07 Apr 2016
Speech by Minister Dr Vivian Balakrishnan
Madam Chairman, I thank all the Members of the House for sharing their perceptive insights yesterday and I am gratified by our unity of purpose.
Actually, the friends and protagonists that we have on the international stage will not be so much listening to what I have to say, but rather to the congruence of the discussions and the debates in this House. It is important that we should demonstrate unity of purpose. Foreign policy begins at home. Singaporeans must have a realistic, coherent and a collective sense of our place in the world. Singapore’s fundamental realities have not changed. We are a tiny island in a tough neighbourhood. At the 8th Rajaratnam Lecture delivered last year, Prime Minister Lee Hsien Loong said, and I quote, – “We have to take the world as it is and not as we wish it to be. But we believe we can and must defend ourselves and advance our interests”. What this means is that we must have no illusions about our significance in the world or our ability to influence global events. Our survival as an independent sovereign city state and our economic viability cannot be taken for granted. And if we ever become disunited or unable to defend ourselves or become an economic failure – we would rapidly become irrelevant.
Since our independence in 1965, we have assiduously forged national unity, we have achieved significant economic success and we have built strong partnerships at the bilateral, at the regional, and at the international level. These partnerships, these relationships safeguard Singapore’s external political and economic space. But quite frankly, the world is becoming messier and Singapore needs to become sensitive to the changes in the global environment and the global economy, and we must always be nimble enough to respond quickly and hopefully, in advance of these changes.
Major Power Interactions
Yesterday, Mr Vikram Nair and Mr Cedric Foo emphasised that we live in a region where the economic and strategic interests of major powers intersect. Indeed, as a small country, Singapore benefits when major powers focus on cooperation and constructive engagement in the region. Good relations among the major powers are essential for our continued stability and development.
The state of the US-China relationship is the key variable. This determines whether there will be peace and stability in our region. And their relationship is complex. There will always be elements of both cooperation and competition between the US and China. We hope that they will continue to cooperate effectively on the global and on the regional stage. We hope they will be able to effectively work together to resolve challenges involving nuclear security, climate change, piracy and cybersecurity, just to mention a few.
But we must also acknowledge that there will always be some degree of competition, if not outright rivalry between the US and China. China’s emergence as a rising power has shifted the strategic balance. And China has also become far more assertive in recent years. We see this in our region, for instance, in the South China Sea. Fortunately for us, Singapore is not a claimant state in the South China Sea. We take no position on the merits of the specific territorial claims. But as a small state, we do have a vital interest in and we have to strongly support the maintenance of a rules-based international order and to support the peaceful resolution of disputes, with full respect for legal and diplomatic processes. This is of vital importance for us that the integrity of international law and international agreements, such as the UN Convention on the Law of the Sea or UNCLOS for short, we must make sure that these agreements, these arrangements are not in any way undermined. As a small state, Singapore cannot accept that ‘might is right’.
In the South China Sea, China has conducted extensive reclamation works, it has constructed runways and ports, it has deployed significant military assets on disputed features in the South China Sea. Whilst, to be fair, some other claimant states have also conducted similar activities, but quite frankly, these activities by other claimant states have not been on the same scale or pace as that conducted by China. And what a major power does inevitably carries a far bigger signature. China, for its own reasons, has become more assertive in the East and in the Southeast Asian regions.
Both the US and China recognise that a stable relationship is crucial for peace and security in East Asia for regional economic growth and development, for prosperity, and indeed, for global stability. Despite their differences, there is one point worth noting, which is that never before in history, has a rising power, in its engagement with an existing superpower had such an unprecedented level of economic interdependence. They are intertwined. And this means that they cannot embark on an all-out confrontation because the economic impact on them, on both states, will be too high. In addition to this, of course, the threat of mutually assured destruction will also ensure that both these nuclear powers have a very powerful incentive to avoid direct confrontation.
I also agree with Mr Foo that the dynamics of the US, China and Japan relationship are also complex. These are the top three economies in the world and major strategic players in their own right and stable relationships amongst these three major countries are therefore vital for peace, stability and prosperity. The US remains the world’s superpower, and it has major economic and strategic interests in our region, including alliances and treaty obligations with Japan, the Republic of Korea and the Philippines, amongst others. Regardless of the outcome of the US Presidential Election, we expect the US to remain engaged in this region. Even though Sino-Japan ties are complicated by longstanding territorial disputes and historical baggage from the Second World War, but both sides have an interest in mending their relations. And to address complex global and regional challenges, we hope that all these major powers would work closely together to tackle issues of common interest, and avoid direct and destabilising confrontations with each other even as they search for a new modus vivendi.
I agree with Mr Nair’s assessment of the regional security challenges. The recent spate of provocative missile launches in the last few months by North Korea, the DPRK, has been unsettling. They are a clear violation of UN Security Council resolutions. The international community has imposed further sanctions on the DPRK. Some Singaporeans have asked me why do we bother, or why do we watch these developments in North Korea with such interest. And the reason we watch these developments with such concern is because tensions there will have a negative impact on the peace, stability and the economy of the entire region, both in the Northeast as well as Southeast Asia. A nuclear-capable, and unpredictable, unstable DPRK could also prompt other countries like Japan and the ROK to go nuclear, and this will further raise tensions in our region. Given China’s proximity and its influence over the DPRK, China will have to play a key role in any future resolution of this problem.
Ms Joan Pereira also asked what we are doing to address non-traditional security threats including religious radicalisation and extremism. We in Singapore are adversely affected by the conflicts in Libya, Syria and Iraq. Groups like ISIS use the Internet and social media to attract followers from all over the world, including us. More than one thousand men and women from Malaysia, Indonesia, the Philippines and even Singapore are believed to have travelled to the Middle East to fight for ISIS. There’s even a battalion for Bahasa speaking fighters. If you go on the internet and search YouTube for ISIS and Bahasa, you will see slickly produced videos, beautiful Arabic scenery and music, English subtitles spoken in Malay, Bahasa. Who else in the world are such productions targeted at? So some of our people will go there or will intend to go there. They will gain operational and combat experience, they will learn to make bombs, they will establish networks with other militants. And we know what has happened in Europe when these militants return. And we have to worry what will happen in Southeast Asia as these, our own militants from our region, return to our region. And this therefore poses a direct and serious threat to Singapore and our multiracial society. And therefore it is important that we stand up and we do our part to support the international coalition against ISIS.
Ms Pereira also asked about how the increase in global terrorist attacks is affecting Singaporeans abroad. Singaporeans are some of the most widely travelled people in the world, and many of us also have to work or travel overseas. And this often means exposing us, our people, to some risks, both to natural disasters as well as terrorism. Members of this House will recall that we all grieved when the late Ms Lo Hwei Yen became a victim of the Mumbai terror attack in 2008. A completely innocent victim. Providing consular assistance is a top priority for MFA. Wherever possible, our officers will assist Singaporeans who would experience difficulties overseas, including those in conflict zones as we did just last year in Yemen. We repeatedly urge Singaporeans to find out the facts before they travel and to exercise due care about where they will travel and how they will travel. We will continue to improve the range and quality of consular services for all Singaporeans. We will harness technology and we will also leverage on our partnerships with our other ASEAN Member States, both in the public and private sectors to augment our existing network of 50 overseas missions and 31 Honorary Consuls-General. The point is, MFA cannot be represented in all the 200 countries of the world. So in places where we don’t have a diplomatic presence, we will have to work behind the scenes with other governments, agencies as well as foreign governments to render appropriate consular assistance. SMS Maliki will speak more on consular services later on.
Dr Teo Ho Pin also noted the global economic slowdown and asked us how Singapore can increase and diversify our economic partnerships. There are, quite frankly, many challenges ahead of us beyond this region. The US Federal Reserve has ended its monetary easing policy. Europe is still struggling to resolve its economic malaise and unemployment, the migrant crisis, the political uncertainties of the UK’s possible exit from the EU, the conflicts in the Middle East. All these conspire to affect international political and economic stability, as well as the domestic stability in many countries including those outside the immediate theatre of operations.
Singapore’s openness means, by definition, that we will be exposed to external economic headwinds, but we have no choice. We have to remain plugged into the regional and international trade groupings and arrangements, because this opens doors for our people and our businesses. One example is the Trans-Pacific Partnership (TPP). Its ratification, despite the headwinds we are facing right now, but if and when it is ratified, it will create more trade and business opportunities for Singapore companies by providing access to new and existing markets. The EU-Singapore Free Trade Agreement - this is the first FTA between an ASEAN country and the EU – if this is ratified, it will also present numerous economic benefits for both sides and will strengthen linkages. We hope the EU will ratify this agreement soon.
ASEAN and Regional Cooperation
Mr Ong Teng Koon sought an update on ASEAN’s community building and integration efforts. Dr Teo Ho Pin asked about the ASEAN Economic Community. In a weakening global economy, the establishment of the ASEAN Community at the end of last year was timely. The AEC will integrate and transform ASEAN into a single regional market with a freer flow of goods, services, investments, skilled labour and capital. With 620 million people, a labour force that is the third largest in the world, and an estimated GDP of US$2.5 trillion, our ASEAN Economic Community has huge potential. Foreign investors will come to Singapore and will use us as a launch pad, as an interface to invest in regional opportunities. Jobs will be created. Singapore businesses and investors will benefit from these new opportunities. And I need to emphasise that we must not view ASEAN integration with a zero-sum mentality. On the contrary, integration will create win-win opportunities for all ASEAN citizens by making us collectively more competitive vis-à-vis other continental sized economies.
As ASEAN becomes more integrated, we must join hands to tackle some transboundary challenges, and to do so in a credible and coordinated fashion. For instance, on transboundary haze pollution, our Leaders have already endorsed the vision of a haze-free ASEAN by 2020. Quite frankly, as the former Minister for the Environment, I don’t see why we have to wait till 2020 to see clear blue skies. ASEAN has further established a Task Force to develop an ASEAN Haze-Free Roadmap. And we must continue to deepen cooperation to be able to do joint investigations, to collaborate with civil society, and we must put businesses on notice that they must behave responsibly and engage in sustainable development and fair business practices.
Another emerging challenge is the need to strengthen cybersecurity and to deal with cyber-threats because these threats have no boundaries. ASEAN-led platforms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS) have enabled Singapore and other ASEAN Member States to work with our Dialogue Partners to enhance capacity and regional cooperation in cybersecurity.
Mr Pritam Singh spoke about ASEAN-China relations and the South China Sea. Economics continues to be the centrepiece of the ASEAN-China relationship. China is already the largest trading partner for all members of ASEAN. ASEAN and China signed a protocol last year to upgrade the ASEAN-China Free Trade Agreement (ACFTA) and this will serve to further deepen the ASEAN-China economic cooperation and integration. We will also be celebrating the 25th Anniversary of ASEAN-China with a Commemorative Summit later this year.
China is keen to play a major role in the evolving regional architecture and the global initiatives. In fact, it has proposed several regional economic initiatives such as the Asian Infrastructure Investment Bank and this concept of a “One Belt, One Road”. Singapore was an early supporter of both these initiatives because we saw a congruence of interests with the region’s developmental needs. China’s “One Belt, One Road” initiative complements ASEAN’s existing efforts to promote connectivity and regional integration, and even our own latest bilateral project in China’s Western Region, the Chongqing Connectivity Initiative. We welcome China’s efforts in ensuring that these initiatives are open, are inclusive and consultative by engaging all relevant stakeholders and we will work with China to explore possible synergies.
But while ASEAN-China relations are substantive and mutually beneficial and positive, the fact remains, as Mr Pritam Singh observed yesterday, that the situation is not so tranquil in the South China Sea. We urge all parties to commit to non-militarisation, to exercise self-restraint and to refrain from the use or the threat of the use of force. We all stand to lose if tensions escalate and it is thus important to maintain open dialogue on issues of mutual concern, to prevent contentious issues from overshadowing the overall ASEAN-China relationship. We believe that ASEAN and China should remain committed to work towards the full and effective implementation of the Declaration on the Conduct of Parties in the South China Sea (DOC), as well as the early conclusion of the Code of Conduct (COC).
Under the Declaration on the Conduct of Parties in the South China Sea, we are currently working on a hotline between ASEAN and China’s Foreign Ministries for maritime emergencies. We also agreed to pursue the extension of the observation of the Code for Unplanned Encounters at Sea, the acronym for this is CUES, Code for Unplanned Encounters at Sea, and we hope that this will be expanded to all Parties’ naval vessels in the South China Sea. We believe this will help manage the situation and prevent miscalculation by young men manning ships and planes in the seas and in the air. I have also suggested that the ASEAN-China CUES can be extended to cover both navy and coast guard vessels. This will send a positive signal of our joint commitment to prevent loss of assets and lives, and ensuring peace and stability in the South China Sea. In fact, China, the US, and eight ASEAN Member States have already agreed to a CUES, under the ambit of the Western Pacific Naval Symposium in 2014, specifically for naval vessels. The US and China have also made considerable progress in agreeing on protocols for unplanned encounters both at sea and in the air, and have implemented them in practice. So the point is why not extend this to include all ASEAN Member States, and why not extend it to go beyond naval vessels but to include coast guard vessels since we know that some of the coast guard vessels plying South China Sea tend to be very large ships in their own right.
We have also had productive and frank discussions on the Code of Conduct. We have agreed to a paper on the “List of Elements of the Possible Outline of a COC”, and to a discussion paper on the “List of Crucial and Complex Issues” in the drafting of the COC. I apologise for all these jargon but this is typical diplomatic foreplay - agreement not yet achieved. On the ADMM Hotline, the ten ASEAN Defence Ministers have witnessed the set-up of a hotline between the defence establishments, but this has not yet been expanded to include China. As earlier explained, discussions on the establishment of an ASEAN-China hotline are underway on the Foreign Affairs track. As for the “no first use of force”, this was a proposal raised by Vietnam some time earlier. We have expressed support for this proposal, but quite frankly, there has been no progress since then. Nevertheless, China has signed on to the Treaty of Amity and Cooperation which commits all parties to refrain from the threat or the use of force.
So amidst all these delicate negotiations, our one simple challenge is to maintain ASEAN unity and to preserve ASEAN centrality in the evolving regional architecture.
Singapore’s Key Partners
I would like to assure Mr Alex Yam that Singapore’s political and defence ties with the US remain strong and substantive. We will work with the next Administration, regardless of the outcome of the next Presidential Election. It’s just worth reminding ourselves that we have no say but we will have to work with whoever the Americans choose. This is the karma of a small state. The US is our largest source of foreign direct investment; it is our top trading partner in services, and our third-largest trading partner in goods. There is much that we can learn from the US; its strengths in its economy and society, especially its cutting edge research and innovation as we ourselves move to focus on innovation and in our journey towards creating a sustainable Smart Nation. We welcome the US’ location of one of its three centres for the US-ASEAN Connect initiative here. And as I mentioned earlier, the US has enduring strategic and economic interests in Asia. The historic ASEAN-US Leaders’ Summit in Sunnylands in February this year reflects the US’ continued interest in this region. And we will continue to support the US engagement of Asia, including encouraging the US to quickly ratify the TPP, the Trans-Pacific Partnership. The significance of the TPP goes far beyond trade. It is an important signal, an icon of the US’ commitment to engage the Asia-Pacific and we urge all Parties that have signed on to this to ratify it quickly.
Ms Sun Xueling has asked about Singapore-China relations. China indeed is one of our key international partners. We commemorated 25 years of diplomatic relations with China last year. This culminated in an exchange of State Visits by President Tony Tan and by the Chinese President Xi Jinping. We established an “All-Round Cooperative Partnership Progressing with the Times” – it sounds better in Mandarin – to demonstrate that our longstanding, innovative and multi-faceted cooperation has kept up with the times and has evolved. Our bilateral cooperation moved beyond the traditional areas of trade and commerce to include financial cooperation, social governance, sustainable development, and food safety. Human resource development remains a key pillar of our bilateral cooperation.
During my recent visit to Beijing, I noted the good progress made on the Chongqing Connectivity Initiative. Both sides have agreed to achieve a comprehensive and substantive upgrade of the China-Singapore FTA by the end of this year. This upgrade is timely and it reflects the strength and depth of our economic cooperation. Not only is China our largest trading partner, we have also been China’s top foreign investor since 2013. This is a fact that I could not believe and had to re-read several times – that little Singapore has been China’s top foreign investor since 2013. My colleague SMS Josephine Teo will speak more about our unique relationship with China and its domestic implications after this.
Relations with our other key partners are also growing. Mr Liang Eng Hwa asked for an update on our relations with Japan. We continue to find ways to deepen our engagement with Japan, the third largest economy in the world. To commemorate the 50th Anniversary of Singapore-Japan relations in 2016, a slate of high-level exchange of visits has been arranged. Japan remains Singapore’s second largest foreign investor in 2014. We are also working with Japan to review the Japan-Singapore Economic Partnership Agreement and the bilateral Air Services Agreement, and this, if we succeed, will raise our bilateral relations to new heights. We also enjoy warm people-to-people ties with Japan, best illustrated by the generous contributions by Singaporeans to the rescue and recovery effort coordinated by the Singapore Red Cross following the 2011 earthquake and tsunami in Japan.
Dr Intan Azura and Mr Vikram Nair asked about Singapore-India relations. The signing of the India-Singapore Strategic Partnership in November 2015 laid the foundation for us to step up cooperation in diverse areas including finance, civil aviation, urban solutions and skills development. We hope to create more opportunities for our companies through new initiatives, which include the master-planning of Andhra Pradesh’s new capital city and providing support for the Centre of Excellence for Tourism Training in Rajasthan. India looks set to play an increasing, larger role in the economy and in the politics of our region. Under Prime Minister Narendra Modi’s leadership, India has stepped up efforts to develop infrastructure and to attract foreign investments. A stronger India emerging from these successful reforms will inevitably play a more active role in our region. Prime Minister Modi’s reaffirmation of India’s “Act East Policy” allows us to further our economic cooperation with India, both on a bilateral basis as well as regionally. India is already quite involved in the ASEAN region as an ASEAN Dialogue Partner and as a member of the East Asia Summit, the ADMM Plus and the ARF. It is also actively participating in the Regional Comprehensive Economic Partnership or RCEP, which is the other big trading bloc which we are working on. We welcome the commitment by all RCEP countries to intensify efforts to conclude the negotiations by this year. Ambitious, but worth a try.
Mr Saktiandi Supaat has asked about our ties with Australia and the Comprehensive Strategic Partnership (CSP) with Australia. In fact, right now or over the next couple of weeks, we are in the final stages of negotiations, and if we are successful, we will see unprecedented levels of collaboration and engagement with Australia in diverse areas, including economic integration; investments in new growth areas like food and agribusiness, aquaculture, tourism; enhanced defence arrangements; further collaboration and engagement on foreign affairs, further joint work in innovation, research and development, arts and culture, and people-to-people exchanges. The fact is, actually Singapore and Australia are quite complementary – we are a port, they are a continent; they have lots of land, we have no land; they have a population the size of Malaysia on a continent, we are a dense, packed city in the midst of Southeast Asia. So we are actually not in competition, we actually have a unique complementary role with each other. And, at a strategic level, our perspectives are very well aligned. So watch this space in the next few weeks.
We will also continue to seek economic links and opportunities for our companies in emerging markets such as Africa, Latin America, and the Middle East. SMS Josephine Teo and SMS Maliki will elaborate on our engagement with these two important emerging markets.
Our international engagement with multilateral organisations is also critical. As a small state, we have to engage with everyone. We will continue to play a constructive role in the multilateral fora including the United Nations, the World Trade Organisation and the Asia Pacific Economic Cooperation, APEC for short. We have to maintain our international relevance, we have to support the rule of law, and we have to strengthen the rules-based multilateral system. Whilst we are not a member of the G20 we have contributed actively when invited to participate. And most recently, Singapore has been invited by China to attend the Hangzhou Summit this September. This will be our sixth time participating in a G20 Summit.
Good Relations with Neighbours
Closer to home, relations with our neighbours are vital for our security and our national interests. These ties have to be maintained and nurtured at all levels. Dr Muhammad Faishal Ibrahim asked about relations with Malaysia and Indonesia.
During my recent visit just a few days ago to Malaysia, I caught up with many Malaysian leaders, including many old friends. My most recent trip was to Sabah. I thanked the Mount Kinabalu guides and the Malaysian authorities who provided invaluable assistance to Singaporeans who were affected by the June 2015 earthquake. The Malaysians’ swift, instinctive and spontaneous response at our point of acute need reflects the close ties between our two peoples, and it beholds us as politicians to build on that, to build on the already strong ties of kinship, friendship and relationship. The next major bilateral event will be the Leaders’ Retreat in Malaysia. This Retreat will allow us to take stock of our various bilateral projects, and our economic ties remain robust. We are each other’s second largest trading partners. I think that is after China, and Singapore has consistently been one of the top investors in Malaysia.
Connectivity is one key aspect that both governments are working to strengthen. Progress is being made on the Kuala Lumpur-Singapore High Speed Rail and the Johor Bahru-Singapore Rapid Transit System Link. Both governments are working to improve congestion at the Causeway and at our borders. We have conducted a joint study with the Malaysians. We have also done our own projections. The Causeway actually has sufficient capacity. Replacing the Causeway is not the solution. Rather, the key is to continually enhance checkpoint efficiency and operations, through measures including the use of technology and improving the infrastructure at the checkpoints. For example, ICA will be equipping all motorcycle clearance counters at our land checkpoints with automated facilities by the end of this year. Our efforts to expedite immigration and customs clearance must be balanced against security considerations. We have a responsibility to Singaporeans to ensure that we maintain a stringent level of checks. And the Malaysian government has also had to step up its own security measures.
Singapore and Indonesia have a long and close relationship at multiple levels. My first overseas visit of this year was to Indonesia, and we look forward to Indonesia hosting the next Leaders’ Retreat in the second half of this year. Economic ties remain strong. Singapore is Indonesia’s largest foreign investor. Isn’t that amazing? We are the largest investor in China. We are the largest investor in Indonesia. We have some USD$5.9 billion invested in Indonesia last year, and we are Indonesia’s third largest trading partner, as well as each other’s largest source of tourists. Our companies remain keen on Indonesia, and besides Jakarta, Batam, Bintan and the Karimun Special Economic Zone, our companies are also looking at other regions such as Central Java. For instance, SembCorp is developing a 2,700 ha industrial park in Kendal, Semarang. We also remain committed to working with Indonesia to address the transboundary haze, as I mentioned earlier. Year after year, the main victims of this haze are not Singaporeans. It is actually Indonesians themselves who live at Ground Zero. So we want to do more with the Indonesian government and other interested stakeholders, to promote sustainable agricultural practices, to strengthen our response to forest fires, and to hold errant companies responsible for the fires that they start or allow to occur on their concession areas. Counter-terrorism is another common challenge, and we will continue to work very closely with Indonesia as well as our other neighbours to fight this common threat.
We are always looking to do more with our other neighbours and to deepen our cooperation but issues will arise from time to time. Our bilateral relations with Malaysia and Indonesia are important to us. We have a long-term stake in each other’s success. So it is important that even when issues arise, we maintain a long-term perspective and certain equanimity in the way we relate to each other.
Another key partner is Brunei. Singapore and Brunei share a very special relationship. It dates back to the personal friendship between the late Mr Lee Kuan Yew and the late Seri Begawan. As fellow small countries and as founding ASEAN member states, we still cooperate closely. There are close defence relations - so many of us have trained in the jungles of Brunei, and the longstanding Currency Interchangeability Agreement. All these are icons of our strong bilateral ties.
Singapore also has excellent ties with Thailand, our economic and people-to-people links are robust. I paid a recent visit to Thailand a few weeks ago, in fact two weeks ago. I was honoured to be granted a royal audience with Princess Maha Chakri Sirindhorn, who hosted our delegation to lunch in her own palace, met the Prime Minister and other key members of the Cabinet. SMS Josephine will speak more about engagement with other Southeast Asian countries after this.
Let me thank Mr Sitoh Yih Pin for your compliments to MFA officers. The job in MFA is highly demanding. It requires our officers to work under challenging conditions and quite frankly, at great cost to their personal lives and their family lives. In all my fifteen years in politics through many incarnations, through many ministries, I have always found MFA officers to be dedicated, to be passionate, to be professional. What keeps them going is not their Minister but to their sacred mission to advance the interests of Singapore. They understand Singapore’s vulnerabilities; they also understand what we need to do to make ourselves relevant. And foreign diplomats have always told me that they have been so impressed not just by the superstars, but by the fact that every single MFA officer in the delegation is professional, competent, carries weight, makes sense, is constructive, is helpful. So our officers are our key assets, and I thank you for highlighting that yesterday. In fact, I want to thank members of this house for your support because after all, in the Budget session you are providing resources. Resources for my Ministry to recruit, to nurture, and to deploy some of our best Singaporeans on this sacred mission. On this note, I was gratified that MFA was recently voted by the students at our four local universities that is, NUS, NTU, SMU and SIM as the “Best Employer in Singapore for Training and Development in 2016” in the Universum’s “100 Most Attractive Employers in Singapore” survey. I think this is a vote of confidence and I hope that also means that we will continue to attract some of the best young Singaporeans, because this is a mission that can only be fulfilled by Singapore citizens. MFA has also ranked as one of the top 10 employers among the Humanities Students in the same survey.
Conclusion
So let me conclude by reminding all of us that the fundamental constraints that we face as a small island city-state with a multi-racial and multi-religious population remain unchanged. What has changed is the global and regional architecture, and emerging powers. And whatever happens we have to remember that we are price takers, and not price makers. So, we have to confront the headwinds from the global economic slowdown, the uncertain geopolitical environment, the security threats. And MFA and its officers will continue to help Singapore navigate through these difficult waters and pursue opportunities, so that Singapore will always remain safe, viable, and relevant in an uncertain world.
Thank you.
Speech by Senior Minister of State Mrs Josephine Teo
Thank you Madam Chair.
Strengthening Engagement with Neighbours in the Region
Relations with Cambodia, Laos, Myanmar, Vietnam and the Philippines
Earlier, when responding to Mr Ong Teng Koon and Dr Muhammad Faishal, Minister Vivian spoke about the importance of ASEAN and maintaining good relations with our immediate neighbours. To address Dr Faishal’s question on our relations with the other Southeast Asian countries, I will provide an update of our engagement with Cambodia, Laos, Myanmar, Vietnam, and the Philippines.
Some of these countries will see a change of governments this year. There has been a peaceful transfer of power following Myanmar’s elections in 2015 which bodes well for its development. Laos and Vietnam concluded their Party Congresses in January, while the Philippines’ Presidential election is due next month.
We have maintained strong ties with these countries through frequent exchanges of high-level visits. For example, last year alone, the Prime Ministers of Cambodia, Laos and Vietnam visited Singapore for our SG50 celebrations. We are ready to build on the good momentum of bilateral relations to foster closer cooperation with the new leaders and their governments.
This year, we will also officially launch the Singapore-Myanmar Vocational Training Institute as we celebrate the 50th anniversary of diplomatic relations with Myanmar. Our economic ties with Vietnam led to the establishment of the first Vietnam-Singapore Industrial Park, or VSIP, in 1996. The seventh VSIP was launched last year. We expect more opportunities for economic collaboration under our Connectivity Framework Agreement with Vietnam.
Let me assure Members that with every neighbour, we will continue to seek opportunities for meaningful collaboration and enhance economic integration within ASEAN.
Deepening Engagement with Key Partners
Relations with China
Moving on, I will expand on Minister Vivian’s comments on our cooperation with China and address Ms Sun Xueling’s question on how we can further strengthen bilateral relations.
We enjoy strong and active people-to-people links with China. About two million Chinese tourists visit Singapore each year, and close to a million Singaporeans visited China in 2015.
Our economic ties remain strong. China is Singapore’s largest trading partner, and we have been China’s top foreign investor since 2013, a point which Minister Vivian highlighted. At whatever speed its economy grows and however far-reaching its reforms extend, China will remain a key economic driver in the region. Our businessmen recognise this and have been in China for years. Singapore also supports China’s “One Belt, One Road” initiative and hopes to see businesses collaborate to capture new opportunities in the region. For example, last week I witnessed the signing of an investment agreement between PSA Singapore and COSCO Pacific that will deepen their cooperation and improve their strategic positioning.
As many of our companies know, there remains untapped developmental potential in the inland provinces. It is therefore important that we build good relations not only with the Central Government, but also with provincial authorities. This also explains why MFA has four Consulates-General in China besides our Embassy in Beijing, which is more than in any other country.
It takes time and effort, through regular exchanges and visits, to establish strong ties with the provinces and municipalities. For example, I will make a working visit to the provincial capitals of Yunnan (云南省) and Guizhou (贵州省) shortly after the Committee of Supply debate. To ensure continuity in our relationship-building, we recently updated our representation in the provincial business councils to involve younger political office holders in Singapore.
The scope of our cooperation with China continues to deepen and broaden. Following the success of the Suzhou Industrial Park and the Tianjin Eco-City projects, the Chinese approached Singapore to launch a third Government-to-Government project in Western China.
This third G-to-G project, known as the “Chongqing Connectivity Initiative”, is based on the theme of “modern connectivity and modern services”. It was launched by Prime Minister Lee and President Xi Jinping during President Xi’s State Visit to Singapore last year. We are optimistic that, like the SIP and SSTEC, the Chongqing Connectivity Initiative will play a pathfinder role in China’s development.
Madam Chair, in Mandarin please.
主席，新中两国建立高层机制提供双方领导人对相互关心的议题交换意见的平台，是两国之间实质关系的另一特征。这些机制包括由副总理层级领导人主持的新中双边合作理事会、新中领导力论坛和新中社会治理高层论坛。前两者分别成立于2004年和2009年。相比之下，新中社会治理高层论坛的历史较短，成立于2012年。
[English Translation: Madam Chair, another unique feature of our substantive relationship is the establishment of bilateral mechanisms to institutionalise high-level interactions between our leaders and to exchange ideas on issues of common interests. We have three such bilateral platforms, co-chaired at the DPM-level, namely the Joint Council for Bilateral Cooperation (JCBC), Singapore-China Forum on Leadership, and Singapore-China Social Governance Forum. While the JCBC has been held since 2004 and the Forum on Leadership since 2009, the Social Governance Forum is a relatively new platform launched in 2012. ]
中国是拥有14亿人口及5千年历史的文明古国，而新加坡是建国仅仅50年的城市小国，双方领导人却能够通过分享社会治理经验和挑战互相学习，这确实是非比寻常的。新加坡的许多政策到了中国必须因地制宜、符合中国国情才派得上用场。然而，对中国朋友而言，新加坡毕竟是华人占多数的多元种族社会，其成功的社会管理经验还是具有借鉴价值的。相反的，我们的体制和政策如果无法在新加坡有效地运行，得到中国朋友关注的力度也会减少。
[English Translation: It is rather unusual for two countries, particularly one that is a 5,000 year-old civilisation of 1.4 billion people and the other a small city-state that gained independence just 50 years ago, to find value in sharing experiences on social governance challenges. Much of what we do in Singapore can only be practiced in China with adaptation. But the successful implementation of our social management policies in a multi-racial society with a Chinese majority provide references that our Chinese friends find useful. If we cannot make our system work in Singapore, they will be much less interested in us.]
华族新加坡人与中国朋友交流时除了倍感亲切，在文化认知上也必定会产生共鸣。语言上的相同加上文化习俗的接近，甚至使得一些华族新加坡人被误认为是旅居中国境外的中国国民、即所谓的华侨。然而，我们实际上是华裔、是拥有独立国籍、效忠、及身份的华族。中国积极推行的侨务政策也有可能延揽至海外华裔，包括新加坡的华族社群。但我们得铭记于心的是, 中国人很多, 华侨也很多。 在东南亚一个小岛上出现了几百万个毫无特色的华人族群引起的顶多是好奇。终究新加坡人必须是杰出的、自信的、凝聚的族群, 才有特别的价值。我国华社与其他族群联手经过了50年成功打造现代新加坡的经历，完全可以满怀自信地与中国朋友进行交流,并体现我国的特殊性、独立性。
[English Translation: When Chinese Singaporeans interact with their friends in China, there is undoubtedly a sense of cultural affinity. We speak the same language and often celebrate common festivals, so much so that we could be mistaken as [华侨] or Chinese nationals outside China for whom China is the motherland. However, we are in fact [华裔] or ethnic Chinese outside China with independent citizenship, loyalty and recognition. China’s programme of active engagement of its [华侨] may extend to cover local Chinese communities [华裔], including those in Singapore. But we must always remember that there are many Chinese in the world, including [华侨], and a few undistinguished millions in a small island in South East Asia cannot be more than a curiosity. Ultimately, to be of value, Singaporeans as a community must be outstanding, confident and cohesive. Having joined hands with other races and successfully built up modern Singapore over the last 50 years, the Chinese community in Singapore can engage our Chinese friends with a sense of confidence, as well as demonstrate our independence and uniqueness as a nation.]
与其他华裔比较, 华族新加坡人更为突出的是我们多元文化的根基。它深刻地影响了我们的成长环境、所累积的经验和世界观。我们长期保持各种族之间的和睦友好，即享有共同空间又互相尊重。兼具多元与包容的独特文化构造, 也是新加坡人引以为傲的。在海外旅游时，新加坡人总是能在茫茫人海、相似的面孔中轻而易举地辨识出彼此。那夹杂着各种本地特色词汇的新加坡式英语 “Singlish” 正是我们倍感温馨的的魅力标志。由于工作关系，我接触过不少旅居海外的华族新加坡人，很感动的是不管离家多少年,他们还是坚持以”新加坡人”的身份介绍自己。
[English Translation: More so than ethnic Chinese elsewhere, the experiences and outlook of Chinese Singaporeans are rooted in a multi-cultural society where each community enjoys our common space and interacts respectfully with one another. We have a unique cultural make-up that is at once diverse yet inclusive, and which we are tremendously proud of. This is something that we are tremendously proud of: When travelling abroad, Singaporeans have no difficulty identifying one another from among a sea of ethnic look-alikes - our Singlish infused with all sorts of local references is an endearing and immediate give-away. Chinese Singaporeans living overseas whom I have encountered as part of my NPTD role, want to be identified and introduced as Singaporeans first and foremost, even after being away from Singapore for years]
[Note: End of Mandarin delivery]
Madam Chair, let me move on to our relations with Japan and the Republic of Korea. Mr Liang has asked about Singapore’s relations with both. Let me add to what Minister Vivian had said earlier. Singapore and Japan enjoy frequent high-level political exchanges. Over the last three years, Prime Minister Lee and Japan’s Prime Minister Shinzo Abe have met several times annually. They had another good meeting in Washington during the Nuclear Security Summit last week.
The Japanese Cabinet had decided to confer a posthumous award on Mr Lee Kuan Yew, the Grand Cordon of the Order of the Paulownia Flowers. This would be the first time the award has been given posthumously to a foreign individual.
Mr Lee had received the Grand Cordon of the Order of the Rising Sun, one of Japan’s most prestigious decorations, when he visited Japan in 1967. The Grand Cordon of the Order of the Paulownia Flowers is one level up from the Order of the Rising Sun. Since the award was elevated to a class of its own in 2003, only four foreign personalities have received it. We are deeply honoured and appreciate the Japanese Government’s decision, which recognises Mr Lee’s contributions to Singapore-Japan relations.
The Republic of Korea is another important partner. We commemorated the 40th anniversary of diplomatic relations last year. Mr Liang will also be pleased to know that besides strong economic ties, we also cooperate on a variety of regional and international issues.
Singapore companies have growing investment interests in Korea, especially in sectors like real estate, transport and logistics, and info communications technology. Many Korean companies in Singapore are engaged in international trading, transport and logistics, electronics, construction and engineering. As our business ties and people-to-people exchanges continue to grow, we hope to enhance relations through a meaningful review of the Korea-Singapore Free Trade Agreement and the bilateral Air Services Agreement.
Relations with the EU and European countries
Ms Low Yen Ling asked about our relations with the European countries. Our ties with Europe are anchored by strong trade and investment links, and regular high-level exchanges. The EU is Singapore’s third largest trading partner and the largest investor in Singapore with around 11,000 companies registered here. This will not change in the short term.
Even as Europe grapples with its challenges, we look forward to strengthening our economic relations through the EU-Singapore FTA. We are also keen on an EU-ASEAN Comprehensive Air Transport Agreement, which will enhance air connectivity between our two regions.
Beyond economic cooperation, Singapore continues to tap the experiences of several European countries. Germany, for example, offers many useful lessons.
As part of the SkillsFuture initiative, we are keen to learn from Germany’s best practices in vocational training. This February, I led a working visit to Berlin to learn from their experience in supporting parenthood. Our engagement with Germany will deepen through such channels.
We will also continue to work with other European partners on issues of mutual interest. Of special note is our participation in the Arctic Council. Our three years as an Arctic Council observer has allowed us to monitor developments in the Arctic that may impact Singapore, for example our maritime interests. It has also provided an additional platform to collaborate with the Nordic countries. I would like to especially record our thanks to Minister of State Sam Tan for continuing to lead our engagement on this front.
Nurturing Ties with Emerging Markets
To address Dr Teo Ho Pin’s question on emerging markets, let me assure members that MFA will continue to nurture our ties with these countries and seek out opportunities to expand Singapore’s economic space.
In 2010, total trade between Singapore and emerging markets (excluding China and Southeast Asia) stood at about 130 billion Singapore Dollars, and by 2014, this trade had grown to more than 160 billion Dollars.
As part of our plans to build ties, we have concluded a number of Free Trade Agreements, including with Panama, Peru and Costa Rica. We are continually on the lookout for opportunities to expand our network of FTAs and engage promising new markets.
For example, Deputy Prime Minister Tharman and Russian First Deputy Prime Minister Igor Shuvalov agreed last year to review the Trade Agreement signed between Singapore and the former USSR in 1966. This will take the form of a new FTA between Singapore and the Eurasian Economic Union, which comprises Armenia, Belarus, Kazakhstan, the Kyrgyz Republic and Russia. With a population of 180 million, these countries present good opportunities for trade.
In November 2015, we signed the Turkey-Singapore FTA, a significant milestone for both countries.
We are also stepping up engagement with other countries in South Asia besides India. In particular, we are exploring economic opportunities with Sri Lanka and Bangladesh. Our companies have made inroads in both recently, winning contracts for power plant projects in Bangladesh and master planning in Sri Lanka.
Latin America is another area with strong growth potential. If ratified, the Trans-Pacific Partnership (TPP) is expected to boost trade between Singapore and the Latin American TPP members Chile, Mexico and Peru.
High-level exchanges between both sides will maintain the momentum of our engagement. Singapore will host the State Visit by President of the Republic of Panama Juan Carlos Varela later this month. President Dr Tony Tan will also be making a State Visit to Mexico in June 2016, the first by a Singapore Head of State to Latin America.
Madam Chair, MFA will continue to deepen and broaden our engagement with other countries, I will turn the microphone over to Senior Minister of State Dr Maliki now.
Thank you.
Speech by Senior Minister of State Dr Mohamad Maliki Osman
Madam Chair, allow me to respond to the remaining issues raised by Members.
Middle East
Dr Fatimah Lateef asked about the situation in the Middle East, the Israeli-Palestinian conflict, and our plans to engage in the region. Mr Foo also asked about the implications of developments in the Middle East amid a sustained low oil price environment. The interests of the US and other major powers in the Middle East go beyond low oil prices. They will continue to be interested in the Middle East given the volatile security situation, terrorism and the various conflicts in the region, including the Israeli – Palestinian conflict. And the current conflicts in the Middle East are likely to persist. The situation in Yemen, Libya, Syria and Iraq remains of deep concern, given the humanitarian toll and the threat posed by terrorist groups like ISIS. We welcome the UN-mediated efforts to seek a political solution to the conflicts, but the process will not be easy, given the geopolitical complexities. The leadership role of the US and other major powers will be critical in pushing the negotiating process forward.
Singapore welcomes the latest French initiative to convene an international conference to seek a political solution to the stalled Israeli-Palestinian conflict. The Israeli-Palestinian conflict is longstanding and resonates with many in Southeast Asia including Singapore and Singaporeans. We share in the hope that a comprehensive and just agreement can be reached to achieve the two-state solution whereby Israel and Palestine can live side-by-side in peace and security. Singapore’s position on this has been consistent. We support the rights of the Palestinian people to a homeland. We have also voted for several Palestinian-related resolutions at the UN National Assembly. A number of Singapore leaders have also visited Ramallah. We want to help the Palestinians where we can, to rebuild their lives and develop their economy. Over the last 20 years, we have trained over 230 Palestinian officials in various courses under the Singapore Cooperation Programme. Furthermore, since 2013, Singapore has also offered a special technical assistance package valued at 5 million Singapore Dollars to help Palestinian capacity building. Under this package, we have hosted customised study visits in areas like education, anti-corruption, and economic development. And we are happy to do more, within our means, to share Singapore’s experience and enhance the capacity of the Palestinians. As a friend of Israel and Palestine, we urge both sides to engage in direct negotiations and to refrain from taking any unilateral actions to change the status quo, including through acts of violence.
We should be careful not to view the entire region through the same lens though. Singapore will continue to seek economic opportunities in emerging markets, including the Gulf Cooperation Council countries (or GCC). Our FTA with the GCC will help further economic cooperation with its six members. I have visited most of the GCC countries since last November. While lower oil prices have impacted the budgets of the GCC countries, there is admiration for the Singapore model of development and they remain keen to engage us and expand cooperation. In fact, our experience in diversifying our economy has taken a greater relevance to the GCC.
We should not neglect the other countries outside of the GCC also. There are potential opportunities in Iran following the implementation of the Joint Comprehensive Plan of Action. Our relations with Iran remain friendly. The Iranian Foreign Minister visited Singapore recently as part of a regional tour. We look forward to maintaining our political engagement in the months ahead. Another promising market is Egypt. I joined DPM Teo on his recent visit to Egypt to commemorate the 50th anniversary of our relations. The Chairman of the Suez Canal Economic Zone Authority briefed us about the development plans. Singapore will continue to explore opportunities for economic cooperation with Egypt, and share our experience in development where relevant.
Singapore and the Middle East countries share a common interest in combating religious extremism. Ms Joan Pereira has asked how Singapore is working with other countries to counter the spread of violent extremism. During my recent visits to the Middle East, religious scholars shared their concerns about extremism, and the need to counter the threat of radicalisation. They categorically reject violence in the name of Islam. I invited them to visit Singapore to share their experiences, so that we can learn from one another how to deal with this threat. Similarly, our students pursuing Islamic education in the Middle East also play an important role as they return and apply what they had learnt to Singapore’s context as a multi-racial and multi-religious society.
Singaporeans have always displayed tolerance for all religions and should continue to do so. But given the geopolitical complexities in the Middle East, there is a risk of Singaporeans, especially our Muslim community being drawn into the narrative of sectarian strife. Some of the causes of these conflicts are historical and longstanding, while some are driven by current regional political rivalries. We should be careful not to be drawn into these conflicts that are exploiting religion for political ends.
Africa
Allow me to briefly return to Dr Teo’s question on emerging markets. I will speak about Africa. There is growing interest in Sub-Saharan Africa as a market for Singapore companies looking to expand overseas. In the last decade, trade between Singapore and Africa has grown by an average of 10 percent annually, with total investments in Sub-Saharan Africa exceeding 21.1 billion Singapore Dollars in 2014. Good relations with the respective governments can help open doors for our companies. This August, MFA will host the Second Sub-Saharan Africa High-Level Ministerial Exchange Visit that aims to foster closer political partnerships with key African leaders. The Fourth Africa-Singapore Business Forum will build on past editions that had attracted about 2,000 participants from Africa and the region to explore business opportunities and establish networks. Such efforts have helped our businesses expand into new markets like Kenya, Rwanda, Tanzania and Ghana in sectors such as logistics, agri-business and real estate.
Expanding Singapore’s Space through Multilateral Platforms
Mr Amrin Amin asked how Singapore can play its part as a responsible member of the international community. Assistant Professor Mahdev Mohan also asked for details on our support for sustainable development, and how this might enhance Singapore’s standing internationally. As a small nation, Singapore has to be active in international fora to create space to advance our strategic interests. We do so by sharing our development experience and ideas, and this enhances our standing as a responsible and constructive member of the international community.
We have been working closely with our partners and UN agencies, learning from the experience of others and sharing with them what we do. Agencies like the World Health Organisation and International Labour Organisation, study our new policies like MediShield Life and SkillsFuture with interest, because we are tackling urgent questions like how to provide universal health coverage and the future of work in an outcome-focused way.
We have consistently been active at the UN as Chairman of the Forum of Small States since its inception in 1992 and convenor of the Global Governance Group (or 3G).
Singapore’s Technical Cooperation Programme
Now, let me talk about the Singapore Technical Cooperation Programme. During our early years, Singapore benefitted from assistance from others.
We have consolidated our developmental experience, and in turn launched the Singapore Cooperation Programme (or the SCP) in 1992 as a means to give back to the international community. Over the years, the SCP has built up a strong network of friends and a strong international brand name as a constructive partner. Notably, the SCP reached a milestone with its 100,000th participant in July last year. To date, more than 170 developing countries have participated in the SCP.
Singapore remains committed to enhancing the human resource capabilities of our ASEAN neighbours, especially the newer ASEAN members. The majority of SCP alumni, over 65,000 strong, are from ASEAN. Our four Training Centres in Cambodia, Laos, Myanmar and Vietnam continue to deliver over a hundred courses a year under the Initiative for ASEAN Integration.
To Assistant Professor Mohan’s query, almost 11,000 foreign officials have learnt from our sustainable development journey through the SCP. Sustainable development will increasingly take centre stage in international development, following the Paris Agreement on climate change and the UN 2030 Agenda for Sustainable Development last year. Through the SCP, Singapore is doing our part in rolling out a Sustainable Development and Climate Change programmes to include courses on energy efficiency, environmental management, disaster risk reduction, and climate change adaptation strategies. At the same time, the SCP is also working with the Centre for Liveable Cities to roll out a leadership programme in urban development. We will deepen these capacity building efforts in partner countries by responding to their new training requests arising from implementation of the Paris Agreement on climate change. I agree with Assistant Professor Mohan that the present global emphasis on sustainable development and clean energy presents opportunities for Singapore businesses. This is a broader area which our economic agencies are developing with the necessary coordination between the other relevant agencies. Through the SCP, we are also exploring Public-Private Partnerships to offer more sustainable development tools through Singapore businesses, NGOs and volunteer organisations such as the SIF to complement the Government’s development kit. Our youths have and can continue to play a role through these and other organisations.
We are also partnering the Singapore-based UNDP Global Centre for Public Service Excellence to conduct leadership programmes on sustainable development and good governance, under the new Sustainable Development Programme launched by Minister Vivian last September in support of the UN’s 2030 Agenda.
Madam Chair, everything we do in the international arena boils down to our recognition that we need to be useful and relevant player to others. While we may not have deep pockets to provide assistance through cash grants or soft loans, we believe that the best way to help others is through developing human resource and sharing from our own developmental journey.
Consular Services
Madam Chair, one of MFA’s core responsibilities is to assist our nationals in distress situations away from home. In this regard, allow me to address Ms Low Yen Ling’s question about consular support for Singaporeans overseas.
The safety of Singaporeans abroad is of paramount importance to MFA. Last year, MFA promptly deployed several Crisis Response Teams (or CRTs) to assist the return of Singaporeans from places like Nepal, Sabah and Yemen, which were rocked by earthquakes and civil unrest.
For example, our MFA officers worked tirelessly under challenging circumstances to contact over 100 Singaporeans who had registered with us following the 7.8 magnitude earthquake in Nepal last April. On the ground, the MFA CRT or the Crisis Response Team had to quickly establish a registration point at the airport to facilitate Singaporeans’ return home. The task was made more challenging by aftershocks which disrupted telecom lines and internet connection. The CRT worked closely with our Embassy in New Delhi, MINDEF and the SilkAir office in Kathmandu to secure landing slots for our RSAF C-130 aircrafts at the chaotic and congested airport runway. Although we have no Singapore Mission in Nepal, we persisted with a whole-of-government spirit and worked with the Nepalese government to bring home 70 Singaporeans and seven PRs safely.
To maintain a high level of readiness, MFA regularly conducts simulation and training exercises and reviews of our contingency plans. We and our Overseas Missions have rostered officers 24 hours a day so that Singaporeans in need of urgent help can get in touch with MFA.
While MFA is committed to do its utmost for our fellow citizens, Singaporeans should also play their part by staying in close contact with their Next-of-Kin and close friends, taking necessary precautions for their personal safety and planning properly for their travels. They should, for instance, purchase comprehensive travel and medical insurance, as our experience shows that emergency medical bills incurred overseas can be very costly.
I urge Singaporeans to eRegister with MFA each time they travel overseas. This would allow us to contact them quickly in a crisis, like we did during the Brussels bombings last month. Some Singaporeans perceive that e-Registering their whereabouts is a means for the government to track their movement. This misperception must be corrected. It is in their interest that they eRegister so that we can help them should they face any emergency situation abroad. During the Paris terror attacks last November, our officers worked day and night to contact our eRegistrants. We did not stop until every 263 registered Singaporeans were accounted for. This included an eRegistrant who did not subscribe to auto-roaming services and required MFA to leverage on social media such as Facebook and Twitter to contact him and ascertain his safety.
Against the backdrop of an uncertain global security climate, and increased frequency of natural and man-made disasters, MFA’s challenge is to meet Singaporeans’ growing demand for prompt and effective consular services. We cannot, however, accede to unreasonable requests, especially those that divert our attention or limited resources away from more urgent cases. Singaporeans must also respect and observe local laws as MFA is not in a position to intervene in the legal or judicial process of another country.
Many of the consular cases are admittedly complex and difficult to handle. But I am also glad to say that MFA officers have often risen to the challenge and this is occasionally recognised by the Singaporeans whom they have helped.
Madam Speaker, MFA will remain steadfast in advancing our national interests amidst an increasingly complex global environment. We will endeavour to work with our ASEAN neighbours and other key partners to promote peace, security and progress for Singapore and Singaporeans.
Thank you.
Supplementary Questions and Response by POHs
Supplementary Question 1:
MP Kok Heng Leun [interpreted from Mandarin]: I have a question. International relations is getting more and more complex. There are many conflicts of interest. Do we consider cultural exchange as a very useful tool to facilitate the understanding between countries, to improve our state relations? If it is our strategy to develop this cultural exchange, have we considered that in every Singapore Embassy and Consulate, there should be a cultural attaché in each of these bodies because I find that in many other countries the cultural attaché plays a useful role in the respective countries.
Response by SMS Josephine Teo: Madam Chair, the conduct of diplomacy is done through every means and channels that are available to us. So, besides cultural diplomacy, in the past we have heard of ping pong diplomacy, golf diplomacy. Every channel that is available to us to make friends, to extend our influence, we will engage in them. One of the most significant ways in which we extend our diplomacy is of course economic cooperation and hence you will find that a lot of our attention and efforts are focused in those areas. So the work of the Foreign Service Officer is not only to look at political developments but also to look at economic developments that could help to expand Singapore’s economic space to share these developments with our home base and then to provide ideas on how we can take advantage of the opportunities that are presented. We don’t require every one of our Foreign Service Officers and diplomats to be economists or to have been engaged in business before. We also, for example, link up with other countries and deepen our engagement with them through channels like exchanging understanding and extending our cooperation in science and technology, in research and development; and so our Foreign Service Officers have to be Jack of all Trades. They have to be good at everything and that includes cultural diplomacy. They’ll have to invest time to pick up the relevant skills, to understand the context of both countries and then when opportunities arise, to try and expand our international space in this manner. So the way in which we go about it is to be adaptive and be cognisant of the unique circumstances in every country and region that we establish diplomatic relations with. So there are no plans currently for specifically appointing cultural liaison officers. Where the need arises, we will examine whether there are opportunities for us to grow the capabilities of our Foreign Service Officers so that they can take on these multiple hats.
Supplementary Question 2:
MP Vikram Nair: Madam Chair, one of the exciting developments this year was the start of the ASEAN Economic Community, and what I would be interested to know is will there be any institutions around this? For example, like a regulatory institution and maybe even a dispute resolution mechanism, because as there are more and more transactions, there might be more and more little issues that crop up – not all of which require Government-to-Government interactions. So it may be good to build some institutions that can handle the small issues that crop up. I mean Europe, for example, has a European Court of Justice, European Commission, European Parliament. Now I don’t think we need all of that, but I think the minimum is some kind of dispute resolution and regulatory mechanism.
Response by Minister: I thank Mr Vikram Nair for the suggestion. Certainly, as the pace and scope of integration proceeds, there will be need for more institutional arrangements. I just want to caution that ASEAN works by consensus, so we will have to make sure that everyone agrees. But generally, the point that you are making is a valid one and we will work towards that.
Supplementary Question 3:
Mr Cedric Foo: Madam Chair, today’s oil price, WTI is about 38 dollars. Many of the Middle Eastern countries would require something like 80 over dollars, let’s say for Iran and Iraq, to break even their budget. For Algeria, maybe 90 odd dollars. For Saudi Arabia, 105 dollars. The Middle East may seem very far away from us, but events there, if it will destabilise (sic), or if the major powers of the world take their attention off the Middle East, I think it would be very bad for Singapore. So I’d like MFA’s take on how low oil prices, if they stay that way, will affect the Middle East, and therefore impact us.
Response by Minister: I thank Mr Cedric Foo for asking what is actually a very profound question that will require a full lecture to fully address. Let me try to encapsulate the key ideas. Start with a story.
I asked the Saudi Arabian Foreign Minister and the Saudi Arabian Minister for Energy, I asked him what is the cost of getting a barrel of oil from Saudi Arabia? He says, well, the true cost, the real cost to us, depends on whose accounting standards you use, but it’s somewhere between 2 to 5 US dollars per barrel. 2 to 5 US dollars, that’s the cost of lifting oil out from Saudi Arabia. Which means everything else is a plus. What you’re referring to however is the fact that for many years oil producers have made certain budgetary assumptions about the revenue that they will derive from oil. And what has happened in the more recent times with the dramatic fall in oil prices is that except in the case of the Singapore budget, in many other countries, especially countries which depend on the prices of natural resources, they have suddenly found themselves in a big deficit situation.
So I think the first point to be made is that fortunately for us we are not dependent on natural resources. Secondly, we have got a good Finance Minister and we don’t make these kinds of budgetary assumptions that lead us into a sudden deep hole. So there are certain salutary lessons for us at the domestic level.
At an international level, you are absolutely right, many countries especially oil producers in the Middle East, and including some in our own region, now have to come to terms with the very significant budgetary squeeze. And this affects them in multiple ways. They will have to cut back on services, on benefits to their people; they will also have to trim some of their budgets on other more esoteric adventures which they have tended to pursue – I don’t want to get into the details there. But I think the more fundamental question you are asking is what does this portend for stability in the Middle East? And even that answer to that question is not so straightforward.
On one level you could say, well, there should be less liquidity to expend on an arms race. But on another level we know that when countries get into trouble, there is always a political temptation to draw attention to tensions elsewhere to distract your own people. The third level of looking at this is – I think you made the point yesterday – as oil prices fall, and indeed as sustainable sources of energy emerge, and even as the US itself has become de-facto energy independent, does that mean the US will pay less attention to the situation in the Middle East?
And the answer is that well, the energy and fiscal imperative become less, but don’t underestimate the political complexities of the Middle East and its propensity to entangle outside powers into its politics. And I want to again emphasise the point that SMS Maliki just made just now. The conflicts in the Middle East have their roots going back thousands of years. They are ethnic and pseudo religious sectarian conflicts, superimposed with regional rivalry, and it is important that Singaporeans do not get caught up in these conflicts which really have nothing to do with us and really in fact, have nothing to do with religion. Religion has just been used, abused, as a vehicle to further political ends.
So the final point I will make about oil prices is to also bear in mind the fact that what can come down very quickly can also rise very quickly the moment you get any supply disruptions. The domestic implication of that in Singapore is the following. Number one, we have never subsidised energy. We should not do so. Number two, whether it comes to utilities, transport and all those other things we must always be prepared to pay the full international price, whether it is high or low, for it. Number three, we must make sure our economy continues to be built on sustainable, sensible, rational economic principles. Number four, make sure when we have debates on Budget like this, examine people’s assumptions. And make sure that the Singapore government never gets into situations where we make rosy projections which then suddenly run out of steam, and all literally regulatory and legislative panic breaks out. So those are the more important lessons for us from a domestic perspective.
Supplementary Question 4:
MP Zaqy Mohamad: Madam Chair, a question for the Minister. With the MAS looking into some of the, I suppose, investigations into 1MDB and other transactions here, as well as the recent Panama exposure case, has there been impact to our relationship with Malaysia, and other foreign counter parties who have been involved? And has this impacted some of the diplomatic agreements with them, such as the High Speed Rail and so forth? Thank you.
Response by Minister: This is a very sensitive question which I am not going to be able to give you a detailed answer to. But let me get this House to take a step back and to understand that Singapore is a financial centre, and it is in our long-term strategic interest, to be above board, to be kosher, to have the rule of law and integrity being the hallmarks of our system. So regardless of who and where and what those transactions are, and I would expect MAS and MOF, unfortunately they are not here to answer that, but I would expect that they would pursue and investigate and take all the necessary actions in order to maintain the integrity and the reputation of our financial centre. That is our paramount objective. Everything else becomes secondary.
But once people understand and know that we are consistent, we are governed by the rules and the rule of law, and that we will be fair, all this is what makes us relevant internationally. That we are trustworthy, reliable, honest people who are dependable. That’s our key imperative. I will not be able to get into details.
. . . . .
MINISTRY OF FOREIGN AFFAIRS
SINGAPORE
7 APRIL 2016