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

The Chairman: Head N, Ministry of Foreign Affairs. Mr Vikram Nair, you may wish to take both cuts together.

Managing Geopolitical Uncertainties

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

As in previous years, I would like to kick off the debate with a broad overview of developments in international affairs and ask the Ministry of Foreign Affairs (MFA) for its views on their potential implications for Singapore.

In 2017, the geopolitical landscape continued to evolve rapidly. China’s strategic and economic clout remains on an upward trend. Members would have noted China playing a more active and assertive role in global affairs in recent years.

The Belt and Road (B&R) initiative continues to play a growing role in regional and global development, supporting infrastructure investments and big projects. China is clearly becoming an outward-looking global power, ready to play a bigger role in the world and many countries hungry for investments appreciate this.

At the same time, observers have juxtaposed China's rising prominence on the international stage against perceptions of the declining United States (US) influence in the region. The US' decisions to pull out of key multilateral deals, like the Paris Agreement on Climate Change and the Trans-Pacific Partnership (TPP), also support this concern that the US is becoming more inward-looking and less interested in taking the lead on global issues.

Closer to home, unresolved tensions persist on the Korean Peninsula. Barely a few months ago, the North was escalating its nuclear testing and boasting that it was getting close to having a nuclear weapon and intercontinental ballistic capabilities. It appears that the two Koreas are trying to ease tensions at the moment, which is to be welcomed, but the underlying issue of nuclearisation of North Korea remains.

Around the world, other national and international challenges abound. Countries are grappling with transnational terrorism, sluggish economies and structural challenges of demographics and integration, and the worrying trend of growing nationalist sentiment.

These issues are often interrelated. The growing threat of terrorism has been spurred by the Islamic State of Iraq and Syria (ISIS), which has been fighting primarily in Iraq and Syria. They have mastered the art of using social media to radicalise individuals. The wars themselves have caused record numbers of refugees to flow outwards, including to places like Europe.

This, in turn, has led the local politics in these countries to become increasingly nationalistic and unfriendly to immigrants and refugees, often characterising them not only as economic threats but also as potential breeding grounds for terrorists. This has led to the growth and popularity of far-right movements in many developed countries.

Another hallmark of our times is the development and democratisation of technology that would have been unthinkable just a few decades ago. Anyone and everyone can publish information online. At the same time, individuals, companies and governments have almost all their private information in digital form, making it potentially easy to access such information, both legally and illegally, by hacking and gaining access to existing databases. We are not yet fully cognisant of the effects that technologies, such as digital media, will have on us and our societies.

What does MFA see as the major challenges facing Singapore? How can Singapore continue to navigate and protect our interests in an increasingly complex and uncertain geopolitical environment?

Regional Architecture

Singapore has traditionally been an important participant in regional agreements and partnerships. These include both formal frameworks, such as the founding of the Association of Southeast Asian Nations (ASEAN) and their other related work as well as dialogues to bring together important partners. Our Shangri-La Dialogue for Defence is one good example of this.

Recently, there have been media reports on the revival of the "Quadrilateral Security Dialogue" among the US, Japan, India and Australia to deepen security cooperation and to coordinate alternatives for regional integration. These four countries are good friends of ours and have a shared commitment to the existing "rules-based order" as a key mechanism for protecting and projecting their own principal security and economic interests.

It seems like it would be helpful for Singapore and, potentially ASEAN, to engage and support such initiatives. What is MFA's view of how Singapore and ASEAN will be affected by such regional initiatives?

Question proposed.

Shift in Global Economic Weight

Mr Low Thia Khiang (Aljunied): Mr Chairman, Sir, the shift in global economic weight to Asia was highlighted in the Budget Statement this year. We witness the opening up of China as an awakening of an economic giant. But China would also face a severely ageing society and rising labour costs over time. In these respects, if it could maintain political stability, India may have the advantages and better growth prospects in the longer term. The ASEAN Economic Community could also emerge as an economic powerhouse if the 10 countries could garner the political will to establish a single market.

This shift in global economic weight to Asia poses new diplomatic challenges for us, especially when the US is going through a relatively incoherent phase in its engagement with Asia because of domestic politics. Singapore is not caught between a rock and hard place, but among three powers, namely, China, India and the US, while deeply embedded in ASEAN.

The South China Sea threatens to become the great game for the powers. The prime example is India's strengthening military and economic ties with Vietnam, which include an oil concession in disputed waters of the South China Sea and the warming of US-Vietnam ties in an effort to counterbalance China. ASEAN seems divided and the countries distracted by domestic strife, with ethnic conflicts becoming a major issue for the grouping, Myanmar is an example.

Our ties with ASEAN are deep. We also have strong ties with China, India and the US. As ASEAN Chair, how can we bring these deep and strong ties to help maintain the balance of power in Asia? With our experience in fostering grassroots multiracialism, what can we do to build deeper ties to the peoples of Southeast Asia and bring diverse communities closer together to build a more resilient ASEAN?

Economic Integration

Ms Sun Xueling (Pasir Ris-Punggol): Chairman, many of us in Singapore watch with bated breath as the United Kingdom (UK) voted on the Referendum on its European Union (EU) membership and, more recently, when the US voted for its 45th President. These were divisive campaigns marked by catchy populist slogans and contagious promises. The results showed a deep frustration with the status quo and anxiety about the future in a globalised world marked by free trade.

In January 2017, a newly elected President Donald Trump signed an executive order pulling his country out of the TPP. It would have been an ambitious trade deal that would account for 40% of global economic output and 26% of world trade. Singapore would have benefited greatly from it.

Singapore thrives on an open economy, and trade is our lifeblood. Given these developments, what is MFA's view on the prospects for free trade and economic integration around the world? Further, Singapore takes over the chairmanship of ASEAN this year and will strive to deepen regional connectivity. With this year's theme of resilience and innovation, efforts will be underway to uphold the regional order to better deal with emerging security challenges, tap new ways to manage and mine digital technologies and push ahead with regional economic integration. Singapore, as Chairman, will also aim to achieve a high quality Regional Comprehensive Economic Partnership (RCEP), a trade pact involving all 10 ASEAN member states and six countries which ASEAN has Free Trade Agreements (FTAs) with.

What is MFA's view on the ability of ASEAN to achieve real economic integration regionally versus bilateral trade agreements with the major economies?

Engagement of Emerging Markets

Mr Liang Eng Hwa (Holland-Bukit Timah): Sir, we are entering a challenging economic environment. Growth in developed markets is slowing while protectionist sentiments appear to be on the rise.

As a small and open economy with foreign trade more than three times its gross domestic product (GDP), Singapore is particularly vulnerable to global economic shifts. In this regard, one of Singapore's strategies is to continue diversifying our international connections.

There is a growing number of emerging economies that are attracting global interest and offering opportunities for our businesses. Singapore should consider how to strengthen our partnership with these countries. Looking beyond our traditional markets like Southeast Asia and China, I would like to highlight four regions of emerging markets with economic potential.

Beyond our traditional economic partners in the EU, there is scope to explore greater cooperation with promising markets in Central and Eastern Europe as well as Russia and Turkey. I know that the Singapore-Turkey FTA came into force last year. Could we have an update on Singapore's engagement with Europe and Euro-Asia?

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There have been several high-level visits to Latin America in recent years, including then President Tony Tan's State Visit to Mexico in 2016, which was the first by a Singaporean Head of State to the region. The Prime Minister will also be visiting Argentina later this year for the Group of 20 (G20) Summit. In view of the increase in high-level exchanges with Latin America, how has our relationship with the region's two main trade blocs, the Pacific Alliance and Mercosur, progressed?

In South Asia, apart from India where we already have a strong economic presence, countries like Sri Lanka and Bangladesh have good economic growth potentials. We have an FTA with Sri Lanka, and the Bangladesh Prime Minister is visiting Singapore. I am sure it will provide opportunities for us to further strengthen economic cooperation.

In sub-Saharan Africa, notwithstanding its challenges, the countries continue to embark on a path of development and urbanisation. This presents us with opportunities in areas where we have expertise, such as urban solutions, water, waste management, energy and logistics. What further steps are being taken to broaden and deepen Singapore's engagement of these emerging markets and what more can be done to open up new economic opportunities there?

ASEAN Chairmanship

Mr Vikram Nair: Sir, ASEAN originally started with a small group of non-Communist Southeast Asian countries. At that time, during the Cold War, ASEAN was an important alliance where countries were largely aligned on political matters and sought to foster cooperation and economic growth together.

When the Cold War ended, ASEAN grew and welcomed more countries into the alliance, focused on economic growth and cooperation. This was the era that Francis Fukuyama described as being the "End of History", by which he meant the end of historic contests of ideologies.

In recent years, though, ASEAN's plans have grown and there have been plans for greater economic integration, including a common market for goods and services. At the same time, differences have emerged among members on certain issues, such as the South China Sea, making it difficult for them to reach consensus.

In 2018, Singapore will take the reins of the ASEAN Chairmanship. This is an important opportunity for Singapore to exercise leadership and contribute to ASEAN's role in the region. What are our priorities for our year as Chairman?

To maintain ASEAN’s relevance and value, it will be important that we continue to strengthen the economic integration to tap the potential of a market of over 600 million people with a rapidly growing middle class. What can ASEAN do to remain forward-looking to chart a better future for the region?

Finally, I have highlighted some of the challenges and I am sure my friends will highlight more later. What will ASEAN do to get through both its internal and external challenges, and what can we, as Chair of ASEAN, do to help foster consensus on these difficult issues?

Assoc Prof Fatimah Lateef (Marine Parade): Sir, Singapore is chairing ASEAN this year. Our aim is to connect people and economies seamlessly across the region. It is also critical to lead the way in keeping the economic integration vibrant and the region competitive. The Minister for Foreign Affairs said, "We gain more by working together".

Several initiatives are in the framework and I would like to highlight three.

One, the formation of a network of ASEAN Smart Cities. Here, boosting cybersecurity is also in the pipeline and on the agenda. Secondly, a model ASEAN Extradition Treaty; and thirdly, an ASEAN-wide self-certification regime, where ASEAN citizens will be considered for preferential treatment.

Can we have details, sustainable goals as well as timelines for some of these proposed initiatives and what are some of the challenges we can expect to face?

Also, knowing that ASEAN comprises nations in various stages of development, modernisation and urbanisation, the harmonisation and alignment, as well as contributions, will have differences and will surface discrepancies. How is Singapore planning to handle these?

Mr Pritam Singh (Aljunied): Chairman, Sir, ASEAN commemorated its 50th anniversary last year. As a pioneer founder of ASEAN and as a respected and constructive diplomatic stakeholder, it is apposite that Singapore finds itself as the first Chair of ASEAN after the celebration of its golden jubilee in 2017. It is apposite because Singapore is seen as an important thought leader, both within and outside ASEAN. Singapore has the potential to shape and determine the substance of the discussions that take precedence among our regional partners because of our reputation as an honest broker.

Singapore has chosen the themes of resilience and innovation as its Chairmanship tagline with a view to building a future-ready ASEAN which is adaptable and forward-looking.

In addition to a variety of issues that Singapore would be pursuing under its Chairmanship, is the Model ASEAN Extradition Treaty. The prospect of such a treaty is potentially an important development in addressing some of Singapore’s bilateral flashpoints that have reared their ugly head in the past, at times, with certain political leaders in Indonesia. Such an extradition treaty could inject a newfound trust and confidence into the Singapore-Indonesia relationship which, like ASEAN, also celebrated its golden jubilee last year.

Singapore’s chairmanship of ASEAN this year presents a signature opportunity for MFA to showcase strong thought leadership to push for an early agreement on the Model Extradition treaty that would support the rule of law within ASEAN and catalyse the signing of bilateral extradition treaties between neighbouring countries. Does the Minister have any preliminary timeline with regard to discussions on the Model Extradition Treaty?

ASEAN has also committed to the ambitious objective under the aegis of the ASEAN Economic Community of doubling intra-ASEAN trade between 2017 and 2025.

Last year, Singapore announced that it was focusing on steps to enhance e-commerce through its National Trade Platform, a one-stop trade information platform for customs clearance, trade logistics and trade finance. Alongside this specific initiative, it would also appear that the prospect of the ASEAN Single Window would allow local Singaporean businesses to connect to more customers throughout ASEAN.

Mr Chairman, all foreign policy begins at home and I request some information from the Minister on the roles the Ministry plays from a whole-of-Government perspective in translating foreign policy initiatives into economic outcomes for enterprises in Singapore in view of our economic transformation plans.

Finally, the Minister has gone on record in the aftermath of the ASEAN Foreign Ministers' meeting earlier this month to say that discussions on the Code of Conduct (COC) for the South China Sea are likely to be very complicated even as the situation is a lot calmer.

Mr Chairman, one of ASEAN’s interests in COC is to ensure that trade and freedom of movement of sea traffic, particularly commercial traffic, is unimpeded. It would appear that China’s interests in the South China Sea are territorial to the extent that it wants a high degree of control of its immediate backyard, behaviour which does not appear to be primarily driven by a desire to bully ASEAN, but rather is consistent with modern big power behaviour in regions adjacent to its immediate borders, regardless of whether such a power is an Anglo-Saxon one or not.

What more can Singapore do to smooth over the concerns China has about the South China Sea and secure a stable future between ASEAN and China going forward?

Dr Teo Ho Pin (Bukit Panjang): Sir, in 2015, the 10 ASEAN member states established the ASEAN Economic Community (AEC), integrating a potential market size of about US$2.6 trillion serving over 600 million people. The AEC Blueprint 2025 was also adopted by ASEAN leaders to provide broad directions to guide the next phase of economic integration from 2016 to 2025.

Sir, based on feedback from our local business community, many firms are not familiar with the details of AEC. The business community and our people also do not understand the benefits of AEC. In order to help our local businesses to seize business opportunities in AEC, it would be useful if MFA and the Ministry of Trade and Industry (MTI) can organise more industry-focused talks and forums. Such meetings will also provide opportunities for our business leaders to forge partnerships with other ASEAN business leaders.

Sir, I support the Finance Minister’s proposal to launch a new ASEAN Leadership Programme to help our business leaders to build networks and expand their business overseas. Instead of just focusing on our business leaders, we can extend this programme to other business leaders in ASEAN. In this way, more opportunities can be created for our business leaders to forge partnerships.

Sir, I wish to seek clarifications from the Ministry in the following: first, what are the key deliverables of Singapore’s position as ASEAN Chair? Second, an update on the AEC’s progress and achievements to date.

ASEAN Integration – Citizen Engagement

Ms Sylvia Lim (Aljunied): Chairman, separate surveys completed by researchers in a university and a private polling firm indicate that Singaporeans have greater ambivalence, less interest and less sense of belonging towards ASEAN, compared to our ASEAN partners. According to one of these surveys, only 13% of Singaporean respondents indicated an interest in ASEAN news and information. There is indifference and even scepticism towards ASEAN, even though there is some acknowledgement that the grouping benefits Singapore in terms of economic opportunities and regional stability.

I find these results not satisfactory, since our future is inextricably linked to the success of ASEAN. Given that these views are about how Singapore relates to and interacts with our closest neighbours – countries with which Singapore has to work with closely with on various issues. I wonder if such sentiments and ignorance might harm Singapore in the longer term.

I would like to ask the Minister for Foreign Affairs if he thinks that the relatively low opinion of ASEAN among Singaporeans is of concern for Singapore’s foreign policy and interests. May I request that the Minister share with the House the reasons why he thinks this issue is anything to be worried about? I would also like to ask the Minister if he intends to do anything to promote more positive views of ASEAN among Singaporeans, especially given the fact that Singapore is serving as ASEAN Chair this year.

If the Minister wishes to pursue such action, I would like to invite him to explain what these initiatives are. I would also appreciate the Minister informing this House about how he expects such plans to continue past Singapore’s chairing of ASEAN, and how they relate to the ASEAN Social Cultural Community.

Human Tragedy in and around Rakhine State

Mr Christopher de Souza (Holland-Bukit Timah): Sir, while there is no easy solution for the humanitarian crisis in the Rakhine state, it is, nonetheless, an issue ASEAN should be concerned about.

Firstly, the humanitarian situation in the Rakhine state is still a cause for concern, even though Bashan Char is being prepared and repatriation is underway. Excluding those internally displaced who fled in earlier incidents of violence, since August 2017, more than 688,800 Rohingyas have fled the Rakhine state, exponentially expanding refugee camps beyond their capacity, and without adequate water or sanitation. Of these, about 60% are children, of whom some have suffered separation, being orphaned or even being raped.

Secondly, the mass displacement across territorial boundaries threatens regional stability. Terrorists have also used this issue to recruit more people, including those in Malaysia, to join their cause.

Thirdly, all ASEAN states have expressed a deep commitment to the importance of human rights, for example, Article 14 of the ASEAN Charter, which forms the basis of the ASEAN Intergovernmental Commission on Human Rights (AICHR), the ASEAN Commission on the Promotion and Protection of the Rights of Women and Children (ACWC), and the ASEAN Human Rights Declaration.

ASEAN has concertedly alleviated humanitarian situations previously, for example, the earthquake in Aceh in December 2016. Therefore, I would like to ask: one, what can ASEAN do in response to this humanitarian crisis? Two, how can the ASEAN Human Rights Declaration, ASEAN Charter and other ASEAN legal agreements form a stronger basis for engaging Myanmar to take greater humanitarian action? And three, as ASEAN Chair, what can Singapore do to alleviate the humanitarian situation?

The Chairman: Mr Amrin Amin, you can take both cuts.

Relations with China

Mr Amrin Amin (Sembawang): Mr Chairman, China's growth has been impressive since the country opened up to the rest of the world. It is expected to register 6.4% growth in 2018. China’s growth, affluence and rising middle class represent opportunities for Singaporeans and Singaporean firms. Already, many Singapore companies are invested in China.

Singapore has always strongly believed in China’s growth prospects. Singapore is China's largest foreign investor since 2013 and one of China’s top trading partners in ASEAN. Singapore was also the first Asian country to sign a comprehensive FTA with China which paved the way for the subsequent ASEAN-China FTA. Last year, Singapore and China agreed to work together on the B&R Initiative.

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China's prosperity and growth have brought about greater confidence among the people of China about their country. China is widely seen as a rising power and becoming more prominent in the international arena. Given our stake in China's growth, Singaporeans have an interest in our engagement with China and the state of our bilateral relationship. Could MFA provide an update on the Singapore-China relationship?

US-China Relations

A key force shaping the geopolitical environment is US-China relations. China's rise has fuelled speculations of a fundamental change in world order. Projects like the B&R Initiative signal China's increasing global influence. Such trends have contributed to a broader concern of a tussle between the US and China in the near future, as both sides may jostle for strategic space and influence.

For Singapore, both the US and China are important partners. We have close cooperation with both countries, extensive trade and investment links and many people-to-people exchanges.

Given the brewing rhetoric of a strategic rivalry between the US and China and in view of our good relations with both the US and China, we have a stake in ensuring good, stable US-China relations.

What is MFA's view on the state of US-China relations? As both countries are strategically important for Singapore, how will Singapore be affected by any fluctuations in US-China relations and how can we mitigate such an impact?

Relations with US

Ms Jessica Tan Soon Neo (East Coast): Mr Chairman, Singapore and the US enjoy strong, multifaceted and long-standing relations, spanning the defence, economic and security fields. In 2016, the US was Singapore's largest source of foreign direct investments (FDIs), while Singapore was the US' second largest Asian investor after Japan. Defence ties are excellent, with both sides working together in the area of counterterrorism. The Prime Minister's visit to Washington DC in October last year at the invitation of President Donald Trump reaffirmed the mutually beneficial nature of the bilateral relationship.

However, in the past year, we have also witnessed the US' withdrawal from TPP as well as the Paris Agreement on Climate Change, amongst other developments. These actions have led some to question the US' commitment to the rules-based global order that it has underwritten since World War II, and the effects that this could have on Singapore.

So, can the Minister provide an update on the state of Singapore-US relations and how Singapore has been working with the US to ensure that bilateral relations remain stable?

Relations with Malaysia, Indonesia and Brunei

Assoc Prof Dr Muhammad Faishal Ibrahim (Nee Soon): Sir, Malaysia, Indonesia and Brunei are our closest neighbours. Aside from direct air links to all three countries, we share land borders with Malaysia, and maritime boundaries with Malaysia and Indonesia. We have large amounts of trade and investments flowing between us and our neighbours. The people of our countries share long-standing historical and familial ties. With Brunei, we share a close friendship, one which both sides have often described as a "special relationship".

There has been much progress in bilateral cooperation between Singapore and our three neighbours. Most recently, Singapore and Malaysia have jointly lowered tolls on the Second Link. There are more companies investing in Indonesia than before. Our youth exchanges with Brunei continue to grow. Our close ties are underscored by our special Currency Interchangeability Agreement with Brunei. As with all neighbours, we sometimes have differences, too. One example is how the Malaysians have sought revision and interpretation of the 2008 International Court of Justice (ICJ) Judgment on sovereignty over Pedra Branca, Middle Rocks and South Ledge.

I note that Malaysian Prime Minister Najib Razak has just participated in the 8th Singapore-Malaysia Leaders' Retreat in Singapore. Minister for Foreign Affairs Dr Vivian Balakrishnan also recently visited Jakarta, where he met several political officeholders and politicians. In addition, Deputy Prime Minister Teo Chee Hean visited Brunei last year, where I was a delegation member.

My question has three parts. First, would MFA be able to update Members of the House on the state of our bilateral relations with our three closest neighbours, including key takeaways from the recent visits? How will we work to maintain our relations with our closest neighbours for the benefit of our peoples? Second, as Malaysia enters into election mode, what is MFA's view on its impact on bilateral relations, if any? Third, following the commemoration of our 50th anniversary of formal diplomatic relations with Indonesia last year, what are some of the bilateral projects that we can look forward to that will help to strengthen our relationship with Indonesia and maintain the positive momentum of bilateral ties?

The Chairman: Mr Baey Yam Keng. Not here. Mr Cedric Foo.

Relations with Japan and Korea

Mr Cedric Foo Chee Keng (Pioneer): Mr Chairman, my cut is on Singapore's relations with Japan and the Republic of Korea and how we can improve cooperation with these countries for mutual benefit.

Singapore has excellent relations with Japan and Korea. However, such good state of affairs needs to be nurtured continually. Over the past year, I would like to ask the Minister whether there have been high level exchanges for both Japan and Korea. Additionally, were there also business-to-business and people-to-people exchanges between Japan and Korea on the one hand, and Singapore on the other?

Many Japanese and Korean companies have also made investments and set up offices in Singapore to tap the growing Southeast Asia market. Singapore is also host to many Japanese and Koreans living, working and schooling here. Similarly, some Singaporeans are also drawn to study and work in Japan and Korea, embracing their culture and bringing back with them many valuable experiences.

I would like to ask the Minister on the areas in which Singapore can improve our cooperation with Japan and Korea. For example, both Japan and Singapore are experiencing ageing societies. I think there are many lessons we can learn from each other.

Both Korea and Japan are also technologically advanced countries. They have many global leading companies. Is Singapore looking into avenues where these companies can partner our local enterprises, especially our small and medium enterprises (SMEs), to access their respective markets and even to partner with to access third countries' markets?

Relations with Australia

Mr Saktiandi Supaat (Bishan-Toa Payoh): Mr Chairman, Sir, I understand that Australia and Singapore enjoy a strong relationship. Our relations have deepened over the past few years with the signing of the Comprehensive Strategic Partnership (CSP) in 2015, representing a significant upgrade of ties across multiple sectors. This strong relationship is exemplified by substantive cooperation at the government-to-government level, as well as at international forums, including those involving ASEAN. Besides the frequent exchange of high-level visits, we also have the Singapore-Australia Joint Ministerial Committee, a unique dialogue mechanism involving foreign affairs, defence and trade ministers, which has been going on for two decades now.

Our defence relations are robust. Over the years, Australia has generously allotted space for our Singapore Armed Forces (SAF) soldiers to train. This, alongside a history of co-deployment and operational cooperation, is a testament to the high level of trust between our two countries. On top of that, our people-to-people ties are healthy. Australian universities remain to this day a favourite for our tertiary students, and roughly 400,000 Singaporeans visit Australia annually. Australians readily reciprocate this, with over one million of them visiting Singapore every year.

With these in mind, I invite the Minister for Foreign Affairs to update the House on Singapore's relations with Australia, as well as the ongoing implementation of the 10-year CSP, which is in its third year.

Relations with India

Mr Murali Pillai (Bukit Batok): Sir, Singapore and ASEAN enjoy a strong relationship with India. This was exemplified in January 2018 at the ASEAN-India Commemorative Summit where the ASEAN countries and India reaffirmed their commitment to strong ASEAN-India ties.

In a Forbes' article dated 10 January 2018, it was reported that World Bank and the International Monetary Fund (IMF) projected India to be the world's fastest growing large economy for the rest of this decade as well as the world's fifth largest economy soon.

This is happening in tandem with the shift in the global economic weight towards Asia that the Minister for Finance mentioned in his Budget Statement. With its economic growth, India has become an increasingly important power on the world stage. A growing India represents significant opportunities for Singapore and Singaporeans. I seek an update from MFA on the state of our relations with India.

The Chairman: Assoc Prof Fatimah Lateef, you can take both cuts together.

Engagements with the Middle East

Assoc Prof Fatimah Lateef: Sir, the networks and developments in the Middle East continue to be very dynamic and vibrant. Change seems to be ongoing all the time, including the geopolitical and humanitarian issues. Not surprisingly, some of our businesses and entrepreneurs view the region through a more guarded perspective. Despite all these, there is still movement into the region, and some new markets have taken shape.

How will our engagement with the Middle East progress and proceed? What are the current emerging markets that we are exploring and with the view towards our economic expansion in the Middle East? These will, of course, be dependent on our diplomatic ties with the region. Thus, how does the Minister foresee us moving forward here?

Situation in the Middle East

The last year has seen the Middle East issue taking centrestage yet again. Ongoing issues persist and new conflicts, too, have surfaced. One of the long-term controversial matters is the Israeli-Palestinian issue. Singapore has always supported a two-state solution and we are one of the 128 United Nations (UN) Member States that voted in favour of rejecting the US' decision tabled at the United Nations (UN) General Assembly recently.

With an understanding of the changes that have evolved, how will we continue to uphold our principle? How do we also continue to engage both sides in the long-drawn conflict, moving forward? What about our relations with the other countries in the area, such as the United Arab Emirates (UAE), Kuwait and Oman?

Relations with Europe

Mr Kwek Hian Chuan Henry (Nee Soon): Mr Chairman, the geopolitical situation has gone through significant changes over the past few years. Europe, by and large, has remained a source of stability. This has created a stable environment for us to further our long-standing relations and good economic ties with Europe.

Can I ask MFA: how are we strengthening our relations with our European partners and with the EU as a whole? Beyond economic cooperation, how can we deepen our cooperation with our European partners in other areas, such as connectivity? And besides traditional areas of collaboration, are there new areas, such as technology and innovation, which we are exploring?

Also, given the rising importance of the Arctic shipping route, Singapore has strategically placed itself as an observer within the Arctic Council. I note that there has been an increased interest in developments in the Arctic, and these are well-covered by the media. Major countries have also recently made important announcements regarding their Arctic plans. How will Singapore respond to the opportunities and potential challenges for Europe, including the Arctic?

Lastly, in the various overseas work trip I have been to, I have witnessed the calibre and dedication of our ambassadors, our non-resident ambassadors and our MFA officers. Their hard work has continued to advance the interests of our country, and I would like to offer them my sincere appreciation.

Our Role in the International Community

Mr Louis Ng Kok Kwang (Nee Soon): Sir, we are faced with issues, such as terrorism, cybersecurity, a growing refugee crisis, the list goes on. And these issues are often worsened by climate change. A 2017 World Economic Forum poll involving 30,000 millennials from 186 countries found that climate change was their top concern.

Another growing concern is the refugee crisis. I visited the Rohingya refugee camps in Bangladesh last month, and what I saw and heard were painful and beyond words. I saw little children's childhood shattered; I saw young people all alone, having watched their family members get killed. All these issues are complex and interlinked, requiring resolute political will by the international community to work together.

Singapore has always been a strong supporter of multilateral approaches to global issues. How is Singapore working at the ASEAN level, particularly as the current Chair, as well as at the international level, to address challenges, such as climate change and the Rohingya refugee crisis?

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Domestic Resilience on Foreign Policy

Mr Sitoh Yih Pin (Potong Pasir): Mr Chairman, Singapore has, historically, positioned itself as a centre for global exchange and a key hub for trade and investment. This remains true today. We are now one of the world's most highly connected cities and are exposed to and facilitate massive flows of data and information with other cultures and economies.

Our economy is diverse and complex. To remain relevant and competitive, we fight and compete for ideas, opinions and talent in the global marketplace. In this matrix, therefore, it is inevitable that we become susceptible to external influences. Consequentially, Singapore will now not only need to rally support for its foreign policy positions with our international partners, such as our ASEAN neighbours, but also domestically amongst us Singaporeans. Over the past year, there had been several instances that reflect this. I shall briefly highlight two.

The South China Sea dispute has been widely reported in the mass media and commented upon in governmental and academic circles. A territorial dispute between some of our ASEAN neighbours and China alludes to a larger geopolitical strategic tussle for global influence between the dominant global superpower, that is, the US, and a rising China.

The situation in the Rakhine state in Myanmar is another potentially divisive issue within ASEAN. There are divergent views on this complex intercommunal issue among ASEAN member states, and it could undermine ASEAN unity.

Singapore assumes the Chairmanship of ASEAN this year. One of the focuses of our chairmanship year is to strengthen the collective resilience of ASEAN members. Based on this backdrop of recent incidents and events, it is clear that within consensus-based ASEAN, there are members with strong divergent views, both within ASEAN and with our dialogue partners. ASEAN will not only have to navigate fishes amongst its member states but also with external actors. As such, the diverse and sometimes contrasting interests of different ASEAN members and other external influences could cause various actors who may seek to influence Singapore, as ASEAN Chair, in order to get their way on the regional platform.

I invite the Minister to share with us on how we can, as a country, respond to these possible external challenges and influences.

Relations with Other Southeast Asian Countries

Mr Baey Yam Keng (Tampines): Singapore is a small country located in Southeast Asia, one of the most diverse regions in the world.

Maintaining strong political, economic and people-to-people ties with other countries in our region is essential. Working together allows us to leverage our collective strength as a region of over 600 million people with a combined GDP of over US$2 trillion. This would create opportunities for our people.

With the rise of China projected to become the world’s largest economy by 2032, it is understandable that the developments there have occupied most of our attention. But as the Chinese saying goes, 远亲不如近邻, while the majority of Singaporean forefathers came from China, it is equally, if not more important, for Singapore to build and maintain strong relations with the countries in our immediate Southeast Asian region.

Among the ASEAN members, given the proximity in terms of geography, language and culture, there is natural familiarity of Singapore and Singaporeans with our immediate neighbours: Malaysia, Indonesia and Brunei. However, let us also not forget or neglect our other neighbours.

Mr Chairman, I have observed first-hand, as part of the Prime Minister's delegation to Vietnam in March 2017, and then-Speaker Mdm Halimah Yacob's delegation to Laos in September 2014, how we build upon our multifaceted ties and complementarities to strengthen mutual understanding and cooperation.

In this context, I would like an update from MFA on Singapore’s engagement of our fellow ASEAN countries, in particular, Cambodia, Laos, Myanmar, the Philippines, Thailand and Vietnam.

Resources for MFA

Mr Cedric Foo Chee Keng: Mr Chairman, Sir, on resources for MFA, geopolitical developments happen around the clock and are often unpredictable in nature. Our civil servants from MFA have the unenviable task of regularly monitoring global geopolitics 24/7 so as to provide timely and well-considered responses.

As Chair of ASEAN in 2018 this year, Singapore will have to take on more responsibilities, playing host to the ASEAN member states and key partners at many high-level meetings in Singapore. MFA officers will have to react round-the-clock to develop and coordinate well with fellow ASEAN member states and key partners, as well as across the entire Singapore Government, in order to ensure a successful chairmanship. This is important so that Singapore's chairmanship can produce progress in regional cooperation that benefits Singapore and also other ASEAN states.

Given the demands placed on MFA, particularly this year, does MFA have the necessary resources to carry out its work with adroitness and sensitivity, as they always have?

Human Resource Challenges of MFA

Mr Desmond Choo (Tampines): Mr Chairman, Sir, Singapore's Foreign Service Officers play important roles in defending Singapore's interest in the global arena, be it representing Singapore at multilateral meetings, responding to international crises or rendering consular assistance to Singaporeans in distress overseas.

Given the increasing demands on MFA's work, there is a need for MFA to ensure that it has sufficient manpower and competencies to meet these challenges. How will MFA ensure that its officers are equipped with the necessary training, knowledge and capabilities to fulfil its mission? Has MFA also explored tapping on mid-career applicants for these posts and, if so, what percentage of its Foreign Service Officers are made up of mid-career entrants?

How can MFA also work with overseas Singaporeans and agencies, such as Enterprise Singapore, to enhance its capabilities?

The Chairman: Ms Joan Pereira, you have two cuts. You can take both together.

Engaging the Public on Foreign Policy

Ms Joan Pereira (Tanjong Pagar): Mr Chairman, given our fundamental realities as a small country and an open economy dependent on global trade, Singapore is exposed to the headwinds of global developments. This has been compounded by technological innovation. We all know technology bridges physical distance. When we watch videos or read accounts of events that take place far from Singapore, it does not matter that they may be happening thousands of miles away. They have an effect on us intellectually, as well as emotionally, and shape our views on how Singapore should conduct itself on the international stage. At the same time, social media has led to a greater proliferation and contestation of narratives in the marketplace of ideas, with fake news being a growing and very real threat.

Given these developments, it has become even more important for the Government to communicate clearly to Singaporeans to foster greater awareness and understanding of the foreign policy stance that Singapore takes. What are the key principles that Singaporeans should know on Singapore's foreign policy? As a multi-ethnic and religious country, how concerned should Singaporeans be that foreign policy issues may be dragged into the domestic discourse?

Singapore is ASEAN Chair this year. Could the Ministry share with the man-in-the-street what it means for Singapore to be ASEAN Chair? What are its significance and impact on us as a nation?

Technical Cooperation

Mr Chairman, as a country whose only resource is its people, Singapore believes that human resource (HR) development is vital for economic and social progress. We take this very seriously. Last year, the World Economic Forum ranked Singapore top in Asia for developing human capital. Globally, we were ranked 11th out of 130 countries. Singapore benefited from technical assistance provided by other countries and international organisations in our early post-Independence years. We are now in a good position to help others by sharing our development experience.

I understand that our main conduit of assistance has been through the Singapore Cooperation Programme (SCP), and we have worked with various partners to deliver training programmes for developing countries. How has SCP supported our engagement of other countries?

Overseas Singaporeans

Mr Ong Teng Koon (Marsiling-Yew Tee): Mr Chairman, Singaporeans are going overseas to live, study and work in increasing numbers. Many of them have become prominent leaders in their chosen fields. Despite spending many years abroad, there is a large number of such Singaporeans who continue to maintain ties with families and friends here. They remain spiritually rooted in Singapore and are proud to be Singaporeans and not just because they missed the local hawker food. In many ways, they are also the face of Singapore to those with whom they interact in their new countries. They are also often called upon to explain and, sometimes, to defend Singapore's policies and actions.

Given their unique position of being Singaporeans immersed in another society and culture, is there a role for overseas Singaporeans to advocate for Singapore, presenting our point of view to the rest of the world? If we believe that this can be a significant source of soft power for Singapore, I would like to ask the Minister what can we do to help them in their role.

Consular Support

Miss Cheng Li Hui (Tampines): Singaporeans are increasingly well travelled. Many Singaporeans work and study overseas and based in foreign lands for many months and even years. Many also make short business trips and holidays.

When we are abroad, we are largely on our own and would have to be alert and careful. But despite our best plans, our overseas trips can often be thwarted by unforeseen circumstances that could range from natural disasters to terror attacks. These are beyond the control of any of us and it can create stress for Singaporeans overseas and even pose dangers to their lives. The affected Singaporeans would then require assistance and support, and their families and friends back home will also be concerned with their status and well-being. We do not need to look far for past examples. Many Singaporeans who had made travel plans to Bali last December were unable to proceed due to Mount Agung's eruption. Terrorist attacks in European countries, as well as unrest in other parts of the world, will require Singaporeans to be ever vigilant when abroad.

In view of the potential dangers that Singaporeans may face overseas, what are some of the measures that MFA has taken or is planning to take to assist Singaporeans in such circumstances?

The Chairman: Minister Vivian Balakrishnan.

The Minister for Foreign Affairs (Dr Vivian Balakrishnan): Mr Chairman, now, to discuss my day job in MFA. I want to thank all the Members for your very insightful contributions and comments. I want to commend Mr Low Thia Khiang, Ms Sylvia Lim and Mr Pritam Singh for your also very constructive comments. In fact, I listened to you very carefully and I could not find anything to disagree with you. And I am sure our foreign partners will notice that there is bipartisan support for our approach to foreign policy. Indeed, as a small open state, we need the bipartisan support. So, I am grateful for your constructive contributions and for the bipartisan support that we enjoy.

There are at least three key political issues, if I could summarise. First, how do we manage our relations with the major powers, given the rapidly evolving geopolitical balance of power? The second set of issues is, as ASEAN Chairman, how do we strengthen ASEAN’s unity, centrality and value proposition, and value proposition not just for outsiders but including our own people? The third political issue is that Singapore is an open multiracial, multi-religious city-state, a sovereign country in the heart of Southeast Asia. How do we protect our unique identity, our domestic unity and our sovereignty from the inevitable foreign influence and, especially from the primordial pulls of ancestry, race, language and religion? And yet, as Mr Low Thia Khiang mentioned yesterday, this cultural arbitrage is also Singapore's competitive advantage. So, we need to be aware of all the opportunities as well as the challenges that confront us because of our unique position.

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In his Budget Statement, the Minister for Finance identified three major transformations. Members have heard about them.

A shift in the global centre of gravity towards Asia, and that, basically, as Mr Low says, is China, India and ASEAN itself.

Second, the emergence of new technologies and the impact it will have on jobs, the economy and even attitudes to free trade.

Third, an ageing population. The ageing population is especially an issue that confronts Singapore and China, and the fact that, in contrast, for ASEAN as a whole, 60% of ASEAN is below the age of 35.

These three trends present us with both opportunities and threats. What we are trying to do is that as Asia grows, to make use of our unique identity, unique position and even our unique cultural arbitrage in order to ride on our region's growth and dynamism.

But even as we do this, we must also be mindful that there are multiple transboundary pitfalls. For instance, protectionist nationalism is on the rise. Terrorism is a clear and present threat. In the midst of the digital revolution, cybersecurity breaches and “fake news” have eroded trust in institutions and divided societies. In fact, sometimes, they have even become a tool of foreign policy.

Singapore’s foreign policy, given our unique position, has always been guided by five key principles.

First, Singapore has to be successful and vibrant. If we are not successful, we are not relevant. As Minister Mentor Lee Kuan Yew said a long time ago, the world will not miss us if we disappear as a small state. There is no irreplaceable function that a small state provides the rest of the world.

Second, we must preserve our ability to make independent sovereign decisions based on our own national interests, and we must not become a vassal state. We are not for sale and we are not going to be easily intimidated.

Third, Singapore aims to be a friend to all. What this means is that we do not wish to be forced to choose sides, nor to be caught in proxy battles.

Fourth, we promote and we believe in a global rules-based order with international law and international norms. If you think about it, this is essential precisely because we are a small state.

Fifth, we must be a reliable, credible and consistent partner. For us, we do not have the luxury of changing, flip-flopping, changing our views quickly over time, or saying different things to different partners. We need to be reliable, credible and consistent.

I will start by addressing our relationships with the major powers. Mr Amrin Amin asked about our relationship with China. Many Members have also asked about US-China relations and their dynamics, and how that affects us.

With China, our relations, our track record of cooperation are deep, long-standing and substantive. Last September, Prime Minister Lee Hsien Loong visited Beijing at China’s invitation. The timing was significant because it was just a couple of weeks before China's 19th National Congress of the Communist Party of China. We did not expect that they would have the bandwidth; nevertheless, they invited the Prime Minister.

When the Prime Minister met President Xi Jinping, President Xi emphasised that Singapore and China had no fundamental disagreements, no conflicting interests and no differences on basic principles. I am quoting him and we will convey the exact words in Chinese words to the media later on. In fact, this is our own long-standing belief. We have always believed that a successful China, a stable China, is good for our region. The rise of China and the elevation of hundreds of millions of people from abject poverty to middle class is the biggest story of our lifetime. And, as Mr Low Thia Khiang said yesterday, as people with Chinese ancestry at a cultural level and emotional level, we must take pride and joy in that achievement. But we are also aware that we are not Chinese citizens and Singapore is the only political entity, the only state in the world, where Chinese are a majority, but we are not under the Communist Party of China.

We have always consistently supported China's strategic economic development. This is clearly evident from our unique government-to-government projects: Suzhou Industrial Park, Tianjin Eco-city and, more recently, the Chongqing Demonstration Initiative. In fact, surprisingly, Singapore has been the largest foreign investor in China since 2013. Of course, our role will have to evolve because, unlike the past two-and-a-half decades when we were investing and we were moving concepts and ideas into China, today, China has become a net exporter of capital and technology. So, our role inevitably must evolve to keep up with the times.

The other point that we must anticipate and must expect from time to time is that there will be issues of differences between Singapore and China. After all, we are two sovereign states with very different national circumstances. So, we must expect differences in perspectives and we must not get flustered even when pressured. This is to be expected. This is almost par for the course in international relations because you cannot expect two countries’ interests to be completely identical. It is no secret. I mean we have had some bumps along the way, but I would say these episodes over the last two-and-a-half years have helped both sides to understand each other’s position better. I think it has made for a more mature relationship.

Currently, we are negotiating an upgrade to the China-Singapore FTA. This will further enhance market access for our companies and create more jobs for Singaporeans. Of course, we also want to see more Chinese companies accessing opportunities in Southeast Asia through Singapore.

Our multifaceted cooperation is constantly evolving. Both sides have identified new areas for cooperation. We have the Joint Council for Bilateral Cooperation (JCBC), co-led by Deputy Prime Minister Teo. We have now identified finance, legal and judicial sectors. One example was the inaugural Singapore-China Legal and Judicial Roundtable held last year. These initiatives will complement the existing high-level fora on economic cooperation, social governance and leadership. All, again, are incidentally chaired by Deputy Prime Minister Teo. These extensive and high-level engagements between China and Singapore epitomise the long track record that builds trust and confidence.

The B&R Initiative is another major opportunity of cooperation. When I visited China in June last year, Foreign Minister Wang Yi and I agreed to establish three platforms to deepen B&R cooperation: first, on infrastructural connectivity; second, on financial connectivity and support; and third, to look for opportunities for third-party collaboration, including joint training for officials from other B&R countries to work and to exploit opportunities that the B&R Initiative provides.

The potential is huge. Singapore accounted for 85% of total inbound investments to China from B&R countries. And nearly one-third of China's outbound investments to B&R countries actually flow through Singapore. I did not quite believe these figures. I double-checked with my staff and they said yes, these figures are from China itself.

We are working together to connect the overland Silk Road Economic Belt with the Maritime Silk Road through a new "Southern Transport Corridor" which links Chongqing in western China, to Beibu Gulf in Guangxi. Our businesses can expand into western China through Chongqing, just as Chinese companies can use Singapore as a gateway into Southeast Asia. This creates a "mutual hub effect", which benefits businesses and people. And, as I said, by interconnecting the overland Silk Road with the Maritime Silk Road, it still maintains Singapore as a hub.

Let me turn to the US. The US is a long-standing, close strategic partner. We have had mutually beneficial relations over the last 52 years. Defence ties form the backbone of the bilateral relationship. Let me give a recent example. When Hurricane Harvey struck last year, we quickly deployed four Republic of Singapore Air Force (RSAF) CH-47 Chinook helicopters and 34 of our own servicemen from a training detachment in Grand Prairie, Texas, to help with the relief efforts. RSAF was able to work seamlessly with their American counterparts because of the regular training between both sides. We have 1,000 SAF servicemen training in various detachments in Arizona, Idaho and Texas on the F15s, F16s, Chinooks and Apaches. No other foreign state has more troops on US soil.

Our strong trade, investment and business ties with the US are underpinned by the 2004 US-Singapore FTA. In 2016, the US was the top foreign direct investor in Singapore, with investment stock worth S$281 billion. The US is Singapore's largest trading partner in services and the third largest trading partner in goods. Our total trade with the US stood at almost S$140 billion.

There are over 4,200 US companies here, which help create good jobs for Singaporeans. US exports to Singapore and Singapore investments in the US support over 250,000 American jobs. This is a statistic we shared with President Trump to make the point that he has real skin in the game in Southeast Asia and, especially in Singapore. Singapore is the second largest Asian investor in the US, second after Japan, and Asia’s No 1 buyer of US commercial property. And, I think, these are investments.

Last month’s Singapore Airshow showcased our strong defence and economic cooperation. The US fielded the largest foreign delegation with 170 exhibitors. US aerospace exports to Singapore totalled almost US$5 billion in 2016.

These deep economic linkages have given Singapore access to US markets and US technology and allowed Singaporeans to learn with and from the best in the US, including the academic and research institutes.

Prime Minister Lee's visit to Washington last October reinforced these fundamentals. President Trump described Singapore as one of the US’ “closest strategic partners in Asia”. President Trump has accepted Prime Minister Lee's invitation to visit Singapore later this year. We look forward to receiving him.

There have been questions about the US' commitment to the liberal world order and free trade as we know it. One statistic which I think Members of the House should be aware of is that, in 1960, the US GDP was 40% of global GDP. In 2017, although the US GDP has grown, as a proportion, it has shrunk to 25% of the global GDP.

6.45 pm

The reason for giving Members these statistics is to make you all appreciate that it is a completely legitimate political exercise within domestic US politics to ask why they should unilaterally underwrite the global world order as we have known it for the past 70 years when their share is shrinking. I say this because you need to look for deeper trends beyond the headlines and the personalities. But the point we make is that the US has had a headstart here. The US has enormous investments in Southeast Asia; the US has significant reservoirs of goodwill. It is theirs to lose, even as they sort out their domestic political questions.

For us, because of our close relationship with both the US and China, clearly, we hope that there will be a stable US-China relationship because, if they maintain the peace, there will be peace, stability and prosperity in the Asia Pacific. We enjoy good relations with both. We want, and, in fact, are well-suited to be part of the common circle of friends. Remember my earlier point about not being forced to choose sides.

So, we must anticipate that there will be an element of competition between the US and China. But the big difference from, say, the Cold War, is that the US and China are highly interdependent in a way which was never present in the relationship between the Soviet Union and the US.

So, we hope that both sides will see that there is too much to lose by confrontation and conflict. We, of course, view a trade war with great concern. We have seen some early salvos, for instance, the tariffs that the US is imposing on solar panels, even washing machines. The target was China and Korea. But because Singapore also makes solar panels, we also become collateral damage. This illustrates the danger of a full-blown trade war.

Let me turn to ASEAN. It has always been a cornerstone for peace and prosperity in our region. ASEAN unity enlarges our strategic and economic space, amplifies our voices on the international stage, and promotes an open and rules-based inclusive regional architecture. The alternative, if we did not have ASEAN, is to become a bunch of vassal states operating on the principle of “might is right” and being an arena for proxy wars. I think Mr Low Thia Khiang also mentioned that yesterday.

Therefore, ASEAN is a cornerstone of our foreign policy. We will work to strengthen the ASEAN-led regional architecture by working with our ASEAN member states and our dialogue partners.

Our dialogue partners have proposed various regional initiatives. For instance, I mentioned the B&R Initiative just now. More recently, Members may have heard the US, Japan and India talking about a Free and Open Indo-Pacific. Without getting into the details, I would just like to share with Members how I view all these proposals. I basically ask three questions.

First question: whatever the proposal is, whatever the label is, what does your proposal mean for ASEAN Centrality and unity? In other words, will these initiatives keep ASEAN at the core of the regional architecture of Southeast Asia, or will they, wittingly or unwittingly, pull ASEAN apart and force us to choose sides? That is my first question.

Second question: whatever the plan or initiative is, does it facilitate trade, investment, infrastructure and connectivity? Clearly, an economic agenda, because ASEAN has got such growth potential in the next two to three decades. Trade, investment, infrastructure and connectivity are a strategy.

Third question: whatever the initiative, does it support a world order based on international law? And for us, in particular, because we are a port, an island, a city-state, the 1982 United Nations Convention on the Law of the Sea (UNCLOS) is sacrosanct.

Our Chairmanship of ASEAN is an important opportunity for us, in our own small way, to make a positive contribution to a substantive and forward-looking agenda. Ms Sylvia Lim mentioned her concern that, according to a survey, only 13% of Singaporeans expressed interest in ASEAN. I share her concern. But my own take is that I think we take it for granted. After 50 years, we have taken it for granted that there is no war in Southeast Asia, that we transact with one another, have mutual interdependence, investments, trade. When we have disputes, we go to the international courts and we resolve disputes according to international laws. That is at the political level.

Actually, if you look at the people level and you ask yourselves, tourism numbers – Singaporeans are great travellers and ASEAN is our immediate neighbourhood. Huge numbers of Singaporeans travel to ASEAN. If you look at schools and you ask the schools about school trips, lots of trips. On service learning, the Singapore International Foundation (SIF) volunteers, even when you look at both formal and informal volunteer groups and what our students and young people do in the more rural areas, even in Indochina.

If you ask our businesses what their investments are across Malaysia and Indonesia, actually, if you do a proper catalogue, I think we are fully invested in ASEAN. It is just that, I think, we take it for granted. But I take the Member's point. We need to raise the flag of ASEAN more. I am always intrigued that if you go to any ASEAN member state embassy, you will see us flying two flags ‒ our own national flag and our ASEAN flag. But you do not often see the ASEAN flag in Singapore. So, I take the Member's point that we do need to fly the flag more and to make our people appreciate how important ASEAN is to us.

Our Chairmanship themes for this year are “resilience” and “innovation”. It expresses our hopes for ASEAN to meet future challenges, particularly to deal with emerging issues like digital disruption. After all, this is what we are also doing at the local level. How do we deal with the digital revolution? In fact, this is an opportunity for us to do more with our fellow ASEAN members.

One key initiative is the ASEAN Smart Cities Network. We envisage it as a platform for ASEAN cities to share best practices, urban solutions, new technologies. But I think the most important thing is we are looking for interoperability, whether you are talking about e-payment systems, ASEAN single trade windows, facilitation of travel, facilitation of even the ASEAN self-certification regime in order to make it easier to export goods and services. We want to do all these because, in fact, there is tremendous potential for intra-ASEAN trade.

Someone asked about the model ASEAN Extradition Treaty. Negotiations are not over yet but making good progress. As ASEAN Chair, we will have to work hard to maximise our common ground and keep ASEAN united. Let me also tell Members very honestly that it will be difficult. For instance, some Members ‒ I think it was Mr Louis Ng and Mr Christopher de Souza ‒ asked about the situation in Rakhine state.

Members are familiar that one of the founding principles of ASEAN is non-interference in domestic affairs. So, we cannot directly intervene. But I would say this is a humanitarian disaster of the highest order. Secondly, if this problem is not resolved properly, we will end up creating yet another flashpoint, yet another sanctuary for extremists and terrorists, and it will become another transboundary threat. So, in our own quiet, behind-the-scenes way, we have to try to make a positive difference.

ASEAN agreed to mobilise the ASEAN Coordinating Centre for Humanitarian Assistance (AHA) to deliver assistance to the affected communities in Myanmar and, when we delivered it, we insisted that it should be delivered without discrimination. All communities who need help should receive our help.

To date, the AHA Centre has delivered at least two loads of relief supplies worth US$500,000 to the Myanmar government. We have also deployed an ASEAN Emergency Response and Assessment Team to assist in the humanitarian relief efforts.

We had an ASEAN Foreign Ministers' Retreat last month. Myanmar gave us a briefing, and we urged Myanmar to continue implementing the recommendations made by the Advisory Commission on Rakhine State which was led by former UN Secretary-General Kofi Annan. We encouraged the expeditious commencement of the voluntary return of the refugees. But it has to be done in a safe, secure and dignified way, without undue delay. Frankly, these are easier said than done when you consider what has already transpired on the ground.

We have also emphasised that the responsibility for resolving this complex problem ultimately rests with Myanmar and the stakeholders within Myanmar. Singapore and ASEAN will continue to do our part by encouraging all partners to work towards a long-term and comprehensive political solution, and to create a conducive environment for affected communities to rebuild their lives. So, this is an example. There will always, from time to time, be an issue that tests our fundamental principles and our ability to make a positive contribution.

Another area that we are focused on right now is the ASEAN-China relationship. We are reaching the end of our third year of our coordinatorship of the ASEAN-China Dialogue relationship. In these three years, we have been able to strengthen the relationship despite the challenges, and it will culminate with 2018 designated as the "ASEAN-China Year of Innovation".

This year, 2018, marks the 15th Anniversary of the ASEAN-China Strategic Partnership, which we will commemorate with a statement on the ASEAN-China Strategic Partnership Vision 2030. This sets a roadmap for the future of the strategic partnership.

ASEAN and China will also commence negotiations on the Code of Conduct of Parties in the South China Sea this year. This is a significant milestone. It will serve, we hope, to reinforce the rules-based regional order. And as ASEAN-China coordinator, we will continue to be an honest broker. We will work closely with all sides to narrow the differences. I cannot promise it will be delivered soon because of the complexities involved.

Ms Sun Xueling asked about economic integration and free trade. Actually, free trade all over the world is unfairly blamed for the economic problems that, in fact, are the result of technological disruption. We believe – and we have been discussing it during the Budget Debate – that the answer is not to build walls or to retreat from global competition. We believe we have to double down on restructuring our economies, upgrading the skills of our people, supporting innovation and pursuing business opportunities globally.

This is why the AEC is important. This was launched in 2015. I have been told that, so far, that plan had 609 measures and 536 of them have been implemented. But without getting into the fine print, the point is that AEC is an attempt to enable our companies to better access ASEAN's dynamic market of more than 600 million people where, as I have said earlier, 60% are below the age of 35 and there is enormous investment opportunity.

Fundamentally, I am glad that we do not argue about this in Singapore because, in Singapore, trade is our lifeline. No other state has a trading volume that is three-and-a-half times its GDP. It is trade that allows our companies to expand beyond our small market and to create jobs for Singaporeans.

Although I have said that global consensus is eroding, the outlook is actually not so bleak. For instance, the 11 remaining parties of the TPP have concluded talks and, on 8 March, in Chile, Minister Lim Hng Kiang will have to make a long journey to sign the Comprehensive and Progressive Agreement for TPP (CPTPP). Frankly, this exceeded my expectations. However, even with just 11 members because the US has pulled out, it still represents about 500 million people, and a $10 trillion-dollar economy collectively. We will continue to leave the door open for the US. We will wait and see.

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In the meantime, we also hope to make substantive progress this year on RCEP. This RCEP comprises 10 ASEAN members and the six dialogue partners with whom we have existing FTAs, that means, India, China, Japan, South Korea, Australia and New Zealand. Some people have asked us if CPTPP and RCEP are two rival blocs or rival agreements. I say no. As far as Singapore is concerned, these are complementary building blocks because what we envisage ultimately is a Free Trade Area of the Asia Pacific.

Members would also know that we just signed an FTA with Sri Lanka last month. There are some complexities involved with the EU-Singapore FTA that we are sorting out. It has been signed and it is just a question of ratification.

Singapore is an associate member of the Pacific Alliance, which consists of Chile, Columbia, Mexico and Peru. Mercosur is also looking at exploring an FTA with Singapore as a step, ultimately, perhaps to a regional agreement between Mercosur and ASEAN. I have been in this business long enough to know that when I used to go to South America 10 or 15 years ago, they were not interested in FTAs with us or with ASEAN. Yet, the mood has changed. The tide has changed.

Assoc Prof Dr Muhammad Faishal Ibrahim asked about our immediate neighbours. So, let me report, first, Malaysia and Indonesia. We know these are our closest neighbours, of utmost importance. And with the right spirit of cooperation, we embark on win-win initiatives, strengthen bilateral ties and allow our companies to tap on the dynamic Malaysian and Indonesian economies.

But you know as well as I do, our relations will always be complex, and issues will surface from time to time. When they do, again, have a sense of perspective. Do not let a single issue derail the overall relationship.

With Malaysia, we have continued to set new milestones recently. At the 8th Singapore-Malaysia Leaders' Retreat in January, Prime Minister Lee and Prime Minister Najib Razak officiated the opening of the Marina One and DUO joint venture developments, which have a combined Gross Development Value of S$11 billion. Members will remember that these projects came about as sequelae to the settlement of the Points of Agreement on the Malaysian Railways (KTM) land.

We also signed the Johor Bahru-Singapore Rapid Transit System (RTS) Link Bilateral Agreement. The RTS Link, when completed in 2024, will dramatically change the way hundreds of thousands of travellers who shuttle between Johor Bahru and Singapore each day.

Then, we also have the Kuala Lumpur-Singapore High Speed Rail which is also progressing well. The tender for the Assets Company was called last December. It will close in June. The results of the tender will be announced in about a year's time and will be conducted in a fair, open and transparent manner.

Such long-term strategic projects enhance our interdependence, give us all a greater stake in each other's success and demonstrate the tangible benefits of stable and positive ties.

There have been questions even about Pedra Branca at the International Court of Justice. Let me just put it very simply. We will not let this issue define or derail our relationship. The most important point is this, that when we have a difference, we seek peaceful resolution according to international law.

I should say or should remind Members that Malaysia will soon hold its General Election. Again, we know from past history that every time election rhetoric heats up, sometimes, Singapore becomes part of the political fodder. On our part, we must ensure that we do not get drawn into their domestic politics, nor will we allow the import of foreign countries' politics into Singapore.

With Indonesia, our bilateral cooperation remains deep and multifaceted. Last year, Singapore and Indonesia commemorated "RISING50" – the 50th anniversary of diplomatic relations. We have been working to enhance economic linkages in digital economy, tourism and skills training.

Singapore remained Indonesia's top foreign investor in 2017, with realised investments at US$8.4 billion. We are each other’s second biggest source of tourists.

The recently launched joint venture in Central Java, the Kendal Industrial Park, is doing well. Thirty-six companies have committed as tenants, with investments valued at over S$600 million, and with the potential to create 5,000 jobs.

We are also working with Indonesia on a digital industry cluster in Batam and to participate in the tech startup ecosystem in Jakarta which, by the way, has quite a thriving digital scene.

We also continue to work closely to strengthen counterterrorism efforts.

And since I used to be the Environment Minister, I need to say that we appreciate the concerted efforts of President Joko Widodo and the provincial leaders to manage the haze situation. This year, it is better. We are committed to working with Indonesia to tackle this transboundary issue.

I just visited Jakarta last month, had a good series of meetings with my counterpart Ibu Retno Marsudi and other Indonesian leaders across the political spectrum. There is consensus across the board that the Singapore-Indonesia partnership is valuable and brings mutual benefits, and so long as we can continue this positive tenor, we can manage the inevitable differences which still remain.

Overall, we believe in the "Prosper Thy Neighbour" policy. We want Malaysia and Indonesia especially to succeed – good for us, good for the region.

Brunei is a close and special friend. We celebrated the 50th Anniversary of the Currency Interchangeability Agreement (CIA) in July 2017, during the fourth State Visit of His Majesty the Sultan. And this CIA is a unique long-standing arrangement that has brought economic benefits for both Brunei and Singapore. It has lowered business costs and allowed us to interoperate.

Prime Minister Lee attended the Sultan's Golden Jubilee celebration last October, which is another occasion to reaffirm our close relationship.

Members may have heard that Brunei had a Cabinet reshuffle recently. We are familiar with many of the new Ministers because we have had regular exchanges over the years. And we are looking forward to working with the new team to further take our special relationship to new heights. We continue to foster close ties among the younger generation of Bruneian and Singapore leaders through the annual Young Leaders' Programme, led by His Royal Highness Crown Prince Billah and Deputy Prime Minister Teo Chee Hean.

There were some questions on relationships with other key partners – Japan, Australia and India.

With Japan, our relations are close and multifaceted. Last month, we hosted Foreign Minister Taro Kono. Deputy Prime Minister Tharman Shanmugaratnam visited Japan in February, and the Prime Minister will be there in June. We are elevating cooperation in traditional sectors like trade and connectivity and also examining emerging areas like science and technology. They have the Japan Society 5.0 vision which is very similar to our Smart Nation effort, and because of their lead with technology, we are looking at this as another platform for cooperation. And both of us are ageing societies and that is another common challenge. We will have to see how we can reorganise our societies and use technology to deal with this.

Australian Prime Minister Malcolm Turnbull made an official visit in June 2017 for the 2nd Annual Leaders' Summit. Prime Minister Lee Hsien Loong will be going to Australia later this month. Our close friendship with Australia is underpinned by shared historical experiences and shared strategic perspectives. We elevated our ties with Australia to a Comprehensive Strategic Partnership in 2015, and implementation is well on track. One point I would just highlight is that no other country provides as much space for us to train in as Australia. When you go there, it is multiple times the size of Singapore.

Mr Low Thia Khiang mentioned the emerging importance of India. India's population will exceed that of China, I think, by 2024. And unlike China, India remains young. India hosted an ASEAN-India Commemorative Summit in New Delhi in January, which the Prime Minister attended. We have made good progress on the India-Singapore Strategic Partnership, particularly in smart cities and defence. Prime Minister Narendra Modi is scheduled to deliver the keynote address at the Shangri-La Dialogue in June this year. We look forward to discussing ways to further expand our bilateral ties. Senior Minister of State Mohamad Maliki will give Members more details.

Let me conclude by saying that our diplomatic relations are in good order, and Members would have noticed, I have been more relaxed last year than in the previous year. But we need to stay alert to known unknowns and unknown unknowns or "wild cards".

What are these known unknowns? The tensions on the Korean Peninsula. Singapore has been implementing the United Nations Security Council (UNSC) Resolutions fully and faithfully. We hope that the recent talks between the Republic of Korea (ROK) and the Democratic People's Republic of Korea (DPRK) will help them arrive at a peaceful resolution and, ultimately, we hope that there will be a denuclearisation of the Korean Peninsula.

How we in Singapore weather external shocks boils down to our domestic resilience and unity. I think it was Mr Sitoh Yih Pin who asked about domestic support for foreign policy. So have the Members of Parliament (MPs) from the Workers' Party. Ms Joan Pereira asked about our public diplomacy efforts. Members' questions are really centred on whether we can maintain domestic support and unity for our foreign policy. That is why I said I am grateful that there is bipartisan support in this Chamber.

International issues will increasingly be dragged into the domestic discourse. Our open, multiracial and multi-religious society gives many opportunities for foreign actors who are trying to test our resolve or even undermine our unity.

Singaporeans must be well-informed not only about the multitude and diversity of views but must also appreciate the corresponding tradeoffs that we have to weigh up. Singaporeans also have to be discerning towards "fake news" and not allow ourselves to be distracted and divided.

I wanted to quote our former President Dr Tony Tan at the S Rajaratnam Lecture last year. He said that when someone sends you a message, take some time, reflect on the message, and ask yourself what it really means. Think carefully about who stands to benefit from the proposed message and whether it is in Singapore's own national interest. On this front, MFA has been stepping up its outreach to Singaporeans at various levels. And we do need strong and informed support from the public because foreign policy begins at home.

I also want to thank Mr Desmond Choo and Mr Cedric Foo for their questions on MFA officers and resources. I think Members have noticed that MFA is the Ministry with the smallest budget. It is okay, I am not asking for more. I am actually very proud to have some of the most talented and dedicated officers. Over the years, MFA has worked on a rigorous selection system and an equally rigorous nurturing system. This includes even bringing in mid-career entrants with the relevant skillsets and experience.

It is up to us to optimise our limited resources to provide our officers with continuous training. But I think, most of all, what really motivates our officers is that sense of meaning and significance that they are advancing Singapore's interests, protecting sovereignty, expanding opportunities for businesses, looking after Singaporeans who get into trouble. And that is especially for our consular services, which, for most Singaporeans, is the public or human face of MFA.

I would like to add that the MFA families pay a very heavy price – the trailing spouse who has to compromise his or her career; the children of MFA diplomats who are deprived of a Singaporean childhood. We should bear in mind that this is a family enterprise. What I have tried to do in my time there is to give credit and to emphasise family, and to tell my officers that they never need to be embarrassed about saying that they need to do something or that they need to take some time out because they need to address family needs. I am sure you would all agree.

7.15 pm

Let me conclude by saying we must maintain a realistic view of the world as it is, not as we hope it to be. We have to seek the right balance, promote regional unity and pursue global economic opportunities wherever these arise. In terms of style, we will continue to adopt a quiet, friendly but firm style of diplomacy. We will be honest, competent, reliable and constructive partners.

Most of all, diplomacy begins at home. Our foreign policy rests on a domestic consensus on our national interests. I will continue to work with all Members in this House to reach out to Singaporeans to build a deeper appreciation of the fundamental truths, the hard truths, that underpin our foreign policy, and to develop a shared national instinct against external attempts to pressure, influence or divide us. [Applause.]

The Chairman: 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 spoke about Singapore’s main foreign policy priorities. I will elaborate on Singapore’s relations with countries in the region and beyond.

For good reasons, we place great importance on engaging our regional neighbours. Our future is inextricably linked to the region. A peaceful and stable Southeast Asia is a necessary condition for Singapore’s security and prosperity. ASEAN is our largest trading partner with 630 million people and a combined GDP of US$2.55 trillion. In 2016, Singapore’s trade with ASEAN amounted to US$217.1 billion – more than a quarter of Singapore’s total trade. Last year, around a third, or 6.2 million, of our total visitor arrivals came from ASEAN. We see tremendous potential and opportunities in our region as ASEAN is expected to become the fourth largest economy in the world with a GDP of US$10 trillion by 2030. With 60% of ASEAN’s population under the age of 35, there are also demographic dividends to be reaped.

Therefore, we have pursued collaborative relations with our Southeast Asian neighbours, in particular, the provinces and regions outside the capitals of our two closest neighbours.

Malaysia and Indonesia are large dynamic markets. There are opportunities to deepen our engagement at the state and provincial levels. We have had visits by leaders from Sabah, Sarawak and Johor, as well as from Jambi, North Sumatra and Kepulauan Riau (KEPRI). We have visited places like Malacca, Perak, South Sumatra and West Java. There is much unfamiliarity with Singapore in these places and vice-versa, especially among the youths.

It is important to understand our neighbours at the local level and provide opportunities for them to know us. What happens at the local level has an impact on their national politics and economies. Some provincial leaders have also taken higher office at the national level. There are also potential economic opportunities in these states and regions for our businesses. Given our close proximity, Singapore cannot be immune. For instance, I have met pesantren students as well as undergraduates in Riau and Jambi. The students were keen to discuss various topics, ranging from maintaining religious and racial harmony to the Singapore education system. Both the students and I came away richer from having better understood each other’s perspectives.

Mr Baey Yam Keng asked about our relations with other Southeast Asian countries. We keep up regular high-level exchanges to deepen bilateral ties. Last November, President Halimah Yacob attended the Royal Cremation Ceremony of His Majesty the late King Bhumibol Adulyadej of Thailand. Prime Minister Lee Hsien Loong visited the Philippines and Vietnam twice last year. Emeritus Senior Minister Goh Chok Tong and Minister Vivian Balakrishnan visited Myanmar, while Minister Vivian Balakrishnan also made introductory visits to the Philippines and Cambodia. We hosted Laos Prime Minister Dr Thongloun Sisoulith as well as senior Vietnamese leaders. I also visited Brunei twice last year, including for Hari Raya Open Houses. We have been doing this for several years now, and our friends from Brunei likewise visit Singapore during the Hari Raya season.

Such interactions also provide opportunities for Singapore companies venturing into the region. For example, Avoidance of Double Taxation Agreements with Laos and Cambodia came into force last year. We are also in the process of negotiating a Bilateral Investment Treaty with Myanmar, which will give better protection for our companies. International Enterprise (IE) Singapore recently signed a Memorandum of Understanding (MOU) with the Philippines Bases Conversion and Development Authority for Singapore to participate in the development of New Clark City.

While Southeast Asia remains the cornerstone of Singapore’s foreign policy, we should not lose sight of important regions elsewhere. In this globalised world, events elsewhere also affect Singapore. I will talk about three regions in particular – South Asia, Africa and the Middle East.

First, South Asia. In response to Mr Liang Eng Hwa and Mr Murali Pillai, South Asia enjoys long-standing linkages to Southeast Asia. Politically, South Asia is an important part of the larger Indo-Pacific region which adjoins Southeast Asia. Economically, the region is driving growth in Asia. South Asia's GDP is fast approaching US$3 trillion.

Our relationship with India remains broad-based and deep. Singapore is India’s 10th largest trading partner and second largest foreign investor. We have made steady progress through the India-Singapore Strategic Partnership, particularly in skills development and smart cities. We also worked with our economic agencies to support our companies’ expansion efforts in India. For example, PSA inaugurated the Bharat Mumbai Container Terminals, which is now India’s largest container terminal. In keeping with India’s moves to digitalise its economy, we are also exploring new areas of cooperation, such as in financial technology (fintech). India’s technology startup scene is fast developing, with over 5,000 tech startups in 2017 alone. Singaporean startups, such as Anchanto, Shopmatic and ViSenze, are venturing into India to tap on its potential.

With the decentralisation of the government in India, we have actively engaged individual states, such as Maharashtra, to support Singapore’s business interests. Following the State’s Chief Minister Devendra Fadnavis’ visit to Singapore last year, a joint working group to share expertise and speed up investment proposals was proposed. We have also been supporting the development of Andhra Pradesh’s new capital city, Amaravati. India's Act East policy has put a spotlight on connecting the northeast of India to Southeast Asia. We have launched a third skills centre in Guwahati, Assam, last year, after Delhi and Udaipur. Singapore’s experience in technical and vocational training is helping India upskill its youth and support our business interests.

We recently signed an FTA with Sri Lanka during Prime Minister Lee Hsien Loong's visit to Colombo. This is Sri Lanka’s first modern and comprehensive FTA that not only highlights the economic opportunities but also provides savings for Singapore’s companies. Bangladesh has also significant potential. Singapore contributed the highest net inflow of FDI to Bangladesh in the past two years. Bangladesh Prime Minister Sheikh Hasina will visit us in a few weeks' time. We will discuss economic cooperation and investments by Singapore and Bangladesh companies.

Next, Africa. Africa is a vast continent of 54 countries that we cannot ignore. While many of us may be unfamiliar with Africa, Members would be surprised how many Africans know about Singaporeans and Singapore. I am constantly reminded during my trips to Africa of Singapore's reputation there, and the goodwill and trust that Africans have of us. Many leaders from these countries have told me that they have all read founding Prime Minister Lee Kuan Yew’s memoirs and want to learn more from us.

As Africa grows, we seek to position Singapore to take advantage of the economic opportunities. Africa’s GDP is expected to reach US$3 trillion by 2030. Our trade with Africa has been going strong, reaching S$8 billion in 2017, an increase of 13% from 2016. This year, we will host the 3rd High-Level Ministerial Exchange Visit from Africa, which will focus on how Singapore can partner Africa in smart city development.

We are working to put in place key economic frameworks, such as Avoidance of Double Taxation Agreements and Bilateral Investment Treaties, so that Singapore companies will find it easier to do business in Africa. We are also making progress in aviation connectivity. Ethiopian Airlines relaunched flights to Addis Ababa, in addition to direct flights to Mauritius and South Africa. Expanded air links will help boost business and tourism.

Assoc Prof Fatimah Lateef asked about our engagement in the Middle East. It remains an important region for Singapore on several fronts. Singapore's total trade with the Middle East grew by about 24% to S$52.7 billion last year.

Economic reforms in many Middle East countries provide unprecedented opportunities. For instance, Saudi Arabia’s Vision 2030 and National Transformation Programme 2020, hold bold and comprehensive reforms to diversify its economy from oil and to open up the country. Our companies can tap on opportunities in areas, such as infrastructure development, healthcare and smart technologies.

There is also good momentum in economic exchanges with UAE, our largest trading partner in the region. A Singapore company, Rotary Engineering, won a contract to build 12 storage tanks for Dubai’s Emirates National Oil Company, increasing storage capacity by 50%. Last year, the UAE Embassy in Singapore, the Singapore Business Federation and the Abu Dhabi Chamber of Commerce and Industry, set up the UAE-Singapore Business Council to link up companies and investors.

Our presence in the Middle East extends to North Africa and Central Asia. My visit to Lebanon in May 2017 marked the first visit by a Singapore political officeholder to Lebanon since 1974. We rekindled our ties with the Lebanese leadership and agreed to explore cooperation in areas of shared interests, such as counterterrorism and technical cooperation. This year, I plan to bring a business delegation to Morocco to explore prospects for economic collaboration. A few days ago, Singapore and Tunisia signed an Avoidance of Double Taxation Agreement. Besides these, we continue to engage Iran. At the political level, I visited Iran last year and the Singapore Business Federation has mounted business missions to explore the Iranian market. For Central Asia, I met both the Mayors of Astana and Almaty during their visits to Singapore last year. They had promising discussions with Singapore companies to explore economic ties with Kazakhstan.

Our people-to-people ties with the Middle East are strengthening. The number of Singaporeans travelling to, living, studying or working in the Middle East is increasing. Wherever I have travelled, I have met many who have visited and spoke fondly of Singapore.

Our universities have many exchange programmes in the Middle East. Over 500 students have participated in Singapore Management University's (SMU’s) Business Study Missions to the Gulf Cooperation Council (GCC) countries. The National University of Singapore (NUS) Overseas College in Israel has also allowed many to experience Israel’s dynamic economic, business and entrepreneurship culture. Since 2007, NUS’ Middle East Institute has promoted a deeper understanding of the region by regularly inviting academics and experts from the Middle East for lectures and workshops.

Our engagements in the Middle East take place against the backdrop of a dynamic and complex region with rapid developments. Events unfolding in the region reverberate across the world. Last year alone, we saw the Gulf diplomatic crisis and the Israeli-Palestinian issue erupt. I had the opportunity to listen to different sides involved in the disputes. Singapore respects their position and we do not take sides. It is our hope that all parties will be able to resolve their differences amicably.

7.30 pm

Singapore has maintained our consistent and principled position to uphold international law and support the peaceful resolution of disputes, including on the Israeli-Palestinian conflict. This has always been our approach, regardless of the vagaries of Middle East politics.

Minister Vivian Balakrishnan had explained in January 2018 Singapore’s vote in favour of the UN General Assembly resolution on the status of Jerusalem. Singapore’s vote was based on a key principle of Singapore’s foreign policy, which is the promotion of a rules-based global community, governed by the rule of international law, including abiding by UNSC Resolutions and the peaceful resolution of disputes. We voted in favour of the resolution as it reaffirms previous UN resolutions, rejects any decisions or actions which purport to alter the character and status of Jerusalem, and calls for all States to comply with existing UNSC resolutions on Jerusalem. Before this, we had also voted in favour of UN General Assembly Resolution 37/123C in 1982, which deplored the relocation of diplomatic missions to Jerusalem, which was a violation of UNSC resolution 478 (1980). Any unilateral and premature action that might alter the status of Jerusalem will impede progress towards a just and durable solution to the Israeli-Palestinian conflict. The future status of Jerusalem should be decided through direct negotiations between Israel and the Palestinians. Let me elaborate in Malay.

(In Malay): [Please refer to Vernacular Speech.] The status of Jerusalem is a complex and sensitive issue with a long history. Any unilateral and premature action that might alter the status of Jerusalem will impede progress towards a just and durable solution to the Israeli-Palestinian conflict.

The future status of Jerusalem should be decided through direct negotiations between Israel and the Palestinians. Singapore has good relations with both the Israelis and Palestine. We have urged both parties to resume direct negotiations and make progress towards a just and durable solution to the conflict.

Therefore, at the recent UN General Assembly, Singapore voted in support of the resolution to reject any decisions or actions that may change the nature or character of the status of Jerusalem. This is consistent with Singapore’s vote in favour of UN General Assembly Resolution 37/123C in 1982, which deplored the relocation of diplomatic missions to Jerusalem.

Our long-standing view is that a two-state solution will help to bring peace and security to both parties. Singapore’s unwavering position on this issue has enabled us to be taken seriously and regarded as a friend who can be trusted and relied upon, and who can play a constructive role in international affairs.

(In English): Mr Chairman, our interests in the Middle East also stems from mutual interest to counter religious extremism together. I have just returned from Kuwait, where the Global Coalition to Defeat the Islamic State in Iraq and Syria (ISIS) discussed how we can build on our successes and continue cooperating to eliminate terrorism. Singapore has played an important role in the region's counterterrorism efforts, lending early support to the Defeat ISIS Coalition. We are the first Southeast Asian country to join the Coalition, and the only Asian country to have contributed both military assets and personnel to anti-ISIS efforts. Ultimately, our contributions towards the security and stability of the Middle East will help keep Singapore safe and secure.

Ms Joan Pereira asked how the SCP supports Singapore’s engagement of other countries. Through SCP, we have shared Singapore’s development experience with over 117,000 foreign officials from all over. SCP participants form a reservoir of goodwill and support for Singapore in international fora as well as their home countries. Past SCP participants include Lao Prime Minister Dr Thongloun Sisoulith and several current leaders, ministers, mayors and governors of neighbouring countries. SCP gives us a useful platform to broaden our cooperation with other countries. We have joint training partnerships with developed countries like the US and Japan, as well as developing countries like Thailand and Argentina, or countries in the region and beyond.

Given the growing number of Singaporeans living and travelling overseas, Mr Ong Teng Koon’s question on their role in advocating for Singapore is timely. In today’s globalised and digitalised environment, foreign affairs are no longer the privileged purview of professional diplomats alone. Increasingly, Singaporeans, especially those living abroad, play a role, too.

When overseas, our citizens may often be asked to explain Singapore’s policies and actions. To do so effectively, an open mind and a friendly disposition help to bridge differences. We do not seek to impose our views on others. By the same token, we must be conscious of who we are and defend what we stand for. We are an independent, sovereign, multiracial country in Southeast Asia. We are not a Chinese, Indian or Malay state, and we must never act based on ethnic or religious identity. When we deal with a foreign country, whether in business or social settings, we should stand firm against external pressures and influences that undermine our national identity, interests and values.

How tall and strong Singapore stands in the international community depends on our own unity and cohesiveness. Whether our people are in Singapore or abroad should make no difference. On our part, as we expand our space, secure our position and advance our interests internationally, MFA will continue to engage Singaporeans overseas. Our embassies regularly organise activities to stay in touch with local Singaporeans and keep them updated on developments in Singapore.

Mr Chairman, I will now turn the floor over to Minister of State Sam Tan to continue.

The Minister of State for Foreign Affairs (Mr Sam Tan Chin Siong): Mr Chairman, MFA has been working closely with our economic agencies to create more opportunities for our people and businesses in Asia, Europe and Latin America. I will elaborate on our efforts to strengthen Singapore’s connectivity to these partners and international organisations through diplomacy and trade.

Apart from the US, nine of our top 10 trading partners are from Asia. Around 40% of Singapore’s merchandise exports were delivered to Northeast Asia last year.

China has been Singapore’s largest trading partner since 2013, and the top investment destination since 1997. Singapore, on the other hand, has been China’s largest foreign investor, also since 2013, while China is Singapore’s largest source of tourists and tourism receipts. Statistics aside, Singaporeans can see and feel the growing economic ties with China. How are we managing this very important relationship in economics and beyond? Mr Chairman, Sir, now please allow me to elaborate in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] Mr Chairman, 2018 marks the 40th anniversary of then-Senior Vice Premier Deng Xiaoping’s visit to Singapore in 1978.

It is often said that "If you do not forget why you started, your mission can then be accomplished."

Successive leaders have built upon the strong foundations laid by founding Prime Minister Lee Kuan Yew and Deng Xiaoping to break new ground. We have institutionalised frameworks that allow officeholders and officials to work together, address common challenges and seek new areas of cooperation. Beyond the three Government-to-Government projects, namely, the China-Singapore Suzhou Industrial Park, Sino-Singapore Tianjin Eco-City, and China-Singapore (Chongqing) Demonstration Initiative on Strategic Connectivity or Chongqing Connectivity Initiative, we also have seven business and economic councils with Guangdong, Jiangsu, Liaoning, Shandong, Sichuan, Tianjin and Zhejiang. We also share many other links in multiple domains, such as culture, education, healthcare, technology and smart nation development, among others. It is for this reason that both sides have described our relations as an "All-Round Cooperative Partnership Progressing with the Times".

Mr Chairman, the global economic landscape is expected to further transform in the coming years. As a centre for trade, transport, and finance, Singapore can partner different companies seeking to venture into Southeast Asia, China, India and other key markets. The Chongqing Connectivity Initiative-Southern Transport Corridor (CCI-STC) will shorten trade routes between western China and Southeast Asia and beyond to Europe. Singapore is also well-placed to provide financial, legal and advisory services to support commercially viable B&R projects. Several Chinese banks have already issued B&R bonds in Singapore.

Confucius said: "Do not worry about not being known, just prove your worth." In other words, do not worry that you are unknown to others, so long as you have the real capability and are learned, other people will accept and appreciate you.

Singapore's relevance to the world depends on our continued success and ability to innovate, adapt and improve. Many Chinese delegations have visited Singapore on study trips and attended courses over the years. We are an interesting case study to the Chinese and other partners, not only because we share good relations, but also because of our pragmatic and time-tested approaches. However, it is not a one way traffic; we are learning from each other and working together for mutual benefit. Today, both sides continue to exchange views through high-level platforms, such as JCBC, the Singapore-China Social Governance Forum, the Singapore-China Forum on Leadership and the Singapore-China Legal and Judicial Roundtable, and so on. Going forward, for Singapore to thrive in the global arena, we have to be resourceful, firmly uphold international law, and do so in a respectful but not submissive manner. If Singapore is to continue playing a constructive international role and protect our interests, we should strive to punch above our weight, expand our international space and create more opportunities for Singaporeans to broaden our horizons and establish our global presence.

(In English): Mr Chairman, now allow me to continue in English. Sir, mutual learning has characterised Singapore’s development journey. As we push on with our Smart Nation vision, we can learn from others. Mr Cedric Foo sought an update on our cooperation with Japan and the ROK. As mentioned by Minister Vivian Balakrishnan, Japan's "Society 5.0" initiative broadly converges with our Smart Nation priorities by leveraging technology and innovation to advance its economy and also to resolve social issues. We are also keen to develop a partnership with the ROK on innovation and smart cities.

7.45 pm

Mr Henry Kwek had requested for an update on our relations with Europe. Sir, Europe remains a long-standing partner for Singapore. While the impact of Brexit unfolds, Europe continues to be a key market and valuable partner in innovation, education and skills development. For example, we are partnering France to expand into industries of the future, such as Fintech, Smart Cities and Emerging Technologies.

The EU is our largest source of FDI. In a climate of increased protectionism, we support our European partners' strong commitment to free trade. While we work towards ratifying the EU-Singapore FTA, we have also begun negotiating the Eurasian Economic Union (EAEU)-Singapore FTA. I am also happy to report that the Singapore-Turkey FTA came into effect last year.

Sir, we continue to strengthen connectivity with Europe. Air traffic between Singapore and the EU has grown at an annual average of 3.8% in the past five years. We have launched direct flights to Stockholm and Athens and will do so for Warsaw and Berlin. Region-to-region connectivity will also be enhanced when we conclude the ASEAN-EU Comprehensive Air Transport Agreement (CATA). With increased connectivity, Singapore will stand to gain from increased investment, tourism, trade and employment.

Further afield, Singapore is an Observer in the Arctic Council. Melting ice caps and new Arctic sea routes present both challenges and opportunities for Singapore. Shipping traffic could be diverted in the long run, but Singapore companies could leverage the emerging sectors in the Arctic, such as shipbuilding and repair, port management and offshore engineering.

Mr Liang Eng Hwa asked about our engagement of emerging markets. In this regard, we are tapping on the economic potential of Latin America and deepening links across the Pacific. We are negotiating an FTA with the Pacific Alliance and with Mercosur soon. These FTAs will give us access to a combined market of almost 470 million people that accounts for 90% of Latin America's GDP.

Although the world appears more integrated than before, we cannot take the status quo for granted. As a small state grappling with forces beyond our control, Singapore must strongly support a rules-based multilateral order underpinned by international law, a point that was emphasised by Minister Vivian Balakrishnan earlier.

Mr Louis Ng asked about our role in the international community. At the UN, Singapore will continue to uphold our reputation as a principled, responsible and reliable country and partner. In July this year, we will attend a High Level Political Forum in New York to share our developmental experience in relation to the Sustainable Development Goals under the 2030 Agenda. We will continue to participate in negotiations on the implementation guidelines of the Paris Agreement on Climate Change.

At the invitation of the G20 President, Argentina, Singapore will attend the G20 Summit and related meetings in Buenos Aires later this year. Comprising 20 major economies that account for 85% of the world GDP and two-thirds of its population, the G20 makes decisions that affect the rest of us. It is, therefore, important and also an honour for Singapore to participate in the G20 to offer our perspective and contribute where we can.

Let me now address Miss Cheng Li Hui's question about assisting Singaporeans in distressed situations overseas. Singaporeans are among the world's most-travelled people. Consular assistance for overseas Singaporeans remains one of MFA's more visible core functions. Last year, 2017, was a very busy year. We responded to a number of overseas incidents, including multiple attacks and natural disasters at tourist hotspots. For example, when Mount Agung erupted in December last year, our crisis response team was on the ground to help Singaporeans affected by airport closures. We also assisted Singaporeans who were involved in road traffic accidents in the US, Australia and, closer to home, in Malaysia.

We will continue to do our best to assist Singaporeans who are caught in difficult situations overseas. However, we also urge our fellow Singaporeans to continue to practise personal responsibility and self-reliance and vigilance as our MFA staff are not able to be everywhere all the time. So, in this regard, I was heartened that many Singaporeans travelled to Johor on their own to join in the search-and-rescue efforts for our two missing hikers in Mount Pulai recently. Likewise, local Singaporean communities abroad are often the first line of support and assistance for one another, and also to fellow Singaporeans travelling to that part of the world, especially when the nearest MFA representation is far away.

And on our part, MFA will endeavour to provide useful and timely information to Singaporean travellers through technology. For example, we provide country-specific travel information on our revamped MFA website and are working with Government agencies and relevant partners to broaden our reach via various platforms, such as AskJamie@MFA, Chatbot and the Singapore Airport Terminal Services (SATS) travel application. However, given the free flow of information and disinformation, we hope that Singaporeans will continue to be vigilant and discerning and not to take information at face value. This will prevent a repeat of the false reports about riots in Batam last year that caused a lot of unnecessary alarm and anxiety to Singaporeans.

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

7.52 pm

The Chairman: We do have just a few more minutes for clarifications. Are there any clarifications? Yes, Mr Vikram Nair.

Mr Vikram Nair: I would like to thank all the officeholders for a relatively positive update, with good relationships everywhere. But let me just focus on one point that the Minister flagged out. And that was the threat of fake news. Is there any concern that the Minister has about fake news, say, from foreign state actors or players that we may have to be concerned about?

Dr Vivian Balakrishnan: Yes.

The Chairman: Any other clarifications? Mr Low Thia Khiang.

Mr Low Thia Khiang: May I know what is our relation with North Korea like?

Dr Vivian Balakrishnan: There is a North Korean embassy in Singapore. I personally have not met the Ambassador. North Korea also attends our ASEAN Regional Forum (ARF) meeting. But our approach, as I have explained earlier, is to just fully comply with UNSC Resolutions. That is our regulatory and our enforcement approach.

Let me paint the larger dimension behind North Korea. If North Korea effectively nuclearises, quite apart from the dynamics with the US, the other consequential effects are what it means for South Korea and Japan, and whether they will also take the view that they need to have their own deterrence.

Again, to use the Cold War analogy, when you have two superpowers working on deterrence based on mutually assured destruction, well, we survived. But can you imagine a Northeast Asia, which, as Mr Low Thia Khiang will know, unfortunately, historical wounds not fully healed, and all of them nuclear-armed and all promising mutually assured destruction, I think it is a very dangerous situation. So, as I said, we do not have a say, but we will comply with all UNSC Resolutions.

The Chairman: If there are no other clarifications, can I invite the Member Mr Vikram Nair to consider withdrawing the amendment?

Mr Vikram Nair: I would like to record my thanks to the Minister, the Senior Minister of State, Minister of State and, of course, all the MFA staff carrying our flag in many, many countries around the world. Thank you for doing us proud. I seek leave to withdraw my amendment, Mr Chairman.

Amendment, by leave, withdrawn.

The sum of $476,502,000 for Head N ordered to stand part of the Main Estimates.

The sum of $26,000,000 for Head N ordered to stand part of the Development Estimates.