Visit of Minister for Foreign Affairs Dr Vivian Balakrishnan to Stockholm, Sweden, 12 to 14 May 2023

Minister for Foreign Affairs Dr Vivian Balakrishnan attended the 2^nd Indo-Pacific Ministerial Forum (IPMF) held in Stockholm on 13 May 2023.

In his opening intervention at the IPMF’s Roundtable session “Building More Sustainable and Inclusive Prosperity Together”, Minister Balakrishnan highlighted Southeast Asia’s organising principle of openness to give all countries a stake in its collective prosperity, development and stability and create a stable balance of power. He called for the EU to play a leading role in maintaining the open, rules-based global trading system and be a force for the stability, inclusion, and sustained prosperity for both the Asia Pacific and the EU. The transcript of Minister Balakrishnan’s intervention is appended.

Minister Balakrishnan also held bilateral meetings with his counterparts from Netherlands, Sweden, Austria, Croatia, Cyprus, Denmark, Finland, Latvia, Lithuania and Ukraine, where they discussed global developments and bilateral cooperation.

Minister Balakrishnan departs Stockholm today.

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MINISTRY OF FOREIGN AFFAIRS

SINGAPORE

14 MAY 2023

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TRANSCRIPT OF MINISTER FOR FOREIGN AFFAIRS DR VIVIAN BALAKRISHNAN’S OPENING INTERVENTION AT THE ROUNDTABLE “BUILDING MORE SUSTAINABLE AND INCLUSIVE PROSPERITY TOGETHER” AT THE 2^ND INDO-PACIFIC MINISTERIAL FORUM IN STOCKHOLM, SWEDEN, 13 MAY 2023

1 I come from a tiny city-state in the heart of Southeast Asia, so my perspectives will reflect the smallness, openness, and dependence on trade which is three times Singapore’s GDP. I just want to make three points.

2 We are not going to reach this hope for prosperity if, number one, you do not have peace; number two, if you get our organising principle for the Asia-Pacific wrong; and thirdly if we demolish the global multilateral, rules-based trading system.

3 First, on peace. In the past three decades, a lot of us assumed that war was unthinkable in Europe. Now, we are one year past Russia's unjustified act of aggression against a sovereign independent state. It is, in our view, a flagrant violation of international law and the principles of the UN Charter.

4 Because we are so small, we cannot accept any violation of a country’s sovereignty, independence, and territorial integrity under any pretext. So, number one, we still need to secure the peace – do not take it for granted.

5 The second point I want to make is that we all know that the economic potential for Southeast Asia is great. In fact, our population of 670 million is an EU-sized population. Our combined GDP is still small – it is only US$3.1 trillion, but that number will double and quadruple in the coming decades.

6 The organising principle for our region is to keep it open, inclusive and rules-based. Particularly to keep our region open to China, the US, EU and indeed any other power that wishes to invest, trade and connect with us.

7 Our vision is not to draw lines throughout, but to have overlapping circles of friends, partners, investors. We want to give all superpowers and middle powers a stake in our collective prosperity, development and stability, and in so doing create a stable balance of power. So, it is different from the situation which exists within the EU.

8 My third point – and this again I speak from the view of Singapore – is that we all know the global multilateral rules-based trading system is under siege. Countries all over the world are prioritising their domestic political concerns, their national security concerns, the resurgence of industrial policy, and quite frankly, this leads into a race to the bottom for subsidies, tax breaks, and frank protectionism. This shift away from the consensus which has supported globalisation for the past seven decades has serious implications, and especially for small, open economies like Singapore. The IMF (International Monetary Fund) has estimated that the fragmentation of the global economy - some people call it a bifurcation.

9 This fragmentation could reduce the global GDP in the long-term by about 7%, which sounds like a big number. But we believe the true cost of bifurcation will be felt not just in terms of goods and services forgone, but the opportunities lost because of a paucity or a loss of the options for exchange of ideas, innovation, technological development, capital flows and cross-border financing.

10 This will be deeply inimical to our collective interests. In fact, it will call into question the formula that has held the peace, security and prosperity which was hitherto, available in Europe, and still progressing well in the Asia Pacific.

11 We therefore call on the EU, which has been a champion for multilateralism, a rules-based trading system and economic integration, to play a leading political, intellectual, and philosophical role and to make common cause for us to maintain this open, rules-based global trading system based on organising ourselves for efficiency, collectively working on a common technological stack, diffusing and democratising the fruits of research and development and thereby achieving prosperity for all of us. If we are successful, our two regions will be exquisitely positioned to harness these new opportunities which are emerging in front of us – Artificial Intelligence, quantum computing, biotechnology, and renewable energy.

12 I look forward to working closely with the EU as a like-minded partner. We believe that the EU will be a force for stability, inclusion, and in that sense, sustained prosperity for both our regions. Thank you.

Photo caption: Family photo at the 2^nd Indo-Pacific Ministerial Forum, 13 May 2023

Credit: Magnus Liljegren/Government Offices of Sweden

Photo caption: Minister for Foreign Affairs Dr Vivian Balakrishnan greeted by Minister for Foreign Affairs of Sweden Minister Tobias Billström and EU High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission Josep Borrell Fontelles on arrival at the 2^nd Indo-Pacific Ministerial Forum in Stockholm, 13 May 2023