S'pore, Australia set up working group to strengthen supply chains

As trusted and reliable partners of each other, Singapore and Australia are looking at new strategic areas to cooperate in, such as strengthening mutual supply chains.

Prime Minister Lee Hsien Loong said in Canberra on Tuesday that a bilateral working group, formed in September, is looking into facilitating the flow of critical goods between the two countries, particularly in times of crisis.

The two countries are seeking out new areas to work together "because we are natural partners which have similar views on many issues, and trusted and reliable partners of each other", said PM Lee at the Parliament House, after a meeting with Australian Prime Minister Anthony Albanese.

Both countries are looking at strengthening the security and resilience of their supply chains, including on food and energy, and connectivity to the rest of the world, PM Lee added.

He was speaking at a press conference after the 7th Singapore-Australia Leaders' Meeting with Mr Albanese.

He was on a three-day visit to Australia that started on Sunday.

Asked how Singapore and Australia are seeking to maintain security and cooperation in supply chains amid increasing geopolitical instability, he said that while countries are going for self-resilience, it is not possible to be self-sufficient. "We're too interdependent," he added.

"You may produce a lot of minerals, you may have a lot of talent, but the world is a big place, and you need to work with and develop partnerships with other countries."

While countries seek to do business with everyone, they can do more with partners with whom they have a deep, established relationship of trust and confidence.

This is the case for Singapore and Australia, and both sides are working to deepen this reservoir of trust and confidence, he said.

"We have a working group working on supply chain resilience and cooperation, and I hope they will come up with some substantive proposals," added PM Lee.

The joint working group was formed after a July meeting in Singapore between Foreign Minister Vivian Balakrishnan and his Australian counterpart Penny Wong, where they agreed to explore how supply chains that will "withstand the test of future crises" can be built.

At the press conference, Mr Albanese thanked PM Lee and Singapore for the critical role that the city state played in supporting Australia through the Covid-19 pandemic, "both by air and by sea".

"Along with personal protective equipment, along with ventilators, Singapore played such a critical role," he said. "Singapore is a reliable economic partner. It is a great trading nation."

In a joint statement after Tuesday's annual meeting, the prime ministers also agreed to begin work on a bilateral food pact.

This is to enhance supply chain resilience and increase trade and investments in both countries' food supply.

Asked about United States President Joe Biden's recent decision to curb the supply of advanced American semiconductors to China, PM Lee said the move was a very serious one that could have wide ramifications.

"We do worry that valid national security considerations may trigger off further consequences and may result in less economic cooperation, less interdependency, less trust, and possibly, ultimately, a less stable world," he added.

PM Lee was also asked about China joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, a free trade agreement between 11 Asia-Pacific countries - including Singapore and Australia - that was signed and entered into force in 2018.

China submitted a formal application in September 2021 to join the trade pact.

"It's good if China is able to join the CPTPP. They will of course have to meet the requirements fully, the conditions and obligations, but I think that's something which is possible and can be negotiated," said PM Lee.

But there has to be a consensus among all existing members for China to join, he added.

Singapore is chairing the CPTPP committee this year, and has been canvassing views from the pact's participants on whether the process should begin.

"I don't think there's a consensus yet, but we'll continue the process," said PM Lee.

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5 initiatives under green trade deal

1 SETTING STANDARDS

Singapore and Australia will look at bilateral and international cooperation on standards and technical regulations, among other things, for the green economy. This aims to cut compliance costs for exporters of environmental goods.

Agencies from the two countries will promote and facilitate business-to-business engagements to expand bilateral trade and investments in green economy sectors. Activities include business missions, joint webinars and seminars, and joint promotion of green economy events.

An Australia-Singapore Green Skills Roundtable will be established for experts from government agencies to discuss how to identify and assess core skills and competencies needed for workers to take on jobs in the green economy.

Australia's Commonwealth Scientific and Industrial Research Organisation and its Singapore counterpart, the Agency for Science, Technology and Research, agreed to promote bilateral research and development in the areas of circular economy and low-emissions technologies, food, digital environment and materials in manufacturing.

Under an agreement between the Singapore Environment Council and Good Environmental Choice Australia, more dialogue and partnerships between eco-label schemes of both countries will be facilitated to promote global best practices and standards.