Speech by MOS Alvin Tan at the Transport Logistic Southeast Asia & Air Cargo Southeast Asia 2025

Mr Michael Wilton, CEO and Managing Director, MMI Asia

Mr Paul Teo, First Deputy Chairman, Singapore Air Cargo Agents Association (SAAA)

Colleagues, Distinguished Guests,

Good morning.

Introduction

1.      Good to have TLAC back this year, with over 10,000 visitors from over 60 countries, and see our Singapore Pavilion grown to feature 29 companies!

2.      When I spoke here two years ago at the inaugural event, I quoted a famous saying: “A ship in a harbour is safe, but that is not what ships are built for”, and how we must be brave, bold, exit the harbour and seize the winds of opportunity.

3.      In the same vein, we can apply that same analogy to air cargo and planes. A cargo plane is safest on the tarmac; if it does not fly, it is safest, but that is not what air cargo and cargo planes were built for.

4.      To get cargo and to deliver them to their destination in 2023, I invited all of you to join us on this voyage, and suggested we need three things on this voyage:

a.      A strong port

b.      A good navigation system

c.       A good crew.

5.      Two years into our voyage, it is time to check on the weather and upgrade our ship and our aircraft.

6.      First, the weather. Weather patterns have changed after the COVID-19 storm and now you see the rise of trade volatility. 

a.      Back in 2023, we were just beginning to re-build from the COVID-19 pandemic and we were also dealing with supply-chain disruptions and shifts from the war in Ukraine.

b.      I would say COVID-19 is a storm, and now we are facing a fundamental change in the weather system itself.

7.      We are seeing a change in the world order, from a rules-based unipolar world to a multipolar world where the rules of the previous order do not quite apply now.  

a.      Today, trade flows continue to be rewired amidst US tariffs and wider geopolitical shifts, presenting both challenges and opportunities for Southeast Asia.

8.      On one hand, some companies are nearshoring their production bases closer to their end markets, prioritising resilience and reliability over cost efficiency alone. This shift is creating shorter and more direct supply chains.

9.      On the other hand, Southeast Asia’s expanding consumer base is driving manufacturing growth in the region, further accelerated by companies’ China plus-N strategy. This results in more trade flows within Asia and the region, creating opportunities for Southeast Asia to capture such flows.

10.  The growing regional momentum to support and use these trade flows therefore comes at an important juncture. We are already seeing our neighbours invest heavily in their infrastructure to service the expected increase in flows of goods.

a.      Collectively, these efforts will make Southeast Asia a stronger player in global trade and supply chains.

11.  This week has also demonstrated that logistics and trade are not just industry issues—they are deeply strategic issues where world leaders are negotiating and strategising what is good for the world system.

a.      During Premier Li Qiang’s visit to Singapore, we reinforced our 35-year partnership with China, signing new agreements on green development, digital economy and maritime connectivity.

b.      At this week’s ASEAN Summit in Kuala Lumpur, leaders approved the upgrade of the ASEAN Trade in Goods Agreement (ATIGA), enabling electronic Certificates of Origin, faster customs clearance and stronger supply-chain integration. ASEAN leaders also substantially concluded the ASEAN Digital Economy Framework Agreement to boost cross border trade and services.

c.       Also at the Summit, PM Lawrence Wong underscored that United States remains “vital to the continued peace, stability and prosperity” of Southeast Asia, echoing the broader frameworks announced during the visit of President Donald Trump to Kuala Lumpur.

12.  But make no mistake. We are seeing not just a change in weather patterns, but a change in the weather system itself. 

13.  With these changes in the weather system, we must continue to upgrade our ships and planes. We must make it bigger, more sophisticated, more automated and greener.

Making it bigger

14.  First, make our ships and planes bigger. We are significantly expanding our cargo handling capacity.

a.      Tuas Port is set to become the world's largest fully automated container port, which can handle 65 million twenty-foot equivalent units (TEUs) annually by the 2040s.

b.      That is 60% more than our capacity today.

c.       We have also begun work on Changi East Industrial Zone, next to Airport Logistics Park.

15.  Once completed, this will increase our air cargo handling capacity to 5.4 million tonnes per annum by the 2050s. This is up from 3 million tonnes today and this will position us to maintain our leadership as Southeast Asia's busiest international air cargo hub.

Make it more specialised

16.  Second, we are building specialised capabilities to handle sophisticated cargo flows emerging from Southeast Asia's manufacturing base.

a.      High-value goods like semiconductor equipment, pharmaceuticals, and aerospace components require specialised handling, such as vibration-sensitive transport for precision equipment and uninterrupted cold chain facilities and cargo tracking for pharmaceuticals.

b.      We aim to provide such services with both quality and efficiency.

Make it more automated

17.  Third, we must make our ship more automated. For example, at Tuas Port, autonomous equipment will manage cargo surges more efficiently. These ensure Singapore continues to be relevant as a transport, logistics, and cargo hub.

Make it more green

18.  Fourth, as we build the logistics sector for the future, it must not only be digital and automated, but also sustainable.

a.      Supply chains are interconnected, and so must our efforts to green them.

b.      Without decisive action, logistics emissions could rise to 40% of the total global greenhouse gases by 2050.

19.  Singapore is driving this sustainable transformation through our net-zero emissions commitment by 2050, investing in green infrastructure, and carbon-efficient solutions.

20.  Earlier year, I announced the launch of Logistics Sustainability Professionals Programme to develop sustainability expertise within our logistics workforce, and ensure companies have talents with relevant skills as they embark on their green journey.

Team Up with Other Ships and Planes

21.  In addition to upgrading our ships and planes, we must also work well with other ships and aircraft.

22.  This means deepening our regional economic integration.

a.      Collectively, the other ASEAN Member States are Singapore’s largest export destination and largest trading partner. ASEAN’s value proposition as an economic community lies in being a single market and production base, so that we can tap into each other’s strengths and complementarities.

23.  We will also work closely with our neighbours to create mutually beneficial opportunities for businesses.

a.      The Johor-Singapore Special Economic Zone is an example of a bold step towards strengthening the value proposition of our region to better compete for global investments together.

b.      We do so by improving cross-border goods connectivity between Singapore and Johor, enabling faster movement of people, and strengthening the business ecosystem within the region.

24.  Platforms like TLAC Southeast Asia remind us that the future of logistics will be built through partnerships and the sharing of expertise.

25.  Turning Southeast Asia into a global manufacturing powerhouse requires close coordination and collaboration across the entire logistics ecosystem — from freight forwarders, port operators and airlines, to technology providers and skilled logistics professionals.

26.  Singapore will work with other ships, and we remain committed to being an open platform for this collaboration to happen.

27.  Our trusted operating environment, efficient handling capabilities, and strong connectivity make us an ideal base for companies looking to access and service Southeast Asia's fastest-growing markets.

Conclusion

28.  Ladies and Gentlemen, weather patterns are changing and we are not sitting idle.

29.  We are upgrading our ships and planes, and working with other ships and planes to smoothen the flow of trade here and around the world.

30.  Thank you for playing your part in our efforts, making your individual contributions as individuals, as companies and as an industry. Let’s continue to enjoy our voyage, together.

31.  I wish everyone fruitful discussions as we work together to shape this exciting future. Thank you.