‘Stronger Asean’ should be shared priority for Singapore and China: DPM Gan

[SINGAPORE] Singapore and China can work together to strengthen development in South-east Asia, Deputy Prime Minister Gan Kim Yong said on Friday (Sep 25), with digitalisation and the green economy identified as key areas for bilateral cooperation.

“Singapore and China have spent decades building trust through mutually beneficial cooperation. We should now draw on that trust to build capabilities in Singapore and across Asean,” said DPM Gan, who is also minister for trade and industry (trade).

He also doubled down on ongoing avenues for collaboration between Singapore and China, which is one of the city-state’s largest trading partners.

Connectivity and openness “have been a powerful growth driver for Asia” – but, with geopolitical rivalries straining that openness and businesses and workers concerned about being left behind, economies risk looking inward and turning protectionist, DPM Gan observed.

“We have to make openness work better for businesses and for people… Resilience requires us to build stronger capabilities at home, while expanding our connections abroad.”

Bilateral partnership

Bilateral agreements between Singapore and China afford businesses more certainty, and the two countries have a dynamic track record of industrial and connectivity projects, he noted.

“China is pursuing innovation and industrial upgrading, while Singapore is sharpening our own economic strategy and developing new sources of growth,” DPM Gan told his audience at the annual FutureChina Global Forum, which is organised by government-linked non-profit Business China.

“We can combine our complementary strengths and seize emerging opportunities together.”

He named artificial intelligence as one such area to join forces. For instance, the Singapore-China Digital Policy Dialogue offers a platform to share views on AI governance, while companies and research institutions can work together on business applications for AI.

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Separately, Singapore has already inked deals to set up green and digital shipping corridors on the municipal, provincial and national levels as well.

“China has deep technological and manufacturing capabilities, while Singapore brings strengths in areas such as finance, connectivity and project implementation,” DPM Gan said.

Regional growth

DPM Gan called for the gains from Singapore-China cooperation to be extended across South-east Asia. Pointing to the business uplift from greater regional prosperity, he said: “A stronger and more resilient Asean should be a shared priority for Singapore and China.”

He emphasised that industrial upgrading cannot come through trade and investment alone, but should also include involving local enterprises and workers in capability-building.

Making reference to digital and green economy and supply-chain connectivity commitments that are part of upgrades to the Asean-China Free Trade Area, DPM Gan said these pledges should be translated into practical opportunities for businesses and workers.

“The aim is not for every economy to do exactly the same thing. It is for businesses across the region to build a competitive niche in value chains, and for workers to see pathways to progress,” he said. “That is how regional integration becomes more relevant and resilient.”

He added that Singapore will work to deepen integration within Asean when it assumes chairmanship of the bloc in 2027, and elaborated: “We want an Asean that remains open to the world, with the capabilities, connections and agency to be able to shape our own future.”