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SINGAPORE: Singapore should remain open to the world even as it reviews its work pass policies, Deputy Prime Minister Heng Swee Keat said on Tuesday (September 15).
This is part of how China and the Association of Southeast Asian Nations (ASEAN) can make globalization work for everyone, which Heng says is a way to help Asia thrive in a post-COVID-19 world.
Heng delivered a keynote address at the Global FutureChina Forum, on the theme A Resilient Future: Transformation and Post-Pandemic Opportunities in China and ASEAN.
COVID-19 has caused a severe supply and demand shock to the economies of China and Southeast Asia, Heng said, noting that businesses and workers are facing a difficult time.
However, Heng said Asia is well positioned to contribute to global economic growth and detailed how China and ASEAN can work together to make Asia a “vibrant region” for business, jobs and good living standards.
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Heng said that countries must remain open and connected to the world, and make adjustments so that globalization works for everyone, while Singapore must strengthen its connectivity with the region.
In an era of “tremendous change”, companies must also create partnerships to emerge stronger from the crisis, he added.
MAKING GLOBALIZATION WORK FOR EVERYONE
In an uncertain economic environment, Heng acknowledged that workers are eager for their jobs and the benefits of economic openness.
However, he urged countries to restructure their economies and train their workers to ensure globalization continues to be beneficial to all, adding that an open and connected global economy allows countries to develop and prosper.
Heng noted that global trade rules established after World War II have led to global exports increasing more than 300 times before COVID-19, and countries in the region “benefit immensely.”
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“In Singapore, we are adjusting our policies to ensure that they continue to serve the interests of our people,” he said.
“We are reviewing our job pass policies, strengthening fair consideration, enhancing efforts to improve the skills of our workers, and strengthening our social safety nets for those affected by economic disruption.
“But we must not undermine what has made us successful by closing ourselves off from the world.”
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The Ministry of Manpower announced last month that it will increase the qualifying minimum wage for new applicants for Employment Passes and S Passes to continue to encourage fair hiring, particularly in the current economic climate.
Southeast Asia will also be an increasingly important part of China’s dependence on the international market for goods and services, Heng said, noting that the 10 economies of Southeast Asia have become China’s main trading partner for the first time this year.
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“With the restructuring of global supply chains after COVID-19, Southeast Asia may be an attractive option for companies considering a ‘China Plus One’ strategy,” he said.
“In addition to manufacturing, the digital economy and infrastructure development also offer vast opportunities in Southeast Asia.”
STRENGTHENING REGIONAL CONNECTIVITY
Amid the pandemic, Heng said Singapore must strengthen connectivity with the region and the world to facilitate the movement of goods, data and people.
On the movement of goods, Heng said Singapore should work closely with like-minded partners to keep its trade lines and supply chains open, adding that ASEAN and China are committed to mitigating the impact of COVID-19 on the trade and investment.
“With China, we are moving forward with the New Land-Sea International Trade Corridor of the Chongqing Connectivity Initiative,” he said.
“We saw a 20 percent increase in trade volume in the first half of this year, despite COVID-19, through this corridor.”
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On the movement of people, Heng said Singapore is gradually and carefully reopening its borders, with its first Fast Lane launched with China in June for essential official and business travel.
Since then, Singapore has agreed to similar agreements with Malaysia, Brunei, South Korea, and Japan, and relaxed border controls for visitors from Brunei and New Zealand for general travel.
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“We are also in talks with other parties to expand the travel arrangements,” Heng said. “Singapore will also continue to promote regional cooperation and deepen our bilateral relations.”
KEEP BUSINESS CONNECTED
As for keeping companies connected, Heng said it is difficult for companies to deal with rapid changes on their own, adding that partnerships are needed to “deal with the coming turbulence and seize new opportunities.”
Heng said Singapore has established industry-led alliances to rapidly prototype new solutions in areas such as smart commerce and sustainability, and is stepping up the transformation of the sector through its Industry Transformation Maps.
Trade associations and chambers also have an important role to play, Heng said, noting how Business China develops business leaders and builds bridges with partners.
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Additionally, Heng said cross-border collaborations can help businesses grow, pointing to ASEAN Online Selling Day, Southeast Asia’s first online shopping event on a regional scale, as an example launched in August.
“Another example is Surbana Jurong’s China-Singapore Infrastructure Co-Investment Platform and the China Silk Road Fund, which brings together networks and capacities for infrastructure projects in Southeast Asia,” he said.
Heng said that companies must continue to work with a wide range of stakeholders, including workers, to create better jobs and opportunities to upgrade skills. He also said that they should work with local communities to ensure that their business activities benefit society at large.
“In this way, we make economic growth inclusive and sustainable,” he said.
