Singapore must 'double down' on staying open amid global storms, says PM Lee

Even with globalisation in decline, Singapore must still make its living “as a global city and an international hub”, said Prime Minister Lee Hsien Loong in Parliament on Wednesday (Apr 19).

Singapore’s survival depends on it being able to do business with the world, he said, on the third day of the debate on the President’s Address. “So our strategy must be to double down on staying open and connected to the world.”

The decline of globalisation is one of three “storms” in an unprecedentedly grave global situation, he said. In the face of this, he stressed that to survive, Singapore must stay united and self-reliant, as well as uphold its strong reputation.

He laid out the external challenges facing Singapore. The Republic’s relations with its immediate neighbours, Indonesia and Malaysia, are “stable and encouraging”, but further afield, the situation is grim.

“Singaporeans need to realise the gravity of the external situation,” he warned. “We are facing not just one storm, but several.”

Besides the erosion of the multilateral trading system, two other major storms are Russia’s ongoing war in Ukraine, and hostility between the United States and China, where Taiwan remains a “dangerous flashpoint”.

“These three simultaneous crises will set in train a whole series of changes and shocks that will severely disrupt the world, our region, and surely, Singapore,” he said.

In the face of this, Singapore must firstly stay united, despite new strains and stresses that may arise from these crises, said PM Lee.

High inflation driven by the Ukraine war will cause difficulties for many households, especially those of lower- and middle-incomes. Tense US-China relations will “expose our population to emotional pulls, commercial pressures, and influence campaigns”. And a fractured global trading system will mean slower, more uncertain growth and greater disruption to industries, jobs, businesses and workers.

But Singapore must not let these pressures create fault lines in society — be it “haves” versus “have nots”, “liberals” versus “conservatives”, or “locals” versus “foreigners”. Said PM Lee: “In this new troubled world, it is all the more important for us to close ranks.”

That is why the government launched the “Forward Singapore” exercise, to chart a “collective roadmap” forward, he added.

Secondly, Singaporeans must continue to have a “go-getting spirit of self-reliance and enterprise”, he said: “Even with wars, tensions and protectionism in the world, countries still need to trade, there will still be opportunities, and therefore we can still make a living.”

[[nid:617172]]

As staying connected means being exposed to competition, Singapore must do things more competently and efficiently to maintain its edge, he added. This means continually upgrading existing capabilities and building new ones.

The country must transform and restructure its economy to stay abreast of new technologies and industries, and bring in foreign professionals with the expertise to help it in this journey.

While all this is challenging, Singapore has the advantage of standing out from the competition, said PM Lee. “Businesses, investors and talented individuals in the region and beyond are showing great interest in Singapore. They want to come here, to bring in their talent, capital and investments.”

Lastly, to stay ahead, Singapore must uphold its good reputation and standing in the world, which is what attracts investors.

Singapore is known as a place where the system works, and professionals are competent, honest and trustworthy. The country is seen to honour its commitments and make useful contributions to global issues.

“Because of all these and more, confidence and trust in the Singapore brand has grown. This is a precious asset in an uncertain world,” he said.

To keep Singapore’s system going, good leadership is also necessary, said PM Lee.

“During the pandemic, Singaporeans experienced first-hand the importance of strong political leadership,” he said.

The country’s Covid-19 response and results would have been “very different” without political leaders who “set the direction, make the tough calls, and rally people together”, he added.

He appealed to Singaporeans to give the fourth generation leadership their support “for now, as members of my team, but in due course, when they take over the reins as the next leadership for Singapore”.

This article was first published in The Business Times.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.