Distinguished guests
Ladies and Gentlemen
1. I am delighted to see so many of you here today for the Australian Universities International Alumni Convention Welcome Dinner. I am told that amongst us today are alumni from almost all the major countries in Asia, and of course, Australia and New Zealand. This is, therefore, an excellent occasion to reflect on the relationship between Singapore and Australia as well as Australia's relations with the region.
Bilateral Relationship
2. Australia's and Singapore's relationship predates Singapore's independence. During the Second World War, the 8th Division of the Australian Defence Force (ADF) was deployed in Singapore as part of the Commonwealth forces. Australia also defended Singapore when President Soekarno mounted Konfrantasi against Malaysia of which Singapore had just become a part. And Australia was one of the first countries to recognise Singapore when we gained independence in 1965.
3. Today, our bilateral ties are strong. Both countries cooperate in many areas, including defence and counter-terrorism, trade, education and scientific research. We are both open and tolerant societies. We share common views on issues such as the importance of an open global economy. Our economic relations are substantial. Bilateral trade has grown, particularly since the implementation of the Singapore-Australia Free Trade Agreement in 2003. Singapore is Australia's 5th largest trading partner and its 7th largest foreign investor.
4. Singapore's defence relationship with Australia has also become substantive and multi-faceted over the years because of shared strategic perspectives. Since 1971, we have been partners in the Five Power Defence Arrangements (FPDA) together with New Zealand, the UK and Malaysia. The FPDA is the region's longest active defence agreement and has played an important role in enhancing peace and security in Southeast Asia. We also value Australia's friendship for providing us with training grounds and facilities. Some of the Singaporeans here tonight would probably have gone to Australia for training exercises during your National Service and remember Shoalwater Bay Training Area in Queensland. Australia has thus helped Singapore overcome its space constraints and enabled the Singapore Armed Forces (SAF) to train in realistic conditions. Today, the SAF is also working closely together with the Australian Defence Force (ADF) in the reconstruction mission in Afghanistan. The SAF will be deploying a medical team to support an ADF unit in Oruzgan Province later this year.
5. People-to-people linkages forged by travel, education and work form yet another vital link between our two countries. There are over 10,000 Australians now living in Singapore and some 40,000 Singaporeans in Australia. Over the last forty years, Australian universities have educated about 100,000 Singaporeans, a large number considering our small population. The presence here this evening of so many Singapore alumni of Australian universities attests to the vibrancy of the people-to-people ties. I have no doubt that you will continue to maintain your friendships and social networks from your university days. These links form a bridge between our two countries as well as between Australia and the region.
6. At the political level, Singapore leaders have worked well with Australian governments and leaders. As Prime Minister, I enjoyed good rapport with both Prime Ministers Paul Keating and John Howard. I also had good working and personal relations with Prime Minister Bob Hawke. Now, Prime Minister Lee Hsien Loong is forging new ties with Prime Minister Kevin Rudd.
7. While Australia and Singapore relations are close and warm, difficult issues do crop up from time to time. For instance, in October 2006, Australia imposed compulsory pilotage on all ships using the Torres Strait. In our view, this clearly contravened the UN Convention on the Law of the Sea (UNCLOS). As a trading nation, UNCLOS is of vital importance to Singapore. Neither is it inconsequential to Australia. Despite these occasional disagreements, both countries have not allowed them to strain our ties. Whenever we fail to see eye to eye, it is critically important that both sides handle the differences in a way that does not undermine each other's core interests.
Regional Landscape
8. The Asia-Pacific region is undergoing profound changes and there are growing complexities both on the political and economic fronts. The US remains the dominant power, but the rise of China and the emergence of India have made the strategic landscape more fluid. The future of the Asia-Pacific region will depend in large part on how the triangular relationship among the US, China and Japan develops. The prospects are positive as all three powers understand the critical importance of keeping their relations on an even keel.
9. In the economic sector, globalisation has brought about vast changes. China and India are huge new markets as well as huge new production bases for the world. They have significantly altered regional trade and investment flows. Many countries realise the value of deeper economic integration with other countries, and a host of bilateral and regional FTAs have been concluded or are being negotiated. There is now greater inter-dependence between countries in Asia and more scope for cooperation. But there is also more competition.
Australia's Relations with the Region
10. Against this backdrop, Australia's economic relations with Asia have grown, in part to feed the huge resource needs of countries like China. Three of Australia's top five trading partners are in Asia. ASEAN and the three Northeast Asian countries of China, Japan and South Korea account for about half of Australia's total trade. Australia's economic ties with India are also expanding, and India is now Australia's 10th largest trading partner.
11. Australia's increased engagement with Asia is also evident at the people level. More and more Australians are studying and working in Asia. Seven of Australia's top ten overseas travel destinations are in Asia. Many in the region would have noted Australia's generous assistance to Myanmar in the aftermath of Cyclone Nargis and to Indonesia in the 2004 Boxing Day tsunami disaster.
12. It is most encouraging that Australia has gone beyond bilateral interactions to step up its engagement with the region on the multilateral front. For example, Australia's accession to ASEAN's Treaty of Amity and Cooperation in December 2005 was valued by the ASEAN countries. Similarly, Australia is an active participant in key regional fora such as the ASEAN Regional Forum and the East Asia Summit. An engaged Australia is not only of benefit to the region but it also serves Australia's interest given that Southeast Asia is strategically located in relation to Australia.
Closer ASEAN-Australia cooperation
13. No country, no matter how big, can address the big issues of our time without partnering other countries and working through regional organisations. Whether it is climate change, flu pandemics or terrorism, these issues do not recognise national borders. I am happy to note that the Rudd Government has renewed its commitment to the region by identifying the Asia-Pacific as one of its top three foreign policy priorities. Singapore welcomes this renewed commitment and we look forward to increased cooperation with Australia. Let me offer two suggestions on how we could work more closely together for mutual benefit.
14. First, ASEAN's partnership with Australia could be strengthened by building up new areas of cooperation, for instance, in energy and the environment. Both sides could work together to address the impact of climate change, for example, through promoting the use of energy-efficient technologies and sustainable forest management. Second, the 16 countries in East Asia Summit should work towards realising the Comprehensive Economic Partnership in East Asia (or CEPEA), an FTA that will create a market of over 3.1 billion people. This market represents more than half the world's population and has a combined GDP of US$19 trillion, or one-third of global GDP. While this is a long-term goal, it is important to put in place the building blocks that will help us realise it eventually. As the CEPEA is based on ASEAN's individual FTAs with the EAS countries, we should try to make faster progress on ASEAN's FTA with Australia and New Zealand which is currently under negotiation.
Conclusion
15. There is no longer any question that Australia sees its future closely tied to Asia's. The active engagement of Asian countries and regional organisations has brought mutual benefits to Australia and its partners in Asia. Australia's active engagement of the region has also helped to strengthen the regional architecture and thereby enhanced regional stability and prosperity.
16. In a world of rapid change and uncertainty, we need to remain nimble, alert and creative to keep our countries and economies moving forward. And we need to work closely with like-minded friends who share common interests. In this regard, the good relations and close partnership between Singapore and Australia will contribute significantly to enhancing security, growth and well-being of our two countries and region.
17. Thank you.