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Business Times
5 days ago
- Business
- Business Times
Agile partnerships can help Asia face global challenges: DPM Gan
[SINGAPORE] Flexible partnerships are one of three ways that Asia can tackle global challenges, alongside deepening integration and reforming institutions, said Deputy Prime Minister Gan Kim Yong on Thursday (May 29), on the last day of a working visit to Tokyo. Such 'flexible multilateralism' could involve moving ahead first with like-minded partners, while 'leaving the door open for others to join when they are ready', he said in a speech that was streamed online. He was speaking at the two-day 30th Nikkei International Forum on the Future of Asia, themed 'Asia's Challenge in a Turbulent World'. As an example of flexible multilateralism, DPM Gan cited the World Trade Organization (WTO) Joint Statement Initiative (JSI) on E-commerce, with Japan, Singapore and Australia as co-conveners. JSIs allow groups of WTO members to address specific issues, in contrast to the usual WTO negotiations which require unanimity. The JSI on E-commerce now involves 91 members that account for over 90 per cent of global trade. An attempt to incorporate the JSI into the WTO framework this February failed – but the co-conveners are continuing to pursue this, and are exploring options to implement the agreement in the meantime, said DPM Gan. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up New alliances can also be forged by building on existing economic groupings and plurilateral agreements, he added. 'These new alliances will facilitate effective and timely collaboration on key trade policies, and signal our commitment to a rules-based trading system.' He noted Asean's efforts to deepen economic cooperation with the Gulf Cooperation Council – raised by Prime Minister Lawrence Wong at the Asean Summit earlier this week – including through a possible free trade agreement (FTA) between the blocs. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is an opportunity to broaden economic partnerships with Asean and the European Union. Fundamental challenges This is one of the ways that Asia can meet three 'fundamental challenges' that it faces, beyond the economic fallout from US tariffs, said DPM Gan. The first challenge is maintaining 'strategic autonomy' amid intensifying US-China contestation, with both powers seeking to influence others. This affects many Asian countries that have deep trade and investment ties with both – but countries need to maintain autonomy and act in 'a principled and consistent way', in their own and the region's interests, said DPM Gan. The second challenge is preserving the rules-based, multilateral trading order. This is based on predictable tariff terms, with clear and shared frameworks for non-tariff policies, including the 'most favoured nation' principle underpinning the WTO. If members trade only on their own terms, larger economies will have more bargaining power, while smaller ones may be marginalised, said DPM Gan. 'This is why recent moves by some economies to impose and remove tariffs at will are concerning.' The third challenge is tackling global threats such as climate change and protecting the global commons. Given the need for urgent action, it is disconcerting that a collective commitment to climate-related treaties seems to be waning, said DPM Gan. He warned that if the commitment to international institutions – such as the WTO, World Health Organization, International Monetary Fund and World Bank – similarly weakens, the world will be less able to tackle issues such as future pandemics or financial crises. Integration and reform Besides agile partnerships, Asia can face these challenges by doubling down on regional integration and reforming organisations such as the WTO, said DPM Gan. On regional integration, Asia must enhance its trade, digital and physical connectivity, and 'raise the ambition' for existing partnerships. For instance, Asean has concluded talks to upgrade its Trade in Goods Agreement, and is working to upgrade FTAs with other partners. As cross-border payments are a key enabler of the digital economy, some Asean countries are working with India on a real-time payment network, he noted, inviting more Asian countries to join the project. Asia can also explore cross-border energy flows, he added. Not only will the Asean Power Grid enable the region's low-carbon transition, it also presents opportunities for green investments, he said. He welcomed financing support from the World Bank and Asian Development Bank, as well as from Japan. Finally, Asia can work with partners to reform global institutions, particularly the WTO. While imperfect, the organisation remains 'an important foundation on which to build a better global, rules-based trade architecture', he said. Such reforms include enabling flexible agreements such as the JSI on E-Commerce to move forward within the WTO framework. The existing consensus-based decision-making process should also be reformed to avoid gridlock, while the WTO rulebook should be updated to address issues such as state subsidies and industrial policy, and respond to the digital revolution and climate change. Japan-Singapore collaboration DPM Gan's visit comes ahead of Japan and Singapore's 60th anniversary of diplomatic relations in 2026. On the trip, he met Japanese political and business leaders, and the countries reaffirmed their close and longstanding ties. Noting that Japan invested significantly in Singapore when the latter was industrialising in the early 1970s, DPM Gan added that there will be more investment opportunities, with Singapore as a growing Asian hub and a gateway to South-east Asia. Beyond economics, both countries can cooperate in areas such as climate action and defence, he added. In a question-and-answer session after his speech, DPM Gan was asked what advice he would give Japan and its businesses, given the country's 'struggling' economy. In response, he noted that Japan's economy remains 'very significant' with 'very innovative' businesses, and highlighted scope for cooperation with Singapore. He encouraged Japanese startups to set up in Singapore, adding that the Republic also encourages its startups to enter Japan, tap its technologies and explore opportunities to collaborate.
Business Times
6 days ago
- Business
- Business Times
Agile partnerships can help Asia face global challenges: Gan Kim Yong
[SINGAPORE] Flexible partnerships are one of three ways that Asia can tackle global challenges, alongside deepening integration and reforming institutions, said Deputy Prime Minister Gan Kim Yong on Thursday (May 29), on the last day of a working visit to Tokyo. Such 'flexible multilateralism' could involve moving ahead first with like-minded partners, while 'leaving the door open for others to join when they are ready', he said, in a speech that was streamed online. He was speaking at the two-day 30th Nikkei International Forum on the Future of Asia, themed 'Asia's Challenge in a Turbulent World'. As an example of flexible multilateralism, DPM Gan cited the World Trade Organization (WTO) Joint Statement Initiative (JSI) on E-commerce, with Japan, Singapore and Australia as co-conveners. JSIs allow groups of WTO members to address specific issues, in contrast to usual WTO negotiations which require unanimity. The JSI on E-commerce now involves 91 members that account for over 90 per cent of global trade. An attempt to incorporate the JSI into the WTO framework this February failed – but the co-conveners are continuing to pursue this, and are exploring options to implement the agreement in the meantime, said DPM Gan. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up New alliances can also be forged by building on existing economic groupings and plurilateral agreements, he added. 'These new alliances will facilitate effective and timely collaboration on key trade policies, and signal our commitment to a rules-based trading system.' He noted Asean's efforts to deepen economic cooperation with the Gulf Cooperation Council – raised by Prime Minister Lawrence Wong at the Asean Summit earlier this week – including through a possible free trade agreement (FTA) between the blocs. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is also looking at how to broaden economic partnerships with Asean and the European Union. Fundamental challenges This is one of the ways that Asia can meet three 'fundamental challenges' that it faces, beyond the economic fallout from US tariffs, said DPM Gan. The first challenge is maintaining 'strategic autonomy' amid intensifying US-China contestation, with both powers seeking to influence others. This affects many Asian countries that have deep trade and investment ties with both – but countries need to maintain autonomy and act in 'a principled and consistent way', in their own and the region's interests, said DPM Gan. The second challenge is preserving the rules-based, multilateral trading order. This is based on predictable tariff terms, with clear and shared frameworks for non-tariff policies, including the 'most favoured nation' principle underpinning the WTO. If members trade only on their own terms, larger economies will have more bargaining power, while smaller ones may be marginalised, said DPM Gan. 'This is why recent moves by some economies to impose and remove tariffs at will are concerning.' The third challenge is tackling global threats such as climate change and protecting the global commons. Given the need for urgent action, it is disconcerting that a collective commitment to climate-related treaties seems to be waning, said DPM Gan. He warned that if the commitment to international institutions – such as the WTO, World Health Organization, International Monetary Fund and World Bank – similarly weakens, the world will be less able to tackle issues such as future pandemics or financial crises. Integration and reform Besides agile partnerships, Asia can face these challenges by doubling down on regional integration and reforming organisations such as the WTO, said DPM Gan. On regional integration, Asia must enhance its trade, digital and physical connectivity and 'raise the ambition' for existing partnerships. For instance, Asean has concluded talks to upgrade its Trade in Goods Agreement, and is working to upgrade FTAs with other partners. As cross-border payments are a key enabler of the digital economy, some Asean countries are working with India on a real-time payment network, he noted, inviting more Asian countries to join the project. Asia can also explore cross-border energy flows, he added. Not only will the Asean Power Grid enable the region's low-carbon transition, it also presents opportunities for green investments, he said. He welcomed financing support from the World Bank and Asian Development Bank, as well as from Japan. Finally, Asia can work with partners to reform global institutions, particularly the WTO. While imperfect, the organisation remains 'an important foundation on which to build a better global, rules-based trade architecture', he said. Such reforms include enabling flexible agreements such as the JSI on E-Commerce to move forward within the WTO framework. The existing consensus-based decision-making process should also be reformed to avoid gridlock, while the WTO rulebook should be updated to address issues such as state subsidies and industrial policy, and respond to the digital revolution and climate change.
