Israel-Hamas conflict has limited economic impact on Singapore unless it turns regional: DPM Wong

Tessa Oh
Published Mon, Nov 6, 2023 · 05:10 PM

THE Israel-Hamas conflict has a small direct impact on Singapore’s economy, because of the Republic’s limited trade and investment links with Israel and Palestine, said Deputy Prime Minister Lawrence Wong on Monday (Nov 6), in response to questions by Members of Parliament.

But if the conflict broadens into a regional one in the Middle East, “there will certainly be wider implications, especially on oil and food prices”, he said during a debate on a motion on the conflict.

“We must be prepared for more uncertainties ahead, and we are updating our drawer plans, should the situation take a turn for the worse, and we are impacted,” said Wong, who is also finance minister.

The motion, filed by People’s Action Party (PAP) Member of Parliament (MP) Vikram Nair, reiterates Singapore’s longstanding commitment to a negotiated two-state solution, and calls for the urgent delivery of humanitarian aid to Gazan civilians, among other things. It is supported by fellow PAP MPs Alex Yam and Zhulkarnain Abdul Rahim.

In the debate, Second Minister for Foreign Affairs Maliki Osman stressed that government actions during conflicts should not be conflated with business operations.

“We have heard calls to boycott F&B (food and beverage) establishments. We should not conflate the actions of governments with the operations of business and economics,” he said. While he did not mention specifics, there have been calls on social media to boycott businesses associated with Israel.

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He emphasised the need for unity in Singapore, despite different viewpoints on the issue.

“We recognise that the Israeli-Palestinian conflict is an emotive one for Singaporeans,” he said. “Regardless, the peace and harmony that we enjoy is precious... We all have a duty of care to protect and grow it.”

Foreign Minister Vivian Balakrishnan similarly stressed the need to safeguard Singapore’s racial and religious harmony against external political events. Noting that strong emotions have led to violent clashes and hate speech in other countries, he said: “We must not allow anything to break (Singapore’s harmony) or split our society.”

The priority of the Ministry of Foreign Affairs is ensuring the safety of Singaporeans abroad, he added. About 40 registered Singaporeans remain in Israel and the Palestinian Territories; more than 120 have already left the region.

Dr Balakrishnan reiterated the principles underscoring Singapore’s stance on the conflict.

First, Singapore must be categorical in rejecting terrorism. Second, international law dictates that all states have the right to defend themselves – a principle that is “particularly important for Singapore”, he said.

But third, in exercising the right to self-defence, countries must abide by the principles of “necessity and proportionality”, and comply with the laws of war. Fourth, humanitarian assistance must reach affected civilian populations immediately, said the minister, calling on “all parties” to enable this.

Fifth, Singapore maintains its longstanding support for a negotiated two-state solution between Israel and Palestine, which is consistent with the relevant United Nations Security Council resolutions.

Concluding, Dr Balakrishnan said: “We must never allow conflicts elsewhere to divide us domestically. Our ability to conduct consistent, coherent foreign policy depends on domestic cohesion and consensus.”

Speaking after the two ministers, Wong stressed that Singapore should not “import foreign quarrels and politics”, even as it builds ties internationally. “We do not want to choose sides. Instead, we always choose what is in the best interest of Singapore and Singaporeans,” he said.

He emphasised two points the ministers made: First, it is in Singapore’s national interest to condemn the violence and terrorism by Hamas.

Second, Israel has the right to defend itself – but in exercising this, Israel must fully comply with the letter and spirit of international humanitarian law, and the rules governing the conduct of war.

“In other words, no matter how gruesome the act of terrorism committed by Hamas, they cannot justify a disproportionate response by Israel that imposes collective punishment on the Palestinians in Gaza,” he added.

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