Amid 'new Cold War', Singaporeans need to brace for turbulent, difficult phase of global development: PM Wong

VIENTIANE: Singaporeans need to brace themselves and be mentally prepared that things may go wrong in this "turbulent and difficult phase of development worldwide" amid a "new Cold War", said Prime Minister Lawrence Wong on Saturday (Oct 12).

Speaking to reporters on the final day of his visit to Vientiane, Laos, Mr Wong said that world leaders at the recent Association of Southeast Asian Nations (ASEAN) summit and related summits shared similar concerns about the future, such as geopolitical hotspots escalating into potential conflicts and the threat of climate change.

"Going forward, we are now in yet another phase of development where the world is mired with geopolitical rivalry and contest after 30 years of globalisation," he said.

"Some say it's a new Cold War, and especially given such a context, it is more important than ever for ASEAN to look at strengthening its regional integration and making sure that we can have a louder voice on the global stage."

He noted that many countries have felt the impacts of climate change.

Some countries in Southeast Asia were struck by Typhoon Yagi recently while several parts of the United States were hit by a hurricane, leading to devastation and the loss of lives.

“We will try our best of course as Singapore, to steer outcomes in a more positive direction, whether it's action on climate change or ways in which we can ensure peaceful resolution of disputes and have constructive dialogues between different parties,” said Mr Wong.

However, he added that there is a limit to what Singapore can do on its own, and will have to work with its partners in ASEAN and beyond the region.

REGIONAL BLOC HAS BEEN EFFECTIVE

Responding to a question on the bloc’s effectiveness in light of slow progress on issues like the Myanmar conflict and South China Sea dispute, Mr Wong said that ASEAN has been effective and has played an important role over the decades, given its circumstances.

“We have to be realistic about what ASEAN can or cannot do, and we should also appreciate the wide diversity of countries in ASEAN,” he added.

The bloc has helped Southeast Asia largely avoid the proxy conflicts that erupted during the Cold War, noted Mr Wong.

"ASEAN came together. We were able to get countries, despite our differences, to start thinking as one grouping, to start thinking about regional interests and to start thinking about regional integration. I think that is a big, big plus, which we should never discount," said Mr Wong.

In this current environment, businesses have to adapt and consider the geopolitical risks, as well as think about how they can operate in a more sustainable manner.

Despite the challenges, there are also new opportunities as ASEAN continues to integrate, strengthening its links with other partners such as China, South Korea, India and Japan.

“Basically, Asia remains the growth engine of the world. There are many global investors still interested in being here in Asia and similarly, Singapore-based businesses can benefit by looking at all these different opportunities in the wider region,” said Mr Wong.

INFORMAL INTERACTIONS BETWEEN LEADERS

Mr Wong said that while this year’s ASEAN summit and related summits was his first since becoming prime minister, he is no stranger to such meetings.

“I've attended many summits before as a civil servant and as a minister,” he said.

“The most obvious (difference) is that, compared to before, you're sitting in the back, now you're sitting at the front table and delivering the points rather than just preparing the brief.”

He also shared that a lot of the discussions between the leaders take place outside of the formal meeting rooms, during their informal interactions.

“Some of it through a bilateral (meeting), but a lot of it, in fact, takes place when we have breaks, when we have meals,” he said.

“In two or three days, it's a very intense environment where the leaders are all together, interacting with one another, and I found that to be a very useful opportunity to build the relationship with my counterparts.”

Mr Wong said the opportunity for face-to-face interactions was the “most meaningful” part of the summits, as it gave him the chance to meet other leaders.

These leaders included those he has known for some time and those who are new, such as Thai Prime Minister Paetongtarn Shinawatra.

He said the summits have been fruitful, with progress made on regional integration and furthering trade relations with partners outside the region.

“These moves come at an important time when we see the world moving in a somewhat different direction. We are seeing more and more emphasis on security concerns, which means countries everywhere are talking about more barriers, becoming more self-sufficient, more protectionism,” he said.

ASEAN’s model shows that there can be a different way, with countries benefiting from more integration rather than more isolation, said Mr Wong.

EXPLORING NEW AREAS OF COOPERATION

Mr Wong said Singapore has a “very warm friendship” with Laos that is “mutually beneficial”. Both are small countries with almost similar population sizes, although Laos has a much larger land area, he said.

“But in many ways, we see common ground (and) similarities in the development journey that they are going on, which we have undergone,” he noted.

“That's why we have been doing so much, and we are fully committed to supporting their own development and supporting them with capability-building programmes.”

He identified renewable energy and food security as two new areas in which both countries can cooperate.

Laos is aiming to be “the battery of ASEAN” with its renewable energy assets and it needs an export market beyond its immediate neighbours, said Mr Wong.

Singapore is looking at how it can bring that renewable energy in not just through the land grid – which is Laos, Thailand, Malaysia and Singapore – but potentially through subsea cables too.

Mr Wong added that Laos can be a potential source of food exports to Singapore, with its vast fertile land for agriculture.

“We import almost all that we need, notwithstanding our 30 by 30 plan, we still have to import lots of food, and we are looking to diversify our imports,” he said.

He shared that a team from the Singapore Food Agency will head to Laos on an exploratory trip next month, and that agricultural businesses could potentially invest in the country.

Mr Wong also called on Laos President Thongloun Sisoulith on Saturday morning.