Singapore PM Warns of ‘Messy Transition’ as US Steps Back

Bloomberg
04-16

Singapore’s prime minister said he sees America’s inward turn opening up a void in international affairs that will leave the world “more fragmented and disorderly,” with China and other big powers unable to fill the gap.

In his first speech since his government called for elections on May 3, Prime Minister Lawrence Wong said trade-dependent Singapore will double down where it can to “preserve the multilateral frameworks that matter” and press Southeast Asian nations to deepen regional integration.

“We are in the midst of a messy transition globally” as the US steps back from being a “guarantor of order” in the world, Wong said in a speech Wednesday at the Singapore University of Technology and Design. “To what, nobody can tell. But neither China nor any other country is willing – or able to – fill the vacuum.”

Like many nations in Southeast Asia, Singapore navigates a delicate relationship between China, its biggest trading partner, and the US, a key security partner and its largest source of foreign direct investment. The unfolding trade war and already high political tensions over issues like the South China Sea is only putting more pressure on nations, such as Singapore, caught in the middle.

“This rivalry is already reshaping our world, and will continue to define the geopolitical landscape for years to come,” Wong said.

He said international law and multilateralism have key roles to play in areas such as AI governance, climate change and fighting future pandemics. On the economic front, he called on the Association of Southeast Asian Nations to eliminate tariffs across the region, reduce non-tariff barriers and upgrade trade deals with China, India and South Korea.

Wong also said Singapore will open more diplomatic posts in places such as Africa and Latin America.

“The world needs more cooperation, not less,” he said.

The speech came a day after his government announced plans for a May 3 election in what is seen as a referendum on Wong’s leadership nearly a year after he took power. The 52-year-old will be seeking a mandate to tackle cost-of-living concerns and guide Singapore through an increasingly complicated trade environment.

The global uncertainty has already taken a toll. The government this week downgraded the country’s 2025 growth forecast to 0-2% from a previous 1-3%, saying more pain could be on the way amid weakening in global trade.

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