Businesses can be a bridge between countries: DPM

As strategic competition between the United States and China grows, the corporate world can serve as a bridge between countries and champion the cause of globalisation, said Deputy Prime Minister and Finance Minister Heng Swee Keat yesterday.

Voicing concerns about what he called "the world's most important bilateral relationship", he said the US-China competition is here to stay for the foreseeable future.

Both sides have hardened their positions, even though it would benefit the world if they could cooperate on key issues such as the fight to contain the pandemic, the global economic recovery and climate change, said Mr Heng.

"I hope that over time, a framework for a constructive relationship will be developed, even as they continue to compete," he added.

Mr Heng was speaking to business leaders, officials and policy experts from the United States and Asia-Pacific at the AmChams of Asia Pacific Business Summit, organised by the American Chamber of Commerce in Singapore at Marina Bay Sands.

He told the hybrid event that businesses can play a key role by acting as a bridge while the US-China competition plays out, since deglobalisation is to no one's benefit.

They can do so by strengthening constructive efforts to reform the system, and supporting efforts to develop "a robust rules-based system, with dispute resolution mechanisms that all can abide by".

"I hope that American corporations will continue to be champions for globalisation," he added.

And as they scour the region for new investment opportunities, Singapore can serve as a base for them, said Mr Heng.

He also noted that the nascent global economic recovery is likely to be uneven and long-drawn, but vaccinations can hold the key to how countries emerge from the pandemic-driven downturn.

He said the recovery will remain limited as long as borders stay shut, and vaccines are not a panacea, given the uncertainty about how long immunity lasts.

"But a vaccinated population puts a country on a much stronger footing for economic recovery," said Mr Heng.

That is why, although most countries in the Asia-Pacific region have handled the pandemic well, they will need to redouble their vaccination efforts in order to stay ahead of the crisis, he said.

Businesses can play their part by contributing to the global Covid-19 Vaccine Global Access, or Covax, scheme and facilitating the transport and distribution of vaccines, he added.

On a more positive note, he urged businesses to take a long-term view of the region's growth prospects and continue to invest in emerging opportunities.

These growth areas include infrastructure, the digital economy and sustainability - all of which Singapore can add value to.

For instance, Singapore set up Infrastructure Asia in 2018 to connect governments with developers, professional service providers and financiers for the region's infrastructure needs.

And with the digital economy in South-east Asia projected to treble from US$100 billion (S$135 billion) last year to over US$300 billion in 2025, US companies are "well-placed to tap Asia's digital dividend", Mr Heng said.

He noted that American firms remain at the forefront of innovation, and are helping to shape the consensus around emerging areas such as the ethical use of artificial intelligence. "With our strong links to the region, Singapore can continue to be an effective and stable base for companies looking to expand into the region," said Mr Heng.

On sustainability, he said Singapore aims to be a green node and is working with regional partners to provide a range of carbon services.

He invited American businesses to grow their presence in this part of the world.

"You can make a difference to the recovery and growth of the region," he said.