively create opportunities so that it stays a magnet for ideas, technology, talent and capital, he said.
The country will also take firm action and move decisively against errant individuals and companies that flout its laws, he said. It also does not condone companies taking advantage of their association with Singapore to engage in evasive, deceptive or dubious business practices, as that would sully Singapore’s reputation.
Dr Balakrishnan also touched on the legal action taken against two Singaporeans and a Chinese national on Feb 27, after Singapore was singled out by US lawmakers asking for stricter requirements on countries to prevent the circumvention of US export controls for advanced Nvidia chips.
“We are doing so to protect our standing as a trusted, open hub painstakingly built up over decades,” he said. “This is how we have kept ourselves an attractive destination for leading companies with technology from all over the world.”
Dr Balakrishnan said there was no doubt that the world is at the end of an era. The most dangerous phase is when one world order is being replaced by a new world order, and the interregnum is likely to be chaotic, difficult, dangerous and tumultuous, he noted.
Singaporeans have to be realistic, careful and nimble, but Singapore does have strengths and there are opportunities ahead, he emphasised.
“We need the support and unity of all Singaporeans… to forge an unbreakable unity in the midst of great tumult and volatility,” he said. “And if we can do so, then we can face the future with confidence, and Singapore will emerge stronger.”
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