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SINGAPORE: Last week’s high-level talks between the United States and China are a step in the right direction, showing both sides’ appreciation of the need for dialogue and cooperation, Vice Premier Heng Swee Keat said on Monday (May 22). March).
This is despite the “tough rhetoric” heard in the recent two-day talks in Alaska, he said, the first high-level face-to-face meeting between the two countries since President Joe Biden took office.
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Calling the strategic competition between the United States and China the top global order issue, Heng said the COVID-19 pandemic has underscored the importance of a stable relationship between the two powers for the global commons.
“While the Biden administration will bring a more predictable approach to the world’s most critical bilateral relationship, the United States and China will remain strategic competitors,” Heng said.
It is in their interest to cooperate on common challenges such as COVID-19 and climate change, he added.
“I am glad that both parties have recognized that there are areas in which they could work together, despite the competitive tone of their relationship,” Heng said.
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“While tensions could escalate for some time, I hope that a framework of cooperation will eventually develop, even as both sides continue to compete, as the major powers do.
“Fair and healthy competition can be positive if it stimulates innovation to achieve better solutions to the many complex challenges facing the world.”
Mr. Heng delivered a keynote address at the virtual Credit Suisse Asian Investment Conference on the theme “Asia: Emerging Stronger in a Post-COVID World.”
ASEAN COMMITMENT
Heng also said that it is critical that the United States and China continue to engage constructively in Southeast Asia.
“The constructive engagement of the United States and China in the region will be key to Asia’s continued peace, stability and growth,” he said.
The United States’ presence in the region has provided stability since World War II, while its investments have been critical to the region’s rapid growth, Heng said.
Singapore welcomed the Biden administration’s commitment to strengthening its partnership with the region, including ASEAN, he said.
“ASEAN is an important partner for the US, not only in terms of addressing existing and emerging global challenges, but also putting regional engagement efforts into concrete action.”
China’s economic success has also been a boon for the region’s growth, and the ASEAN-China Dialogue Association is one of the bloc’s most important external associations, he said.
Southeast Asia should continue to work with any country that wants to work with the region, Heng said.
“It is not about choosing a side, but about preserving our ability to make decisions for ourselves. That’s what the centrality of ASEAN is all about.
“If tensions between the United States and China rise, our region must remain firmly anchored in ASEAN’s own interests and remain open and relevant through practical steps. This will allow us to emerge stronger from this crisis ”.
EMERGING STRONGER FROM COVID-19
While the speed of COVID-19 vaccine development is encouraging, the recovery is unlikely to be uneven across economies and sectors while vaccination is ongoing, Heng said.
The pandemic will continue to test societies and economies, which must remain alert and agile to weather unexpected setbacks, he said.
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“COVID-19 will eventually pass, but its lasting legacy is the acceleration of many structural changes,” he said, highlighting the capacities that economies must develop to emerge stronger in the long term.
First, there is a higher premium on resilience, with governments and companies rethinking their production bases and supply chains. There is also a heightened sense of urgency to mitigate and adapt to the effects of climate change, Heng said.
The second is a big shift toward digitization, Heng said, noting that users of the SingPass app, Singapore’s “national digital identity,” tripled in one year.
READ: Singaporeans say bridging the digital divide is a ‘key issue’ in shaping the post-COVID-19 future – DPM Heng
Third is the global order moving through “rough seas,” with strategic competition between the United States and China accentuated by COVID-19.
“Without proper global coordination at the beginning of the crisis, we saw increased friction and mistrust between governments,” Heng said.
Asia’s ability to emerge stronger from COVID-19 will depend on how well it navigates these changes, he said.
While the region has a young population and a rapidly growing middle class, the “demographic dividend” could be lost if countries do not equip their young people with the right skills and create enough good jobs.
Rapidly aging populations in parts of Asia, including Singapore, will also affect economic growth and increase social needs.
Without adequate and sustained investment, the region’s economy will not reach its full potential and could remain susceptible to future pandemics and catastrophes, he said.
“The most critical thing is that the stability of the region should not be taken for granted,” Heng said.
Beyond the relationship between the United States and China, he pointed to the situation in Myanmar, where there have been widespread protests since the February 1 military coup.
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“Singapore is shocked by the violent repression against the civilian population. It is critical that all stakeholders in Myanmar come together to find a long-term peaceful solution and a return to democratic transition, ”he said.
TAKE ADVANTAGE OF ECONOMIC OPPORTUNITIES
Heng identified three areas in which Asia could work together to seize economic opportunities.
First, the region can further deepen regional integration and cooperation. He cited the good progress with the conclusion of the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) and the signing of the Regional Comprehensive Economic Partnership (RCEP), but urged all RCEP countries to accelerate ratification.
The collaboration also extends to the digital economy, he said, where the region must work to harmonize standards, enable reliable data flows and facilitate cross-border transactions.
Heng announced that Singapore and Thailand are pioneers in connecting their national electronic payment systems, with users from both countries able to send money directly and securely to each other using their mobile phone numbers since the middle of the year.
Second, Asia must accelerate its economic transformation in the fourth industrial revolution, Heng said, noting that the region is the world leader in the use of robots for manufacturing.
Third, Asia must remain an open and inclusive destination for investments from around the world.
Heng said Singapore can partner with countries and companies as “a gateway for investment, a launch pad for innovation and a green node for sustainability” in Asia.
“The pandemic has accelerated disruptions. We must plan ahead, invest in new capabilities and innovate, to better deal with these disruptions, so that we can emerge stronger, ”he said.
