Implication of Recent ASEAN-Sino Partnerships

Madam, China's investments in Southeast Asia as part of the "Belt and Road" initiative help to meet the region's infrastructure needs and enhance its connectivity.

As a major investor in markets, such as Indonesia, Malaysia and Vietnam, and Southeast Asia accounting for close to 25% of our total trade, Singapore welcomes further economic development in our region. We actively engage our neighbours, bilaterally and through the Association of Southeast Asian Nations (ASEAN), to broaden economic cooperation and create opportunities for our businesses. This is complemented by our efforts to promote the free flow of trade and investment through the ASEAN Economic Community (AEC), our network of Free Trade Agreements and Investment Guarantee Agreements, and the in-market presence of our economic agencies. Our economic agencies also work with industry partners and trade associations to track regional developments and identify opportunities.

Mdm Speaker, we must expect that competition will continue to increase as our neighbours move up the value chain. This is not something new for Singapore and we will press on with efforts to enhance productivity, innovation and competitiveness. To ensure that our industries and companies remain well-positioned for growth, the Government adopts a range of strategies across sectors. Specifically on ports, which the Member had highlighted, the Ministry of Transport will elaborate later on on our efforts to keep our port competitive by investing in technology and automation to improve productivity and service levels.

Members will also be aware, as I had just elaborated, that we have embarked on a $4.5 billion Industry Transformation Programme. Industry Transformation Maps (ITMs) set out a growth and competitiveness plan for each sector, supported by initiatives to raise productivity, develop the right skills for the jobs in the sector now and in the future, drive innovation and promote internationalisation, with the Government playing its role in supporting as an enabler. In doing so, these ITMs take stock of the external trends and domestic concerns affecting each industry, some of which the Member has referred to in his question, in order to provide industry-focused support to companies.

Transforming individual sectors is part of our broader effort to build and sustain a vibrant and resilient economy in the long term. This is also the focus of the Committee on the Future Economy (CFE), to ensure our economy remains competitive and well-positioned for future opportunities. The Committee's report will be issued soon.

Madam, I thank the Minister for the reply. One aspect of the question I asked was about China's investments in ASEAN. Certainly, competition for us is not new in the region. However, what is different is that instead of being local government-led, this time round, there is also added support from an external government as well, and Chinese state-owned enterprises. In a certain sense, the level of competition and most of the industry's concerns would be different. Is there a counter strategy? Would there be tweaks by CFE to look into this new dynamic that recently arose?

Mdm Speaker, I thank the Member for his supplementary question. I do not propose to go into the CFE's recommendations. Those will come out in due course. I will make this point: in terms of investments and economic development in the region, in an era of globalisation and increasing connectivity, when we are seeing more Chinese companies go abroad, they are not just from China but from other parts of the world as well. We are no stranger to investments from the United States and Europe. We must continue to expect that there will be developments taking place, sometimes in sectors that we deem to be complementary; at other times, maybe where we are in direct competition.

But as I said earlier in my reply, the key point is this: overall, such investments enhance the opportunities set, whether it is to participate in these projects as partners or in terms of overall economic development. Importantly, we must continue our efforts in maintaining our emphasis on competitiveness and ensuring that our industries remain viable in the face of different types of competition that will arise; today, it is this form that the Member has highlighted, but there were others in the past and there will certainly be different forms in the future.