US leadership still ‘vital’, but its absence should not stop others from moving forward: PM Wong

[SINGAPORE] While US leadership remains vital to forming a global framework, its absence should not prevent the rest of the world from making progress, said Prime Minister Lawrence Wong at the end of a trip that included the Group of 20 (G20) summit – which the US did not attend.

The world is becoming multipolar, but the US remains the biggest power, he noted. “So the preference from Singapore’s point of view, of course, is for America to be actively engaged in all of these discussions, in shaping the way forward.”

But if the US “is not involved, or chooses not to be involved”, that should not stop the rest of the world from finding a way forward, he added, in a wrap-up interview with Singapore media.

“If America is ready to join the conversation and discussion later, they can do so at any time.”

PM Wong has been in Africa since Nov 21, first to attend the G20 summit in South Africa, then on an official visit to Ethiopia.

Though the US sat out of the G20 summit, the group’s leaders nonetheless issued a declaration, without it.

PM Wong added that if discussions on economic and trade issues continue, “we would want to have America’s involvement, because their leadership, their active participation, is vital”.

With the US set to chair the G20 next year, “we look forward to the agenda which they have set, which is centred (on) growth”, he said.

Reform and regional groupings

Reform is needed because the global trading system used to be optimised for trade efficiency, while countries today put more weight on resilience and security, reiterated PM Wong. The new system will have to “accommodate these new strategic realities”.

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Singapore is taking complementary approaches to this, he added. First, it is working through the institutions themselves, such as the World Trade Organization (WTO).

Such reform will be a “very lengthy process”, even if the US does participate. But this does not mean that countries should give up, but persist with parallel efforts, PM Wong said. “And if America is not involved for now, I think we just have to be realistic.”

Apart from bodies such as the WTO, Singapore is also working through plurilateral and regional groupings, such as the Future of Investment and Trade Partnership.

These are important not just for keeping trade open, but also for like-minded countries to think about how new rules and frameworks can be developed.

Geopolitical rivalries may now be the “new normal”, but that does not mean countries should stop engaging with each other, PM Wong said.

“In fact, we need more platforms to come together, to find ways to engage with one another. And in this regard, I think this year’s G20 has been a tremendous success.”

Growing Singapore’s reach

In a more challenging global environment, building ties in regions such as Africa also expands the space for Singapore companies to operate, said PM Wong.

Companies already know how to conduct business in familiar markets, he acknowledged. “But if we want to grow, if we want to expand, we cannot just stick to the familiar markets. We have to look at new areas. And these new frontier areas are in places like Africa.”

Africa presents “tremendous potential”, added PM Wong, noting that their population is growing and could reach two or three billion in a few decades. “It is a very sizable market.”

It is thus useful to start building links so that Singapore businesses can enter, familiarise themselves, understand the business conditions and grow their presence, he said.

“I think this will provide more opportunities in the longer term for both Singapore businesses and also Singaporeans looking to venture abroad.”

The newly launched Singapore-Africa Partnership Leading to Growth and Sustainability package, where African officials can study Singapore’s development, aims to aid the progress of countries on the continent.

As their economies grow, it “enlarges the pie”, and Singapore businesses will see more opportunities in these markets, PM Wong said.

But it is also Singapore’s duty as a “responsible global citizen” to help others succeed, he added.

“For us as a country, having come this far, having developed and progressed this far, we do want to help others succeed as well, and the way we do it is by sharing our experience and helping to build up capabilities in other countries.”

Beyond bilateral ties between Singapore and Ethiopia, both countries “see a lot of potential in bringing our two regions closer together”, said PM Wong.

Asean is also working to strengthen its linkages with other regions, “particularly in this changing global environment”, he noted. “I think Africa will also be an interesting area for us to explore further.”