Senior Minister Lee Hsien Loong emphasized that Singapore must remain open, outward-looking, and committed to multilateralism in response to the United States redefining its role in global security and trade. Speaking at Nazarbayev University in Kazakhstan on Thursday, August 27, during his first visit to Central Asia, Mr Lee also received an honorary professorship from the university.

Mr Lee noted that the US had been the dominant power in the Asia-Pacific region for decades. Since the 1980s, China's reintegration into the global economy created favorable conditions for Asian economies like Singapore to integrate with regional and global markets and achieve steady growth. However, the US is now reassessing its global approach, prioritizing national security and resilience over economic well-being. "It is no longer willing to play the same global role as before, whether in security or trade," he said.

He added that unlike larger economies, Singapore cannot turn inward or pursue self-sufficiency. "We will always have to do business with the world, even as we diversify and secure our own supply chains," Mr Lee said.

Addressing the global trade environment, Mr Lee observed that "multilateralism is breaking down," but stressed that multilateralism remains important. "There still needs to be rules that apply to everybody, big and small," he said. He acknowledged that the ideal solution of reaching consensus among all WTO members often leads to obstruction and paralysis. Therefore, second-best solutions, such as coalitions advancing shared interests within the WTO framework, are workable and important.

On the domestic front, Singapore will continue its approach of combining strict market discipline with an activist state to navigate these global changes.

Notable Quotes

  • "It is no longer willing to play the same global role as before, whether in security or trade."
  • "Multilateralism remains important, and there still needs to be rules that apply to everybody, big and small."
  • "The first best solution - reaching a consensus among all WTO members - has too often become a mechanism for obstruction and paralysis."
  • "This is a much less conducive environment for countries to grow and develop in."
  • "We will always have to do business with the world, even as we diversify and secure our own supply chains."

Sources

CNA Latest News: Singapore must stay open, 'remake' its economy repeatedly as US role shifts: SM Lee