Thank you Mr Chairman. Minister Vivian spoke about Singapore’s main foreign policy priorities. I will elaborate on Singapore’s relations with countries in the region and beyond.
2. For good reasons, we place great importance on engaging our regional neighbours. Our future is inextricably linked to the region. A peaceful and stable Southeast Asia is a necessary condition for Singapore’s security and prosperity. ASEAN is our largest trading partner with 630 million people and a combined GDP of US$2.55 trillion. In 2016, Singapore’s trade with ASEAN amounted to US$217.1 billion – more than a quarter of Singapore’s total trade. Last year, around a third or 6.2 million of our total visitor arrivals came from ASEAN. We see tremendous potential and opportunities in our region as ASEAN is expected to become the fourth largest economy in the world with a GDP of US$10 trillion by 2030. With 60% of ASEAN’s population under the age of 35, there are also demographic dividends to be reaped.
3. Therefore, we have pursued collaborative relations with our Southeast Asian neighbours, in particular the provinces and regions outside the capitals of our two closest neighbours.
4. Malaysia and Indonesia are large dynamic markets. There are opportunities to deepen our engagement at the state and provincial levels. We have had visits by leaders from Sabah, Sarawak and Johor, as well as from Jambi, North Sumatra and KEPRI. We have visited places like Malacca, Perak, South Sumatra and West Java. There is much unfamiliarity with Singapore in these places, and vice-versa, especially among the youth. It is important to understand our neighbours at the local level and provide opportunities for them to know us. What happens at the local level has an impact on their national politics and economies. Some provincial leaders have also taken higher office at the national level. There are also potential economic opportunities in these states and regions for our businesses. Given our close proximity, Singapore cannot be immune. For instance, I have met pesantren students as well as undergraduates in Riau and Jambi. The students were keen to discuss various topics ranging from maintaining religious and racial harmony to the Singapore education system. Both the students and I came away richer from having better understood each other’s perspectives.
5. Mr Baey Yam Keng asked about our relations with other Southeast Asian countries. We keep up regular high-level exchanges to deepen bilateral ties. Last November, President Halimah Yacob attended the Royal Cremation Ceremony of His Majesty the late King Bhumibol Adulyadej of Thailand. PM visited the Philippines and Vietnam twice last year. ESM Goh Chok Tong and Minister Vivian visited Myanmar, while Minister Vivian also made introductory visits to Philippines and Cambodia. We hosted Laos Prime Minister Dr Thongloun Sisoulith, as well as senior Vietnamese leaders. I also visited Brunei twice last year including for Hari Raya Open Houses. We have been doing this for several years now, and our friends from Brunei likewise visit Singapore during the Hari Raya season.
6. Such interactions also provide opportunities for Singapore companies venturing into the region. For example, Avoidance of Double Taxation Agreements with Laos and Cambodia came into force last year. We are also in the process of negotiating a Bilateral Investment Treaty with Myanmar, which will give better protection for our companies. IE Singapore recently signed an MOU with the Philippines Bases Conversion and Development Authority for Singapore to participate in the development of New Clark City.
Deepening Engagement beyond the region
7 . While Southeast Asia remains the cornerstone of Singapore’s foreign policy, we should not lose sight of important regions elsewhere. In this globalised world, events elsewhere also affect Singapore. I will talk about three regions in particular – South Asia, Africa and the Middle East.
8 . First, South Asia. In response to Mr Liang Eng Hwa and Mr Murali Pillai, South Asia enjoys longstanding linkages to Southeast Asia. Politically, South Asia is an important part of the larger Indo-Pacific region which adjoins Southeast Asia. Economically, the region is driving growth in Asia. South Asia’s GDP is fast approaching US$3 trillion.
9. Our relationship with India remains broad-based and deep. Singapore is India’s 10th largest trading partner and 2nd largest foreign investor.[1] We have made steady progress through the India-Singapore Strategic Partnership, particularly, in skills development and smart cities. We also worked with our economic agencies to support our companies’ expansion efforts in India. For example, PSA inaugurated the Bharat Mumbai Container Terminals, which is now India’s largest container terminal. In keeping with India’s moves to digitalise its economy, we are also exploring new areas of cooperation such as in FinTech. India’s technology start-up scene is fast developing, with over 5,000 tech start-ups in 2017 alone. Singaporean start-ups such as Anchanto, Shopmatic and ViSenze are venturing into India to tap on its potential.
10. With the decentralisation of the government in India, we have actively engaged individual states such as Maharashtra to support Singapore’s business interests. Following the State’s Chief Minister Devendra Fadnavis’ visit to Singapore last year, a joint working group to share expertise and speed up investment proposals was proposed. We have also been supporting the development of Andhra Pradesh’s new capital city, Amaravati. India’s Act East policy has put a spotlight on connecting the North East of India to Southeast Asia. We have launched a third skills centre in Guwahati, Assam, last year, after Delhi and Udaipur. Singapore’s experience in technical and vocational training is helping India upskill its youth and support our business interests.
11. We recently signed a FTA with Sri Lanka during PM’s visit to Colombo. This is Sri Lanka’s first modern and comprehensive FTA that not only highlights the economic opportunities but also provides savings for Singapore’s companies. Bangladesh has also significant potential. Singapore contributed the highest net inflow of FDI to Bangladesh in the past two years. Bangladesh Prime Minister Sheikh Hasina will visit us in a few weeks. We will discuss economic cooperation and investments by Singapore and Bangladesh companies.
Africa
12. Next, Africa. Africa is a vast continent of 54 countries that we cannot ignore. While many of us may be unfamiliar with Africa, you would be surprised how many Africans know about Singaporeans and Singapore. I am constantly reminded during my trips to Africa of Singapore’s reputation there, and the goodwill and trust that Africans have of us. Many leaders from these countries have told me that they have all read founding PM Lee Kuan Yew’s memoirs and want to learn more from us.
13. As Africa grows, we seek to position Singapore to take advantage of the economic opportunities. Africa’s GDP is expected to reach US$3 trillion by 2030. Our trade with Africa has been going strong, reaching S$8 billion in 2017, an increase of 13% from 2016. This year, we will host the 3rd High-Level Ministerial Exchange Visit from Africa, which will focus on how Singapore can partner Africa in smart city development.
14. We are working to put in place key economic frameworks, such as Avoidance of Double Taxation Agreements and Bilateral Investment Treaties so that Singapore companies will find it easier to do business in Africa. We are also making progress in aviation connectivity. Ethiopian Airlines re-launched flights to Addis Ababa, in addition to direct flights to Mauritius and South Africa. Expanded air links will help boost business and tourism.
Engagement with the Middle East
15. Professor Fatimah Lateef asked about our engagement in the Middle East. It remains an important region for Singapore on several fronts. Singapore’s total trade with the Middle East grew by about 24% to S$52.7 billion last year.
16. Economic reforms in many Middle East countries provide unprecedented opportunities. For instance, Saudi Arabia’s Vision 2030 and National Transformation Programme 2020 beholds bold and comprehensive reforms to diversify its economy from oil and to open up the country. Our companies can tap on opportunities in areas such as infrastructure development, healthcare and smart technologies.
17. There is also good momentum in economic exchanges with the UAE, our largest trading partner in the region. A Singapore company, Rotary Engineering, won a contract to build 12 storage tanks for Dubai’s Emirates National Oil Company, increasing storage capacity by 50%. Last year, the UAE Embassy in Singapore, the Singapore Business Federation and Abu Dhabi Chamber of Commerce and Industry, set up the UAE-Singapore Business Council to link up companies and investors.
18. Our presence in the Middle East extends to North Africa and Central Asia. My visit to Lebanon in May 2017 marked the first visit by a Singapore political office-holder to Lebanon since 1974. We rekindled our ties with the Lebanese leadership and agreed to explore cooperation in areas of shared interest such as counter-terrorism and technical cooperation. This year, I plan to bring a business delegation to Morocco to explore prospects for economic collaboration. A few days ago, Singapore and Tunisia signed an Avoidance of Double Taxation Agreement. Besides these, we continue to engage Iran. At the political level, I visited Iran last year and the Singapore Business Federation has mounted business missions to explore the Iranian market. For Central Asia, I met both the Mayors of Astana and Almaty during their visits to Singapore last year. They had promising discussions with Singapore companies to explore economic ties with Kazakhstan.
19. Our people-to-people ties with the Middle East are strengthening. The number of Singaporeans travelling to, living, studying, or working in the Middle East is increasing. Wherever I have travelled, I have met many who have visited and spoke fondly of Singapore.
20. Our universities have many exchange programmes in the Middle East. Over 500 students have participated in SMU’s Business Study Missions to the GCC countries. The NUS Overseas College in Israel has also allowed many to experience Israel’s dynamic economic, business and entrepreneurship culture. Since 2007, NUS’ Middle East Institute has promoted a deeper understanding of the region by regularly inviting academics and experts from the Middle East for lectures and workshops.
21. Our engagements in the Middle East take place against the backdrop of a dynamic and complex region with rapid developments. Events unfolding in the region reverberate across the world. Last year alone, we saw the Gulf diplomatic crisis and the Israeli-Palestinian issue erupt.
22. I had the opportunity to listen to different sides involved in the disputes. Singapore respects their positions and we do not take sides. It is our hope that all parties will be able to resolve their differences amicably.
Middle East Peace Process
23. Singapore has maintained our consistent and principled position to uphold international law and support the peaceful resolution of disputes, including on the Israeli-Palestinian conflict. This has always been our approach regardless of the vagaries of Middle East politics.
24. Minister Vivian had explained in January 2018, Singapore’s vote in favour of the UN General Assembly resolution on the Status of Jerusalem. Singapore’s vote was based on a key principle of Singapore’s foreign policy, which is the promotion of a rules-based global community, governed by the rule of international law, including abiding by UN Security Council Resolutions, and the peaceful resolution of disputes. We voted in favour of the resolution as it reaffirms previous UN resolutions, rejects any decisions or actions which purport to alter the character and status of Jerusalem, and calls for all States to comply with existing UN Security Council resolutions on Jerusalem. Before this, we had also voted in favour of UN General Assembly Resolution 37/123C in 1982, which deplored the relocation of diplomatic missions to Jerusalem, which was a violation of UNSC resolution 478 (1980). Any unilateral and premature action that might alter the status of Jerusalem will impede progress towards a just and durable solution to the Israeli-Palestinian conflict. The future status of Jerusalem should be decided through direct negotiations between Israel and the Palestinians. Let me elaborate in Malay.
25. Status Baitulmakdis adalah satu perkara yang rumit dan juga sensitif yang berlatar belakang sejarah yang lama. Sebarang tindakan sepihak atau yang terburu-buru yang mungkin mengubah status itu akan mengganggu proses menuju ke satu penyelesaian yang adil dan berkekalan dalam kemelut Israel-Palestin. Status masa depan Baitulmakdis harus diputuskan melalui perundingan langsung di antara pihak Israel dan Palestin. Singapura mempunyai ikatan yang baik dengan kedua-dua pihak Israel dan Palestin. Kami telah menyeru kedua-dua pihak untuk menyambung perundingan dua-hala secara langsung, yang akan membawa ke arah satu penyelesaian yang adil, dan berkekalan. Maka itu, di Perhimpunan Agung Bangsa-bangsa Bersatu (PBB) baru-baru ini, Singapura telah mengundi menyokong resolusi PBB yang menolak sebarang keputusan atau tindakan yang boleh merubah sifat atau character dan status Baitulmakdis. Ia sejajar dengan keputusan Singapura mengundi resolusi yang serupa pada tahun 1982 yang menolak pemindahan sebarang pejabat kedutaan ke Baitulmakdis. Kami sentiasa berpendapat bahawa huraian dua-negara akan membantu membawa kedamaian dan keselamatan kepada kedua-dua pihak. Dengan pendirian Singapura yang tidak berganjak mengenai isu ini, kami diambil serius dan dianggap sebagai rakan yang boleh dipercayai dan diharapkan, dan yang boleh memainkan peranan yang membina dalam hal-ehwal antarabangsa.
25. [Translation] The status of Jerusalem is a complex and sensitive issue with a long history. Any unilateral and premature action that might alter the status of Jerusalem will impede progress towards a just and durable solution to the Israeli-Palestinian conflict. The future status of Jerusalem should be decided through direct negotiations between Israel and the Palestinians. Singapore has good relations with both Israel and Palestine. We have urged both parties to resume direct negotiations and make progress towards a just and durable solution to the conflict. Therefore, at the recent UN General Assembly, Singapore voted in support of the resolution to reject any decisions or actions that may change the nature or character of the status of Jerusalem. This is consistent with Singapore’s vote in favour of UN General Assembly Resolution 37/123C in 1982, which deplored the relocation of diplomatic missions to Jerusalem. Our longstanding view is that a two-state solution will help to bring peace and security to both parties. Singapore’s unwavering position on this issue has enabled us to be taken seriously and regarded as a friend who can be trusted and relied upon, and who can play a constructive role in international affairs.
26. Our interest in the Middle East also stems from mutual interest to counter religious extremism together. I just returned from Kuwait, where the Global Coalition to Defeat the Islamic State in Iraq and Syria (ISIS) discussed how we could build on our successes and continue cooperating to eliminate terrorism. Singapore has played an important role in the region’s counterterrorism efforts, lending early support to the Defeat-ISIS Coalition. We are the first Southeast Asian country to join the Coalition, and the only Asian country to have contributed both military assets and personnel to anti-ISIS efforts. Ultimately, our contributions toward the security and stability of the Middle East will help keep Singapore safe and secure.
Singapore Cooperation Programme
27. Ms Joan Pereira asked how the Singapore Cooperation Programme supports Singapore’s engagement with other countries. Through the SCP, we have shared Singapore’s development experience with over 117,000 foreign officials from all over. SCP participants form a reservoir of goodwill and support for Singapore in international fora as well as their home countries. Past SCP participants include Lao Prime Minister Dr Thongloun Sisoulith and several current leaders, ministers, mayors and governors of neighbouring countries. The SCP gives us a useful platform to broaden our cooperation with other countries. We have joint training partnerships with developed countries like the US and Japan, as well as developing countries like Thailand and Argentina for countries in the region and beyond.
Role of Singaporeans when overseas
28. Given the growing number of Singaporeans living and travelling overseas[i], Mr Ong Teng Koon’s question of their role in advocating for Singapore is timely. In today’s globalised and digitalised environment, foreign affairs is no longer the privileged purview of professional diplomats alone. Increasingly, Singaporeans, especially those living abroad, play a role too.
29. When overseas, our citizens may often be asked to explain Singapore’s policies and actions. To do so effectively, an open mind and a friendly disposition helps to bridge differences. We do not seek to impose our views on others. By the same token, we must be conscious of who we are and defend what we stand for. We are an independent, sovereign, multi-racial country in Southeast Asia. We are not a Chinese, Indian or Malay state, and we must never act based on ethnic or religious identity. When we deal with a foreign country, whether in business or in social settings, we should stand firm against external pressures and influences that undermine our national identity, interests and values.
30. How tall and strong Singapore stands in the international community depends on our own unity and cohesiveness. Whether our people are in Singapore, or abroad, should make no difference. On our part, as we expand our space, secure our position and advance our interests internationally, MFA will continue to engage Singaporeans overseas. Our Embassies regularly organise activities to stay in touch with local Singaporeans and keep them updated on developments in Singapore.
31. Mr Chairman, I will now turn the floor to MOS Sam Tan.
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MINISTRY OF FOREIGN AFFAIRS
SINGAPORE
1 MARCH 2018
[1] Cumulative Singapore FDI to India from 2000 to 2016 was US$45.9 billion.