Transcript of Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong ‘s remarks at the Ostasiatisches Liebesmahl

Excellencies, distinguished guests, ladies and gentlemen, 

1.                 Good evening to all of you. It is indeed a great pleasure for me to join you tonight at the Liebesmahl— a tradition that has, for more than a century, celebrated the links and ties between Germany and Asia, and the enduring spirit of partnership across continents. 

2.                 Yet we gather this evening under a thick cloud of uncertainty for the global economy. Over the past weeks, tensions in the Middle East have escalated sharply. The closure of the Strait of Hormuz — through which roughly a fifth of the world’s oil supply passes — has sent tremors through energy markets, disrupted shipping routes, and raised new concerns about the resilience of global supply chains. 

3.                 For trading nations such as Singapore and Germany, these developments are not distant events. They strike at the very arteries of the global economy — the flows of energy, goods, capital and technology that sustain growth and prosperity. 

4.                 Indeed, the Strait of Hormuz is a vivid reminder of how interconnected – and yet how fragile - the global system is. 

a.          When the Strait of Hormuz closes, supply chains seize up – factory production slows, shipping costs rise, and businesses everywhere have to reassess their plans. 

5.                 It is in moments like this that we are confronted with a hard truth – in a more fragmented and uncertain world, the stability of the global system cannot be taken for granted. 

a.          Peace must be actively pursued. 

b.          Resilience must be deliberately built. 

c.          And the rules-based international order must be continually strengthened. 

6.                 For small and medium-sized economies — countries like Singapore, and open, trading powers like Germany — this is especially important. Our prosperity has never depended solely on the strength or size of our markets. Instead, it has depended on our openness: on predictable rules, trusted institutions, and the ability of goods, capital and ideas to move freely across borders. 

7.                 As these conditions come under strain, partnerships among like-minded countries matter more than ever. 

a.          Countries that believe in cooperation over confrontation. 

b.          In rules rather than might. 

c.          And in openness as a driver of economic prosperity. 

8.                 Singapore and Germany are such partners. 

Like-Minded Partners in a Changing World 

9.                 Singapore and Germany may sit at opposite ends of Eurasia. But in many ways, we see the world through a similar lens. 

10.             Both our economies are built on openness to trade and ideas. 

a.          Germany’s economic strength rests on the global reach of its advanced manufacturing sector — from automotive engineering to chemicals, industrial machinery and precision technologies. 

b.          Singapore’s success, in turn, was built on our position as a global trading hub — a port city that connects markets across Asia and the world, anchored by a strong manufacturing base and deep integration into global value chains. 

11.             But as the global environment becomes more complex and contested, staying connected alone is no longer enough. We must also strengthen our ability to act with purpose, by working closely with like-minded partners. 

12.             This is not just about penetrating markets, but how we position ourselves within them – anchoring capabilities that keep us relevant to global flows; staying trusted even as we diversify partnerships; and shaping the rules and standards of the future. 

13.             Singapore and Germany are well placed to do this together. Over the decades, Singapore and Germany have steadily deepened our partnership. 

a.          In November 2024, our countries elevated our ties to a Strategic Partnership, reflecting the breadth of our collaboration across trade, innovation, and green and digital economies. 

b.          Our economic ties are already strong. 

                                               i.               Today, Germany is Singapore’s largest EU trading partner in goods and third largest in services. 

                                              ii.               More than 2,300 German companies operate in Singapore, including global leaders such as Siemens, SAP, Bayer, Evonik and Infineon, alongside many innovative Mittelstand companies. 

                                            iii.               Many of these firms use Singapore as their regional base, connecting German industrial expertise to the fast-growing markets of Southeast Asia. 

c.          This will become increasingly important in the years ahead of us. 

                                               i.               Today, companies are seeking to diversify their supply chains and expand into new markets. 

                                              ii.               Southeast Asia — with a population of more than 680 million people and a combined GDP exceeding US$3 trillion — is one of the world’s most dynamic economic regions. 

                                            iii.               As a trusted and well-connected hub, Singapore can serve as a gateway for German businesses seeking to seize opportunities in Asia. 

1.          Our network of 29 Free Trade Agreements links markets across Asia, Europe and the Americas, while our air and maritime hubs connect to hundreds of cities and more than 600 ports worldwide.

                                            iv.               Many companies already tap on our strength — locating regional headquarters, logistics hubs, and innovation centres in Singapore while serving customers across the region. 

14.             The question before us, therefore, is how Singapore and Germany can build on this strong foundation – not just to adapt to a more uncertain world, but to remain relevant, resilient and competitive. Let me focus on three key areas: energy, trade, and technology. 

Energy 

15.             First, energy. The disruption in the Strait of Hormuz has underscored how central energy is to the functioning of the global economy. But beyond immediate disruptions, we are also facing a deeper structural shift. 

16.             Countries are seeking not only to secure energy supplies, but also to reshape energy systems — to make them cleaner, more diversified, and more resilient. This creates a double challenge – we must ensure energy security in the present, while accelerating the transition to a low-carbon future. 

17.             Germany has been at the forefront of this effort. Its Energiewende has transformed the country’s energy landscape — expanding renewables, investing in hydrogen, and building new infrastructure to support this transition. 

18.             Singapore, though small and resource-constrained, is also playing our part to facilitate the energy transition in our region. 

19.             One important initiative is the ASEAN Power Grid. 

a.          The ASEAN Power Grid aims to connect electricity systems across Southeast Asia, enabling cross-border trading in renewable energy and strengthening regional energy resilience. 

b.          In time, this could allow renewable energy generated in one country to power cities and industries in another, creating a more efficient and integrated regional energy system. 

c.          Work is already underway to develop the frameworks needed to make this possible. 

20.             But governments alone cannot build these systems – it requires companies to invest in new generation capacity, develop grid technologies, and finance cross-border infrastructure. 

21.             There is also scope for Singapore and Germany to work together in the maritime energy transition. 

a.          Singapore is developing ammonia bunkering standards and advancing studies in low- or zero-carbon ammonia for both power generation and bunkering. 

b.          Hamburg, through its Sustainable Energy Hub, is likewise building import and bunkering capabilities for hydrogen derivatives, including ammonia. 

c.          As two major ports and logistics hubs, we can work together on common standards, certification frameworks and safety protocols, which will be critical to scaling new energy value chains. 

22.             Together, we can help create new opportunities in the green economy — while strengthening the resilience of the global energy system. 

Trade 

23.             The second area of cooperation is trade. At a time where global trade is becoming more fragmented, it is more important than ever for like-minded partners to come together and keep markets open and connected. 

24.             Around the world, supply chains are being reconfigured. Companies are diversifying production, governments are reassessing strategic dependencies, and new trade corridors are emerging. As supply chains shift, open and predictable trade has become more important — because it enables economies to adapt, reconfigure, and continue to grow. 

25.             Singapore and Germany have already built strong economic ties. 

a.          The EU–Singapore Free Trade Agreement and the EU–Singapore Digital Trade Agreement provide businesses with stable and trusted frameworks, giving them the certainty to invest, operate and expand across markets. 

b.          Since the EU–Singapore Free Trade Agreement entered into force in 2019, bilateral goods trade has grown by nearly 10% to over €15 billion, while services trade has increased by more than 20% to nearly €10 billion. 

26.             But there is still significant potential to go further, particularly in strengthening region-to-region cooperation. 

a.          Southeast Asia is projected to become the world’s fourth-largest economy by 2030, driven by a rising middle class, strong investment flows, and its growing role in global supply chains. 

b.          At the same time, the European Union remains one of the world’s largest and most sophisticated economic groups. 

c.          Today, ASEAN and the European Union are already deeply connected. ASEAN and the EU is each other’s third-largest trading partner. 

d.          Closer cooperation between ASEAN and the EU can bring substantial benefits — helping businesses access new markets, strengthen supply chains, and expand economic partnerships. 

27.             There is also growing interest in building stronger connections between the EU and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

a.          Together, the economies of the EU and the CPTPP account for roughly a third of global GDP and global trade. 

b.          By strengthening linkages between them, we can reinforce a broader network of open and rules-based economic cooperation. 

c.          For example, we can deepen cooperation in areas such as supply chain resilience, digital trade, and investment facilitation, where greater alignment can reduce friction, improve efficiency and enable businesses to operate more seamlessly across continents. 

28.             Businesses are already moving ahead of governments in this space — redesigning supply chains, investing across multiple markets, and building new trade corridors that span regions. 

a.          There is scope for Singaporean and German firms to work together to further develop these corridors — from logistics and advanced manufacturing to digital trade infrastructure — linking Europe more closely with Southeast Asia and the wider Indo-Pacific. 

b.          The task before governments is to ensure that our frameworks keep pace — and support, rather than constrain, these developments and collaborations. 

29.             By strengthening connections between ASEAN, Europe and the CPTPP economies, we can help anchor an open, resilient and rules-based trading system that continues to support growth, innovation and create opportunities across regions. 

Technology: Innovating for the Future 

30.             The third area of cooperation is technology. Technological development — from artificial intelligence to advanced manufacturing — is transforming economies around the world. But increasingly, it is also shaping how countries compete, cooperate and connect. In this new landscape, innovation is both a key driver of economic growth and a source of strategic advantage. 

31.             Singapore and Germany both recognise this. 

a.          Germany’s strength in engineering, industrial technology, and applied research is globally renowned. 

b.          On the other hand, Singapore has built a vibrant innovation ecosystem — investing in research and development, developing translational infrastructure and capabilities, and creating a pro-innovation regulatory environment. 

c.          We are now taking this further to position Singapore as an AI powered economy. 

                                               i.               Our focus is not just on developing cutting-edge capabilities, but on applying AI across the economy — to drive productivity, unlock new business models, and create new sources of growth. 

                                              ii.               At the firm level, we are supporting enterprises to embed AI across their operations. 

                                            iii.               At the sector level, we are advancing AI Missions in areas such as advanced manufacturing, connectivity, finance and healthcare, to catalyse transformation across entire industries. 

                                            iv.               And at the ecosystem level, we are bringing together AI companies, researchers and talent to develop, test, deploy, and scale impactful AI solutions. 

32.             German companies are already deepening their innovation footprint in Singapore. 

a.          Take Siemens for example. 

                                               i.               Siemens was the first industrial company to establish a presence in Singapore in 1908, even before Singapore’s independence. 

                                              ii.               Over the past 117 years of its presence in Singapore, the company has contributed significantly to Singapore’s infrastructure, including our railway networks. 

                                            iii.               Today, Singapore serves as Siemens’ Southeast Asia headquarters. It has also announced plans to develop a €200 million factory in Singapore to serve the growing demand for industrial automation and digitalisation products in the region. 

b.          One other example is Pepperl + Fuchs, a Mittelstand that established its first production facility outside Europe in Singapore in 1979. Today, Singapore serves as the company’s regional headquarters and a key global distribution centre. 

33.             German research institutions have also established a presence in Singapore. 

a.          The Technical University of Munich established TUM Asia in Singapore — its first overseas campus. 

b.          The Bavarian University and Innovation Centre Asia-Pacific launched last year will foster synergies between Bavarian and Singapore institutes of higher learning. 

34.             At the same time, Singapore companies are investing and expanding into Germany. 

a.          Nanofilm Technologies, a Singapore-based nanotechnology and advanced materials company which is also here this evening, has grown its presence in Germany through strategic acquisitions — tapping on German capabilities to scale its solutions globally. 

b.          ST Engineering, a Singapore household name in engineering and technology, has built a longstanding partnership with Airbus through a joint venture – Elbe Flugzeugwerke – in Dresden, leveraging German engineering expertise to deliver aviation solutions worldwide. 

35.             These partnerships reflect a broader opportunity to connect our innovation systems more closely, and translate this into good jobs for our people. 

36.             Earlier this year, our two countries launched the Singapore–Germany Year of Innovation. 

a.          This initiative will deepen collaboration across our research communities, universities, and businesses — particularly in emerging areas such as AI, advanced manufacturing, and clean technologies. 

37.             By combining Germany’s engineering excellence with Singapore’s role as a gateway to Asia, we can co-develop and scale solutions that are not only innovative, but globally relevant. 

Conclusion 

38.             Ladies and gentlemen, Singapore and Germany are separated by geography. But we are united by outlook. 

a.          Both our countries have long histories as maritime trading nations. 

b.          For centuries, our prosperity has depended on the free flow of ships, goods, and ideas across the seas. 

c.          Hamburg, like Singapore, grew as a gateway between regions and markets. Today, both cities remain among the world’s great maritime hubs — linking Europe and Asia through global shipping and logistics connections. 

d.          These shared traditions remind us of a simple but enduring lesson. 

                                               i.               Trade routes flourish when seas remain open. 

                                              ii.               Commerce thrives when rules are respected. 

                                            iii.               And countries prosper when we work together. 

39.             In a more uncertain world, this matters more than ever. By working together to strengthen energy resilience, deepen trade connectivity, and advance technological innovation, Singapore and Germany can keep these flows open, resilient and trusted, and ensure that the global system continues to benefit our businesses and our peoples. 

40.             Thank you.