Latest news with #LeeKuanYewSchool
CNA
3 days ago
- Business
- CNA
CNA938 Rewind - Real wages in Singapore up 3.2% in 2024: MOM
CNA938 Rewind According to the Manpower Ministry (MOM), real wages rose 3.2 per cent in 2024, up from 0.4 per cent in the year before. Andrea Heng and Hairianto Diman dive deeper into MOM's wages report with Hawyee Auyong, Research Fellow, Lee Kuan Yew School of Public Policy, NUS.
Free Malaysia Today
23-05-2025
- Business
- Free Malaysia Today
Asean must lead as US retreats from regional engagement, say experts
Experts say the Asean bloc must assert itself as a stabilising force amid shifting global alliances and waning US engagement. (AP pic) PETALING JAYA : With the US scaling back its regional engagement in favour of selective bilateral ties, experts say Asean must step up and position itself as a leading business destination and regional partner. Speaking to FMT, Tricia Yeoh from Nottingham University Malaysia said the current US administration has a markedly different approach compared to previous administrations. Tricia Yeoh. 'Asean cannot make the mistake of assuming that it is operating or negotiating with players who share the same values, principles or worldviews as previous administrations in DC,' she said. Denis Hew, senior fellow at the Lee Kuan Yew School of Public Policy, said signs of disengagement were already evident under the Joe Biden administration. 'The US was not able to conclude the Indo-Pacific Economic Framework it mooted two years ago. It sounded to me that they were not engaging fully. 'The current Donald Trump administration is becoming even more transactional,' he said. Diminished US involvement could push Asean closer to China, but Yeoh cautioned against an overreliance on Beijing. 'China is undergoing its own domestic economic challenges while it deals with the fallout over tariffs,' she said. Denis Hew. Hew, who previously led the Asia Pacific Economic Cooperation policy unit, said Asean's role in global supply chains means it must keep working with both the US and China. 'We need to make sure that there's a platform, such as Asean, for both superpowers to be able to talk and work together, so that they can strengthen their supply chains and look forward towards more economic growth,' he said. To retain influence, Hew called on Asean to work towards building a much more integrated economy to increase its appeal as the fourth-largest market globally. According to Yeoh, that means strengthening coordination among member states and setting clear priorities on trade, digital regulation and labour mobility. 'Asean should be the one taking the initiative, and making it clear that the US continues to need us as a stabilising force in the Asia-Pacific region,' she said. 'For security reasons alone, the US would need Southeast Asia, what more for other economic and geopolitical reasons.' Future economic risks With Washington also undermining global institutions like the World Trade Organization, Yeoh said Asean must brace for a more fragmented trade environment. 'Asean economies will need to anticipate that the US—which has long set the international standards on a multitude of fronts, including health and safety—may no longer be the ideal standard-bearer that we can look to reliably,' she said. She said it may fall on Asean to set new global standards, including in tech and artificial intelligence. Although both Washington and Beijing have publicly said they are not seeking to 'decouple' by deliberately pursuing an economic and technological separation, Yeoh said the risk of economic fragmentation remains. She also flagged concerns over the growing number of bilateral deals that come with strategic conditions attached. 'Part of the deal Malaysia wants to agree to with the US involves a tech diplomacy agreement that ensures certain tech which passes through Malaysia in the supply chain will not reach China,' she said. 'Countries in Asean will have to evaluate whether deals like these would be beneficial or detrimental in the long run, especially as regional integration initiatives like the Regional Comprehensive Economic Partnership and Asean-China FTA include China.' The 46th ASEAN Summit will take place in Kuala Lumpur on May 26-27, with Malaysia—this year's chair—advocating a unified regional response to US tariff actions. At the summit, leaders are expected to discuss how Asean can preserve its independence amid growing pressure to pick sides.
Free Malaysia Today
22-05-2025
- Business
- Free Malaysia Today
For Asean, there's insufficient relief from tariff reprieve
Asean member countries now risk losing new investments to other emerging economies, says economist Denis Hew. KUALA LUMPUR : Asean is already feeling the impact of the United States' reciprocal tariff policy despite President Donald Trump's recent decision to give tariffs on China a 90-day pause, according to an economist. For instance, investors have already put their plans on hold, and the global economy is hurting, Denis Hew, senior fellow at the Lee Kuan Yew School of Public Policy, told FMT. 'Businesses are right to be concerned,' he added. Hew, who formerly served as Asia-Pacific Economic Cooperation policy unit chief, pointed out that it is not prudent to make business plans and economic decisions on a quarterly basis when investors take the long-term view. 'If I'm going to set up a factory in Vietnam, I need to look at what will happen in the next five to 10 years. If I can't even see what will come in the next 90 days, I'm not going to invest,' he added. He said most multinationals will now pause their investments. On April 9, hours after the reciprocal tariffs went into effect, Trump announced a 90-day pause for affected countries except China. Prime Minister Anwar Ibrahim said in early April that as Asean Chair, Malaysia would coordinate a united regional response to the tariffs. Nonetheless, Asean member states are also seeking bilateral negotiations with the White House to lessen the impact on their individual economies. However, Trump's announcement on May 16 that the US lacks the capacity to hold trade talks with the more than 75 countries affected and will unilaterally impose new tariffs on them in the coming weeks spells trouble for Asean. Hew pointed out that the 90-day reprieve will do little to help given that the global economy is 'already hurt'. 'There is a very close connection between trade and foreign direct investments in this region thanks to all the global supply chains that we have here,' he said. He said one of the biggest concerns now is that Asean may become less competitive, thanks to the possibility that investors will look to other emerging markets. Challenges at home Beyond the external headwinds, Asean is also navigating internal hurdles that will require renewed focus. Hew pointed out that while the region has strengthened economic cooperation through the Asean Trade In Goods Agreement and Asean Comprehensive Investment Agreement, the implementation of the terms of these agreements has been uneven. 'Since the Asean secretariat is not an enforcement institution and therefore not empowered to ensure compliance, pressure from member states is essential to move things forward,' he said. 'There has to be other ways to ensure that member countries comply with the various Asean agreements,' he added. Hew said given emerging issues such as the US-China trade war and Trump's tariffs, it is time for Asean member states to work together to step up economic integration. 'We have to improve productivity, invest in innovation, and reskill workers as we adopt more digital technology,' he added. Potential complications and gains Hew said changes in demographics across the Asean region also present opportunities and complexities. 'You have an aging population in Singapore and Thailand, but a young population in the Philippines,' he pointed out. This, he said, is an opportunity for member countries to expand mutual recognition of professional services to boost labour mobility. The key, he added, is to build systems that can match skills with demand across borders. 'For instance, we talk about increasing usage of AI but we have yet to discuss the issue of giving recognition to each other's software engineers,' he said. But for Hew, it is not all gloom. He said the Digital Economy Framework Agreement, which is meant to be ready this year, looks good on paper. The agreement, one of the major economic deliverables under Malaysia's leadership, covers issues such as cross-border data flows and data localisation. 'But the proof is in the pudding. We have to wait and see. The implementation is important,' Hew said. Other big-ticket items are the green economy and narrowing the development gap among member states, according to the 'Building an Asean Economic Community Beyond 2025' report co-written by Hew. '(Overall) it is no longer business as usual. The global economic environment has become far more hostile,' Hew added. Kuala Lumpur will host the 46th Asean Summit on May 26 and 27. It will present member states an opportunity to chart a course for collective resilience and prosperity under this year's theme of 'Sustainability and Inclusivity' as they face complex geopolitical and economic challenges. The bloc will also be launching the Asean Community Vision 2045, which is a sketch of the region's economic, political-security, and sociocultural priorities and plans in the coming years.
CNA
21-05-2025
- Politics
- CNA
PM Wong unveils what he calls his 'strongest team' in new government line-up
Singapore has unveiled its new Cabinet line-up for its 15th term of Government, in what Prime Minister Lawrence Wong calls his "strongest team" for the country. He says the core team of his Cabinet will comprise Deputy Prime Minister Gan Kim Yong and three new coordinating ministers. It is what he describes as a "solid team" behind him when a new term of government begins on May 23. Reuben Ng, Assistant Professor from the Lee Kuan Yew School of Public Policy, talks about what the changes signal about the overall tone and agenda of PM Wong's government. He also talks about the reasoning behind specific dual ministerial appointments.
Free Malaysia Today
21-05-2025
- Business
- Free Malaysia Today
Malaysia key to unlocking Asean-China trade potential, say experts
Asean and China recently updated their free trade agreement to include new rules for emerging sectors, including the digital and green economies. PETALING JAYA : Malaysia's special relationship with China presents a unique opportunity to drive better regional economic outcomes, particularly as it leads Asean during a period of global economic uncertainty, analysts say. A recently updated Asean-China free trade agreement (ACFTA) now includes new rules for emerging sectors, including the digital and green economies. Denis Hew. 'It makes a lot of sense for us to upgrade the ACFTA to also cover the digital economy,' said Denis Hew, senior research fellow at the Lee Kuan Yew School of Public Policy. He said that beyond trade, the updated deal would allow for collaboration in digital skills training, science and tech partnerships, and broader innovation ecosystems that support small and medium enterprises in the region. 'China is a leader in emerging technologies. A perfect example is DeepSeek, where China has proved that you don't have to spend billions of dollars in investments for artificial intelligence. You see a lot of innovation happening in China,' said Hew. Tricia Yeoh. University of Nottingham Malaysia's Tricia Yeoh agreed, adding that China could also work with Asean to develop shared AI governance frameworks and regional programmes that mirror Europe's Erasmus+ programme, facilitating the exchange of digital talent between Asean and China. But Yeoh also told FMT more can be done, as China's investment into strengthening Asean's socio-economic architecture would benefit the republic as well. 'Malaysia, as Asean chair, should optimise this by negotiating a stronger, firmer deal that would benefit the entire bloc,' she said, adding that this includes co-financing renewable energy infrastructure and sustainable agriculture, as well as more resilient Asean supply chains. But she also warned that Asean must be prepared to assert itself, especially on sensitive issues like the South China Sea. 'China needs to support Asean centrality when it comes to dealing with the territorial waters issue, since its current actions are undermining trust throughout the region. 'Asean needs to be willing to put this on the table, and secure China's agreement so that both parties can arrive at a good deal,' she said. Yeoh proposed deeper maritime cooperation—including joint early-warning security systems and marine science research—as part of the broader trust-building process. Boosting economic resilience The ACFTA upgrade is one of the major deliverables under Malaysia's chairmanship, alongside the Asean Digital Economy Framework Agreement, set to be finalised later this year. Both Hew and Yeoh stressed that the updated ACFTA fits well into Asean's broader trade strategy, particularly as global trade governance falters. 'Many of the Asean+1 FTAs, including the one with China, were signed over a decade ago. Upgrading them, especially the ACFTA, helps expand regional supply chains and future-proofs Asean's economic integration,' said Hew. Like many other countries, Asean is increasingly turning to regional and bilateral agreements to protect its economic interests. 'We have agency here. We can strengthen our economic resilience through economic cooperation and integration. With the World Trade Organization currently quite dysfunctional, this is the only way to go in terms of facilitating greater trade and investment,' said Hew. The WTO oversees the global multilateral trading system, but its relevance has been questioned due to stalled trade negotiations and US criticism of its dispute settlement mechanism. Emphasising the importance of closer bilateral and regional cooperation, Yeoh said Asean must continue fostering deep ties and relations with other major international blocs such as the European Union, Latin America and Africa. 'These global ties will contribute to greater resilience when and if conflict grows, and there is even deeper economic uncertainty. The benefits are not just in terms of economics and trade, but also security and cultural aspects,' she said. Kuala Lumpur is set to host the upcoming Asean Summit on May 26 and 27. With US-China rivalry intensifying and global trade governance weakening, Asean leaders are expected to focus on strengthening strategic autonomy and economic resilience.
