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SINGAPORE – The world economy may be going through its worst recession in a century, but Asia is well positioned to contribute to global growth, Deputy Prime Minister Heng Swee Keat said on Tuesday (September 15).
Noting that China is the world’s second-largest economy and that the ASEAN’s ten economies grew about 5% last year, Heng said the outlook for Asia remains bright.
Its economic fundamentals are also strong, having undertaken reforms after the Asian and global financial crises, he added.
“Many Asian economies have a large and growing middle class, which provides a strong foundation for production and consumption. Asia is home to a vibrant ecosystem of startups and many innovative companies.”
He further said that all countries and companies will have to make adjustments in a post-Covid-19 world, which is likely to place greater importance on supply chain resilience, digitization and innovation, as well as new growth areas. .
Heng, who is also Minister of Finance, delivered a keynote address at the Global FutureChina Forum, the theme of which is A Resilient Future: Transformation and Post-Pandemic Opportunities in China and ASEAN.
The annual forum, now in its 11th year, brings together government and business leaders, as well as leading thinkers on a wide range of China-related topics.
It works from Tuesday to Thursday, and it is celebrated practically this year thanks to Covid-19.
Heng said there are three things countries can do to help the region grow and build a more resilient future.
First, they must remain open and connected to the world, while reshaping their economies so that globalization works for everyone.
In this regard, Singapore is reviewing its job pass policies, strengthening fair consideration, training workers and strengthening social safety nets for those affected by economic disruption, he said.
“But we must not undermine what has made us successful by closing ourselves off from the world … We must continue to manifest our commitment to multilateralism and free and open trade.”
China too, he said, continues to reform its economy under a new “dual circulation” economic model, defined as “taking the domestic market as the mainstay while allowing domestic and foreign markets to propel each other.”
Since it was first mentioned in May at a Politburo meeting, China’s main decision-making body, Chinese President Xi Jinping, has repeatedly spoken about a new economic development strategy that relies less on global integration. and more in the expansion of internal trade.
Heng said that while China’s dependence on its domestic market will grow, “international circulation” will not lose importance and the two types of circulation should be mutually reinforcing.
Second, Singapore must strengthen its connectivity with the region and the world.
It is facilitating the movement of goods, data and people in a number of ways, from working with like-minded partners to keep business lines and supply chains open to smart city initiatives with Asean and China, as well as opening its borders for business travel and essential officers. with China, Malaysia, Brunei, South Korea and Japan, it added.
Third, Singapore must create business-to-business partnerships.
Examples he cited include: the Emerging Stronger Taskforce, to find new bright spots in Singapore and the region; Industry-led partnerships for action, to rapidly prototype new solutions in areas such as smart commerce and sustainability; and cross-border collaborations in areas such as infrastructure.
To ensure that their activities benefit society at large, companies must work with a wide range of stakeholders, including workers and local communities, the DPM added.
“In this way, we make economic growth inclusive and sustainable.”
He also noted that while this year marks 30 years of Singapore-China diplomatic relations and next year, 30 years of ASEAN-China dialogue, the ties go back more than a thousand years when a vibrant trade network already existed between China and the United States. southeast. Asia and the world.
“This trade network and the ties of our people have been resilient, ebbing and flowing for the past 10 centuries.”
Heng said he received Yang Jiechi, a member of the Politburo and head of the Chinese Communist Party’s foreign affairs office, last month when he visited Singapore: “He was my first foreign visitor since the Covid-19 outbreak.”
He added that he hopes to receive Chinese Vice Premier Han Zheng in Singapore later this year when they co-chair the 16th Joint Council for Bilateral Cooperation.
The DPM emphasized that while Covid-19 has added to the stress and anxieties of globalization, Singapore must remain open and connected to Asia and the world.
“(We must) believe in our ability to adapt, develop our approaches, and forge new partnerships with each other.
“Only then can we contribute and benefit from the growth of Asia.”
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