Speech by Minister Lim Hng Kiang at the ASEAN Networking Night

SPEECH BY MINISTER LIM HNG KIANG AT THE ASEAN NETWORKING NIGHT ON WEDNESDAY, 17 JAN 2018, 7.05 P.M. AT SUPPLY CHAIN CITY

Dr Robert Yap, Chairman of the ASEAN Business Advisory Council,

Mr Lawrence Leow, Chairman of the East Asia Business Council,

Your Excellencies,

Distinguished guests,

Ladies and Gentlemen,

1          Good evening. It is my pleasure to join you today for this ASEAN Networking Night. Let me extend a warm welcome to all of you, especially our overseas guests. Tonight marks the occasion when our private sector representatives take over the mantle at the ASEAN Business Advisory Council and East Asia Business Council, as Singapore assumes the chairmanship of ASEAN this year. 

2          Singapore last chaired ASEAN and the ASEAN Business Advisory Council in 2007, and the region has come a long way since. ASEAN’s Gross Domestic Product (GDP) has nearly doubled^[1], facilitated by integration and liberalisation under the ASEAN Economic Community (AEC). A more integrated and globally-connected ASEAN has helped the region to continually attract strong investment inflows, and today we are the 6th largest economy in the world. However, ASEAN’s potential has yet to be fully realised. Some experts see ASEAN potentially becoming the fourth largest single market in the world by 2030^[2]. The ASEAN digital economy is also forecast to grow to USD 200 billion by 2025, with e-Commerce accounting for USD 88 billion.^[3] With a young population, growing middle class and increasing urbanisation, ASEAN’s growth potential is evident. The region’s continued growth is intrinsically linked with fulfilling the AEC’s vision of becoming an integrated single market. 

3          However, anti-trade sentiments are on the rise in some parts of our world, with a rise in nationalistic movements. Regardless of any scepticism over globalisation, it is imperative for all ASEAN Member States to stay the course in pursuing deeper economic integration in order to realise our vision for the region, and the benefits it will bring. 

4          It is against this backdrop that Singapore’s ASEAN 2018 Chairmanship focuses on strengthening ASEAN to become a resilient and innovative region. We intend to continue shaping ASEAN as a cohesive organisation that can adapt to a complex and uncertain economic environment, and an economic bloc that is prepared to capitalise on future opportunities. Singapore will therefore focus on advancing five key areas in 2018 under the economic pillar:

a.    First, innovation and the digital economy are key areas that Singapore intends to advance under our ASEAN chairmanship. We will work to advance trade rules in e-Commerce, lower businesses’ operating barriers to entry, and build up digital connectivity in the region.

b.    Second, we will pursue initiatives that facilitate seamless trade and movement of goods within ASEAN. As ASEAN gradually fulfils its tariff liberalisation commitments, we will work with ASEAN to further enhance intra-ASEAN trade, reduce trade transaction costs, and facilitate the digitalisation of trade procedures within ASEAN.

c.     Third, Singapore will push forward long-standing efforts to deepen services integration and reduce impediments to investment, so as to boost ASEAN’s attractiveness as a business and investment destination. We also intend to collaborate with ASEAN Member States to collectively promote Southeast Asia as a vibrant cruise destination.

d.    Fourth, we will work to cultivate a conducive regulatory environment, in particular initiatives that promote greater cooperation and build up capabilities in the areas of energy efficiency and renewable energy, as we work towards ASEAN’s goals of energy security, accessibility and sustainability.

e.    Fifth, Singapore will also pursue deeper ties between ASEAN and its external partners, while preserving ASEAN centrality. Our businesses have reaped benefits from ASEAN’s strong connections within and outside the region, and we will ride on this momentum to broaden and deepen our economic linkages.

5          Singapore did not develop this agenda overnight or alone. Our intended deliverables are aligned with the AEC 2015 and 2025 Blueprints that ASEAN Member States charted together. Previous chairs of ASEAN have also put in place initiatives that promote trade and entrepreneurship, and Singapore will build upon their good work. Our priorities are also informed by the private sector’s continual and valuable feedback – not least from the ASEAN Business Advisory Council and East Asia Business Council. We thus encourage the business communities of ASEAN and East Asia to continue working through these councils and platforms to share your recommendations with us. Singapore is committed to the ASEAN vision of deeper regional integration and freer trade and investment. With your advice, we hope to realise deliverables during our chairmanship that can bring about real and tangible benefits to our businesses and people.

6          ASEAN has achieved much since its inception 50 years ago, but we can achieve more. As we witness the changing of hands of the Councils this evening, we look forward to the private sector’s continued leadership and proactive contributions towards ASEAN’s economic agenda.

Thank you.

[1]           Source: ASEAN Secretariat.

[2]           Source: ASEAN-US Business Council. ASEAN is expected to become the fourth largest single market in the world by 2030 after the EU, US and China.

[3]           Source: “e-conomy SEA 2016” joint study by Google and Temasek.