Singapore to remain open amid concerns over US protectionism: DPM Heng
He underscores the importance of the US-Singapore Free Trade Agreement, and Singapore’s support for free trade within and beyond Asean
THERE are growing concerns about the US adopting more protectionist measures and not exercising its leadership in global trade and investment, making it even more important for a small country like Singapore to stay open.
Deputy Prime Minister Heng Swee Keat made this point on Wednesday (Aug 21) on the first day of the American Chamber of Commerce in Singapore’s (AmChamSG) regional economic conference.
At the event, which was attended by some 200 business leaders and AmChamSG members, he noted the significance of the US-Singapore Free Trade Agreement (FTA), which marks its 20th anniversary this year, having come into force on Jan 1, 2004.
Heng noted two key areas for the two sides to advance under the FTA: One is in addressing global challenges like climate change and the threat of future pandemics, and the other is in collaborating on innovations that enhance human life, such as artificial intelligence and biotechnology.
US ambassador to Singapore Jonathan Kaplan said in his remarks at the conference that the US-Singapore FTA is “the first of its kind between the US and any Asian country, paving the way for hundreds of billions of dollars in US investment”.
Since its introduction, trade between the two countries has tripled from US$83 billion to US$207 billion in 2021. As at 2023, 5,700 US companies were operating in Singapore, with many using the city-state as their hub for the Asia-Pacific region.
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The agreement is also so far the US’ only one with a South-east Asian country.
Kaplan expressed confidence that Singapore and the US “would continue to build on this strong relationship, tackling the challenges of the day and seizing the many opportunities ahead”.
Heng added that the Republic has been “a very key proponent” of Asean and the importance of the 10 member states coming together and maintaining their openness.
Noting that Asean has articulated its wish to stay neutral, he said: “Going into conflict in order to get a better life for the people is not the solution. The solution is to have a system of free trade that is fair, that can help each side to bring a better life for (their) people.”
Heng then noted that trade between the US and Vietnam was now among the highest and fastest-growing, despite the conflicts between the two sides in the Vietnam War in the 1960s.
“What Asean has to do is to ensure that we stick by what we agreed, and we upgrade the agreements,” he said; he cited the Digital Economy Framework Agreement as one of the latest upgrades the region is pursuing.
Talks on this arrangement to facilitate seamless digital trade and data flow among Asean member states opened on Dec 1, 2023, and are expected to complete in 2025.
The two-day conference, on Wednesday and Thursday, is being attended by around 200 business leaders and AmChamSG members.
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