Transcript of Minister for Foreign Affairs Dr Vivian Balakrishnan's Interview with Local Media on Singapore's ASEAN Chairmanship, 9 November 2018

Minister:  But first, thank you all for coming. I will give you a kind of a preview for next week. You know next week is the ASEAN Summit, it’s the final milestone of this one-year journey of Chairmanship for us. And apart from the ten ASEAN countries, we have leaders – India, China, Japan, Korea, New Zealand, Australia, United States, Canada, Russia. We also have the President of Chile coming here as a guest of the Chair so it’s going to be a very very packed, intensive few days. I thought I could start off by giving you a kind of a briefing, to set the context of when we began the year. The context which we were operating was that ASEAN was facing a world which has a pushback against free trade, the fraying of the multilateral rules-based world order we have grown accustomed to. At the same time, an ongoing digital revolution transforming prospects of jobs and the economy for the future. And in addition to that, there are natural disasters, there are humanitarian disasters. So that’s the context in which we were operating. And so we decided that we would focus on the themes of innovation and resilience. Which I think we all would agree on hindsight were absolutely spot-on. Now in terms of the programme, I would classify it into three broad themes. One, of course, is on the economy, the second broad theme on the multilateral rules-based world order, and the third theme on our forward-looking agenda, and in particular on the impact on the digital revolution.

So if I can go through the slides now – what I thought is I’ll go through with you this list, but we are not going to go through every single item in the list.  Just let me flag out a few of the key projects, the key deliverables over the past one year, which reflects our focus on these respective areas.

So the first, on the economy, I wanted to highlight the progress that MTI and our economic ministries in the other countries within ASEAN, as well as our key partners, have made on the Regional Comprehensive Economic Partnership (RCEP). You will hear more about that next week, especially when the leaders meet, but this is a very important -it will be the largest, when it is settled, it will be the largest free trade pact. And to be able to achieve this at a time where there’s a pushback against globalisation and free trade is a very important step, so watch that space. The other agreements which are worth highlighting are the ASEAN agreement on e-commerce, reflecting new opportunities, new ways in which business, goods and services can be transacted; the ASEAN single window which facilitates customs clearance for goods moving across ASEAN; and also the ASEAN-wide self-certification scheme.  All these are meant to lower barriers, and to facilitate the movement of goods and services across ASEAN.

I move on to the next slide, this is on the second theme - we are focusing on the multilateral rules-based world order. And here a couple of things which I wanted to highlight. For instance, you know that Singapore was the coordinator for ASEAN-China relations over the past three years, and one key area obviously of concern has been the South China Sea, and I’m glad that we were able to arrive at a single draft negotiating text on the Code of Conduct (COC).  This doesn’t mean that it is all done, but nevertheless it provides a good basis on which future negotiations can proceed, more importantly lower temperatures, calm waters, and I think the situation in South China Sea is certainly much better than the years preceding this year.

Other things worth highlighting: the Model ASEAN Extradition Treaty, the launching of the ASEAN Law Academy and also a framework of “Resilience, Response and Recovery” to deal with terrorism. All these projects collectively show our adherence to a rules-based world order and the need for cooperation for mutual respect, and that a lot more can be done by negotiations and by working proactively rather than competing or by raising the temperatures.

The next slide, labelled as “Building Bridges”, and here again I mentioned earlier the RCEP, but also the enhanced level of cooperation between the 10 Dialogue Partners and ASEAN, the enhanced strategic dialogue in key ASEAN-led forums for instance the East Asia Summit, the ASEAN Regional Forum which we held in August, as well as strengthening our participation with both regional and international organisations.  A few additions - Argentina and Iran became signatories to the Treaty of Amity and Cooperation in Southeast Asia earlier this year.

Next slide, one of our key projects that we launched this year - the ASEAN Smart Cities Network. We identified 26 pilot cities across Southeast Asia. These cities have had chances to meet, exchange and refine plans, exchange ideas as well as mistakes to avoid, more importantly to create a platform where the private sector and external partners can see whether there are opportunities for their products and services to be rolled out, and implemented across Southeast Asia.  This concept of a Smart Cities Network resonated very heavily across all our ASEAN partners because everyone knows there is a digital revolution. Similarly, it also resonated with our external partners who see this as a very viable relevant platform for their services and in particular their private sector to get involved with our development. So this is a flagship project for our Chairmanship. And even as we move on and we hand over the Chairmanship to Thailand, we probably will still continue to act as a shepherd for this concept, and continue to act as a secretariat or facilitator for efforts in smart cities across Southeast Asia.

Next, the final slide. We should also remember that one characteristic of ASEAN is that a very significant proportion of our population remains young, and so you will see that we have a few less conventional activities, for instance ASEAN’s first E-sports competition and music festival, Hyperplay; we have also renewed the Singapore ASEAN Youth Fund - $5 million over the next five years, and also launched the ASEAN Youth Fellowship. The key point here again is to activate the passion and energy of young people throughout ASEAN - get them to do things together, get them to slowly and surely build up an ASEAN identity especially for young people.

I think this is the last slide, so I am going to stop here and take questions, but I hope we can see the structure and the approach that we took. So remember first we will be confronting the pushback on trade, multilateralism, rules-based world order, dealing with the digital revolution, and dealing with humanitarian and natural disasters. Our response - to create and help them develop a resilient and innovative ASEAN and projects which reflected these themes.  To be honest with you, I think we actually achieved far more than we dared anticipate at the beginning of the year. And really, full credit to all the staff and all the Ministries who worked so hard. This is a Whole-of-Government project.

And equally important is the full support and participation of all the ASEAN member states. This sort of pace of working and cooperation and achievement at times like this cannot be achieved unless there is consensus, and there is collective appreciation of the urgency of the task.

Okay I shall stop here and take questions.

Goh Chye Kim (Channel Eight News):  Hi Dr Vivian, I am Chye Kim from Channel Eight News and Current Affairs. So looking back at this one year, how would you rate Singapore’s Chairmanship with the kind of political climate set by US and China? Then some have said ASEAN will be affected because of these trade spats, but some say would that China’s loss is to ASEAN’s gain. How would you assess this whole situation?

Minister:  I will never view it that way. Trade disputes and trade wars are very dangerous. As far as ASEAN is concerned we do not believe that there would be any winners in a trade war. And because ASEAN, given our current state of development, given our dependence on trade, we would view any trade war as a clear and present danger to our economy, so we would not take that for granted. And to be fair, we have at appropriate times, and at appropriate forums, all of our leaders have been emphasising, we hope the US and China can find ways to resolve their differences. In fact there are so many major challenges in the world, such as climate change, security, pandemics. All these major global challenges require the United States and China to work together to collaborate. Now, there will be differences, there will be areas in which the two superpowers are competing. We believe, and hope that they can find ways to both compete and cooperate, and that will be the ideal kind of world in which ASEAN can thrive. But we do not have a direct say on this but nevertheless, the fact that ASEAN has convening power, that leaders from all these other countries, including both the US and China, visit Singapore, meet each other, have opportunities to discuss and to cooperate, I think that is a good sign. It also shows ASEAN’s relevance, ASEAN’s centrality, ASEAN’s inclusivity, and that’s another reason why ASEAN is relevant, not only to us but for the larger region.

Lim Nghee Huat (Channel Eight News): I have two questions. First is, we understand that Singapore and China are about to sign the China-Singapore Free Trade Agreement.

Minister: The upgrade, yes.

Lim Nghee Huat (Channel Eight News): So does Singapore take advantage of the ASEAN Chairmanship so as to cut short the time of the negotiations to conclude this thing?

Minister: I would not characterise it that way. First of all, you may recall that we launched the negotiations for the upgrade way back in 2015, when President Xi paid a State Visit in Singapore. In fact, this has been hard work that has been going on over many years. Nevertheless, we know that we have been having a whole series of intense interactions with China over the last few years, and I think the point I want to make is that our relations with China are in a very good state. There is a large reservoir of trust. There is a common recognition that free trade and opportunities for economic interaction and integration are positive, mutually positive for both China and Singapore. And I think it is in that spirit that we were able to settle the negotiations for the upgrade of the China-Singapore FTA, and we look forward to that being settled very soon.

Lim Nghee Huat (Channel Eight News): Is Singapore the first country in ASEAN that is going to sign this agreement with China? What’s the significance of this agreement for Singapore and ASEAN?

Minister:  The significance I’ve explained already that this is a time that there is a pushback against free trade. And the fact that we and China bilaterally we can upgrade our existing free trade agreement, that we, working within ASEAN and with our strategic dialogue partners can make progress on negotiations for RCEP. Both of these stand as a reaffirmation of our belief in the value of free trade, and that we can do it at a time like this. That is what makes it significant.

Alfred Chua (TODAY): Hi Minister, I’m Alfred from TODAY Online, I have a question regarding…US Vice President Mike Pence is on an official visit to Singapore. US President Donald Trump was invited to the ASEAN Summit as well as the East Asia Summit. And then Mr Pence is coming in two days. Given that this has raised some concerns about US engagement in the region, what is your assessment on how much bandwidth the US has for ASEAN and Asia?

Minister: Well, the first thing I would say is that we’re all looking forward to the visit by Vice President Mike Pence. He has paid attention personally to Asia and in particular Southeast Asia. And I think this would be a great opportunity for him to meet a wide range of leaders both within Southeast Asia and beyond.  And we believe his interventions, and his speeches, and his meetings here will signal unequivocally, the US attention and bandwidth that is allocated to our part of the world. I think just wait another week and listen to his speech. What I would say is this, that if you look at the level of cumulative US investments in Southeast Asia, the US has more investments in Southeast Asia, than it has in India, China and Japan combined. Every time I meet the President, I remind him that America has real stakes in this part of the world and if you look at trade, it’s a growing account. So I would look at the figures and programmes and actions, I think those speak louder than words.

Afifah Ariffin (Channel NewsAsia): Just wondering is it the first time Vladimir Putin will be attending the ASEAN Summit?

Minister: I am not sure if its first time because he may have come in his previous incarnations, but this time he is paying a state visit to Singapore and he is attending the EAS as President.

Afifah Ariffin (Channel NewsAsia): Do you know about Russia’s engagements with ASEAN?

Minister: Well Russia is a big power, it is a significant economy in its own right, and in fact, it has a long history of interactions with the various countries in Southeast Asia. This year, Russia I believe is also the Chairman of the Eurasian Economic Union. I think some of you know that we are negotiating a Free Trade Agreement with the Eurasian Economic Union so this is again another opportunity to explore and further progress our economic ties with Russia.

Afifah Ariffin (Channel NewsAsia): Recently, Minister had met Myanmar State Counsellor Aung San Suu Kyi.

Minister: Yes, just a few days ago.

Afifah Ariffin (Channel NewsAsia): And had discussed issues about the Rakhine State. I guess that at this upcoming ASEAN Summit, will there be greater pressure on ASEAN perhaps?

Minister:  Let me put it to you this way, this has been one of the problems, one of the clouds that has been hanging over ASEAN over the past one year, but I would also say that at every ASEAN meeting that we have had, Myanmar has taken pains to explain the situation to us, update us on their plans, and to reassure us that they were doing their best to resolve the situation. You know last week I was in Bangladesh. I went to Cox’s Bazar as well to visit the refugee camp and immediately after that went to Myanmar to consult with Daw Aung San Suu Kyi. You would have read the news. There is a positive development. Both Bangladesh and Myanmar have announced publicly as well as said in my private conversations with the leaders of both sides that there is a real commitment in their part to begin the process of repatriation. In our discussions, we emphasised that, in fact, the key thing when you begin the repatriation, is to ensure that it is voluntary, that it is safe and that it is dignified. So the two states, and I speak of the experience of having discussed this at the highest level with both Bangladesh and Myanmar, they are focused very carefully on ensuring that this process can occur safely. Because the truth is, there will be no shortage of extremists on both sides who would not want this to proceed smoothly. We hope that it can be done and it will be done soon. ASEAN collectively will support Myanmar and Bangladesh in whatever way possible to enhance the safety and the long term opportunities, both for the returning refugees as well as the local communities within Rakhine State. So there is both a short-term and a long-term approach and support that is needed. In the long run, there needs to be a political solution which can only be mediated domestically within Myanmar. In the medium term, we have to find ways to enhance economic opportunities. Regardless of which community they belong to, people are looking for jobs, good jobs, and better prospects for their children. And when we can secure peace, stability, and reconciliation across both communities, I believe investments will flow, opportunities will be created, and they can get on a virtuous cycle of development. So, it’s a long term thing. What I would say from my interaction so far is that I’ve seen glimmers of hope.

Yeo Chun Hing (Lianhe Zaobao): So my first question is with regards to the South China Sea Code of Conduct. We would just like to ask, because there have been reports that said that ASEAN might be frustrated by the progress so far. How are we going to work towards –

Minister: Alright, I wouldn’t use the word frustrated. I would say that this is a very challenging situation. The fact that we have arrived at a single negotiating text, is a very, very important first step. Now, that doesn’t mean it can be resolved immediately in the short term. I would be very unwilling to quote a specific timetable or deadline on this. It’s more important to keep the channels open, build confidence, build trust, and allow all the parties concerned - and in particular the claimant states - to resolve their differences, and move forward as carefully and positively as they can within the constraints that all of them are operating in. So let’s be patient, but let’s also acknowledge the progress -  the good progress that has been made so far.

Yeo Chun Hing (Lianhe Zaobao): Just to understand for next year, what progress are we looking at?

Minister: Well, the Philippines has taken over as the coordinator of the ASEAN-China relationship, so I would leave it in their good hands. We will continue to play a supportive role.

Yeo Chun Hing (Lianhe Zaobao): One more question. UK, because UK has indicated that after Brexit they will be interested in perhaps increasing their engagement with Southeast Asia and ASEAN, so what is our position on this?

Minister: Well, first of all the UK has a long historical relationship obviously with us, Malaysia, Brunei and indeed with Southeast Asia. Second point is that, the EU is a major trading partner and investor in Southeast Asia and within the EU, the UK is one of the major account holders. The third point I would make, and this is a national one, is that you know I think it was just over two weeks ago, we just signed a series of agreements including the EU-Singapore Free Trade Agreement. Right now, it’s undergoing the ratification process, we hope that once it is ratified and when it is ratified, the UK is still a part of the EU, UK will obviously be a co-signatory, a co-participant in the EU-Singapore Free Trade Agreement. When, I guess I should say, when the UK leaves the EU, then we will have to look at making first phase interim agreements, we call it short form agreement. We have to basically port all the current terms and conditions in the EU-Singapore FTA to the UK as an interim arrangement, and in the long run when they are ready and they have enough negotiators with sufficient bandwidth, then they can look at upgrading the trading arrangements with Singapore, and they have also said clearly they are keen on enhancing their economic ties with Southeast Asia as a whole. We have said that we welcome all this, but we also know that the UK is engaging in very delicate and difficult negotiations with the EU, and in my interactions with their Ministers, I’ve suggested they focus on that, settle that, and we are waiting.

Yeo Chun Hing (Lianhe Zaobao): Just to follow up on the earlier question about the US, because actually US Midterm elections just completed, which led to a divided Congress as they described, just to understand whether these might lead to a degree of abandonment, perhaps in foreign policy, especially in ASEAN.

Minister: First point I would make is it is too early, it’s premature to speculate. And I take a longer term view of this, and as I said earlier, we look at the actual metrics of the economic relationship of the US and Southeast Asia, in terms of investment and trade, there is no question that this is an area in which they have a very significant stake and are deeply invested. So regardless of the internal domestic politics, the fact is this still remains a major account, a major opportunity for them. In the meantime, we will have to wait for them to sort out their own domestic politics, and it is not for us to comment.

Yasmine Yahya (Straits Times): Could you share with us some personal reflections of our year as Chair. What do you think would be a key takeaway Singapore has learnt this year?

Minister: Well, first it has been a very, very busy year. There has been no shortage of challenges or emergencies, crises, short term threats as well as medium-term challenges, needing to reaffirm free trade and a rules-based world order. And then also dealing with the longer-term challenges of the digital revolution. So it has been a very, very busy year. That is my first reflection. My second point is that, notwithstanding all these challenges, the fact that we have been able to do so much together with our ASEAN partners shows that, as long as we continue to build up strategic trust, mutual confidence, open, coherent and consistent communications, we can do a lot together. And as I said, the unanticipated harvest of so many projects and initiatives, launched and harvested shows the value of ASEAN. The third point is that I am more convinced than ever that ASEAN is relevant and that we have been able to maintain ASEAN centrality, ASEAN unity despite very significant, existential and strategic challenges. This gives me hope for the future. It is a validation of one key precept of our foreign policy: that ASEAN is the cornerstone of our foreign policy. Not only for Singapore - if we ask every ASEAN country, the foreign minister of every ASEAN country will say “yes, ASEAN is a key central pillar of our foreign policy”. So all in all it has been a good, busy but fulfilling year and I think it allows us to emerge with a sense of hope for the future.

Yasmine Yahya (Straits Times): With that being said, what do you hope to see next year then?

Minister: Well, a lot of the things that we’ve launched are not things that can be completed in a year. The Smart Cities Network for instance, I think establishing it, creating the platform, bringing in external partners is step one. Bringing the projects to fruition, making sure those small businesses, ordinary workers, the farmer, the hawker, the retailer, the ‘mom-and-pop’ shop, all benefit from ASEAN integration and digital revolution - that is where the real benefit will be. Now we focus on payments with cross-border transactions to facilitate the movement of goods and services. But it’s not about multinationals and digital giants selling products to us. Think in terms of the farmer who is trying to get the best price for his organic produce. Think in terms of the artist, the craftsman creating something beautiful, authentic, genuinely Southeast Asian and being able to access a market of 630 million people. Think of the young designer, the creative artist both in the digital space and in the more traditional parts, think of them being able to access the larger markets. Think about our young students, young Singaporeans, young Southeast Asians being able to travel confidently and able to communicate cross-culturally across civilisations and the opportunities, the economic opportunities that will open for them. That’s when you know they have succeeded, and I would say many of the projects that we have launched, will over time bear fruit and that’s what we should, we will have to focus on, on a long-term basis.

Afifah Ariffin (Channel NewsAsia): I may ask also, given all the highlights we had in ASEAN, some of the main breakthroughs, how do you think this sets the stage for the world leaders when they come for the ASEAN Summit next week?

Minister: Well I hope they will all, like me, be pleasantly surprised that we managed to get so much done, I hope there will also be a bit more confidence to do more together. And even as we deal with the ongoing challenges, the digital revolution or as I’ve said, both man-made and natural disasters and challenges, we will double down on the concept of integration, on bringing barriers down, building bridges, investing in infrastructure and in connectivity, enhancing education and educational opportunities across the borders. I hope we will see all these as a platform that’s worth enhancing and alleviating the effort.   

Irshath Mohamed (Tamil Murasu): I would like to ask what are the significant developments in ASEAN-India relations over this one year?

Minister: Well Prime Minister Modi would be here next week, and I’m sure he will make that point in his speeches. For us, specifically for ASEAN obviously one big project is the RCEP. Currently, India and China do not have a free trade agreement, if we can make significant progress on the RCEP, in fact it potentially sets the stage for India and China to bring their economic ties up significantly and what is good for us is that Southeast Asia has been the middle ground, the neutral ground, the convening ground that has brought the two of them together. And if we get all these done and done right, again I think there’s going to be huge opportunities for India, for China, for Southeast Asia.

Yeo Chun Hing (Lianhe Zaobao): The RCEP, the intention of RCEP, what lies ahead for the RCEP, which stage are we at?

Minister: We are still negotiating. It’s not concluded yet, we are still negotiating but like I’ve said I think without jumping the gun I would say significant progress has been made, and I would refer you to what Minister Chan Chun Sing said I think just two days ago so there will be further update next week from the leaders.

Thank you all for being here.

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