We now have the CPTPP. America leaves, the game can still carry on. And in the same way, in the global trading system, America does not want to play by the rules anymore. But the other countries, if we can maintain the system as we trade with each other, I think that is important, and that would be very valuable to countries like Singapore. So we will work with other countries to try and make that happen. That is the first thing we can do.
The second thing we can do is to promote trade arrangements with like-minded partners. For example, we have the ASEAN group. We have an ASEAN Free Trade Agreement. The EU is a major partner, and we can do business with the EU. ASEAN can have an FTA with the EU, negotiate with them, expand the ink blot for free trade. Create more avenues for us to cooperate, win-win with one another. And Singapore is pushing for that. In fact, the ASEAN trade ministers met, and I think they will be working at this and working with other partners too.
The CPTPP, that is valuable too. That can also grow. UK joined the CPTPP. They need to – they had left the EU, they had no partners, no alternative. They came in but we welcomed them. But the EU, looking around for partners, says, “How about EU and CPTPP, we get together? One in the Asia Pacific, including Canada and Mexico and Peru and Chile, and the other one in Europe. And we can get together for something valuable.” The CPTPP members are keen, the European Commission President von der Leyen, she is keen. I hope that if we push that, we can get something. This is one of those situations where you want momentum. If you are sitting there doing nothing, something will happen to you. If you are standing up and pushing something, you may make more progress, you may make less progress, but you will make some progress and you will be better off than where you are. And this is an area where we need to make progress and Singapore will help to push.
Thirdly, externally we need to do more with our ASEAN partners within ASEAN. We have an FTA as I said, but you can do a lot more. And I hope that with this additional impetus, we can do more of that. For example, Singapore and Malaysia we are talking about the Johor-Singapore SEZ. In Johor, companies can go there, they can have favourable terms and Singapore companies can prosper. Malaysian business will benefit, Malaysia will benefit, and foreign companies can be there and be in Singapore and therefore they also can benefit. And in the process, Singapore and Malaysia, we work closer together, that is good. When that happened, there were reports in the Indonesian newspapers to say, “Well, Singapore and Malaysia are doing an SEZ, what is Singapore doing with Indonesia?” And the answer is, we are doing things with Indonesia but I think there is a certain amount of competition, because they see us as being able to add value. And I hope that with this pressure within ASEAN, we will do more. So internationally, globally, with WTO – try and keep the system intact. Big partners between trading groups can come together and form bigger blocs. Within ASEAN, try to make ASEAN stronger, more relevant. And Singapore, we are small, but our trade is not small. I think we have some contribution to make.
Singapore’s response – Domestic
We have to respond to the new situation domestically. And I will say it in three ways. First in terms of practical support, second in terms of psychological preparation and third, politically. In terms of practical support, we need to help households, we need to help businesses, and we need to keep the economy growing. To help households, I think you know we have a lot of things. On cost of living certainly it is the first big item. Typical households this year would be getting around $4,000 in various forms of assistance. We are helping workers who are displaced, for example with the Jobseeker Support Scheme. We designed this expecting dislocation, expecting people to be displaced and this is what we will need, if in fact the tariffs dislocate supply chains and there are significant disruptions to our industries. Then the workers who are displaced will have the Jobseeker Support Scheme to give them support, to tide over the period when they are out of a job, looking for a new job, or training for a new job. We will have support for re-skilling. I talked about that earlier. Overall, I would say the budget package we have is enough for now, but if the situation gets a lot worse, we will do more and I can assure you, we are able to do more.
We have to help the businesses, too. We have set up the Economic Resilience Taskforce under DPM Gan Kim Yong in order to navigate the uncertainties; and to help businesses transform themselves. So it is not just to deal with immediate problems, it is also to deal with the longer term. Take this opportunity of the immediate challenge, to get ourselves prepared to be more competitive in the long term. NTUC is going to be part of this Taskforce, looking at how best to support workers through this.
Secondly, I think we need to be psychologically prepared. We need to be prepared for a more troubled world. You must know that bad weather is coming. But at the same time, we can take comfort knowing that other countries are also facing similar challenges, and Singapore is readier than most of them to deal with this challenge. Readier because we have the plans, we have the resolve, we have the experience, we have the resources, we have the unity. We are ready to do this, and we can do this together.
One of the important things which we must do if we are going to go through this together, is to look at fault lines, and stresses and strains which will build up in our society. Because if you want to go in and say, “Let’s be united,” it is not just wearing the same t-shirt. It is making sure we look after one another, take care of one another. Making sure that when fault lines come up, people who are having greater difficulties, people who may be left behind, people who are dislocated – they do not feel left out, they do not feel alone. They know that others care for them, Singapore cares for them. We will help you – you help yourself, we work at it together. We are in this together. I think that is a very important mindset which we must have during a crisis, going into a crisis, which we are able to do.
It is a problem which in America has led to the pressures and the grievances and dissatisfaction, which have led the government to pursue all these very drastic policies. Because they have certain parts of America which have been left behind, industries all doing badly. They call it the Rust Belt. These are places where the industries have all done badly and the workers have no jobs, and populations are left out. The blue-collar workers in America, their jobs across the country have not done well, their incomes have not done well. Their lives have been blighted by drugs, by unemployment, by crime. Left behind, they voted for a drastic change and they want to break the system, they want a different world.
We must never allow our population or some parts of our population to feel like that. We are going to have stresses and strains too, because there will be retrenchments if there is a recession elsewhere, there will be dislocation if supply lines are interrupted. There is going to be dislocation also if technology comes and we are not prepared for it. If AI comes, if robotics come on a big scale and your jobs are taken away or transformed and you cannot do the new job, you are out of a job, it is no comfort to say that GDP has gone up, but my life is not better. So far, we have prevented that from happening in Singapore. I think in this situation, we must do double to make sure it does not happen.
