Singapore Deputy PM says connectivity and openness “have been a powerful growth driver for Asia”. Photo courtesy of ZB

SINGAPORE – Singapore and China can work together to strengthen development in Southeast Asia, Deputy Prime Minister Gan Kim Yong said, 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 Deputy PM Gan, who is also Minister for Trade and Industry.

He also highlighted ongoing avenues for collaboration between Singapore and China - 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 turning inward and becoming more protectionist, Deputy PM 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 give businesses greater certainty, while the two countries have a strong 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,” Deputy PM Gan told the audience at the annual FutureChina Global Forum, organised by government-linked non-profit Business China in Singapore on Sep 25.

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

He identified artificial intelligence (AI) as one area where the two countries could work together. For instance, the Singapore-China Digital Policy Dialogue provides a platform for the two sides to exchange views on AI governance, while companies and research institutions can collaborate on business applications for AI.

Separately, Singapore has already inked deals to establish green and digital shipping corridors at the municipal, provincial and national levels.

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

Regional growth

Deputy PM Gan called for the gains from Singapore-China cooperation to be extended across South-east Asia. Pointing to the benefits of greater regional prosperity for businesses, 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 involve local enterprises and workers in capability-building.

Referring to commitments on the digital and green economies and supply-chain connectivity as part of the upgrading of the ASEAN-China Free Trade Area, Deputy PM 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 the chairmanship of the bloc in 2027.

“We want an ASEAN that remains open to the world, with the capabilities, connections and agency to be able to shape our own future,” he said./.

Source: The Business Times