New global development agenda should be inclusive and sustainable: DPM Heng

SINGAPORE - It is in every country’s interest, particularly the United States and China, to develop a new architecture that enables inclusive and sustainable development, said Deputy Prime Minister Heng Swee Keat on Monday.

There are three areas where nations can collaborate to raise trust, facilitate growth, and pursue inclusive and sustainable development, he told the audience at the Caixin Asia New Vision Forum held at Sands Expo and Convention Centre.

First, Asia and the rest of the world have to continue to uphold an open, inclusive and rules-based framework, to drive greater trade and investment.

This is anchored in the belief that free trade and greater economic integration will continue to uplift economies and populations, said Mr Heng, who is also Coordinating Minister for Economic Policies.

He noted that Asean’s free trade agreements with China, India, Japan, South Korea, and Australia and New Zealand have brought mutual benefits and deepened ties.

Asean countries have also been part of new regional trade agreements such as

the Regional Comprehensive Economic Partnership,

the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Indo-Pacific Economic Framework.

Second, Mr Heng urged countries to promote greater flows of financial resources across the world, to catalyse economic development and innovation.

The recent global bank failures

show that crisis remains a recurring feature of financial flows, he said, adding that venture capital and private equity funding will be key to catalysing innovation growth.

In 2021, the value of venture capital market deals across Asean was a record US$20 billion (S$26.8 billion), he noted.

Third, countries have to work together to tackle common challenges such as climate change, pandemics, an ageing population and the burden of chronic diseases.

“Just as trade had and continues to uplift millions, science and technology will be the next key to building better lives and livelihoods, for our respective populations, and across the world,” said Mr Heng.

However, the rapid pace of technological innovation could accelerate and exacerbate inequalities, as technology tends to reward the able far more sharply.

“If we do not address underlying structural impulses, these will add new dimensions to the strategic competition, and in turn grow the risk of instability and conflict,” Mr Heng warned.

He said the key to dealing with shared challenges is leadership from the US and China – the two biggest economies in the world – so there can be meaningful progress.

The two nations hold about 40 per cent of global gross domestic product today.

While competition is understandable, it does not have to be zero-sum, nor is it the opposite of collaboration, Mr Heng said.