IT was expected to be a bad year for free trade. Almost immediately after he took office in January, US President Donald Trump signed executive orders to withdraw the US from the Trans-Pacific Partnership (TPP), which Singapore is part of. The tussle between the United Kingdom and the European Union (EU) over Britain's withdrawal from the regional bloc, or Brexit as it is called, has also got observers wondering if it may help protectionism gain more political ground as key EU member states head to the polls this year.

The larger political climate that these rumblings underpin has been anticipated by Singapore. A stronger global growth outlook has led the Ministry of Trade and Industry (MTI) to say on Thursday that Singapore's growth this year may be better than last year's, but uncertainties, including political ones like Brexit and US policy flip-flops, could be downside risks.

But there also have been positive developments globally, which serve to diminish some of the political and trade risks flagged by MTI. China's One-Belt-One-Road (OBOR) initiative, which is gathering momentum, holds out the promise of creating new trade routes linking Asia to Europe as well as expanding regional cooperation. Although there are questions relating to the modalities of how OBOR would work in practice and in what ways it would benefit participating countries, it has the potential to significantly boost trade and investment in the region.