Unity and trust essential to Singapore’s success amid geopolitical tensions: PM

WITH geopolitical contestation in the Asia-Pacific more likely amid rising tensions, and the era of widespread globalisation and low prices having ended, Singapore faces a “very troubled” external environment, said Prime Minister Lee Hsien Loong.

In his annual National Day Rally speech on Sunday (Aug 21), he outlined the challenges Singapore faces even as it emerges from the Covid-19 pandemic.

Relations between the United States and China are worsening, most recently with a sharp escalation of tensions over Taiwan. This makes their cooperation on pressing global issues such as climate change “almost impossible”, PM Lee said. “Furthermore, we must all hope that there are no miscalculations or mishaps, which will make things much worse.”

The Russia-Ukraine war also has profound implications for security in the region. “We can expect more geopolitical contestation in the Asia-Pacific. Some countries will choose a side. Others, like Singapore, will try our best to avoid being caught up in major power rivalry.”

With the region having enjoyed peace for so long, it may be hard to imagine things being different, said PM Lee. But he added: “Look at how things have gone wrong in Europe, how suddenly and quickly – and can you be sure that things cannot go wrong like that in our region too? So we must get real and we must get ourselves prepared psychologically.”

In the face of external dangers, Singapore must stand firm on fundamental principles of international law, such as how it has condemned Russia’s attack, he said. It should take National Service seriously and keep the Singapore Armed Forces and Home Team strong and credible. And most importantly, Singaporeans must stay as one united people.

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“Never allow ourselves to be divided – whether by race, religion, income, social differences or place of birth,” he said. “Stay alert against foreign actors who are looking to exploit our vulnerabilities and to influence our people for their own interests.”

Meanwhile, global economic conditions have “fundamentally changed”, with the era of low prices now over, said PM Lee. The recent decades were an exceptional period, with globalisation in full swing and trade growing rapidly. Now, some countries have raised tariffs while others are relooking supply chains to prioritise resilience and self-sufficiency.

These trends are raising costs everywhere, he said. While Singapore has little influence over global inflation, it can become more productive and competitive through transformation, so that workers can earn more and become better off in real terms.

The government is doing everything necessary to support Singaporeans – including continued disbursement of the S$6.6 billion Assurance Package to cushion the impact of the upcoming Goods and Services Tax (GST) hike – and stands ready to do more if the situation worsens, he said.

The Monetary Authority of Singapore has also tightened policy to strengthen the Singapore dollar, making imports cheaper. But as a stronger Singdollar makes Singapore exports more expensive and less competitive, “we have to be very careful not to overdo things”, he cautioned.

Besides rising prices, physical supplies are being disrupted. Making Singapore’s supplies more resilient costs money, said PM Lee. “Buying from diversified sources means that we do not just buy from the cheapest, or the most convenient producer. Maintaining stockpiles requires space, and incurs costs. But we must think of it as paying for insurance.”

But amid the storm clouds lies a silver lining, he said. In troubled times, Singapore’s trusted brand of quality, reliability and efficiency gives it a competitive edge, and its track record in tackling Covid-19 has made it stand out even more.

Even during the pandemic, Singapore’s investment pipeline has remained strong, he said. “We must seize this opportunity, to secure Singapore’s place in the post Covid world.”

Singapore must focus on attracting and retaining top talent the way it does with investments, with new initiatives to attract top talent soon to be announced.

Turning to domestic matters, PM Lee announced the upcoming repeal of Section 377A of the Penal Code, a colonial-era law that criminalises sex between men. At the same time, the Constitution will be amended to prevent legal challenges to the definition of marriage as “most Singaporeans do not want the repeal to trigger a drastic shift in our social norms”, he said. He did not give a timeframe for the changes.

The repeal takes into account greater societal acceptance of gay people and the risk of the law being struck down via a constitutional challenge; the constitutional amendment aims to prevent “adversarial” challenges to the definition of marriage, on which various national policies rely.

Responding to the speech, the Workers’ Party said it will participate in the debate in Parliament on the 377A repeal and proposed constitutional amendment. Adding that Singapore also faces other important issues, the party repeated its earlier calls for “specific reforms” to address the cost of living, such as further strengthening the Singdollar and not hiking the GST.

PM Lee also gave an update on the development of Tuas Port and Changi Airport Terminal 5, projects that “send a strong and clear signal to the world that Singapore is emerging stronger from the pandemic, and charging full steam ahead”, as well as on the relocation of Paya Lebar Air Base, which will free up space for an estimated 150,000 new homes and allow the redevelopment of neighbouring areas such as Hougang, Marine Parade and Punggol.

In conclusion, PM Lee said that with all these challenges, Singapore’s success depends on getting 3 fundamentals right: “We must always have a united people, a high-quality leadership team and high trust between the people and their leaders.”

He earlier noted that a high level of societal trust has been key to Singapore’s success in its fight against Covid-19, with the country now ready to remove the need for mask-wearing indoors other than on public transport and in healthcare settings.

Calling on Singaporeans to give the fourth generation leadership, including Deputy Prime Minister Lawrence Wong, their fullest support, he said: “With your trust, we can come through whatever difficulties await. With your support, we can turn hopes and dreams into reality. And united as one people, we can secure a brighter future in this uncertain world.”

Click here for the full list of stories from the National Day Rally 2022.