Keynote Speech by DPM and Minister for Trade and Industry Gan Kim Yong at NBCU Converge Live

Distinguished Guests,

Ladies and Gentlemen,

1. Good morning. It is my pleasure to join you here at the inaugural Converge Live. This event is a useful platform which brings together business leaders, entrepreneurs, investors and key decision-makers to explore new opportunities across business, sports and entertainment.

2. Few could have imagined how the geo-economic environment would change so drastically when this event was announced just three months ago; but fast forward to today, and we are indeed facing a very different economic landscape.

   1. Many of us here in Asia watch with anxiety President Donald Trump’s tariffs on the US’ three largest trading partners, and his plans for more, including reciprocal tariffs to match the duties on US’ exports.

   2. Besides retaliatory tariffs, countries may respond by enacting other protectionist measures, such as import quotas, export controls, or investment screening requirements.

   3. Even if some of us in Asia may not be directly affected, the impact of rising tariffs and trade wars could cause major disruptions to supply chains, slow down trade and investment flows, and significantly set back the growth of the global economy.

3. In spite of the risk of greater economic fragmentation, there is good reason to remain optimistic that Asia will remain a beacon of growth, opportunities and prosperity.

   1. Asia’s economy is projected to expand from just under 50% of the world’s GDP today, to about 60% by 2030; and within Asia, Southeast Asia is projected to become the fourth largest economy in the world by then.

   2. The fundamentals are strong. These include young and growing populations in countries such as Indonesia, India and Vietnam; a rising middle-class that will drive consumption; and good physical and digital connectivity to support trade and investment flows.

4. To realise this potential, we must position Asia as an open, integrated and innovative region for trade, talent and investments.

5. One key enabler of this is the ASEAN Trade in Goods Agreement (ATIGA), which has been in force since 2010.

   1. Under the ATIGA, six out of 10 Southeast Asian countries – including Singapore – have eliminated import duties on almost all of their tariff lines; and the remaining 4 have reduced their import duties to 0 – 5% on about 99% of their tariff lines.

   2. But we want to do even more – we are in the process of upgrading the ATIGA to reduce non-tariff barriers, incorporate sustainable trade practices, and address new aspects of trade such as supply chain resilience.

   3. This will not only boost intra-ASEAN trade flows, but also help businesses build stronger supply chains within ASEAN to mitigate risks from external shocks and protectionist measures.

6. We are also deepening our integration with like-minded economic partners.

   1. To date, ASEAN has established six ‘ASEAN-plus’ Free Trade Area agreements – including with Australia and New Zealand, China, and India – and we will progressively update these agreements to ensure they remain relevant, forward-looking and responsive to global developments.

      1. Last year, we substantially concluded our negotiations to further upgrade our ASEAN-China FTA.

      2. In addition to aligning standards and easing customs procedures, businesses can also benefit from new provisions on the green and digital economy, as well as supply chain connectivity.

   2. All 10 Southeast Asian nations are also parties to the largest Free Trade Agreement in the world today – namely, the Regional Comprehensive Economic Partnership (RCEP) – which, together with Australia, China, Japan, South Korea and New Zealand, comprises 30% of the world’s global GDP and about a third of the world’s population.

      1. On average, tariffs on 92% of products have been eliminated under the RCEP.

      2. We are in discussions within ASEAN to enhance and expand the RCEP, so that we can open up new market opportunities for businesses.

7. Taken together, these overlapping agreements – whether ATIGA or ASEAN-plus or RCEP – reflect our collective commitment to upholding an open, inclusive and rules-based multilateral trading system.

8. This commitment will also serve us well in exploring new areas of growth.

   1. One such area is the digital economy.

      1. From digital payments, to e-commerce, and to digital content, there is huge potential for digital technologies to transform the way people consume information, buy things, and use services.

      2. Within Southeast Asia, the digital economy is projected to grow from US$300 billion to US$1 trillion by 2030. We are in the midst of negotiating an ASEAN Digital Economy Framework Agreement that could potentially double the size of the digital economy to US$2 trillion by 2030.

      3. Through the DEFA, we aim to align digital rules and standards, promote inter-operability of digital systems such as digital identities and payment systems, and therefore enhance cross-border digital trade.

      4. This will make Southeast Asia a more attractive location for investments into digital infrastructure, goods and services, and open up new opportunities for businesses in the region.

   2.   Another such area is the green economy.

      1. To enable the transition to net-zero, Asia will need significant investments into low-carbon energy, including solar, hydropower and wind.

         1. According to a 2024 report by the Bloomberg New Economy Forum and GenZero, Asia-Pacific will need to triple its annualised investment in energy transition technologies to US$2.3 trillion by 2030.

         2. Within ASEAN, we are pushing ahead with our vision to develop an inter-connected power grid that will facilitate the trading of low-carbon electrons across borders and enhance our collective energy resilience.

      2. The demand for carbon credits will also open up opportunities for carbon markets and trading.

   3. By working together across Southeast Asia, and even the Asia-Pacific, we will unlock more opportunities in the digital and green economy to build a more inclusive and sustainable future for our region.

9. Singapore is deeply vested – and invested – in the growth of Asia.

   1. We believe that Singapore will do well when our region does well.

   2. This is not just because we are geographically located at the heart of Asia, but more importantly, because we are a hub economy that facilitates the flow of people, capital, goods and ideas.

      1. I am therefore heartened that NBCU has chosen to launch this new Converge Live in Singapore.

      2. This reflects NBCU’s confidence in Singapore, and re-affirms our position as a business hub.

10. Businesses, entrepreneurs and investors can use Singapore as a springboard to explore new opportunities in our region.

    1. We will work with businesses to drive innovation and transformation.

       1. One way we will do so is by supporting companies to set up Centres of Excellence in AI.

       2. Last week, we announced that we will work with cloud service providers to provide companies with access to cloud compute credits, training programmes and consultancy services to develop and scale AI-enabled solutions.

       3. Through this Enterprise Compute Initiative, we hope that companies will accelerate the development and deployment of AI, to not only drive greater productivity but also create new products and services.

    2. We will also work with entrepreneurs to build their new ventures here in Singapore.

       1. We will launch a Global Founder Programme later this year to anchor and attract experienced founders.

       2. If you are someone who has built a successful start-up, developed a major new product or business line, or even someone who has made significant scientific or engineering achievements such as in AI or Deep Tech, we will provide dedicated support for you to grow your venture here in Singapore.

    3. And last but not least, we want to work with investors to build a rich and diverse financing ecosystem in Singapore.

       1. We have established a Global Investor Programme for investors who are keen to base themselves in Singapore.

       2. We have also established various mechanisms to catalyse investments into companies based in Singapore, as well as to facilitate the region’s transition towards net-zero.

    4. For example, the Monetary Authority of Singapore recently announced that it will launch a S$5 billion Equity Market Development Programme to invest with selected fund managers with a strong focus on Singapore stocks.

    5. The MAS has also launched a blended finance initiative called Financing Asia’s Transition Partnership (FAST-P) to bring together public, private and philanthropic partners to support Asia’s decarbonisation and low-carbon energy transition. To crowd in commercial capital, the Singapore Government will pledge up to US$500 million to match dollar-for-dollar, concessional capital from other governments, multilateral development finance institutions and philanthropies.

11. Amidst the uncertainties, challenges and even disruptions in the global economy, it is even more important for Asia to come together to deepen our integration with one another, as well as with like-minded economic partners, so that we can open up new opportunities for trade and investment, especially in the emerging digital and green economies.

12. And as the title of this event denotes, Singapore stands ready to be a place where business-leaders, entrepreneurs, investors and key decision-makers converge to explore opportunities in Asia, collaborate to forge strong and meaningful partnerships, and create real and inclusive growth for the benefit of our businesses and our people.

13. I hope that Converge will spark new ideas, fresh collaborations, and strong partnerships – and that you will turn today’s conversations, into tomorrow’s reality.

14. Thank you.