Committee of Supply − Head N (Ministry of Foreign Affairs)

The Chairman: Mr Vikram Nair, you have two cuts. Please take them together.

Global Environment

Mr Vikram Nair (Sembawang): Mdm Chairman, I beg to move, "That the total sum to be allocated for Head N of the Estimates be reduced by $100".

Following the end of the Second World War, the colonial era came to an end and a new world order was set up by the allies focused on global interdependence and cooperation amongst countries. International organisations, such as the UN, the World Bank and the International Monetary Fund, were set up in Bretton Woods to facilitate peace and security and to assist the world in transition.

As countries gained independence after the War, all countries, big and small, had a say in these organisations. The Cold War never really erupted into a world war, I believe, in large part, because all major players respected international norms and laws.

Singapore thrived in this world. As a small country, we spoke up strongly against any violation of international norms, particularly in relation to the use of force, and also did our part to assist other countries grow and develop. We made many friends on the international stage by looking for win-win outcomes with our counterparts, be it in trade or investments, and shared our own ideas freely with anyone interested.

Two thousand and sixteen, though, saw several worrying trends, such as rising anti-globalisation, protectionist and nationalist sentiments, across the globe. These feelings have always been there, but what has been remarkable in 2016 is how strongly these have emerged in the political scene, particularly even countries, such as the US and UK, the two largest powers in the English-speaking world.

In the US, President Trump has campaigned on the back of re-negotiating or unwinding free trade agreements, including NAFTA and the TPP. He has since followed through to formally withdraw the US from the TPP.

In Europe, the people of the UK voted to end Britain's membership of the EU, a decision which the politicians are still working hard to implement, moving through unchartered constitutional waters. In France, Europe's largest country, Marine Le Pen is campaigning on a platform that is anti-immigration and anti-EU. The polls predict that she will be the frontrunner in the first round but lose the second round. However, given that the polls were wrong on both Brexit and Trump's victory, the world may need to prepare for a scenario where she prevails in France on the back of anti-globalist sentiments. If so, that may well mean the start of the end of the EU as we know it.

Meanwhile, security challenges posed by organised terrorist groups and other lone wolf attacks continue to threaten society, given the transnational nature of terrorism and violent extremism. As the battles in Iraq and Syria rage with the so-called Islamic State, fighters travelling to and from the region continue to pose a threat in countries far and wide, from Europe to Southeast Asia.

Closer to home, significant geopolitical shifts are taking place with countries in the region anxiously watching for early signs from the Trump administration as to whether and how the US will stay actively involved and engaged and how it intends to interact with China.

These developments could prompt countries to adjust their positions accordingly. Meanwhile, longstanding issues like territorial disputes and historical issues continue to be sources of tension in the region. At a time when it is even more imperative for regional organisations like ASEAN to stay united in order to navigate external pressures and regional dynamics, it appears that there remain difficult issues on which ASEAN would struggle to take a united position, such as, for example, matters relating to the South China Sea.

In this regard, what does MFA see as the major challenges facing Singapore in this environment? How should we position ourselves in these uncertain times?

Question proposed.

5.45 pm

[Deputy Speaker (Mr Charles Chong) in the Chair]

China-US Relations

Mr Vikram Nair: The Sino-US relationship is a key major power relationship for Singapore and the region. Singapore has historically been a good friend to both countries. Singapore has always been a good and reliable friend to the US in the region from the time of its Independence. When China was opening up to the world in the 1990s, Singapore was one of the early ones to set up formal diplomatic ties and help build bridges to ASEAN and its other friends.

However, leadership changes in both countries − namely, the election of US President Donald Trump and the upcoming 19th Party Congress of the Communist Party − have created some uncertainty about the future trajectory of this relationship.

At this stage, President Trump's approach towards China and how China would respond remains unclear. On the one hand, it was reassuring that President Trump reportedly had a good telephone conversation with Chinese President Xi Jinping on 9 February 2017. Other newly appointed leaders have also met or spoken to their Chinese counterparts.

On the other hand, President Trump's earlier threats included a threat to slap a 45% across-the-board tariff on Chinese imports into the US, which could mean that we will potentially see a difficult trade relationship between the US and China. Chinese Premier Li Keqiang said on 21 February 2017 that a US-China trade war would benefit nobody.

The US has also made other threats, such as the threat to revise the One-China policy that had guided diplomatic relations since the Nixon era.

The US approach to Asia also remains uncertain. On the one hand, President Trump campaigned on the back of undoing US free trade agreements. On the other hand, his Secretary Rex Tillerson has reaffirmed that the US will continue to be a major player in the region and even stated they would take steps to prevent China accessing illegally built structures in the South China Sea − a point which caused consternation in China but which seemed to suggest that the US still views its role in Asia as important.

As a country which trades and invests extensively with both countries, Singapore may face adverse consequences if the relationship between the US and China sours. What is MFA's take on the direction of Sino-US relations in the medium term and what is MFA's strategy to manage Singapore's relations with China and the US?

Foreign Policy in the New World Order

Mr Low Thia Khiang (Aljunied): Chairman, it was only half a year ago that the Prime Minister conducted a marathon of diplomatic visits to our closest partners in the region. In three months, he travelled to Laos to meet with ASEAN leaders, and to the US, China, Japan, India and Australia to affirm longstanding ties.

Things were looking up for our relations with these key countries. Our principled foreign policy position has emphasised the international rule of law, commitment to an open economy and freedom of navigation, mutual respect for each other's independence, and armed neutrality. This seems to have earned us a good deal of legroom as a small, sovereign city state among large powers. Some even commented that we are punching above our weight in the international arena to influence outcomes for the common good.

Much of our foreign policy achievements are clearly due to our hardworking diplomatic corps, members of whom have been building on the foundation established by our premier statesman, the late Mr Lee Kuan Yew. But it is also becoming apparent that the global order is changing and changing rapidly. Even as the Prime Minister continued his diplomatic marathon, when he was visiting Japan in September, a Chinese state-owned newspaper stoked public anger by accusing Singapore of taking sides against China.

Chairman, I am glad that the issue with the seizure of the Terrex vehicle by Hong Kong Customs was handled with great care by China and Singapore and has come to pass. Nevertheless, the public expressions and discussions resulting from the event do point to some critical challenges to Singapore in this changing global order. The critical challenges pertain to a rising China with the economic and military clout to impose its will on Asia. China may not do so in the near future, but with the means and its strong position on the South China Sea claims, the potential is there.

Whether we like it or not, China is an important strategic partner. However, even as Singapore invests in new opportunities of bilateral cooperation, especially under China's "Belt and Road" initiative, we need to be mindful of not becoming too dependent on the Chinese economy.

We have encouraged our businessmen, entrepreneurs and professionals to connect with their Chinese counterparts using deep historical and cultural links. We saw the complications when Singaporeans doing business and working in China came under public pressure during the events last year. Some Singaporeans were even of the opinion that we should appease China. Singapore not only risks becoming economically vulnerable to any strategic foreign policy shift by China, the multiracial and multicultural character of our society will also come under pressure.

To compound this challenge, the new US administration pulled out of the Trans-Pacific Partnership (TPP) a month ago. The US looks set to turn inwards to deal with domestic political conflicts. If the US disengages from Southeast Asia, this will leave a gap, if not a vacuum.

If ASEAN continues to be divided on the collective response to the South China Sea issue, then the gap left by the US will mean ASEAN will have to face a strong China by ourselves and divided. This is a grim prospect.

Chairman, one of the tenets of our foreign policy is hard-nosed pragmatism to survive as a small city state. I would like to ask the Foreign Minister whether our foreign policy principles need to be updated in view of the changing world order and, if not, how the existing principles would guide us in the volatile and uncertain waters.

Singapore-US Relations

Mr Cedric Foo Chee Keng (Pioneer): Chairman, my next cut is on the outlook for Singapore-US relations. Singapore has a long history of strong and close bilateral relationship with the US. We cooperate in many areas for mutual benefit.

Economic ties have been one of the cornerstones of our relationship with the US. The Singapore-US FTA was implemented since 2004, one of the first FTAs signed by the US. The US is also Singapore's largest foreign investor, with investments of about $244 billion in 2015, and that accounted for 20% of Singapore's foreign direct inward investments.

Many US companies have set up their regional headquarters here in Singapore, with a significant number of Americans living, working and studying here. Similarly, many Singaporeans are drawn to study and work in the US.

The US has also been a firm supporter of maintaining regional peace and stability in Asia for many years, acting as a benign and constructive power. In December 2015, Singapore and the US signed the enhanced Defence Cooperation Agreement (DCA). This is an update to the 2005 Singapore-US DCA and also part of the bilateral Strategic Framework Agreement (SFA) between both sides. The SFA underpins the close defence and security partnership that has contributed to maintaining regional peace and stability here in this region.

Chairman, all the above was prior to the US Presidential Elections in November last year. Now, with the new Trump administration and its "America First" policy, I would like to ask the Minister how he sees Singapore-US relations evolving.

President Trump has also signed an executive order to withdraw the US from the Trans-Pacific Partnership (TPP) agreement. He has also said that he wants to narrow the US trade deficits with countries, such as China, Germany, Japan, and may, indeed, adopt a protectionist posture with hefty import tariffs. Fortunately for Singapore, the US actually has a trade surplus with us.

The question to the Minister is on the implications on Singapore which relies heavily on open and free trade. Also, does the Minister see new opportunities for Singapore to be working even closer with the new US administration for mutual benefit?

Singapore-China Relations

Chairman, I move on to the next cut on Singapore-China relations and also Singapore's role as the coordinator for ASEAN-China Dialogue.

Relations between Singapore and China have been good for many years. More than 20 years ago, back in 1994, the China-Singapore Suzhou Industrial Park joint venture was formed. This represented the first G-to-G economic cooperation project of its kind and on a scale not commonly seen. This was followed by the Tianjin Eco-city Project in 2007 and, now, the Chongqing Connectivity Initiative. Singapore is one of China's largest foreign investors. In fact, I think it is the largest foreign investor in China. To deepen economic cooperation further, a slew of projects was recently signed at the China-Singapore Joint Council for Bilateral Cooperation meeting co-chaired by Deputy Prime Minister Teo Cee Hean and Chinese Vice-Premier Zhang Gaoli.

Beyond economic cooperation, Singapore-China relations are also complemented by collaboration between the Civil Service College here and China's Tsinghua University for the training and development of public policy leaders.

People-to-people ties and cultural roots are also deep and strong. China tourists to Singapore increased to 2.86 million last year. Many Singaporeans also visit China for business and leisure.

Notwithstanding the strong and broad political, economic and social ties between the two countries, there would be occasional differences. How would Singapore manage these differences? Ultimately, a prosperous and successful China which remains engaged in this region will augur well for the balance of power and, therefore, improve the stability for the region.

Singapore is also currently designated as the Coordinator for ASEAN-China dialogue. How can we play a constructive and useful role in bringing about better understanding and rapport between the two parties? Would the Minister share with this House MFA's intended approach in this regard?

Ms Sun Xueling (Pasir Ris-Punggol): With the conclusion of the 13th Singapore-China Joint Council for Bilateral Cooperation, it seems that the rough patch in Singapore-China relations in the second half of 2016 is behind us as officials on both sides signalled their intent to further collaborate by signing a series of cooperation initiatives.

Mr Wang Yi, the Chinese Foreign Minister, in a meeting with Dr Vivian Balakrishnan, said, "I hope both sides can work doubly hard through the actual actions of our cooperation to fully embody the characterisation of the bilateral relationship that we share, which is an all-round cooperative partnership, progressing with the times". What is our interpretation of what he had said and can MFA update us as to how Singapore can navigate the opportunities and challenges in this bilateral relationship?

Both countries have strong cultural, people-to-people, trade, finance and investment links. I would like to suggest that there be more formal and informal touchpoints established between the governments, businesses and the people sectors of both countries, so that communication and understanding can be enhanced to the benefit of both countries.

Relations with Malaysia and Indonesia

Mr Amrin Amin (Sembawang): Singapore's relations with our immediate neighbours, Malaysia, Brunei and Indonesia, remain of great importance to us. As close neighbours, developments in these countries invariably have an impact on us and it is crucial that we remain invested in building good relationships with them.

Our bilateral relations with Malaysia have seen a significant upswing in recent years. Many positive initiatives, such as the KL-Singapore High Speed Rail (HSR), the JB-Singapore Rapid Transit System (RTS), and joint property developments, such as Marina One and the DUO, were pursued in a spirit of good neighbourliness. These projects will bring our people closer together. To many Singaporeans, it would appear that bilateral relations have never been better.

At the same time, we were surprised by Malaysia's decision to apply for a revision of the International Court of Justice (ICJ)'s 2008 judgment on the case concerning sovereignty over Pedra Branca, Middle Rocks and South Ledge. We believed that the issue of sovereignty over Pedra Branca had been closed by the ICJ's decision years ago.

Given these developments, I seek an assessment from the Minister for Foreign Affairs on our current relations with Malaysia and whether Malaysia's decision to apply for a revision of the ICJ judgment has affected the overall tenor of the relationship.

Bilateral relations with Indonesia appear to be on a positive trajectory. I note that the Minister for Foreign Affairs recently hosted his Indonesian counterpart's visit to Singapore, and that Prime Minister Lee and President Jokowi held a Leaders' Retreat and opened an industrial park in Indonesia last year. What were some of the recent highlights and what is the Minister's assessment of Singapore's relationship with Indonesia?

We have always described Singapore's relationship with Brunei as a "special relationship". It is a longstanding and close relationship, the foundations of which were firmly laid by Brunei's late Sultan Omar Ali Saifuddien and Singapore's founding Prime Minister, Mr Lee Kuan Yew. Would the Minister be able to give us an update on the status of our bilateral relations and the trajectory of the relationship over the next few years?

6.00 pm

Pedra Branca

Mr Baey Yam Keng (Tampines): Chairman, the ICJ's judgment in May 2008 had resolved a longstanding territorial dispute between Singapore and Malaysia in a peaceful and amicable manner. Both sides had undertaken to respect and abide by the ICJ's judgment. Then Malaysian Foreign Minister Rais Yatim had also described the outcome as a "win-win situation".

Given the excellent state of our bilateral relations, Singaporeans were naturally concerned by Malaysia's application on 2 February this year to revise the ICJ's decision which awarded sovereignty over Pedra Branca to Singapore.

Can the Minister elaborate on Singapore's response to Malaysia's application and whether this case will affect bilateral relations with Malaysia? Will ongoing projects, such as the High Speed Rail, be affected?

The previous application to ICJ took about four years from submission to judgment. How long does MFA expect this revision to take and what would the key milestones be?

Singapore-Indonesia Relations

Dr Chia Shi-Lu (Tanjong Pagar): Mr Chairman, Singapore and Indonesia have enjoyed good relations for many years and share strong trade and cultural links, despite having some inevitable differences in various areas over the years. Singapore has been among the top three foreign investors in Indonesia and tourism between the two countries remains strong.

In November last year, as earlier noted, four wide-ranging MOUs were signed on the sidelines of Prime Minister Lee Hsien Loong's Leaders' Retreat with President Joko Widodo. I note that Singapore and Indonesia will be commemorating their 50th anniversary of diplomatic relations this year. I would like to seek the Minister's views on the state of bilateral relations. Furthermore, I would like to ask if there are plans for a Golden Jubilee celebration with Indonesia.

Future of ASEAN

Dr Teo Ho Pin (Bukit Panjang): I would like to seek clarifications from the Ministry on, first, what are the key achievements of ASEAN over the last 50 years? Second, how can ASEAN remain relevant in the future, in view of the changing geopolitical landscape?

Sir, ASEAN was formed on 8 August 1967. Its main role is to promote regional peace and stability, accelerate economic growth, social progress and cultural development in the region, and also maintain close cooperation with international organisations with similar purposes.

The 10 ASEAN countries cover a land area of about 4.4 million sq km and have approximately 625 million people. Although ASEAN has been in existence for 50 years, not many people in the ASEAN countries understand the key roles and operations of ASEAN and how ASEAN has benefited them. In fact, some have criticised ASEAN to be a talk-shop among political leaders without achieving any desirable outcomes that benefit its businesses and people. Some have said that ASEAN is "big on words but small on action", and ASEAN policies have proven to be mostly rhetoric, rather than actual implementation.

Sir, as ASEAN will be celebrating its 50th anniversary this year, it is a good opportunity to re-examine the key roles of ASEAN and re-position it to be more effective in responding to the changing geopolitical landscape. In my opinion, ASEAN should focus on three areas.

One, strengthen the unity among ASEAN countries so as to achieve peace and stability in the region. Political leaders and government officials must put in more efforts to further improve diplomatic relations among countries and friendship among government officials.

Two, promote more partnerships among businesses in ASEAN countries to create better jobs for our people. More trade missions should be organised to facilitate business partnerships, investments and promotion of goods and services among ASEAN countries.

Three, encourage more people-to-people exchanges and interactions to foster stronger friendships among our people. We should encourage twin cities arrangements so that more opportunities can be created for residents of different ASEAN countries or cities to know each other better. This will further strengthen the unity of ASEAN.

Relations with Other Southeast Asian Countries

Mr Liang Eng Hwa (Holland-Bukit Timah): Mr Chairman, ASEAN is our immediate neighbourhood. Relationships have been warm and constructive in the last few years, especially with neighbouring Malaysia and Indonesia. While we share some core common values and positions, the diverse political backgrounds and ever-changing circumstances within each country will inevitably lead to situations where we need to manage some of the differences and potential tension points that will surface from time to time.

Maintaining strong and resilient political, economic and people-to-people ties within our region is, hence, very important in a region as diverse as Southeast Asia. What is Singapore doing to maintain strong links with our fellow ASEAN countries? How can we deepen Singaporeans' understanding of and familiarity with political developments in ASEAN, its culture and sensitivities and its economic opportunities?

In the CFE Report, it had mentioned that AEC will make ASEAN a more compelling market and a competitive production base. There are, indeed, good potential opportunities and sound commercial reasons for our companies to expand and internationalise into the region.

As the ASEAN Chair in 2018, how could Singapore help to advance economic integration within ASEAN and with its key partners?

ASEAN

Mr Low Thia Khiang: Sir, since the Permanent Court of Arbitration's ruling in favour of the Philippines against China's territorial claims in the South China Sea last year, media reports on the summits between leaders of ASEAN and China, coming just before and after the ruling, alleged that China's interference in ASEAN's affairs succeeded in dividing the organisation.

It would appear that Laos and Cambodia, which have strong overland economic ties with China, were weighing their national interests against the collective interests of ASEAN. Has this split healed since the events last year? What is the status of ASEAN integration, or has the South China Sea issue effectively blocked any progress for integration? Is the Philippines really embracing China? If so, what are the implications for ASEAN unity, given the Philippines is the ASEAN Chair this year?

Sir, it has been said by an expert in the foreign policy field that a divided ASEAN is not in the interest of China. This is not obvious to me as a lay person, as it seems that it is in China's interest to have a divided ASEAN. Historically, great powers will seek to divide and rule and advance their own interests in Southeast Asia. I am not sure China will be an exception, given its own imperial history. China continues to expand its economic influence in mainland Southeast Asia and even with Malaysia, and will seek leverage with small states, such as Brunei and Singapore.

We, of course, have our principled foreign policy and will never compromise our independence. However, are we in a position to help unite ASEAN and to block out any divisive forces? If we are not in that position, then are we able to facilitate processes or support another leading country, say, Indonesia, to help unite ASEAN?

Sir, ASEAN has long served as an anchor for Singapore in the region. If ASEAN is beginning to lose its viability, then what alternatives does Singapore have to try to achieve a semblance of stability in its surrounding waters?

Japan-Korea Relations

Mr Zainal Sapari (Pasir Ris-Punggol): Mr Chairman, Japan and the Republic of Korea are two important regional partners for Singapore. We commemorated the 50th anniversary of diplomatic relations between Singapore and Japan last year, and the 40th anniversary of diplomatic relations between Singapore and the Republic of Korea in 2015. Both these relationships are fuelled by strong economic cooperation and people-to-people ties. For instance, the Japan-Singapore Economic Partnership Agreement has provided a firm foundation for economic cooperation between our two countries.

As we look towards the next significant milestone in these relationships, how can Singapore further strengthen our cooperation with key partners, such as Japan and the Republic of Korea, and explore new areas for cooperation?

Relations with India

Assoc Prof Dr Muhammad Faishal Ibrahim (Nee Soon): Sir, Singapore and India's relations have strong historical and cultural linkages and has come a long way. Recently, there have been many interactions at the various levels − government-to-government, business-to-business and people-to-people.

I would like to seek an update on our bilateral relations with India. In particular, how have we expanded cooperation with India following the Strategic Partnership that was signed during Prime Minister Modi's visit to Singapore in November 2015?

The Chairman: Mr Sitoh Yih Pin, you have two cuts.

Relations with Australia

Mr Sitoh Yih Pin (Potong Pasir): Mr Chairman, Singapore and Australia share an extremely strong bilateral relationship. Our people-to-people ties are deep and well-connected. Australia is a popular destination for many Singaporeans on holiday. Its universities are internationally renowned and highly regarded. They are a top choice of many of our Singapore youths who seek to pursue a tertiary education overseas.

Singapore and Australia also share many bilateral and international platforms which allow for close government-to-government communication and cooperation. The 9th Singapore-Australia Joint Ministerial Committee held on 18 March 2016 in Sydney, led by Minister for Foreign Affairs Vivian Balakrishnan and Ministers Lim Hng Kiang and Ng Eng Hen, is a good example of this.

Separately, Australia is also a key strategic partner of Singapore in the region. Australia participates actively in regional forums, such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS).

In 2015, Singapore and Australia celebrated 50 years of diplomatic relations. We can all recollect Prime Minister Lee enjoying an outdoor BBQ session with then-Prime Minister Tony Abbot in celebrating the landmark occasion.

This culminated in May 2016 when we concluded a landmark agreement to deepen economic integration, expand defence cooperation, jointly promote innovation and entrepreneurship and further strengthen our people-to-people ties by facilitating tourism, cultural exchanges and educational opportunities. This agreement builds on the Comprehensive Strategic Partnership (CSP) adopted in June 2015 by the Prime Ministers of Singapore and Australia.

Sir, in the premises, I invite the Minister to share with us on: (a) any update on the implementation of the CSP; and (b) the practical benefits that Singaporeans can expect to benefit from its implementation.

Singapore and the International Community

As a small state, Singapore has a vital interest in advocating for and maintaining a rules-based international order. As an open economy with our key focus on free trade, Singapore's external environment plays an important role in ensuring our continued development and success. International rules bring greater predictability and, more crucially, form the basis for international cooperation.

There is a shift in the international geopolitical landscape. The rise in the economic might of China has made some question the sustainability of the US as the world's pre-eminent superpower. There is, however, no consensus on how this will affect the international order.

Vital issues, such as terrorism, cyber threats, climate change and pandemics, present new perspectives on global challenges that have shifted the traditional paradigm of solutions. These are issues that are transboundary in nature and require the collective efforts of the entire international community as a whole in search of effective solutions.

Closer to home, in the Asia Pacific region, countries are developing fast and growing rapidly. In time to come, the interests of these countries will come to the fore as their ability to defend their interests grows. This will significantly change the geopolitical dynamics in the region.

International Organisations, such as the UN, WTO, IMF, ICAO, IMO, G20 and APEC, are, therefore, critical multilateral platforms that will allow small states, such as Singapore, to engage the international community and contribute to possible solutions. These forums are vital platforms that can assist in the creation of global norms or rules in areas, such as international trade, finance, health and the environment.

It is, therefore, imperative that Singapore continues to engage deeply and participate actively in such multilateral organisations. If we fail to do so, our views will not be taken into account and this will be detrimental to our long-term strategic interests.

In the premises, I invite the Minister to share with us on: (a) Singapore's position as a small state in the international order and multilateral system; and (b) how Singapore can help to strengthen the multilateral system.

6.15 pm

Engaging the Public on Foreign Policy

Ms Joan Pereira (Tanjong Pagar): Sir, we face an increasingly complex and uncertain world today. In recent months, unexpected electoral outcomes around the world have brought about unforeseen challenges. Strategic uncertainties driven by the adjustment of major power relations, such as between the US and China, and Britain's exit from the EU, will impact a small country like Singapore. A particular concern is that, from time to time, major powers will exert pressure on Singapore to take sides for a variety of reasons − nationalistic or protectionist motives, or even ethnic or religious concerns.

As a country that treasures not only our sovereignty but also our multiracial and multi-religious way of life, instances of pressure from major powers may raise anxiety among fellow Singaporeans. In such a situation, it is important for Singaporeans to understand why we need to remain steadfast by not bending to take sides and, more critically, why Singapore adheres to a principled position of upholding international rule of law, even though this may cause certain levels of unhappiness from some of our major partners.

As such, it is important for the Government to explain the considerations behind our foreign policy and to assure us that this is in Singapore's and Singaporeans' best interest. How then can MFA better engage our public on Singapore's foreign policy and to explain the challenges Singapore faces from our external environment?

Resources for MFA

Dr Teo Ho Pin: Sir, I wish to seek clarifications from the Ministry on the following.

First, in this rapidly changing and uncertain world, how does MFA review its work processes and allocate its resources to respond effectively in protecting the interests of Singaporeans?

Second, what sort of training programmes must MFA staff undergo in order to be operationally-ready?

In today's ever-changing geopolitical situations and the high-speed flow of information, there is a need to develop new capabilities among our MFA staff to better respond to these challenges.

Smartphone applications and the Internet have allowed information and news, including fake news, to travel fast and reach out to many people which, in turn, affect political developments rapidly. Thus, our MFA staff − especially those involved in overseas missions − must be tech-savvy to respond effectively in a dynamic political environment.

Staffing Needs for a More Complex World

Mr Pritam Singh (Aljunied): Chairman, to say that the last financial year has been a public education in diplomacy for many younger Singaporeans would be an understatement.

The release of the Permanent Court of Arbitration's judgment in favour of the Philippines over territorial differences in the South China Sea was followed up almost overnight by an unexpected upswing in relations between China and the Philippines even as Singapore and many like-minded countries affirmed the judgment and rule of law.

The Terrex episode, which saw nine military vehicles temporarily confiscated by the Hong Kong authorities, hit even closer to home. While the issue appears to have been resolved and relations with China back on the usual even keel, some keen observers continue to watch the signature of Singapore's military activities in Taiwan, even as others viewed the episode as a shrewd diplomatic ploy by China to make a point about the One China Policy and to signal dissatisfaction with Singapore's position on the South China Sea.

I would imagine these incidents, amongst many others, to have taken up much time and energy of the relevant departments in MFA and the Government more generally.

It is also worthwhile to note that Singapore is into its second year as country coordinator of ASEAN-China relations, a challenging assignment made even more so by a new US administration determined, on the surface at least, to take a hard-headed and transactional approach in its relationship with China and with its domestic constituency more paramount in the conduct of foreign affairs than ever before.

More recently, the last few weeks have also seen the Malaysian government re-open the Pedra Branca case by way of an appeals mechanism.

Closer to home, it was significant that strategy number one of the seven strategies arising out of the Committee on the Future Economy was to deepen and diversify Singapore's international connections and to press ahead with trade and investment cooperation.

In view of this renewed strategy cast against a broader evolutionary geopolitical environment, does the Ministry plan to review its staffing requirements, both locally and in overseas Embassies and High Commissions, with a view to raising manpower?

Secondly, in view of ASEAN as a central economic region for Singapore, and in step with the CFE Report's relevance to the ASEAN Economic Community, does the Ministry plan to open more consulates in ASEAN cities to further economic linkages and further develop our international trade relationships?

Economic Ties

Mr Baey Yam Keng: Chairman, recent global developments point towards increasingly inward-looking and protectionist sentiments in countries, such as the UK and the US. The resulting uncertainty that pervades the region, coupled with the global economic slowdown, could have serious implications for Singapore. Recent leadership changes and upcoming elections in some of our neighbours would also have an impact on the current state and dynamics within our region.

Trade is Singapore's lifeblood. Our trade figures are about two to three times our GDP. Our immediate economic hinterland would be our Southeast Asian neighbours. ASEAN comprises 620 million people with an estimated combined GDP of US$2.3 trillion. The region offers much potential and many opportunities for economic collaboration.

In this context, I would like an update on the state of our economic relations with Southeast Asian countries and how has Singapore been strengthening our economic ties with our neighbours? How could and should our people and businesses contribute towards the relationship?

Relations with EU/European Countries

Mr Saktiandi Supaat: Chairman, Sir, UK's Brexit, with the complex and prolonged negotiations involved, continues to occupy the minds of many Singaporeans. Aside from dampening economic growth, Brexit is a sign of inclination towards isolationism in the West. As a small nation that depends heavily on foreign trade and diplomacy, increasing isolationism is a cause for concern.

Thanks to Government efforts, our ties with the EU have been cordial. The EU actively engages with ASEAN in trade. Among ASEAN nations, we are the EU's largest trading partner and also the 17th largest trading partner in the world. Our nation has also been a major destination for European investments. With the UK being one of the strongest economies and markets in Europe, Brexit would undoubtedly challenge our trade dynamics with the EU.

I would like to ask the Minister for the outlook on Singapore's relations with the EU and the UK. What will this mean for the European Union-Singapore Free Trade Agreement (EUSFTA), which has concluded negotiations, but has yet to be officially implemented? Going forward, what is being done to continue to strengthen relations with Europe? Moreover, on the economic and diplomatic front, how will we strengthen ties with an independent UK?

New Department of Foreign (Humanitarian) Aid

Mr Louis Ng Kok Kwang (Nee Soon): Sir, Singapore has always been ready to respond to humanitarian crises and natural disasters in the region. For refugees, Singapore recently contributed US$200,000 to the ASEAN Trust Fund. MINDEF also began humanitarian assistance disaster relief missions as far back as 1970. The Government also frequently contributes cash donations via humanitarian organisations, such as the Red Cross and Mercy Relief.

As such, will the Ministry consider establishing a new department of foreign (humanitarian) aid, similar to Japan's International Coordination Agency (JICA) or the UK's Department for International Development (DfID), for example, to coordinate humanitarian aid and strengthen our response to regional humanitarian crises? We have the capability and resources to do more to help our neighbours and I would urge us to do so on the grounds of compassion to strengthen bilateral ties and to strengthen stability and prosperity in our region.

Technological Cooperation in Foreign Policy

Assoc Prof Fatimah Lateef (Marine Parade): Chairman, the Singapore Cooperation Programme (SCP) is a series conducted by the Government to facilitate the sharing and empowerment with developing countries. We share technical and systems skills and also human resources development which is seen as a vital and strategic move for economic and social progress. The training covers various areas of interest, which include trade promotion, healthcare, humanitarian assistance, public administration and law, amongst others.

This year marks the 25th anniversary of our SCP. How efficient and effective have our efforts been in assisting these countries over the years? How does the Ministry monitor this and what are the KPIs set? Whilst customisation may happen upon request from receiving countries, how frequently do we review our programmes and ensure relevance and applicability?

One more observation is that the SCP programmes may not just be executed by Singapore alone but in partnerships, for example, the Singapore-Canada Third Country Training Programme. In such cases, how big is our voice, our partnership and also contribution, and how are these decided upon in the sharing and cooperation?

Cooperation on Global Issues

Miss Cheng Li Hui (Tampines): Sir, the 2030 Agenda for Sustainable Development was adopted by the United Nations in 2015 to replace the Millennium Development Goals. It charts out 17 Sustainable Development Goals that provide a framework for countries to address global issues, such as poverty, gender equality, climate change and sustainable development, among others. While the Goals are aspirational in nature and not legally binding, achieving these goals is no small feat and will require all countries to work together, including Singapore.

As a small country with limited land and resources, we understand first-hand both the imperative and the challenges of sustainable development. What we are able to achieve on our own is limited in the grand scheme of things, as the outcome of global climate change will hinge on decisions taken by all countries, especially the major economies.

Nonetheless, as an active and responsible member of the international community, it is important that we play a constructive role to help forge a global consensus and to contribute in small but meaningful ways.

In this regard, how is Singapore cooperating with other countries and international agencies to tackle global issues, such as sustainable development and climate change?

Relations with Emerging Markets

Ms Tin Pei Ling (MacPherson): We are entering a more challenging economic environment. Growth in the developed markets has become more subdued. There are growing protectionist sentiments in some countries. As a small and open economy with foreign trade more than three times our GDP, Singapore is particularly vulnerable to economic shifts and, more worryingly, protectionist measures.

As articulated in the recently released Committee on the Future Economy (CFE) Report, one of the strategies to take Singapore forward in this challenging global climate is to "deepen and diversify our international connections". Indeed, beyond traditional markets like Southeast Asia and China, emerging markets, such as South Asia, Africa, Latin America and Central Asia, offer growth potential and pockets of opportunities for our businesses abroad. Singapore should take the opportunity to strengthen our partnership with these countries.

In view of this, I would like to ask what MFA is doing to expand our linkages with the emerging markets, including political and people-to-people linkages.

Relations with Latin America

Mr Edwin Tong Chun Fai (Marine Parade): The Latin American countries remain a very important emerging market which holds significant economic potential for Singapore. This is borne out by the fact that despite a slowdown in the global economy, Singapore's trade with the Latin American and Caribbean countries reached $21.1 billion in 2015.

This region is also home to several major and promising economies, such as Argentina, Brazil, Mexico, all of whom are in the G20, along with the Pacific Alliance, a regional trade bloc comprising Chile, Colombia, Peru and Mexico.

The region's importance to Singapore was recently underscored by President Tony Tan's state visit to Mexico in June 2016 to commemorate the 40th anniversary of the establishment of diplomatic relations between Singapore and Mexico. This was also the first visit by President Tan to the Latin American region.

What further steps, therefore, is the Ministry taking to broaden and deepen our commitment to these bilateral ties, to expand political, economic, educational, cultural and also people-to-people links?

Finally, beyond these issues of economic ties and engagements, what other non-economic areas, such as development of arts and culture, science and technology, could be considered by the Ministry?

Engagement with the Middle East

Mr Amrin Amin: The political and security situation in the Middle Eastern countries continues to be uncertain and in a state of flux. The wars in Syria and Yemen are still ongoing.

The Israeli-Palestinian issue has not made any progress. As major oil producers, countries in the Middle East have been impacted by the low oil prices.

Can the Minister provide an update on Singapore's engagement with the Middle East? Besides economic engagement, what the other areas are we working on with the Middle Eastern countries?

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Situation in the Middle East

Mr Sitoh Yih Pin: Chairman, the Israeli-Palestinian conflict is a deeply complex issue that has confronted the Middle East for decades.

The international community has tried to assist in resolving the question but with limited success. It is an emotive and complex issue, not only in the Middle East, but also here in Singapore and the Southeast Asia region.

Despite the difficulties, it is important to find a solution, one that can help achieve a just and durable peace, with Israelis and Palestinians living side-by-side in security.

It is clear that there is no straight-forward solution to this longstanding conflict. Building trust and confidence between parties is the key building block towards a solution. However, this is easier said than done. Singapore, on our part, has friendly ties with both Israel and the Palestinian National Authority.

Israeli Prime Minister Benjamin Netanyahu visited Singapore in February 2017. During the visit, Prime Minister Lee reiterated Singapore's longstanding and consistent position that a two-state solution is the only way to bring peace and security to the Israeli and Palestinian peoples and to the Middle East.

Earlier in April 2016, Prime Minister Lee had visited Israel, the Palestinian Territories and Jordan.

During his visit to the Palestinian Territories, Prime Minister Lee had announced a doubling of our enhanced technical assistance package to $10 million to support the Palestinians in building up their capacity and skills.

Senior Minister of State for Foreign Affairs and Defence Dr Maliki Osman followed this up with a working visit to the Palestinian Territories in November 2016, during which he informed the Palestinian leadership about the Government's appointment of Mr Hawazi Daipi as Singapore's Representative to the Palestinian National Authority to coordinate Singapore's enhanced technical assistance package for the Palestinians. Mr Hawazi has since made his first visit, as Singapore's Representative, to the West Bank in January 2017.

Internationally, a Conference for Peace in the Middle East was also held in Paris, France, in January 2017 where there were also calls for Israel and Palestine to embrace the two-state solution.

I invite the Minister to share with us on: the impact of international conferences, such as the Conference for Peace in the Middles held in Paris earlier this year; Singapore's position on the issue and the reasons behind it; and any updates and outcomes of Senior Minister of State Dr Maliki Osman and Mr Hawazi Daipi's working visits to the Palestinian Territories.

Challenges in Security

Assoc Prof Fatimah Lateef: Singapore is one of the smallest nations of the world. Many, however, have described us as "punching well above our weight" in terms of economic, political, foreign policies and security relevance. Making friends and influencing others require us to be tactful and move with the highest level of diplomacy.

Our location at the crossroads of the west and the east, and the north and south also plays a strategic role. But that leaves us open to a variety of potential threats.

We keep cordial relations with other nations and, especially our regional neighbours and partners, and, at the same time, we have to look after our own interests and existence.

With the current challenges the world is facing, how are we positioning and preparing ourselves and consistently maintaining high alert on the "goings on"? Are we reviewing our bilateral, multilateral, regional and global relationships and contributions?

Consular Support

Ms Joan Pereira (Tanjong Pagar): Sir, Singaporeans' travels are increasing in frequency and range. More Singaporeans are also living and working abroad these days. We are also living in a period of greater uncertainty, as we had witnessed in the spate of terror attacks from Europe to the Middle East, and even here in Southeast Asia last year. These trends and recent global developments mean that the load and complexity of consular cases that MFA has to handle will increase correspondingly.

At the same time, there is growing public expectation for speedier services and assistance. However, our resources are finite. I note that MFA has only 50 resident Overseas Missions and that most Missions generally operate with very lean teams.

Notwithstanding these operational challenges, I wish to commend our MFA officers for their professionalism and dedication in working around the clock, especially during crises and emergencies, to provide the necessary support to affected Singaporeans and their families. It is thanks to their hard work that many Singaporeans are able to travel overseas with the necessary assurances and peace of mind. I am sure that many Singaporeans who have received help from MFA in one way or another, would agree with me.

Hence, I would like to ask how MFA has been addressing the challenges I mentioned earlier in the increasingly unpredictable environments we find ourselves in. How are MFA officers equipping themselves to ensure that Singaporeans continue to receive quality consular services? Does MFA have back-up teams on standby in various regions to swing into action in the event of large scale emergencies? How does MFA facilitate the transmission of experience from older and retired MFA staff to their younger colleagues? Is there room for retired MFA staff and Singaporeans living overseas to assist or contribute to our Missions in their operations on a volunteer basis? What is the role of our Missions in fostering ties with Singaporeans living or working overseas? Also, what travel advice should Singaporeans take note of, especially those who travel frequently?

The Minister for Foreign Affairs (Dr Vivian Balakrishnan): Thank you. Twenty sixteen was a tumultuous year for the world and a very busy year for MFA staff. The previous global consensus on the benefits of free trade and economic integration is broken. Unfortunately, unlike in this House, political discourse in many countries has become increasingly nationalistic, anti-incumbent and, even sometimes, xenophobic. The threat from terrorism, radicalisation and extremism has increased and new media has also amplified this threat far and wide.

Quite frankly, we have to anticipate even more of such external challenges and challenges that will test our resolve, unity and agility.

As a small city state, Singapore has no option. Isolation and protectionism are not an option for us. In fact, the world is even more interconnected than ever before. We actually have to double down on globalisation.

The economic headwinds and global protectionist sentiments are not going to go away soon and they will have serious implications on our trade-dependent economy. We are probably the only country where our trade volume is three and a half times our GDP. So, for us, free trade is not a debating point. It is our lifeblood. If you think about it, the larger context of this Budget debate, of the Committee of Supply (COS) and of the Committee on the Future Economy (CFE) is that we have to enhance the competitive position of Singapore and Singaporeans. That is the only way we can survive and thrive in this uncertain world.

Add to that the fact that major power interactions and rivalry will impact our region and will impact us, and we have seen evidence of that. The question, therefore, that all Members have posed is: how will we navigate these challenges?

Our fundamental realities remain. We are still a tiny island in an uncertain neighbourhood. We still have to try our best to build a network of friends. We have to be a relevant, valuable and reliable partner and, at the same time, be realistic about our place in the world. As the former British Prime Minister and Foreign Secretary Lord Palmerston once pointed out, nations have no permanent friends or allies; they only have permanent interests.

Our key foreign policy principles, therefore, have not changed. First, we conduct an independent sovereign foreign policy in order to safeguard our independence and the interests of all Singaporeans. Second, we promote ASEAN unity and centrality. And third, we have to remain committed to a rules-based international system.

Finally, foreign policy begins at home, and the effectiveness of our foreign policy depends on us being a successful nation-state and on the continued support of a united citizenry. And one point which I want to commend today − I have listened to the very thoughtful speeches from Mr Low Thia Khiang, Mr Pritam Singh − and I am grateful for the bipartisan support that we have in this House. This unity of purpose is essential for us to pursue our foreign policy goals in this uncertain and volatile environment. All Members of this House understand and appreciate the key tenets of our policy.

Many Members have asked questions about Singapore's long-term value proposition and the relevance of Singapore to other countries. Ms Sun Xueling asked about Singapore-China relations; Mr Cedric Foo asked about the US-Singapore relations under the new Trump administration; Mr Amrin Amin and Dr Chia Shi-Lu have asked for updates on our relations with Malaysia and Indonesia. All of these are key relationships.

Let me deal first with China. Singapore has been a steadfast and long-standing friend of China. Our bilateral relationship right now, I would describe it as in "good working order". In November 2015, when President Xi Jinping came here, we signed an agreement which characterised our relationship as an "All-Round Cooperative Partnership Progressing with the Times". Put aside the words, the point is, historically, our relationship has been built on the strong foundations laid by Mr Lee Kuan Yew and Mr Deng Xiaoping.

And over the decades, Singapore has supported, and demonstrated in action and investment, China's peaceful development and its progressive engagement of the regional and international community. We do so because we believe that China's success is good, first, for the citizens of China; it is also good for the region and it is good for us.

I am always amazed that tiny Singapore currently is China's largest foreign investor, and we have been so since 2013. China is Singapore's largest trading partner also since 2013.

Several Cabinet Members, including myself, had just accompanied Deputy Prime Minister Teo to Beijing. We came back just two days ago. We attended the Joint Council for Bilateral Cooperation (JCBC). It was a very good meeting and it gave both sides opportunities to explore ways to deepen cooperation especially in this flagship project of President Xi Jinping, the Belt and Road initiative. I also had a very good meeting with my counterpart, and I can say that this, again, is a reflection of the deep resilient nature of our relationship.

Our third and latest Government-to-Government project, the Chongqing Connectivity Initiative, has been designated a priority demonstration project for the "Belt and Road", and will play a catalytic role in linking up Western China − both to Southeast Asia, as well as across to Central Asia and beyond.

Besides the JCBC, we also have candid exchanges and sharing of experiences through established platforms, such as the China-Singapore Forum on Leadership and the Singapore-China Social Governance Forum.

The various projects, the business engagements, the people-to-people ties. You have heard: 2.8 million Chinese tourists come to Singapore and I think, for us, it would be 800,000 Singaporeans who have travelled to China in a year. The high frequency of interactions at senior leadership level has conferred a very high degree of resilience and, I would add, strategic trust, in our relationship.

Therefore, even when we have differences over some issues, as I have said in an earlier session, we should not overact and we should, in a sense, anticipate that these incidents are not unusual even amongst close friends and neighbours, and we must recognise that our shared interests far exceed these differences. We must not be distracted from the larger strategic imperatives or allow incidents to derail the substantive, longstanding and mutually-beneficial cooperation.

Senior Minister of State Josephine Teo will elaborate on the more specific details of our relationship with China, as well as give you an update on the JCBC after this.

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Let me turn now to the US. There is a new administration; it is settling in. There is always a period of uncertainty, a period of adjustment that goes on both domestically and also at the international level when a new administration takes over, basically because the US is such an important superpower.

As far as Singapore is concerned, we believe that our many decades of consistent policies and interactions with the US have created trust and I believe they consider us a reliable partner. I am confident that we will be creative and adaptable in developing win-win partnerships with the US even as President Trump pursues a new set of policies.

We have had a strong and enduring base of relations for the last 51 years. These mutually-beneficial ties have spanned five Republican and four Democratic administrations.

On the economic front, the US is Singapore's fourth largest trading partner in goods and our top trading partner in services. The US is also Singapore's largest foreign direct investor. Singapore is the US' fourth largest Asian investor, after Japan, Australia and the ROK.

On the defence front, our Air Force has training detachments in Texas, Idaho and Arizona. The US is a significant user of both Changi Naval Base and Paya Lebar Air Base. And Singapore also supports the rotational deployment of the US Littoral Combat Ships and the P8 Poseidon aircraft.

These fundamentals of our relationship remain unchanged and their value is recognised by both Republican and Democratic administrations.

Similarly, the strategic and economic imperatives that have underpinned America's longstanding engagement of our region actually remain unchanged. We have to constantly look for new areas of convergence for win-win cooperation with the US. For instance, one of the more recent things we are working on is on cybersecurity and we signed an MOU on Cybersecurity Cooperation in 2016.

Mr Vikram Nair and Mr Low Thia Khiang also asked some searching questions about how the relationship between China and the US will impact Singapore. Indeed, this is the key bilateral relationship that will affect peace, security and prosperity in our region and, indeed, the world.

Whilst competition between the US and China is inevitable, but what is different in historical terms is that never before have two powers been so interdependent, so intertwined economically. Even in the depths of the Cold War, remember that the American and Russian economies were never intertwined to the same degree that the US and Chinese economies are. Therefore, we hope that both sides, after they have measured these imperatives, will come back to the same conclusion that constructive engagement and win-win cooperation are the right formula. If they can achieve this, this will provide space for countries in the region, including Singapore, to be part of a common circle of friends and achieve win-win outcomes for all.

This is, in fact, a key reason why for the last 51 years, Southeast Asia, in particular, the founding members of ASEAN, have enjoyed peace, security, prosperity over the last five decades. We hope that they will arrive at this conclusion. But we should also bear in mind that we have no say. We cannot determine the dynamics of that relationship.

Mr Low asked: what do we do if they do not get along? And the answer is that, number one, we have no say; number two, we should avoid being forced to choose sides for as long as possible.

The third point is that we must always remain an honest broker. What that means is, whatever I tell the Secretary of State of the US, I must also be prepared to take the same consistent position with the Foreign Minister of China. I do not say two different things and hope that they never compare notes. We have to be clear, consistent and transparent in our communications.

The other point is to try to do as much as possible on a bilateral basis with both China and the US and, if possible, in third-party projects in other parts of the world. Again, it is a matter of maintaining strategic consistency while having tactical agility. I do not want to trivialise it and say that this will be very easy − it will not be – but watch this space, we will come back to you and update you as things progress, and I hope that all Members of the House, including the Opposition, will continue to support MFA.

Closer to home, our relationship with Malaysia is actually as good as it ever has been. More recently, we reached a milestone by signing the Agreement on the KL-Singapore High Speed Rail (HSR) in December 2016. This is a landmark agreement that will transform the way both countries interact and do business. It will bring our two peoples and economies even closer together.

In addition to the HSR, we are also looking to sign a bilateral agreement on this Singapore-JB Rapid Transit System (RTS) this year. The RTS will improve the flow of people and business between Singapore and Johor and bring both sides closer together.

On the whole, our bilateral relations are excellent. Other than these connectivity initiatives, the economic and people-to-people ties remain strong. We will continue to cooperate on security, defence and counter-terrorism.

Mr Baey Yam Keng and others asked about the Pedra Branca case and how this impacts our bilateral relations. Part of what underpins our good relations with Malaysia is a commitment by both sides to resolve disagreements amicably in accordance with international law while allowing mutually-beneficial cooperation to continue in the meantime. So, you will recall that in 2003, Singapore and Malaysia agreed to submit the case concerning sovereignty over Pedra Branca, Middle Rocks and South Ledge to the International Court of Justice (ICJ).

In its judgment dated 23 May 2008, the ICJ found that sovereignty over Pedra Branca belonged to Singapore, sovereignty over Middle Rocks belonged to Malaysia and sovereignty over South Ledge belonged to the state in the territorial waters of which it is located.

On 2 February 2017, Malaysia applied for a revision of the judgment under Article 61 of the ICJ's Statute.

Under Article 61, an application for revision of a judgment must satisfy several criteria. These criteria include that it must be based upon the discovery of facts which were unknown to the court and to the party claiming revision when judgment was first given; and these newly-discovered facts must be decisive and of such a character as to lay the case open to revision. An application for revision must also be made, at the latest, within six months of the discovery of the new fact and within 10 years of when the judgment was given.

Our legal team has studied Malaysia's application carefully, including the three documents relied on by Malaysia to support its application. Our legal team strongly believes that the documents relied on by Malaysia do not satisfy the criteria under Article 61. We will submit to the ICJ our comprehensive and compelling rebuttal to Malaysia's application by 14 June, which is the time limit fixed by the ICJ.

We are confident of our legal team and our case.

We are very fortunate to still have Prof Jayakumar, Senior Judge Chan Sek Keong and Ambassador-at-Large Tommy Koh who led our original Pedra Branca team. They are also working very hard now, very enthusiastically, I may add. They are also working with a younger team of bright legal minds in the AGC. This way, we are also using this episode as an opportunity to build up expertise and experience in the next generation. Succession again.

This is important as I am sure there will be more international legal issues in the future. Equally, we must ensure that the same whole-of-Government spirit of unity prevails. These are crucial ingredients in order for Singapore to punch above our weight at international fora.

Singapore is committed to resolving this issue amicably and in accordance with international law.

Bilateral relations with Malaysia, therefore, are good, will remain good, and we will continue with all our mutually beneficial bilateral programmes.

Singaporeans should not be disconcerted by these developments because, even with the best of diplomatic and personal relationships, we must expect other states to act in their own self-interests.

Our relations with Indonesia are also strong. Prime Minister Lee Hsien Loong and President Joko Widodo had a successful Leaders' Retreat in Semarang last November. They jointly witnessed the opening of the Kendal Industrial Park, and agreed to set up an Indonesia-Singapore Business Council and to explore cooperation in both the energy and tourism sectors.

The positive and stable relationship that we have enjoyed in recent times has been mutually beneficial. Business ties and tourism continue to grow. Singapore remains Indonesia's top foreign investor in 2016.

This year, we celebrate 50 years of diplomatic relations with Indonesia. The Indonesian Foreign Minister, Ibu Retno Marsudi, and I announced the start of the celebrations last month during her official visit to Singapore.

We also marked a milestone in bilateral relations through the exchange of instruments of ratification for the Eastern Boundary Treaty on 10 February 2017. This was a demonstration of how both countries can work together to resolve bilateral issues in areas of mutual interest, in accordance with international law. This is an important principle that both sides share because, as neighbours, we must expect disagreements to arise from time to time, but what matters is how we resolve these disagreements.

Singapore and Brunei, of course, share a longstanding and a special relationship, anchored in deep mutual trust and respect, which have been built up over decades, over generations of leaders. This is epitomised by the Currency Interchangeability Agreement, which marks its 50th anniversary this year.

We will continue to build on this special relationship with the younger generation of Bruneian leaders though platforms like the Singapore-Brunei Young Leaders Programme.

More broadly, Southeast Asia is our immediate hinterland. And as many Members have said, ASEAN serves a crucial role as the main platform for regional cooperation. ASEAN has kept our region peaceful and allowed Member States to focus on growing our economies and improving the lives of our people. Dr Teo Ho Pin, Mr Liang Eng Hwa and Mr Low Thia Khiang asked very timely and important questions about ASEAN's relevance, the pace of integration, the future of ASEAN unity and the key achievements as we celebrate its 50th anniversary. Mr Cedric Foo and others also asked about our coordinatorship of ASEAN-China Dialogue Relations.

ASEAN enables us to more effectively shape our external environment and to have our views taken into account by bigger players. In an often turbulent world, ASEAN is, as Mr Low puts it, Singapore's anchor and a cornerstone of our foreign policy.

ASEAN has a strong value proposition. We are now already the seventh largest economy in the world and, barring any mishaps, we are projected to become the fourth largest economy by 2050. Today, we have 628 million people, our combined GDP is US$2.5 trillion and, sometime between 2030 and 2050, we hope that this will quadruple to US$10 trillion. What is important also is that we will have the third largest labour force in the world and, more important than that, more than half the population of ASEAN is under the age of 30. We have a demographic dividend that is not yet harvested.

To maintain our relevance, ASEAN must continue to be neutral, to be united and to be committed to an open and inclusive regional architecture, and that means we have to continue to consolidate and deepen our economic integration.

We adopted the ASEAN Community Vision 2025 and the three Community Blueprints in 2015.

We must do more to help Singaporeans better understand and identify with ASEAN. We must also explore ways for ASEAN to ride the technological wave of the Fourth Industrial Revolution.

We will continue to partner with organisations like the Singapore Business Federation and the Association of Small and Medium Enterprises to help our businesses maximise the economic opportunities ASEAN presents.

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We will also work closely with the Philippines to ensure the success of its Chairmanship this year, and to begin preparations for our own ASEAN Chairmanship in 2018.

It is important that we strive for an integrated, outward-looking and confident ASEAN. To that end, we hope to build new links with other regional organisations, for instance, the Pacific Alliance and the Eurasian Economic Union.

At the same time, the events unfolding in the EU are also a salutary reminder for us not to reprise their problems, and ASEAN must remain pragmatic and practical in managing the pace and the scale of the implementation of our economic integration. The sequence, the pace and the scale − the implementation of all of these are very important.

ASEAN's cohesion and unity, to be frank with you, have been tested by difficult issues, not only just last year but many times before. Nonetheless, we have endured and we have even thrived over the past five decades.

Looking ahead, ASEAN will become more, not less, critical to our foreign policy. I totally support Dr Teo Ho Pin's three suggestions on strengthening unity, promoting partnerships between businesses and encouraging more people-to-people ties.

Now let me turn to our role as the Dialogue Relations coordinator between ASEAN and China. Again, I want to stress that we have to be honest brokers. We have to do our best to manage this strategic partnership based on mutual benefit and respect. We upgraded the ASEAN-China FTA in 2015 and we facilitated a successful and substantive ASEAN-China 25th Anniversary Commemorative Summit last year. We will continue advancing other initiatives, such as enhancing connectivity and making progress on the Code of Conduct in the South China Sea, in the remaining one and a half years of our coordinatorship.

Relations with other countries − Japan, India, Australia and the EU − are also important, and I am glad to report that relations are also good and will deepen.

We commemorated 50 years of diplomatic relations with Japan in 2016. We had a series of high-level exchanges, including a State Visit by President Tony Tan. We are working towards upgrading the Japan-Singapore Economic Partnership Agreement and our Air Services Agreement, and we hope to strengthen bilateral cooperation in air, land and sea transport and infrastructure through the inaugural Vice-Ministerial Transport Forum this year.

In India, steady progress has been made under the Strategic Partnership signed when Prime Minister Narendra Modi visited us in November 2015. The Strategic Partnership has allowed us to broaden and deepen relations in diverse areas, both at the centre as well as in selected states in India.

This was reaffirmed during Prime Minister Lee Hsien Loong's visit to India in October 2016, when he launched the Centre of Excellence for Tourism Training (CETT) in Udaipur.

The master-planning of Andhra Pradesh's new capital city, Amaravati, by Singapore experts has been completed, and a Singapore consortium is now bidding to participate in the "seed development" of this brand new city.

Singapore has a close and longstanding bilateral relationship with Australia. This was elevated in June 2015 with the Comprehensive Strategic Partnership (CSP), and this is a substantive undertaking with over 40 bilateral initiatives that will be delivered through the period to 2025.

We have moved quickly to implement the CSP. Key agreements were signed during the Prime Minister's visit to Australia in October 2016.

The MOU on Military Training and Training Area Development gives the SAF significant enhanced access to training areas in Australia over the next 25 years. Areas which, I may add, are multiples the size of Singapore. This will add significantly towards addressing the SAF's evolving training requirements.

The upgrade to the Singapore-Australia FTA is expected to come into force this year. It will create many more opportunities for Singapore businesses and professionals to access the Australian markets.

Brexit notwithstanding, we continue to engage Europe and the EU, for example, through the EU-Singapore FTA. Yes, it has been delayed by certain legal hurdles that we have to go through, but, so far, all the countries that we have engaged in Europe have expressed support for this FTA. We are also working on the EU-ASEAN Comprehensive Air Transport Agreement.

Singapore will also continue to seek economic links and opportunities for our companies in emerging markets, such as Africa, Latin America and the Middle East. Senior Minister of State Dr Maliki will elaborate on this, after I have finished my contribution.

Let me just say the following short points on the Middle East.

We are one of the few countries that engage in a principled way with all the protagonists in the Middle East. In the short one and a half years that I have been here, I have accompanied the Prime Minister to Jordan, Israel and Ramallah, under the Palestine National Authority (PNA). We have gone to the Temple Mount, visited the Dome of the Rock, Al-Aqsa Mosque, Church of the Holy Sepulchre, been welcomed by all parties.

It is amazing, if you think about it: us, tiny little Singapore, is welcomed by all parties.

I believe we have this special position because we take a principled position. And we also work in a win-win way to support all parties. For instance, with the Palestinians, we have extended our technical assistance with the PNA. But more importantly, I think, one of the key secret ingredients is the fact that Singapore itself is a successful model of multiracial, multi-religious integration. Because that gives us a special moral standing to be able to engage, speak and interact with all parties. Very few countries have this special role that we have.

Apart from all these engagements, bilateral and regional, we need to continue to support international economic groupings and arrangements. These arrangements increase opportunities for Singapore companies and Singapore to do more in the face of a world which is sometimes at risk of insularism and protectionism.

We will work towards the expeditious conclusion of the Regional Comprehensive Economic Partnership (RCEP) and continue to pursue further development of the ASEAN Economic Community. We will explore ways to take the Trans-Pacific Partnership (TPP) forward, despite the US' withdrawal.

Prime Minister Lee attended the G20 Summit in China last year at President Xi's invitation, and he will attend the G20 Summit in Hamburg in July this year at German Chancellor Angela Merkel's invitation. This will be the seventh time that Singapore is invited to attend a G20 Summit.

The next aspect that I want to talk about is how we pursue an independent foreign policy. This means having a foreign policy that serves Singapore's and Singaporeans' interests, first and foremost.

Mr Sitoh Yih Pin spoke about the importance of a rules-based international system. And this is critical for a small state like Singapore. He asked how we can strengthen the multilateral system.

As a small country, the rule of law is crucial for our survival. The UN and other international organisations and fora are key components of a rules-based international system. They create a stable framework for cooperation, for managing tensions and addressing global trans-boundary problems.

The multilateral system must become more inclusive, more transparent. Global solutions must have broad-based support from countries to be effective. On our part, we play our role by initiating or by catalysing the work of organisations like the Forum of Small States (FOSS) that we actually initiated, and the Global Governance Group (3G). And we work closely with many other small states to have a greater collective voice on the international stage.

We also contribute to the multilateral system through technical assistance to developing countries. I think we have trained over 112,000 officials from many other countries because they want to understand how Singapore works and how these lessons can be brought back home. Humanitarian assistance is important and we do contribute when there are disasters and, actually, it is this training, this development that makes a longer-term impact on many other countries.

Finally, I want to stress and repeat that foreign policy begins at home. We need the support and the understanding of a united citizenry. Ms Joan Pereira's question about how MFA can better engage the public on Singapore's foreign policy is very timely.

While MFA takes the lead in foreign policy, issues are becoming more complex and cross-cutting in nature. Other Ministries and Government agencies play an increasingly vital role on Singapore's external front. MFA must, therefore, act as a coordinator, work closely with other Ministries and agencies to pursue a whole-of-Government foreign policy and to strengthen our domestic resilience in the face of an uncertain and sometimes hostile external environment.

This also means convincing Singaporeans of the need for consistent and principled diplomacy for our long-term interests instead of taking the path of least resistance in order to achieve short-term gains. The events of the last six months is a reminder of this. I am grateful for the support of Singaporeans and of Members of this House.

We will continue to work with all stakeholders to raise awareness amongst our fellow Singaporeans of the stakes for us, of the principles behind our policy and of the sometimes difficult positions that we have to take, despite the pressures we will face from time to time.

Terrorism still remains a real and present threat. This is evidenced by high-profile attacks in parts of Europe and Southeast Asia. We are actually at even higher risk, even as ISIS loses its stronghold in the Middle East. MFA and MHA will continue to monitor security and terrorist threats, and we stand ready to assist Singaporeans in distress overseas.

We have had Singaporeans injured or otherwise involved in terrorist incidents overseas. Singaporeans are one of the most widely travelled people in the world. One of our top challenges is to strengthen our consular assistance. Senior Minister of State Dr Maliki will elaborate more on this later on.

A united citizenry allows us to pursue effective foreign policy. We may be small, but the unity of our people is a source of strength. Our stability, consistency and reliability are all the more valuable in an increasingly fractious world, and people respect Singapore for that.

Such respect is hard-earned, but it allows our voice to be amplified and be heard on the international stage.

I am grateful to Dr Teo Ho Pin and Mr Pritam Singh for their support for the staff of MFA and for adequate resources to be provided in the light of all these challenges. I totally agree with them that MFA staff must be well-staffed and well-resourced. Our MFA officers actually are the real key assets. Our budget may be the second smallest or the smallest of all the Ministries, but I think you will agree with me it is the staff of MFA.

We have a rigorous selection system. We continue to recruit high quality people. But we also provide continuous training to nurture our staff and to develop their leadership potential. We also regularly review our manpower resources and work functions to ensure that this precious manpower is deployed in an optimal way.

The work in MFA is very demanding and very labour-intensive and eats up all hours of the day and night. Our officers work under very challenging conditions and at great cost to their personal and perhaps, even more so, to their family lives. I would like to express my appreciation, especially to the spouses of MFA staff, and to their children who probably have absentee parents because their parents are out there looking after the longer-term interests of our nation. And they sacrifice so much for Singaporeans.

But our officers have proven themselves to be dedicated and professional. They are driven by their mission to advance the interests of Singapore. They understand our vulnerabilities and what we need to do in order to remain relevant.

Members of this House who have ever travelled with MFA staff, I am very sure you can attest to their professionalism and their hard work. I want to thank Members of the House for their continued support of MFA.

Let me conclude. The events of the past year have been a stark reminder of the reality that Singapore faces. But it has also provided lessons on how we can overcome these challenges. I think in a way, the pressure that we have come under has made us stronger and more united.

We will face another year of uncertainty ahead. MFA will continue to enhance Singapore's long-term value proposition and relevance to other countries; we will maintain our commitment to an independent and principled foreign policy in a rules-based global order; we will continue to work with all Members of this House to build a deeper appreciation of the hard truths that underpin our foreign policy.

7.15 pm

The Senior Minister for Foreign Affairs (Mrs Josephine Teo): Mr Chairman, let me start by addressing Mr Liang Eng Hwa's question on links with fellow ASEAN countries.

We have kept up strong links with our Southeast Asian partners through high-level exchanges. Last year, we hosted visits by newly inaugurated leaders such as Philippines President Rodrigo Duterte, Vietnam President Tran Dai Quang and Myanmar State Counsellor Daw Aung San Suu Kyi.

Often at the request of our friends, we shared our developmental experiences in diverse areas. For example, Daw Aung San Suu Kyi is keen to relocate street hawkers and upgrade wet markets in Yangon. Therefore, when Minister Vivian hosted her to breakfast, the location was at Ghim Moh Market and Food Centre so that Daw Suu could experience a typical Singapore hawker centre for herself.

Besides hosting incoming visits, our leaders make regular visits to ASEAN neighbours. These include President Dr Tony Tan's recent State Visits to Cambodia and Laos and Minister Vivian Balakrishnan's introductory visits to Thailand, Myanmar, Laos and Vietnam.

In October last year, both President Tony Tan and Prime Minister Lee visited Thailand to pay their last respects to the late King Bhumibol Adulyadej. Reflecting our strong people-to-people ties, many Singaporeans joined in to mourn the revered late King. Our leaders also warmly congratulated the new King Maha Vajiralongkorn when he was anointed.

Mr Baey Yam Keng asked about strengthening our economic ties with Southeast Asian countries and how businesses can help. We made good progress on this last year. For example, Singapore and Myanmar mutually lifted visa requirements last December. There are now no visa requirements for all ASEAN nationals travelling to Singapore.

Similarly, with Laos, the launch of SilkAir's direct flights last October, along with the implementation of the Avoidance of Double Taxation Agreement this January, will create more opportunities for trade and investment. I also made a working visit to Vietnam in July 2016 to explore opportunities for our companies to invest in Hanoi and Ho Chi Minh City, and to promote further liberalisation of our bilateral Air Services Agreement.

We encourage businesses to seek out opportunities for trade and investment in all our ASEAN neighbours. Their projects add substance to our relations. Businesses should also respect the laws and local officials of their host countries and strive to be good partners. If I may add, countries from outside the region are increasingly keen to partner Singapore companies for projects in Southeast Asia because of the local knowledge and the familiarity with these markets. These partnerships are the best way to ensure that Singaporeans and Singapore companies continue to be welcomed and ties between our countries continue to grow.

I will now elaborate on Minister Vivian Balakrishnan's comments on our cooperation with China and address Ms Sun Xueling's question on navigating the opportunities and challenges in our bilateral relations with China.

Singapore has been a steadfast and long-standing partner and friend of China.

Several Ministers and I have just returned from Beijing where the 13th Joint Council for Bilateral Cooperation (JCBC) co-chaired by Deputy Prime Minister Teo Chee Hean and Chinese Vice Premier Zhang Gaoli was just concluded. Vice Premier Zhang and the Chinese leaders we met called Singapore an "old and good friend" of China.

The size of the delegations on both sides and the range of agencies involved show just how broad our cooperation is. Especially in economic cooperation, the ties are also very deep. Since 2013, Singapore has been China's largest foreign investor and China our largest trading partner.

Financial cooperation has also deepened. Singapore is now one of the largest offshore RMB centres outside Greater China.

All three of our Government-to-Government projects, namely the China-Singapore Suzhou Industrial Park (SIP), the Sino-Singapore Tianjin Eco-city and the China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity or Chongqing Connectivity Initiative, CCI in short, have supported China's developmental priorities at different stages of their growth.

At the JCBC meeting, both sides agreed that China's Belt and Road initiative presents new areas for fruitful cooperation, such as in infrastructure development and third-country capacity building.

In particular, the CCI serves as a priority demonstration project for the Belt and Road initiative by developing transport corridors linking western China and Southeast Asia. Apart from physical connectivity, we are discussing ways to enhance financial connectivity to support the Asian Infrastructure Investment Bank's initiatives, as well as human resource development, to uplift capabilities in countries along the "Belt and Road". I will elaborate on these areas in Mandarin. Mr Chairman, in Mandarin, please.

(In Mandarin): [Please refer to Vernacular Speech.] Singapore has been a steadfast and long-standing partner and friend of China. Bilateral relations started long before the establishment of diplomatic ties in 1990. The warm and long-standing friendship between our two countries owes much to the foundation laid by Mr Lee Kuan Yew and Mr Deng Xiaoping and the continued efforts by successive generations of leaders and officials from both sides.

I was fortunate to have been involved in building our relations with China from a fairly early stage. As a young EDB officer in the mid-1990s, I was posted to Suzhou for two years to help develop the SIP project. The early days were fraught with difficulties. But the process of working through many challenges together made our relationship more resilient.

Today, the SIP is one of China's top development zones and townships and a model for other industrial parks. I have also made many good Chinese friends and we still keep in touch.

When I was CEO of Business China, I saw first-hand the foresight of our leaders. With guidance from Mr Lee Kuan Yew, many Ministers contributed to efforts to groom a bilingual and bicultural group of Singaporeans who could understand and interact effectively with China.

In MFA since late 2015, I now see the intensity of our engagements from another lens. We have one embassy and four consulates-general in mainland China, which is the highest number of overseas missions we have in a single country.

The regularity of high-level visits and the frequency of bilateral consultations with China are also unmatched by any other country.

I am glad that these exchanges with Chinese officials and cadres are continuing. For example, the China-Singapore Forum on Leadership was launched in 2009 and has held five meetings thus far. The co-chairs of the Forum on Leadership, Deputy Prime Minister Teo Chee Hean, and Central Organisation Department Minister Zhao Leji met recently in Beijing on the sidelines of the JCBC. They agreed that the exchanges at the Forum on Leadership are valuable in addressing common challenges, such as a rapidly ageing population. Minister Zhao also agreed to Deputy Prime Minister Teo's invitation to attend the 6th Forum on Leadership in Singapore this year to continue the exchanges.

Besides the JCBC and Forum on Leadership, the Singapore-China Social Governance Forum was launched in 2012. The third round of this Forum was held in Singapore in May last year, co-chaired by Deputy Prime Minister Teo and Political and Legal Affairs Commission Secretary Meng Jianzhu. We exchanged learning points on strategies to maintain security and social harmony in an increasingly urbanised society, the use of big data and IT to improve governance, as well as ensuring access to justice and the rule of law.

The depth and intensity of our bilateral cooperation, which includes the three G-to-G projects and three high-level bilateral mechanisms, underscores the fundamental point that our relations have always kept up with the times, taking into account China's changing needs. Other non-government organisations, such as the Singapore Chinese Chamber of Commerce & Industry as well as Business China, have also made important contributions to the development of bilateral relations.

Indeed, this spirit is encapsulated in the "All Round Cooperative Partnership Progressing with the Times" agreed to by Prime Minister Lee and President Xi in 2015. Singapore has been a consistent and strong supporter of China's peaceful development and engagement of the regional and international community.

We supported China's accession to the World Trade Organisation in 2001. In 2004, we recognised China as a market economy and supported its participation in the Asia Pacific Economic Cooperation (APEC) and the establishment of dialogue relations with ASEAN.

We are one of the earliest supporters of China's Asian Infrastructure Investment Bank and Belt and Road initiative.

We are very encouraged by President Xi's comments at the World Economic Forum in Davos and United Nations in Geneva that we should promote inclusive globalisation against the backdrop of a volatile and uncertain world.

The strong reservoir of friendship and goodwill allows both sides to speak candidly with one another and discuss concrete ways to elevate the relationship.

This is seen in our discussion on China's Belt and Road initiative. Singapore has proposed three suggestions to our Chinese friends.

First, the Southern Transport Corridor linking Chongqing to the ASEAN region via Beibu Gulf in Guangxi can help connect the overland Silk Route Economic Belt and the 21st Century Maritime Silk Road.

Second, greater trade, digital and financial connectivity along the Belt and Road will create investment opportunities and enhance the flow of goods and capital.

Third, Singapore and China can explore cooperation in joint training for officials from third countries along the Belt and Road. Such development in human capital will catalyse growth and help accelerate the Belt and Road projects.

These ideas were welcomed by our Chinese counterparts at the JCBC and both sides have agreed to flesh out the proposals.

The title of Deputy Prime Minister Teo's recent interview with Xinhua, "New Initiatives to deepen Singapore-China Friendship(新中友谊深, 共创新思路)” captured the friendship and future cooperation between our two countries very well. With our deep friendship and mutual trust as a strong foundation for our bilateral relations, we will forge a path forward with new areas of mutually-beneficial cooperation.

We will further strengthen our special ties with China as we write the next chapter of our bilateral cooperation. Our ties with China are in good working order, resilient and well-primed for the future. As Vice Premier Zhang Gaoli summarised eloquently at the close of the JCBC, our bilateral relations will attain new heights.

Mdm Chair, Minister Vivian Balakrishnan spoke about our relations with several key partners, including India, Australia, Japan and the EU. Let me elaborate on others.

(In English): As Mr Zainal Sapari mentioned, besides Japan, we also have a deepening partnership with the Republic of Korea. We share similar challenges, such as an ageing population and low birth rates. As we embark on the Smart Nation Initiative, it is also useful for us to learn from Korea, which has a clear edge in IT and innovation in Asia.

7.30 pm

Further afield, the Minister spoke about our partnership with the EU in response to Mr Saktiandi's question.

Indeed, Brexit is a turning point for the EU and has global consequences for trade. Much will depend on the new relationship the UK establishes with the EU and how the UK replicates the existing agreements that the EU has with partners like Singapore.

We will maintain our excellent ties with the UK, a long-standing partner in sectors, such as trade, defence, science and technology, and education. On the economic front, Singapore companies continue to have strong interest in the UK.

Not only is Europe a key market, we can also learn from various European countries in innovation, education and skills development, areas critical for the next phase of our economic development. We intend to maintain the momentum of our high-level exchanges. For example, the Prime Minister is scheduled to visit Germany, and the President will make State Visits to Poland and the Czech Republic later this year. We look forward to hosting President François Hollande of France in Singapore later this month.

While the EU has its own domestic preoccupations, we are hopeful that the EU-Singapore Free Trade Agree (EUSFTA) will be ratified so that both sides can benefit from it. We have been actively engaging the EU and member countries on this.

Mr Louis Ng asked about Singapore's humanitarian assistance to other countries and whether MFA should set up a new department of Foreign Humanitarian Aid, akin to the Japan International Cooperation Agency (JICA).

Singapore takes our international responsibilities and commitments seriously. As a small country with resource constraints, we want our contributions to humanitarian relief to be both sustainable and useful. Our humanitarian assistance and disaster relief efforts are well coordinated within MFA, across relevant agencies, such as MINDEF and SCDF, and with external partners. Recent examples include our contribution to the recovery efforts after the earthquake in Ecuador in April 2016, the floods and landslides in Sri Lanka in June 2016 and Hurricane Matthew in Haiti in October 2016. We also contributed to the humanitarian and relief efforts for the victims of irregular movement of persons through the ASEAN Secretariat in September 2016.

In addition, MFA contributes annually to key international organisations that oversee and spearhead humanitarian efforts. These include the UN Central Emergency Response Fund and the International Committee for the Red Cross, among others. Since 2015, we have also been partnering the UN Office for Disaster Risk Reduction (UNISDR) in providing joint training courses to strengthen the disaster risk management capacity of Small Island Developing States and other developing countries.

Members can be assured that even with limited resources, MFA has a system in place to provide humanitarian assistance in a prompt and coordinated manner. At this juncture, we prefer not to divert further resources to set up a separate department or agency for humanitarian assistance.

Assoc Prof Fatimah Lateef asked about ways to improve the Singapore Cooperation Programme (SCP) and how it has helped other countries. Singapore has benefited from the advice and experience of the UN and other countries, and the SCP is our way of giving back and paying it forward. This year marks the 25th Anniversary of the SCP, our primary platform for sharing our developmental experiences.

We now run, on average, more than 300 programmes for some 6,500 government officials from over 170 countries annually. Over the 25 years, more than 112,000 foreign officials have participated in the SCP. As Singapore continues to develop our capabilities, the SCP will also evolve its programmes. For example, we now offer high quality programmes in cybersecurity, digital economy and sustainable development.

To address Miss Cheng Li Hui's question, the SCP also enables us to cooperate with other countries and international agencies to address global issues, such as sustainable development and climate change.

Hence, we are partnering UN agencies and others to support the UN 2030 Sustainable Development Agenda and the Paris Agreement on Climate Change. This year, we will collaborate with the UN Habitat to deliver an international programme in urban governance for mayors, governors and provincial leaders of African countries.

Closer to home, we are increasing our efforts to help fellow ASEAN countries bridge the development gap by offering capacity building beyond traditional classroom training under the Initiative for ASEAN Integration (IAI). We plan to upgrade the current IAI centres in Cambodia, Laos, Vietnam and Myanmar to integrated development platforms called "Singapore Cooperation Centres".

Besides classroom training, these new centres will rope in other Singapore agencies with development expertise, such as the Centre for Liveable Cities, Singapore International Foundation and Singapore Cooperation Enterprise, to offer technical assistance through various consultancy services and volunteer projects. These will form part of our efforts to support Singapore's ASEAN Chairmanship in 2018.

Mr Chairman, I will now turn the floor over to Senior Minister of State Dr Mohamad Maliki.

The Senior Minister of State for Foreign Affairs (Dr Mohamad Maliki Bin Osman): Mr Chairman, Minister Vivian Balakrishnan earlier explained the key lessons for Singapore's foreign policy as we navigate a more complex global environment today. It is important for Singapore to strengthen the trust we have built with our friends across the world. This trust will allow us to deepen cooperation with our partners, create opportunities for Singapore and Singaporeans abroad and advance our interests internationally.

Ms Tin Pei Ling and Mr Edwin Tong have pointed out that emerging markets offer many opportunities for Singaporean businesses abroad.

Take Sub-Saharan Africa, for example, which offers opportunities for those with an appetite to venture into less familiar markets. During my visit to Ethiopia last year, I saw Ethiopia's efforts to position itself as Africa's industrial hub. Far from its earlier years of being known as a famine-stricken country, Ethiopia has enjoyed growth rates averaging 10% over the last decade and is now one of the world's top 10 fastest growing economies. MFA is working with MTI to explore economic opportunities in other parts of Sub-Saharan Africa in sectors like commodities, logistics, port development, urban solutions and information communications and technology. We currently have some 60 Singapore-based companies with business operations in over 40 Sub-Saharan Africa countries. This number is likely to grow in the coming years.

We are also making good progress in Latin America, where our trade has more than doubled over the past decade and about 130 companies are now doing business there. We continue to seek opportunities in other regions like South Asia, Central Asia, Russia and Turkey. For instance, we are negotiating the Sri Lanka-Singapore Free Trade Agreement, which will open doors for our businesses to expand into the vast South Asian market once concluded. We are also pursuing an FTA with the Eurasian Economic Union (EAEU). Comprising Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, the EAEU has a combined market of 179 million people and a GDP of US$4.4 trillion. The Turkey-Singapore FTA, which is expected to be ratified this year, will allow our companies to leverage Turkey's strategic location to pursue investments in Central Asia, the Middle East and Africa.

But our relationships with the emerging markets are not just economically driven. Over the years, we have developed good political and people-to-people exchanges. For example, President Tony Tan made a State Visit to Mexico in June 2016 − the first State Visit by a Singapore Head of State to Latin America. Minister Vivian will make an Official Visit to Argentina in April 2017. We have also hosted 96 Latin American journalists under the Forum for East Asia-Latin America Cooperation (FEALAC) Journalists' Visit Programme over the last 17 years, which has created greater awareness about our societies, our policies and our culture in Latin America. For Sub-Saharan Africa, we hosted 10 ministers from the region last year to share how we tackle our urban challenges.

It also heartens me to see more Singaporeans going off the beaten track to pursue their interests in less familiar places. For example, last year, I met a lively young Singaporean lady who is studying theatre at the Waterfront Theatre School in South Africa. She told me that she was interested in African art and culture that led her to make such an unconventional choice. In Botswana, I was also pleasantly surprised to meet a tight-knit group of Singaporeans and learnt that several have been living there for more than a decade! One of the Singaporeans I met there had settled down in Botswana some 16 years ago and now operates a cow farm together with her Botswana husband. I am also glad to see our students participating in exchanges with universities in countries like Russia and Mexico. I encourage more Singaporeans to take the road less travelled, which will broaden their perspectives while helping Singapore extend our friendships across the world.

Let me move on to our engagement of the Middle East, which Mr Amrin Amin asked about.

Singapore enjoys friendly relations with countries in the Middle East and it is important to continue to engage them. Understanding the complex developments in the region is important to us as 15% of our population are Muslims, many of whom visit the Middle East for the haj and umrah and for religious and Arabic language classes and studies. Today, we have about 300 students studying in Egypt and about 130 students studying in Jordan.

With the Middle East presenting greater economic opportunities, more Singaporeans are working there in fields, such as hospitality, engineering, finance and transport and logistics in various countries, such as Saudi Arabia, the United Arab Emirates, Qatar and Oman. In 2015, our Consulate-General in Dubai was designated as an overseas polling station for elections to make it easier for Singaporeans in the region to cast their votes. This is in recognition of the growing number of Singaporeans in that region. We also cooperate closely with some Middle Eastern countries in areas, such as education, environment and security. We recognise that the security situation in the Middle East will have implications for our region. That is why Singapore has contributed to the international coalition against the Islamic State in Iraq and Syria (ISIS), while our Navy participates in anti-piracy operations in the Gulf of Aden.

There remains keen interest in the Middle East countries to learn from Singapore's development experience. Over the past three years, there were more than 100 study visits in areas such as urban planning, port management and education. Low oil prices have also forced the oil-dependent Middle East countries to implement economic reforms and diversify their economies. There continues to be opportunities in sectors where Singapore companies have expertise in, such as transport and logistics, healthcare, water technology and education.

As a small state, we maintain friendly ties with all who want to befriend us, including those from the Middle East. Prime Minister Lee visited Jordan, Israel and the Palestinian Territories last year in April. During the trip, Prime Minister Lee invited the leaders of Jordan, the Palestinian National Authority (PNA) and Israel to visit Singapore. Israeli Prime Minister Benjamin Netanyahu's reciprocal visit took place just last week. Singapore and Israel have a longstanding relationship, dating back to when the Israelis helped us build up our SAF and thereby secure our independence and sovereignty. We look forward to welcoming the leaders from Jordan and the PNA to Singapore.

Mr Sitoh Yih Pin asked about Singapore's position on the Israeli-Palestinian issue. Let me elaborate in Malay please, Mr Chairman.

(In Malay): [Please refer to Vernacular Speech.] Despite Singapore's close relations with Israel, we have taken a principled, consistent and long-standing position on the Israel-Palestine issue. We have good relations with both Israel and PNA, and many Arab countries. Although the situation is complex and progress is difficult, Singapore has always urged Israel and Palestine to resume direct negotiations and work towards a just and durable solution to this long-standing conflict.

This is because we are convinced that a two-state solution for Israel and Palestine, however hard to achieve, is the only way to bring peace and security to both peoples.

During his visit to Israel last year and during Prime Minister Netanyahu's recent visit to Singapore, Prime Minister Lee had clearly articulated Singapore's long-standing and consistent position on the Middle East Peace Process, including our support for the two-state solution. While Singapore supports Israel's right to live within secure borders and in peace, at the same time, we also support the right of the Palestinian people to a homeland. We have consistently voted in favour of most of the Palestinian-related resolutions tabled at the UN General Assembly.

Singapore also enjoys friendly relations with the Palestinians. Over the years, Singapore leaders have made visits to Ramallah and we do our best to help the Palestinians rebuild their lives as well as develop their economy.

During the Prime Minister's visit to Ramallah in April last year, he also announced the doubling of our Enhanced Technical Assistance Package (ETAP) to the PNA from S$5 million to S$10 million.

To follow up on the Prime Minister's visit, I visited Ramallah, as well as Israel and Jordan, in November last year. During the visit, I informed the PNA leaders about the Government's appointment of Mr Hawazi Daipi as Singapore's Representative to the PNA to help coordinate our assistance to the PNA. They welcomed the appointment. Mr Hawazi has since made his first visit to the West Bank as Representative in January this year where he met a number of senior office holders and officials from the PNA. One of the officials, PNA Assistant Foreign Minister Mazen Shamia, expressed the Palestinian leadership's "happiness and satisfaction" with the "remarkable development" of ties between the Palestinians and Singapore.

During my visit to Ramallah, I had the opportunity to meet senior Palestinian alumni of our Singapore Cooperation Programme (SCP). The SCP has trained over 260 Palestinian officials in various courses over the years. We welcome the Palestinians' interest in our SCP courses and are working closely with the PNA to identify the critical areas where Singapore can contribute to capacity-building in the Palestinian Territories, within our limited resources.

One of the areas where we may be able to assist the Palestinians is in Technical and Vocational Education and Training (TVET). With over a third of the Palestinian population under age 30, equipping these youths with skills relevant to the marketplace is critical to the economic development and viability of the Palestinian Territories. In this regard, we invited PNA Minister of Education and Higher Education Sabri Saidam to visit Singapore from 31 October to 2 November 2016 to learn more about Singapore's approach to TVET, while ITE Education Services visited the West Bank in January 2017 to conduct a TVET skills needs analysis for the Palestinians.

Following the Prime Minister's visit, we have received many requests for study visits and training courses in non-TVET fields, too. This year, we hope to welcome Palestinian officials to Singapore to study our industrial estate management policies, among others. Mr Hawazi is also planning to visit the Palestinian Territories later this year to explore further areas of cooperation between Singapore and the PNA.

Mr Sitoh Yih Pin also asked about the impact of international conferences, such as the Conference for Peace in the Middle East, held in January this year. The Conference was held in Paris on 15 January 2017 and involved leaders and senior officials from some 70 countries. Although Singapore was not a member of the Conference, we are supportive of all efforts by the international community to facilitate the resumption of meaningful and direct negotiations towards a two-state solution, whereby Israel and Palestine can live side-by-side in peace and security.

7.45 pm

(In English): Mr Chairman, as I have said earlier, developments in the Middle East have security implications for us. We have observed how ISIS has exported its ideology through the Internet and other social media platforms, radicalising individuals in the US, Europe and even here in Southeast Asia. Assoc Prof Fatimah Lateef asked how we are preparing to manage such a challenging security climate.

ISIS has suffered several military setbacks recently in Iraq and Syria. However, even as ISIS loses ground, returning fighters continue to pose a long-term threat to global security, as pointed out by several counter-terrorism experts. This region is not immune, with more than 1,000 Indonesians, Malaysians, Filipinos and even Singaporeans having gone to fight for ISIS. While we have our counter-terrorism strategy, Singapore cannot tackle this trans-border threat alone.

MFA will continue to keep up regular political exchanges and community engagement across our region. During my trip to Dhaka, Bangladesh, in October 2016, I shared Singapore's experiences with the local Muslim community over there and heard about their efforts to instil the correct message about Islam. We must continue working closely with foreign counterparts to share intelligence, coordinate approaches and encourage the exchange of best practices on how to counter radical ideologies.

In light of the spate of terror attacks across the globe, Ms Joan Pereira has asked how MFA is better preparing itself to help Singaporeans caught in crisis situations abroad. In 2016 alone, major consular incidents included the terror attacks in Brussels and Nice, the bombings and unrest in Turkey, earthquakes in the region and the Muar Bus Accident. With Singaporeans being one of the most well-travelled people in the world, this raises not only the volume but also the complexity of consular cases that MFA has to handle.

With finite resources, we have to work hard and be creative to respond to consular incidents quickly and effectively. Alongside a limited number of overseas missions, MFA officers are rostered 24/7 so that Singaporeans can contact MFA and vice versa during emergency situations. During the tragic bus accident that took place on the North-South Highway in Muar on Christmas Eve last year, MFA sent an officer quickly to reinforce the Singapore Consulate in Johor Bahru. Within 24 hours, the deceased and injured were repatriated back to Singapore.

We are also enhancing our MFA@SG app to include a safety check feature to allow e-registrants to update MFA on their safety status using their mobile devices during crisis situations. We are expanding our IT platforms to allow e-Registration and safety checks using chat-bots. It will soon be easier to find information on our websites through a Virtual Assistant.

We urge Singaporeans to do their part and take the necessary precautions by staying vigilant, purchasing travel insurance, and staying in touch with family and friends so that they know you are safe during your travels. Importantly, we urge Singaporeans to e-Register with MFA when travelling, either through our MFA website or the MFA@SG app. There is a huge disparity between the 400,000 e-registrants we have on record and the 7.5 million outbound trips made by Singaporeans via air and sea in 2016 and this excludes the over 16 million overland travels to Malaysia annually. E-registrants will receive information on how to contact our nearest overseas mission and MFA can quickly contact e-registered Singaporean travellers during emergencies to ascertain the need for urgent assistance. So, I cannot emphasise again how important it is for Singaporeans to e-register.

Currently, about eight out of 10 calls that MFA receives during emergency situations are from the next-of-kin of Singaporeans who did not e-register. For instance, one citizen who was in the locality of a man-made disaster in China complained that other Singaporeans were contacted by MFA to ascertain their safety, but wondered why MFA had missed contacting him. But when we investigated, we realised that he had not e-registered so there was no way MFA could know that he was in the area at that time. If more of these Singaporeans had e-registered, it would allow us to more quickly verify if they have been confirmed safe or if they require urgent assistance.

In many emergency situations, e-registration has allowed us to contact affected Singaporeans, and one incident last year comes to mind. During the attempted coup in Turkey in July 2016, MFA contacted all registered Singaporeans in the affected areas and monitored the situation closely. As a 13-member youth football team and some of their parents were also stranded in Antalya due to the closure of the Istanbul airport, MFA worked with SIA to facilitate their departure from Antalya to Gothenburg, Sweden, so that they could arrive in time for the Gothia World Youth Cup 2016.

In the same month, 86 people were killed after a terrorist drove a cargo truck into crowds celebrating Bastille Day in Nice, France. Similarly, MFA contacted all registered Singaporeans in France to verify their safety. After ascertaining that a Singaporean student was seriously injured during that attack, our Embassy staff was on the ground to extend consular assistance to the Singaporean and his parents who had flown to Nice to be with him.

On that note, I would like to thank Ms Joan Pereira for commending our MFA officers for their dedication in discharging their consular duties. The nature of consular work is challenging and complex. Our officers often work hard around the clock to provide support to distressed Singaporeans abroad. But what keeps the officers going is the knowledge that they are helping fellow Singaporeans.

I would like to share a heartening note that a Singaporean wrote to us after MFA had assisted with the repatriation of his deceased relative. He wrote, "When I contacted MFA to get more information on the unfortunate bus crash, not only did they give me the information I needed, it was because of the aid MFA rendered that my family was able to return safely to Singapore. We would not have been able to go through this on our own and we will always remember how MFA had our back. The MFA team was professional, polite and considerate even when we were in so much distress. Thank you very much."

Sir, on behalf of the MFA family, I would like to thank Members of the House and all Singaporeans for their support to MFA as we advance Singaporeans' interests internationally.

The Chairman: If there are no clarifications, Mr Vikram Nair, would you like to withdraw your amendment? Mr Low Thia Khiang, please.

Mr Low Thia Khiang: Sir, I have two clarifications for the Minister. First, while Singapore believes in rules-based diplomacy, other countries Singapore has to deal with may believe in power-based diplomacy. What will be the Minister's approach, facing such a counterpart? The second clarification is whether the Minister anticipates difficulties in this year's ASEAN Summit with the Philippines as the Chair of ASEAN?

8.00 pm

Dr Vivian Balakrishnan: I think this tension between a rules-based world order and a power-based world order will always be there. When I meet my counterparts, I explain to them that because we are a tiny city state and we live in a tough neighbourhood, Singapore has no choice but to subscribe to international laws. So, as a matter of principle, we stand for it.

Secondly, in terms of practice, if you look at, for instance, the Pedra Branca issue, or the Points of Agreement (POA) issue, we have ourselves availed and abided by international law and the legal processes that it provides. So, we take that stand.

But I will also tell Members, quite frankly, that big superpowers sometimes − and it is not only one; all of them, if you look through international jurisprudence − have, from time to time, taken liberties with international law. We have to quietly, non-provocatively just stand up to state our position. But we are in no position to enforce it. The ultimate challenge in international law is enforcement. That is actually very difficult, and it is impossible to enforce international law, except through moral suasion and through mutual agreement between countries.

The Member's second point was on ASEAN Chairmanship. I would express full support for the Chairmanship of ASEAN under the Philippines. We just had the ASEAN Foreign Ministers' Retreat two weeks ago. We should be able to get through this year successfully. I give my full assurance of support to the Philippines.

Mr Vikram Nair: Thank you, Chairman. This is a clarification. I thank the Minister and Senior Ministers of State for giving us a world tour of what Singapore is doing everywhere. I have two clarifications. In fact, they both relate to relations with the US and China.

First, I think Singapore has always found a way to look for opportunities in the midst of adversity or difficult situations. So, what opportunities does MFA see with the new US administration? I know that it is still starting; it is finding its feet. But what are the possible opportunities we can have to build bridges and do things together with the US?

In relation to China, I also see some seeds of opportunities because in recent months China has actually been talking about the importance of holding up environmental legislation. It seems to be that China itself may be open to persuasion that international norms and rules are important, vital, and will be the way forward. Is there any opportunity that we can persuade more people that rules-based international order is in everyone's best interest?

Dr Vivian Balakrishnan: As I have explained just now, I think the outlook of US policies and programmes is still evolving. The most recent speech by President Trump to the Joint Session of Congress was a far more positive and far more, I would say, conciliatory speech. We look forward to those sentiments being translated into policy and actions.

If you also parse his comments carefully, he says he is pro-business. He also says he believes in free trade, but he wants it to be fair trade. I think this is actually not an unreasonable position. In fact, it is the duty of every national trade negotiator – you engage in either bilateral or regional negotiations to make sure that the terms of the agreement are fair and actually improve the overall position of your own country. The point is it is the duty of your own negotiator to secure the best terms possible.

Secondly, when you enter into these negotiations, there is always going to be give-and-take. An important point about trade – and this is the political point – is that the advantages of free trade are sometimes not totally symmetrical with all segments of your population. Therefore, free trade has to be accompanied by domestic policy, which makes sure you address the needs of specific segments, especially the more vulnerable segments of your population.

That is why you see – and this is a larger point that goes beyond foreign policy − in case of Singapore, we say we have no choice but to operate the free trade system. But we also actually are very socialist when it comes to housing, education and healthcare. You see so much of the Budget policy actually being focused on vulnerable groups: people or segments of our population who would otherwise be vulnerable to the vagaries of free trade.

There is a complex interplay between domestic policy and foreign policy. If you can get your domestic policy right, it makes foreign policy and international trade so much easier.

I do not want to be cynical about the evolution of US policy. At the same time, I do not want to trivialise and assume everything will be hunky dory. I think, let us wait and see.

But every time we engage the US, we remind them that the last 70 years since the end of the Second World War has been, in a sense, a golden age for the world. Despite the Cold War, no nuclear weapons were fired in anger. Yes, there were proxy battles in the earlier part of the Cold War. But, actually, what you have seen, let us say, since 1978 in China, and 1991 in India, there has been an incredible upliftment of hundreds of millions of people from abject poverty.

How was this achieved? Through the free market, through bringing down barriers, through investing in infrastructure, through economic integration. This has allowed a win-win proposition to be played out across the entire world and allowed people to achieve peace, stability and prosperity, without war and without engaging in zero-sum rivalry.

The larger philosophical point we have to keep advancing on the international stage is to look for win-win outcomes and not to be trapped in prisoners' dilemmas or in zero-sum games. We advance this by being an honest broker, by being consistent in what we say and what we do, and by offering ourselves. People cannot copy our solutions but we say, "Look at the way Singapore and the way ASEAN have progressed in the last 50 years. We think this is a good formula. You want to make adjustments? Of course, you need to make adjustments. But, substantially, the direction of interdependence, mutual cooperation, win-win outcomes is the correct strategic direction."

Did the Member have a second clarification?

The hon Member Mr Vikram Nair stood at his seat to repeat his second clarification.

Dr Vivian Balakrishnan: We know our place in the world. We cannot persuade everyone. I think if we can get a critical mass to operate on a rules-based system, to operate free trade, accompanied by appropriate domestic safeguards and social security nets and then you prove it by succeeding. That is the most persuasive argument. Again, this is not a debate; it is not a form of words that will settle it.

Mr Pritam Singh: Chairman, just a quick question for the Minister, and it follows from the point I made in the cut about the Committee on the Future Economy (CFE) and the prospect of more consulates, more assistance for our businesses. I heard Senior Minister of State Josephine Teo speak about China and the number of consulates which we have in that country. Do we have similar plans for Southeast Asia and other regions of interest in general?

Dr Vivian Balakrishnan: We do have plans. I cannot announce all of them yet. I think what I can say today is that we are planning to upgrade our consulates in Batam and Medan, because more people and more businesses are passing or transacting through Indonesia. Although we do have some other plans, I am not in the position to announce yet.

Again, I think the Member's larger point is that the demands on MFA are growing. I hope Members noticed that, in fact, our budget for this year is actually a bit less than last year. I do not say this in a facetious way, for it just illustrates how hard our staff are working.

There is also another secret recipe that we have, that is, we also have a system of non-resident Ambassadors. For that, we take people from outside the Civil Service, in the business sector and others, who know the countries and are able to carry the flag of Singapore high and open opportunities for other Singaporeans in an altruistic way. We are also blessed to have that additional element. We have incredible career officers, while we are also supplemented by a cadre of well-meaning, high-achieving Singaporeans.

The Chairman: Mr Vikram Nair, if you do not have any more clarifications, would you like to withdraw your amendment?

Mr Vikram Nair: I would like to thank Minister Vivian Balakrishnan and Senior Ministers of State Josephine Teo and Dr Mohamad Maliki. As I had said, they took us on a tour of the world but I think that really tells you how much hard work MFA has been doing. I think every continent except Antarctica − but there is a story there as well, I believe, which we just have not had time to share.

But the fact that Singapore as a small country has meaningful relationships with so many countries, is truly an achievement. I would like to record my thanks to MFA and to the staff. In true Singapore tradition, you deliver value-for-money, so it is a very small budget Ministry, 50 officers, but we make the most of what we have. And I personally must record my thanks to the MFA staff every time I have been on a trip with them. Chairman, I beg leave to withdraw my cut.

Amendment, by leave, withdrawn.

The sum of $461,646,300 for Head N ordered to stand part of the Main Estimates.

The sum of $39,981,800 for Head N ordered to stand part of the Development Estimates.