Singapore to 'significantly enhance' airport, seaport capacity: Wong

Singapore will "significantly enhance" its airport and seaport capacity to remain a key economic node as competition for investments and talent intensifies in Asia, Deputy Prime Minister Lawrence Wong told Nikkei Asia in a written interview.

The heir apparent to Prime Minister Lee Hsien Loong noted that the international competition for investments "will get tougher," stressing the city-state will double down on its strengths as an open economy.

"We will significantly enhance our airport and seaport capacity, so that we remain a key node in global logistics and supply chains," Wong said. "We will also continue to stay open as a business hub, so that people and talent from all over the world can come to Singapore, and we can form the best teams to compete with the rest of the world."

Wong was writing before his official visit this week to Tokyo, where he will deliver a keynote speech at the 28th Future of Asia forum, Nikkei's flagship annual conference, which will start Thursday.

In the wide-ranging interview, covering global issues, digital innovation and his role as new leader, Wong said a rules-based multilateral trading system "remains critical" in the face of global supply chain disruptions.

Wong noted many countries are seeking to diversify their supply chains for economic resiliency. "This is understandable. But even as countries work to do this, we must be careful not to undermine the rules-based multilateral trading system which continues to underpin global prosperity."

"If we are not careful, steps taken to achieve self-reliance can inadvertently lead to a broader fragmentation of the global economy, and unintended consequences," warned Wong, who doubles as finance minister. "This will leave all countries worse off."

As a small city-state without any natural resources, Wong said, Singapore relies on the free flow of trade and investment and a common set of rules. "The multilateral trading system remains critical, and priority should be given to reforming and strengthening the WTO," the World Trade Organization, "so that disputes can be resolved expeditiously, and rules applied consistently."

His remarks come days after the leaders of the Group of Seven issued a communique calling for the need to "de-risk," but not decouple, from the Chinese economy.

Wong noted that Singapore will "continue to foster close ties with China and the U.S." and strives to be a "consistent and reliable partner" for both superpowers. "Our foreign policy is neither pro-U.S. nor pro-China, but rather grounded on Singapore's national interests and key principles such as adherence to international law and a rules-based multilateral system."

The growing contest between the U.S. and China is having profound impacts in Asia, including the 10-member Association of Southeast Asian Nations. Wong noted that most member states have "deep historical and substantive connections" with the two economies, while many other major powers, like Japan, also have stakes.

"It is therefore more important than ever for ASEAN to maintain its centrality in this evolving regional architecture," Wong said.

Wong noted that ASEAN nations have built a "dense network of cooperation and interdependence" with external partners. He specified the Regional Comprehensive Economic Partnership and the ASEAN Outlook on the Indo-Pacific, a vision statement on the underlying principles for cooperation in the Indo-Pacific region, as examples of multilateral frameworks.

On the political front, however, Wong said the ongoing crisis in military-led Myanmar "remains dire." Even two years after the adoption of ASEAN's "five-point consensus" calling for an immediate end to violence as well as dialogue between the military and opposition, there has been little progress on implementing it.

"The implementation of the Five-Point Consensus ultimately depends on Myanmar stakeholders, especially the Myanmar military authorities," Wong said. "Only constructive dialogue amongst all key stakeholders in Myanmar can facilitate a peaceful solution in the interests of the people of Myanmar."

Regarding Singapore's bilateral cooperation with Japan, Wong said more can be done in the areas of the digital economy, such as smart cities, 5G telecommunication networks and artificial intelligence.

But he also noted that it is "hard to predict the winners in the technology race."

"What is important is not just the technologies themselves, but also the conditions for their adoption across the economy," Wong said. "We have to ensure that new technologies such as AI develop in a trusted and safe manner, so that they can be deployed to the benefit of society."

Singapore is also keen to collaborate with Japan on its green efforts, Wong said. The city-state is seeking to cut its near-total reliance on natural gas and tap low-carbon hydrogen instead as one of its main energy sources as it targets achieving net-zero by 2050.