Singapore faces economic challenges amid US-China tensions
Singapore Prime Minister Lawrence Wong has raised concerns about the growing competition between the United States and China, describing the situation as “dark clouds over the horizon.”
During a speech at the 50th anniversary of Temasek Holdings on Monday (23 Sept), Wong emphasised that global economic activities are increasingly viewed through a security lens due to this rivalry.
He noted that while both nations continue to engage with each other, there is deep mutual suspicion and preparations for potential conflict.
Wong highlighted the restrictions being imposed on critical technologies, such as artificial intelligence and semiconductors, which exacerbate economic tensions.
He cautioned that as security concerns escalate, many economic activities will also be affected, leading to more state intervention in business and a shift away from the free trade principles that characterised the late 20th century.
This shift could result in increased protectionism and aggressive subsidies for key industries.
The Prime Minister pointed out the vulnerabilities that nations experienced during the COVID-19 pandemic, where countries faced shortages of essential medical supplies.
He emphasised the importance of national resilience and the need to avoid such situations in the future by ensuring robust manufacturing capabilities.
Wong urged Singapore to carve out its own path in this changing environment.
As a small economy, Singapore must remain open, agile, and ready to seize new opportunities while advocating for free trade through regional and multilateral partnerships.
He expressed the aspiration for Singapore to be a preferred partner in the global marketplace.
Read on PM Wong's warning of dark clouds over the US-China rivalry.