Singapore has to be realistic, adapt to reconfigured trade flows: PM Wong

lt has to plug into regional groupings, ensure it has a say on the global stage

- Linette Lai

Singapore has to be realistic and adapt to the current shape of global trade, as it continues to work with like-minded countries to strengthen support for multilateralism, said Prime Minister Lawrence Wong on Nov 19.

This means bringing Asean countries closer together and linking up with other regional groups, such as the Mercosur bloc in Latin America, he told reporters on the last day of the Group of 20 (G-20) summit in Rio de Janeiro, Brazil.

"The reality is that trade is continuing, but it is being reconfigured," PM Wong said in an interview to wrap up his trip, where he spoke on the impact of changes to global trade flows and why the Republic's participation at international meetings like the G-20 summit makes a difference.

Singapore is not a member of the G-20, which comprises 19 major and emerging economies, along with the European Union and the African Union. However, it is regularly invited to take part in the group's meetings.

On trade, PM Wong said countries increasingly want to trade with those they feel are friendly to them.

Regional groupings also become more important as countries seek to reduce dependency and vulnerability, he said.

"(It is) an era of re-globalisation, a different form of globalisation where trade flows, perhaps, will become more regional in nature," PM wong added.

This is why Asean is important for Singapore, he noted, adding: "Number one, we have to strengthen our own neighbourhood."

He outlined the work being done in several areas to make Asean closer and more competitive, such as digital connectivity, payment systems and a regional power grid.

At the same time, Asean should link up with other regions, PM Wong said.