Minister for Foreign Affairs Dr Vivian Balakrishnan’s Oral Reply to Parliamentary Question on Singapore-US relations

QUESTION

Mr Neil Parekh Nimil Rajnikant: To ask the Minister for Foreign Affairs (a) whether an assessment of Singapore-US bilateral ties under the Biden administration can be given; (b) what are the key achievements of Singapore-US relations during the tenure of the Biden government; (c) how will Singapore continue building on ties with the US under President Trump; (d) why does US engagement in the Asia-Pacific remain critical for the region’s prosperity, security and growth; and (e) how does Singapore envisage US-China ties under the new Trump administration.

REPLY

1        Mr Speaker, Mr Neil Parekh has asked a very topical question, which I had to update just in the last few days. He has asked for an assessment of Singapore-United States (US) bilateral ties.

2        Singapore and the US enjoy a substantive, multifaceted, and a very long-standing partnership. The fundamentals of this mutually beneficial relationship have been nurtured across both Democratic and Republican administrations over the past 60 years.

3        Singapore worked closely with the Administration of former President Joe Biden. During this time, our bilateral ties broadened. We institutionalised cooperation in areas including space, critical and emerging technologies, and nuclear energy. For example, in 2023, we established the US-Singapore Critical and Emerging Technology Dialogue, which bolsters our collaboration in cutting edge technology. In December 2024, the US-Singapore 123 Agreement entered into force, and in January this year, we signed a Memorandum of Understanding Concerning Strategic Civil Nuclear Cooperation. Together, these agreements and partnerships will deepen civil nuclear cooperation and enable us to better understand how advanced nuclear energy technologies can potentially support our clean energy needs.

4        In 2024, we commemorated the 20^th anniversary of the US-Singapore Free Trade Agreement (USSFTA). This was the US’ first FTA with an Asian country and in fact, remains its only FTA with an ASEAN country. The USSFTA contributed to a tripling of bilateral trade since 2004 and has allowed the US to consistently maintain a trade surplus with Singapore. Today, the US is our top trading partner in services, our second largest in goods, and our largest foreign investor. In fact, if you add up the stock of US FDI into Singapore, the US has invested more in Singapore than it has invested cumulatively in China, India, Japan, and the ROK combined. We have more than 6,000 US firms based in Singapore, creating jobs and opportunities for Singaporeans.  Meanwhile, Singapore is the third largest Asian investor in the US. There are some 200 Singapore companies in 40 states. Together, bilateral trade and investments between the US and Singapore generate over 350,000 jobs in the US.

5        We have also worked well with President Donald Trump during his first term. In October 2017, President Trump invited then-Prime Minister Lee Hsien Loong to visit the US. In June 2018, President Trump came to Singapore to attend the US-DPRK Summit. In 2019, then-Prime Minister Lee and President Trump signed the Protocol of Amendment to the 1990 Memorandum of Understanding Regarding United States Use of Facilities in Singapore (“1990 MOU”). This extended the 1990 MOU by a further 15 years and it underscored our strong bilateral defence relationship and Singapore’s support for the US strategic presence in our region. We look forward to working closely again with President Trump to further deepen bilateral ties in the years ahead.

6        The US presence in our part of the world has helped to provide security, stability, and economic opportunities in the Asia-Pacific for the past eighty years. The US is ASEAN’s second largest trading partner and the largest source of FDI into ASEAN. It has also supported ASEAN economic initiatives, especially capacity-building in areas like digital trade, trade facilitation, and the development of Micro, Small, and Medium Enterprises. The US has also cooperated closely with ASEAN on emerging issues like clean energy and cybersecurity.

7        But, the world is now at a new inflection point, probably at a point that we have not faced in almost a century. The liberal world order that prevailed after the Second World War was characterised in three dimensions: Domestically – usually democracy and human rights; economically – by global supply chains and economic integration; and at the international level – the development of international institutions, e.g. the UN, the Bretton Woods Institutions, international laws, norms and rules. That liberal world order, in fact, has been quite conducive for Singapore’s progress in the last 60 years. That liberal world order is now being eroded because it has lost domestic political support in many parts of the world. I set that out so that we can also situate the changes which are happening within the US and the unfolding drama of its relations with its own treaty allies, Europe, China, Southeast Asia, and therefore how we need to respond to this profound challenge.

8        The US’ relationship with China is the most consequential relationship in the world. How these two superpowers interact with one another has deep implications for global stability and prosperity. Right now, I would characterise it as a significant lack of strategic trust between these two superpowers. We are all witnessing bifurcation and a decoupling of the global economy as a result of that. But again, if you look at the headlines over the last few days, it is not just the US and China but also the US’ relationships with its allies and neighbours in its own hemisphere, and its evolving relationship with the European Union (EU). The challenge is therefore how Singapore and Southeast Asia should respond.

9        We believe there needs to be an omni-directional engagement on our part with all the multiple poles of power that are emerging. That means engaging with the US, China, India, the EU, Africa, and South America. You would notice our intensive diplomacy and economic engagement across the world. The signing of FTAs like the Regional Comprehensive Economic Partnership, which is ASEAN plus Australia, China, Japan, the ROK, and New Zealand. You would have noticed the Trans-Pacific Partnership (TPP), which was initially supposed to include the US. The US pulled out, the rest continued, and the TPP has grown since then. You would also have noticed that we have now signed an FTA with the Pacific Alliance, which includes Chile, Colombia, Mexico, and Peru. We also signed one with MERCOSUR, which includes Argentina, Brazil, Paraguay, and Uruguay. It is worth noting that all these FTAs that Singapore was able to sign had occurred despite the mood against globalisation. In fact, if you look at the variety of governments in charge of these countries, they range across a very wide political spectrum. The point is that we can still continue to engage and make common cause as widely as possible in order to expand opportunities and look for stability.   

10      ASEAN and the US elevated relations to a Comprehensive Strategic Partnership in 2022, and we were able to adopt the Leaders’ level statements on cooperation on the ASEAN Outlook on the Indo-Pacific as well as on Artificial Intelligence.

11      Specifically, with respect to Singapore, we will have to continue to play a constructive, inclusive role in a nimble way given our size. That means, we will have to be a consistent, reliable, and trustworthy host to enterprises from all over the world, including the US and China. We will uphold the rule of law and sanctity of contract. We will act decisively and firmly against individuals and companies that flout the rules. It means playing it straight, saying the same thing to everyone, and doing what we say. At a time of tension, instability, and volatility, our Singapore branding and the way we speak and behave in fact becomes more valuable.

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SUPPLEMENTARY QUESTION

Mr Neil Parekh Nimil Rajnikant: I had a follow on SQ for the Minister. I would like to get his assessment of the likely impact of the recent tariffs imposed (by the US) on China, Mexico, and Canada, on Singapore.

REPLY

1        I know we are under time pressure so obviously I can’t give you a comprehensive answer to all that. In any case, the news is still unfolding.

2        But just take a step back. I think tariffs and emerging tariffs are a reality going forward. I will take some risk and say that I do not anticipate us being on the hit list for direct tariffs because as I said earlier in my answer, the US has a surplus as far as its trade balance with us is concerned.

3        Having said that, even if you assume that there are no direct tariffs against the export of Singapore products and services, the fact that we are a small, open economy, and trade constitutes more than three times our GDP, means if there is any friction, degradation of economic integration, global supply chains, and world trade, we will be impacted indirectly. So, this is an area we are watching very, very closely.

4        I hope members of this House will recognise that it still means we need to keep calm, keep our eyes open, be very careful in what we say and how we behave. Playing it straight, saying the same thing to everyone, and meaning and doing what we say, is valuable.

5        But I do need to prepare Singaporeans that it will be a turbulent ride in the months or years to come.

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MINISTRY OF FOREIGN AFFAIRS

SINGAPORE

4 FEBRUARY 2025