Countries must 'resist tendency to look inwards' amid unprecedented global challenges: Iswaran

SINGAPORE: It is important for countries to resist the tendency to look inwards amid global challenges such as geopolitical tensions and supply chain disruptions, said Transport Minister and Minister-in-charge of Trade Relations S Iswaran on Saturday (Jul 9).

Speaking at an economic conference in France, he noted that the world is facing "an unprecedented confluence of challenges". Countries have had to deal with the impact of COVID-19 as well as the war in Ukraine. 

"We are also dealing with supply chain disruptions for a variety of reasons," he said at the Les Rencontres économiques d'Aix-en-Provence, organised by the French think tank Le Cercle des économistes. 

"Globally and at the individual country-level, we need to think about what is the appropriate economic and political policy strategy that we should be adopting." 

Laying out three areas of focus, Mr Iswaran said that the world should "resist the tendency to look inwards but ensure that we maintain global international connectivity".

"This is important because when we talk about supply chain resilience, diversification is essential," he added.

The minister noted that Singapore has embarked on free trade agreements and has continued to do so in the past two years. It concluded a free trade agreement with the European Union and is continuing to do so with many countries and regions, said Mr Iswaran. 

There is also a need to deepen cooperation in growth areas such as the digital and green economies, said Mr Iswaran.

Highlighting digitalisation, Mr Iswaran said it is important for businesses, the economy and people to be "plugged into" it to fully tap opportunities.

Singapore has embarked on digital economy agreements and partnerships with many countries, such as Australia, New Zealand and Chile. It has also initiated a dialogue with the EU. 

"We want to be able to do more of this to create digital bridges," he said. 

Singapore also wants to ensure sustainable growth and ensure that it is inclusive, said Mr Iswaran. 

"Even as we pursue strategies of internationalisation, we must recognise that the impact on our companies and on our people will be differential," he added.

"We must ensure, for example, that small and medium enterprises are well equipped to participate in this growth, be it is going overseas to new markets, plugging into digital platforms and/or developing their capabilities."

Singapore must also invest in its people, said Mr Iswaran. 

"Unless people feel that they have not just the opportunity, but also the skills and capability to participate in these new opportunities or this would be a Pyrrhic victory.

"What is the point of growth if we cannot benefit the people at large."

He added that this is why investing in training and capacity building is a key part of this overall strategy. Even as countries pursue external linkages, new pathways, digital and sustainable growth, it is "critical" that Singapore also complements these with domestic policies that support the capacity of SMEs and also the capabilities of its people. 

Before his visit to France, Mr Iswaran was in the United Kingdom and Germany earlier this week, where he met his counterparts to reaffirm the economic relations between Singapore and the two countries.