Singapore will deepen regional connections as Asean chair in 2027: PM Wong

[SINGAPORE] When Singapore assumes the chairmanship of Asean in 2027, it will step up the bloc’s connections with existing partners and seek out opportunities to work with new regions such as Latin America, Africa and the Middle East, said Prime Minister Lawrence Wong.

Despite fragmentation, regions will still need to connect with one another, so Singapore hopes to be one of these connectors, he said at a dialogue on Thursday (Oct 8).

This was among several topics raised in a wide-ranging conversation with Forbes Media chairman and editor-in-chief Steve Forbes on the second and final day of the Forbes Global CEO Conference held at the Shangri-La hotel.

As a trading nation where trade is three times the gross domestic product, Singapore cannot afford to turn inwards, said PM Wong, adding that “we will get poor very quickly if we do so”.

This came after he expressed frustration at the US’ tariffs levied against Singapore, despite the two countries’ free-trade agreement and Singapore’s trade surplus with the US.

“We have not been able to understand it, but what to do?” he said. “The right tariff should be zero.”

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As for concerns about tariff circumvention, PM Wong acknowledged these concerns, but highlighted that there are also legitimate business reasons for a company to set up operations in a country and export from there.

Asked about Singapore’s pharmaceuticals exports to the US, he stressed that many pharmaceutical companies – as well as semiconductor firms – in Singapore are American. The former will not be subject to tariffs, given that they have investments in the US; the latter could be granted similar concessions, he said.

PM Wong noted that the semiconductor industry is a big part of Singapore’s economy, and is now boosted by the artificial intelligence boom.

No boom is forever, so the city-state’s approach is to “make good use of this window of opportunity now, when there is external demand, capitalise on it, build new capabilities and create better jobs for Singaporeans”, he also said.

Meanwhile, the country’s tripartism – the unique collaborative approach adopted by unions, employers and the government – will see to it that AI benefits all workers. Singapore will also work with other countries on AI safety, and ensure that safeguards are put in when deployed sectorally.

PM Wong and Forbes also discussed other international developments during the 45-minute session, including the impact of the ongoing Middle East crisis on energy.

Upon its outbreak earlier this year, Singapore was prepared for the worst-case scenario of a severe curtailment of energy supplies, and possibly even a “Covid-like situation in which countries would scramble for oil, energy, and essential supplies”.

But this has not materialised, and Singapore was able to source for crude oil from outside the Middle East, said PM Wong.

While the different grade of crude oil procured has required the retuning of operations and has led to a lower output, refineries have still been able to operate and service customers, he said.

And while the risk of a “sudden and severe dislocation” has come down, Singapore is ready for a prolonged conflict which will eventually affect global growth.

The government has already rolled out some support packages to cushion the impact on households and businesses, and is prepared to do more if things worsen.

Asked about the high cost of living in Singapore, he said: “We always remind people: costs and incomes are two sides of the same coin.”

Services that consumers pay for go towards the salaries of the people who provide them, he said.

Tracking real incomes is thus critical, and the government watches closely to ensure that they continue to rise across all segments of the population.

Other topics he and Forbes tackled at the discussion included Singapore’s recent move to increase ministerial salaries, healthcare financing, managing an ageing population, and civilian nuclear power.

Forbes also asked about the ability of other countries to replicate Singapore’s success story.

“There is no secret formula,” said PM Wong. Noting that Singapore invites foreign officials to visit and runs training programmes for them, he added: “It’s for others to decide whether they want to do like we have.

“We often tell them it’s not just a cut-and-paste exercise, because policies and programmes have to adapt to local context and circumstances,” he said.

“And every country is different, every society is different. But we are always happy to share.”