Hopes for peace should be tempered even as Singapore is prepared for more dangerous world: Sim Ann

SINGAPORE - The local Chinese community has had a fairly positive assessment of Mr Donald Trump’s re-election as president of the US, given beliefs that he is pro-business and will be a changemaker.

The community is also hopeful that the war in Ukraine will end soon, which will stabilise energy and food prices, and that no matter what, the world will need a place like Singapore.

Sharing these observations in the House on March 3, Senior Minister of State for Foreign Affairs Sim Ann sought to provide a dose of realism from the Government’s perspective.

In a Mandarin speech, she said Singaporeans have noticed that Mr Trump has extended the use of tariffs as a policy tool, and that the US has changed from being the main advocate of freer trade to a country that uses both tariff and non-tariff barriers to pursue economic and non-economic objectives.

“Even then, because Singapore was not a direct target of these tariffs, my friends in the Chinese community expressed hope that Singapore would not be too affected by the global situation, including possible trade wars,” Ms Sim said.

These sentiments, gleaned from community gatherings during the recent Chinese New Year period, are likely because many active members of the Chinese community are businesspeople, she noted.

However, drastic changes have taken place on the world stage since those conversations took place, she said.

Ms Sim noted that the US joined Russia in

voting against a recent United Nations resolution

that identified Russia as the aggressor in the war in Ukraine, while a Feb 28 meeting in the Oval Office

between Ukrainian President Volodymyr Zelensky and Mr Trump

dramatically underlined a fundamental change in US policy that cast doubt over American commitment to its Nato allies.

These recent events have signified major shifts in geopolitics, with possibly unbridgeable differences emerging between the US and Europe – not just on how to end the Ukraine war, but even in the global security architecture, she said.

Ms Sim noted that Singapore has been able to prosper, despite being a small country without natural resources or a hinterland, because of a stable rules-based international trading system and its open economic policy.

But recently announced

US tariffs on Canada, Mexico

and China have led to signalling of retaliatory tariffs, raising the risk of a global trade war. While Singapore has not been directly targeted for now, it will certainly be affected given its economic model and its heavy dependence on trans-shipment, she said.

The consensus and trust underpinning the rules-based international trading system is fraying, and one clear instance is how technology has become a focal point for strategic contestation between the big powers, she noted.

Meanwhile, the idea that military aggression can force a country to compromise its sovereignty and political independence sets a dangerous precedent worldwide, especially for smaller countries, added Ms Sim.

“Even those who felt relatively unperturbed two weeks ago may start to feel a bit uneasy now,” she said. “So are the three hopes that we mentioned earlier still realistic?”

Yet, the global situation has also validated Singapore’s preparations over the years, she said.

While the Republic has always been an ardent supporter of international law, it has also believed in self-sufficiency and never relied on others to take care of its security, said Ms Sim, citing the consistent 3 per cent to 6 per cent of gross domestic product on defence spend since independence.

She noted that, days earlier, opposition MPs had implied that the Government’s

revised fiscal surplus of $6.4 billion

was due to excessive taxation.

“In today’s present circumstances, many countries are at risk of not having enough resources to secure themselves. Which other country would be complaining of having surpluses?” she asked.

Ms Sim said Singapore has developed into a trusted partner and regional hub by virtue of its good business environment and sound rule of law. Even in the face of uncertainty and a fragmented world order, it is not helpless, she stressed.

Today’s world means that Singapore must leverage its good reputation as a consistent partner, and redouble efforts to shape global rules with its network of friends and like-minded countries, said Ms Sim.

“We have always believed in ‘preparing umbrellas before it rains’,” she said. “While our development has benefited from a relatively stable and harmonious international environment, we have never counted on long-lasting favourable external conditions.”

Singapore has also invested in building up its national identity and maintaining domestic cohesion, though changes in the external environment will present new challenges, such as hostile information campaigns aimed at influencing domestic opinion.

While it has put in place laws and national education to counter such attempts, she urged Singaporeans to be vigilant to prevent social cohesion from becoming compromised.

“We have always been prepared for rainy days, and perhaps even for a very long rainy season,” said Ms Sim. “So we must stay vigilant and navigate with care in order to seize new opportunities and fast-changing circumstances, while mitigating risks.”