Committee of Supply – Head N (Ministry of Foreign Affairs)

Madam, the changing strategic environment creates new challenges as well as opportunities for Singapore's foreign policy. While Singapore is a small state, its record has shown that, with visionary thinking, skilful diplomacy and courage, it can have significant influence on regional and global affairs, through cooperation with other countries or groupings, such as ASEAN.

The relationship between the US and China will decisively shape the 21st century world. A major concern is how the US-China rivalry will change regional dynamics and whether ASEAN will be united and retain a central role in the regional security architecture.

In the past, ASEAN members might have had their differences and disagreements with each other, but they maintained solidarity and consensus

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on key issues, building up its international credibility over the years. However, this reputation was damaged last year when it failed to agree on a joint communique at its ministerial meeting. The after-effects are still being felt.

On the face of it, it reflects the inability of the Cambodian Chair and some ASEAN members to settle differences over the mention of the South China Sea dispute. But there are deeper forces at work.

There is little doubt that Cambodia was under pressure from China to toe its line.

ASEAN solidarity has been breached with China leveraging on its economic and strategic clout – it is Cambodia's largest investor and a generous aid donor. If such pressure continues to be exerted and spreads to other ASEAN countries also beholden to China's largesse, there is a danger that ASEAN may not hold.

Madam, a key goal of Singapore's foreign policy is to build a strong, cohesive and autonomous ASEAN. Singapore should play a more pro-active role in influencing the course of regional affairs, especially in helping to get ASEAN back on track. Allowing events to take their own unguided course would mean running major risks.

One of our top priorities should be to explore how Singapore, together with other like-minded countries, can play a positive role in bringing together the US and China to focus on areas of common interest, and that will contribute towards a more stable strategic relationship.

Such collaborative engagement would contribute to the peace and security of this region, not least by avoiding dangerous military competition and confrontation between these two powers in the years ahead.

With the changing US-China dynamics, it is imperative for Singapore to deepen its relations with the US and China at the various levels, and over a much broader base. To the greatest extent possible, Singapore's relationship with these two powers needs to be insulated from the ups and downs of the US-China relationship.

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At the same time, we should strengthen our bilateral relations with ASEAN countries, and invest in win-win projects that cement our relationship. In this regard, I welcome the Iskandar project with Malaysia.

We need to also step up our assistance to developing countries and extend our soft power. An important platform is the Singapore Cooperation Programme (SCP). Can the Minister give an update of bilateral relations with ASEAN countries and an assessment of the SCP?

Given the uncertainties ahead, we should diversify our economic and security interests. Singapore has been at the forefront of moves to encourage greater economic integration in Asia and Australasia, and to promote global free trade. Can the Minister update us of these efforts and how we are expanding to emerging markets, such as the Middle East and Latin America?

Singapore is a small country, but we can punch above our weight in the international field with pragmatic diplomacy and delicate skill.

Madam, the South China Sea issue has been through rounds of discussions, with various parties stating their views on the matter. Cambodia, ASEAN's Chair, has earlier announced the consensus will not be internationalised on this maritime dispute. However, with the latest move by the Philippines to take China to international arbitration, are there any new developments or updates from the ASEAN front? What happened to an earlier suggestion to discuss the issue at the ASEAN-China framework? Do we still think that we will have the intended outcome with a Code of Conduct arrived at?

Mdm Chairperson, ASEAN was formed on 8 August 1967 by Indonesia, Malaysia, Philippines, Singapore and Thailand, and, later, the membership expanded to include Brunei, Myanmar, Cambodia, Laos and Vietnam.

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ASEAN covers a land area of 4.46 million sq km, which is about 3% of the total land area on earth, and has a population of approximately 600 million people, which is 8.8% of the world's population. The sea area of ASEAN is about three times larger than its land counterpart. Together, ASEAN has a combined nominal GDP growth of about US$1.8 trillion. If ASEAN were a single entity, it would rank the 10th largest economy in the world.

How has ASEAN performed so far as a geopolitical grouping? In July 2012, for the first time in its history, the ASEAN Ministerial Meeting failed to issue a communique. If ASEAN solidarity cannot be assured, will ASEAN be able to maintain its position at the hub of ASEAN-centric regional institutions that shape the regional order in the Asia Pacific? If such a situation persists, what are the implications for Singapore? With no Ministerial Statement in the July ASEAN Ministerial Meeting, which some see as a sign of disunity, what impact might this have on ASEAN's plans towards establishing a community by 2015, and ASEAN's credibility?

Considering that freedom of navigation in the sea lanes of communication in the South China Sea is vital for Singapore's economic security, can the Minister highlight whether we can expect any progress on the Code of Conduct for the South China Sea? Can MFA explain what the implications on ASEAN are with regard to the recent Philippine move to bring China to arbitration in the South China dispute? Can MFA give an update on ASEAN Community 2015?

With only two years remaining, can we achieve the goals and the target set to be an ASEAN Community by 2015? What are MFA's assessment and expectations of the Brunei ASEAN Chairmanship and what about the bilateral relationships between Singapore and Brunei? What is MFA doing about our bilateral relations between Singapore and the key ASEAN member states, such as Indonesia, Malaysia, Vietnam and Thailand? Can MFA briefly update us on the developments in Myanmar and whether Singapore has a role to play in its reform processes?

Mdm Chairperson, the Sino-American relationship has been described by top leaders and academics as the world's most important bilateral relationship of the 21st century. Most analysts characterise the present Sino-American relationship as being complex and multi-faceted. The United States and the People's Republic of China are neither allies nor enemies. The US government and her military establishment do not regard the Chinese as an adversary but

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as a competitor in some areas and a partner in some.

How is the evolving US-China relationship, in which there is growing competition and tension between the two, affecting Singapore and ASEAN? What role does Singapore have to play? Singapore has enjoyed strong and good relations with both countries. How will their tension and competition affect this relationship?

Does MFA expect any changes in the US' engagement of Asia in light of the appointment of the new US Secretary of State, Mr John Kerry? Similarly, does MFA expect any further changes in China's engagement of ASEAN and Singapore, in light of the new leadership change recently?

It is, indeed, important for the US and China to continue on a cordial as well as competitive relationship. It is also important for a strong US military presence in the South China Sea to help to maintain a balance. Singapore's sentiments and logistical support for the US forces are obvious. With a new leadership in China, President Xi may likely adopt a "hard ball" approach, especially in respect of the Senkaku or Diaoyu Islands dispute. The US is obliged to lean towards Japan in the event of hostility. China is also involved in territorial disputes with other ASEAN countries, too. US involvement may be unavoidable in the case of the Philippines as well. How will this impact our relationship with China?

Mdm Speaker, in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.]  As the annual plenary session of the National People's Congress and Political Consultative Conference is currently on-going in China, there will be more leadership renewal and transition in the next two weeks, with the rise of more young leaders taking on more important roles and responsibilities.

At the highest level of the Chinese Communist Party, there are seven Central Politburo members, and Singapore leaders have close ties with most of these Central Politburo members.

Our political leaders have always maintained close ties with the leaders of China, dating back to the bilateral meeting between former Prime Minister Lee

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Kuan Yew and former Chinese leader Deng Xiao Ping, which paved the way for several bilateral collaborations, deepened ties between Singapore and China, and led to the establishment of the Suzhou Industrial Park and, more recently, the Tianjin Eco-city and Guangzhou Knowledge Hub. These projects not only promoted closer trade ties between the two countries, but also created job opportunities for both the peoples of China and Singapore. Singapore and China also established seven bilateral trade councils.

Currently, China is undergoing political leadership renewal at all levels, including provincial and municipal levels. Has MFA considered how our long- and short-term diplomatic ties with China will change, in terms of planning and the way ties are maintained?

Mdm Chair, China is important to us and we watch developments in China with a keen eye. It is undergoing a once-in-a-decade change in leadership. The new generation of leaders are ushered in at China's 18th Communist Party Congress in November last year.

China is growing in economic and political importance. It is developing rapidly and will have increasing influence, not only on the region, but also in global affairs. It is already the world's second largest economy, and many of its companies have become major international players. As it becomes even stronger, China's leaders will certainly become more confident. The way in which they manage China's relations with the rest of the world will naturally evolve. With this change, does MFA expect any change in relations with China?

I share the concern of Mr Teo that there are also cascading changes in leadership at the provisional level, and we have several collaborations with provinces as well. For example, in Tianjin, there is the on-going Eco-city project. With the leadership change, will it affect the progress of our engagement with the individual provinces and cities in China?

Mdm Chair, relations between Singapore and the European Union reached a milestone in December 2012 when the EU-Singapore Free Trade Agreement was successfully concluded. This important FTA will pave the way for greater market access and increase trading links to each other's markets. It will also see the removal of a number of tariff and non-tariff measures.

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For Singapore, the 27 member states of the EU and the Union itself represent important political, economic, social and cultural influences. For the EU, Singapore is an important hub and gateway to Asia.

It is thus mutually beneficial for Singapore and the EU to maintain good relations and find more common areas for cooperation. I would like to ask the Ministry how Singapore is managing other bilateral relationships with major economies, such as the EU, and how do we build more common ground with these entities for our mutual benefit.

Mdm Chair, through suspending sanctions on Myanmar, acceding to ASEAN's Treaty of Amity and Cooperation, and completing a successful ministerial meeting in April 2012, the EU has shown strong interest in upgrading its relationship with ASEAN. It is widely felt that the EU could do more in economic relations and cultural exchanges. Can the Minister please explain why Singapore seems to have taken a longer time to conclude its FTA negotiations with the EU and how it was clinched? What plans does MFA have to actively encourage people-to-people exchanges or promote cultural ties between the EU and Singaporeans?

Next, recently, the media reported that Temasek Holdings paid 1 billion euros for shares in Repsol, Spain's biggest oil company. Repsol sold shares to protect its credit rating and, for Singapore, this purchase represents her biggest investment in Spain. How will this purchase benefit Singapore or improve our bilateral relations?

The late President Hugo Chavez of Venezuela, Latin America's symbol of socialism, died on 5 March 2013, after being in office for 14 years. Media reported that the controversial, anti-America leader was much loved by poor Venezuelans for his populist policies funded by the country's vast oil reserves. It is not clear if his appointed successor, Vice President Nicolas Maduro, will win the coming elections and carry on with his populist policies. In what way will Singapore's relations with Venezuela be affected by the political upheaval?

Besides Venezuela, what is the extent of Singapore's engagement of emerging markets in Latin America? How does MFA assess the progress, and what more will MFA be doing?

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Mdm Chair, Latin America is most famous for its footballing prowess. Brazil, Argentina and Uruguay have won the World Cup nine times amongst them. Pele, Maradona and Messi are familiar names to many people.

What is less often mentioned about Latin America is its increasing prominence and influence as a political and economic bloc. As a continent, it possesses enormous natural reserves which give it broad sway in its international trade relations.

Chile, as a country, produces 30% of the world's copper, an important raw material especially to China. Venezuela is an important producer of oil. Brazil is regarded as one of the new engines of growth for the world, not to mention Argentina and Mexico who have dynamic and young economies and are growing very rapidly.

Latin America holds many opportunities for Singapore as a trade partner as well as in other areas of international cooperation, such as in security and representations on international forums. What is MFA's assessment of emerging markets in Latin America, and Singapore's engagement of countries in this region?

Given the uncertainties in the Middle East, with civil war in Syria, political instability in Libya, conflicts between Israel and Palestine, Iran's nuclear ambition and so on, countries in the region would be focusing more on dealing with challenges at home.

In this context, is there still an interest from countries in the Middle East to engage with Singapore? The Middle East region covers a wide area. Is there a particular area or are there any particular countries in the Middle East region which MFA is focusing on? We have already established a diplomatic presence in a few countries in the Middle East. Are there plans to expand Singapore's diplomatic presence in the region?

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I believe that Middle East diplomacy for us cannot be a one-size-fits-all approach. It is complex, much of it due to the history, geography, domestic factors, regional alliances, Western influence and conflict. What is Singapore's engagement, diplomatic strategy and approach for the Middle East?

Mdm Chair, as a small country, Singapore needs to be friendly to all. We stepped up our engagement with the Middle East since 2004. This has benefited us in enlarging both our political and economic space. However, since the Arab Spring in 2011, the geopolitical situation in the region has changed and, in some cases, the security situation has deteriorated.

How have these changes affected our perspective towards the Middle East? Despite the sweeping changes that have taken place in some countries, has MFA found new areas of cooperation to expand our engagement?

Secondly, we need as many friends on the international stage as possible. Many Singaporeans are travelling to Turkey and other countries rich in history and culture situated at the crossroads of Asia and Europe. It has been growing in stature and importance. Its leaders have expressed interest in engaging Southeast Asia.

I know that Minister Shanmugam had travelled to Turkey earlier this year. Given Turkey's international stature and regional influence and its interest in Southeast Asia, how do we plan to increase our engagement of Turkey, and having established an embassy in Ankara, do we plan to establish other embassies in other parts of the Middle East?

Over the years when Singapore was a developing country, we had been helped by many developed nations, and now that Singapore is a developed country, we are beginning to look at developing countries that have been left behind and provide any assistance that is possible.

I have been to Myanmar and seen many of our private sector companies going there to provide educational services, infrastructure development and healthcare services. Could MFA provide an update on Singapore's recent assistance to those of the other developing countries?

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Mdm Chair, when I was studying international relations in University, we referred to consular services as the "Cinderella services of diplomacy". Just like Cinderella – much abused, much neglected and underpaid.

With increasing numbers of Singaporeans living, travelling, working or studying overseas, and with the wide range of consular services now available across an increased number of countries and regions, I would like to ask the Ministry if there has been an increase in the number of requests for consular support, and what have been some of the challenges faced.

In addition, would MFA, like in some foreign ministries in other countries, consider charging a call-out fee for out-of-ordinary requests or negligent claims?

With consular staff increasingly being called to help an irresponsible minority whose problems may have been easily avoided through better planning or sensible behaviour when overseass, I further suggest that the Ministry increase its publicity to influence behaviour of those travelling, and also to publicise more case studies regularly to demonstrate the consequences of irresponsible behaviours overseas.

Consular staff are often mistakenly perceived within the diplomatic services of having a lower status than other Foreign Service Officers. It is often shunned elsewhere as a career route. I would like to ask if the Ministry is currently understaffed in terms of consular services and perhaps, our consular and Foreign Service Officers should have their salary scales reviewed to keep in line with existing Administrative Service pay scales.

Lastly, on the subject of Honorary Consuls and locally-engaged staff in other countries, does the Ministry have an assessment of the roles played so far by these Honorary Consuls, and whether there is a case for more professional officers or to continue with the robust system of Honorary Consuls?

All of this is especially so, with the domestic reputation of the Ministry dependent to a degree on the perceived success in meeting our citizens' expectations overseas. I urge, therefore, for a greater priority on consular services so that there is no longer just Cinderella, but that they enjoy a happy ever after!

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Mdm Chairperson, MFA performs the pivotal task of protecting Singapore's national interests through foreign and diplomatic relations. It also performs another extremely important task "behind the scenes" – consular services. Consular services do not often get much limelight. A lot of the work goes on behind the scenes. Yet, this is a very important function.

In a globally connected world, Singaporeans enjoy the benefits of easily available and accessible travel. Yet, whilst travel and living abroad have become easier, the problems that Singaporeans face overseas may have not. Whether these are problems that are endemic to the country that they live in or travel to, or personal problems that they face, consular services often have to "come to the rescue".

Yet, it is not often easy to provide these services. How do we decide what are requests that can be attended to, as opposed to requests that have to be turned down for a variety of reasons?

For example, we do not have an established presence in all countries. It is, therefore, often difficult to provide immediate assistance to Singaporeans who may be in a part of the world where our modest arms do not reach. Even so, when our consular services respond, the assistance may be delayed for a number of logistical reasons.

Similarly, to each his or her own problem is of utmost importance and almost always requires immediate attention. In such a situation, our consular officers try their very best to deal with the problem. However, some problems do not fall within the purview of consular services. Similarly, some personal problems cannot be dealt with by the State. Sometimes, there is only so much that can be done and nothing more. Some have to be turned away. Others have to be told that this is the end of the road. This may not go down well and it may leave a bitter taste.

Madam, consular assistance is provided under some very difficult circumstances. Physical constraints are one thing. Often, the difficulty is in turning away fellow Singaporeans when there is little that can be done.

On 10 December 2011, the BBC (UK) published an online article entitled, "Foreign Office reveals some weird requests to consulates". Here are some of the examples that were cited: one, a man called the consulate in Sydney asking what clothes he should pack for his holiday; two, the caller to the Foreign Office

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staff in Spain wanted Prince Charles' shoe size, so he could send him shoes as a present; and, finally, a man asked consular staff in Dubai to meet his dog on arrival at customs and help it through the customs process.

Madam, I thank Members for questions on Singapore's foreign relations. My fellow officeholders and I will answer the questions.

Let me start with an overview. The external environment for 2013 will continue to be challenging because the fragile international economic and financial situation will continue.

There is a deficit in global leadership. The United States is still the only truly global power. Its leadership role is indispensable for the foreseeable future but it is preoccupied domestically. It needs to overcome its domestic political gridlock to jumpstart the economy. China is reluctant to assume greater responsibilities of global leadership, preoccupied with maintaining domestic stability and sustaining economic growth. If you look at other major countries globally and in the region, the European Union, Japan, Republic of Korea, India, as well as multi-national institutions, they are not yet ready for truly global leadership.

We are living through a period of transition and adjustment as relative power balances are adjusted. So, the geopolitical environment will continue to be volatile and, in our own region, that is reflected in enhanced tensions – such as the maritime claims, for example, the China-Japan, South China Sea issues.

Senior Parliamentary Secretary Hawazi Daipi, Dr Lim Wee Kiak and Assoc Prof Fatimah Lateef asked about the recent developments in the region, including the South China Sea dispute and its implications on Singapore and ASEAN.

Strengthening regional relationships is the key to protecting our interests in this unpredictable environment. ASEAN reflects as well as mitigates diversities inherent in the region. It is strategically vital to Singapore as a buffer as well as an influence multiplier.

Twenty twelve was not a year that ASEAN could be particularly proud of. Its unity and credibility were painfully tested by the South China Sea issue during Cambodia's chairmanship. On-going developments in South China Sea

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will continue to present challenges.

The initiation of arbitration proceedings by the Philippines against China was a national decision of the Philippines. ASEAN was not consulted. China has decided not to participate in the Tribunal hearings. But that is not the end of the story. The Tribunal may proceed even without China's participation. We can only hope that all parties will remain calm.

ASEAN's and Singapore's positions remain unchanged on these issues. ASEAN's six-point principle issued on 20 July 2012 called for formal negotiations on a Code of Conduct (COC). Singapore's position is as stated in our Press Release of 23 January 2013.

ASEAN and China held several rounds of informal consultations on the Declaration on the Conduct of Parties (DOC) in the South China Sea and COC at officials' level over the past year. Senior officials from ASEAN and China will meet next month in Beijing.

ASEAN is united in the view that formal discussions between all 10 ASEAN members and China on the COC should begin as soon as possible. It is important for ASEAN to regain unity and credibility by realising community-building targets by 31 December 2015.

ASEAN Economic Community and Regional Comprehensive Economic Partnership (RCEP) present opportunities for Singapore. We will remain relevant and effective, and taking positions on key issues affecting our region, including the South China Sea. It is also important for ASEAN to retain its central role in the regional architecture, particularly in the East Asia Summit.

This depends on our community-building efforts, particularly the economic pillar, which must continue beyond 2015.

Brunei's Chairmanship this year will be crucial. Brunei is an experienced and committed member of ASEAN. We are confident that it will promote consensus through consultations with all ASEAN members and Dialogue Partners. Singapore strongly supports Brunei. We will work closely together with the others to ensure that its Chairmanship is a success.

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Dr Lim Wee Kiak asked about Singapore's bilateral relations with our neighbouring countries. We have built a firm foundation of strong bilateral relationships in the region. We have good relations with all ASEAN members, in particular, strong ties with Malaysia and Indonesia, which are strong, broad-based and steady bilateral cooperation. All sides recognise the benefits of working together. The Leaders' Retreat with Malaysia in February took place successfully, and there will be one with Indonesia in April.

Elections are expected to take place in Malaysia soon and, in Indonesia, of course, by mid-2014. We will work with both countries and their leaderships, and we will continue to strengthen many existing institutional links.

With Vietnam, we have many high level exchanges. Bilateral relations continue to strengthen. The 40th anniversary celebration is later this year and we are working towards a strategic partnership.

With Thailand, we have strong long-standing ties, underscored by strong institutional linkages. The Thailand-Singapore Civil Service Exchange Programme, which I officiated with the Thai Foreign Minister in January, is one example and brings our civil services closer together.

With Myanmar, the story is positive and encouraging with an upward trajectory in developments. We will keep up our commitment to help Myanmar in capacity building.

With Brunei, the special relations are based on close personal ties, common strategic outlook and interests. Long-standing cooperative arrangements include the Currency Interchangeability Agreement and, of course, SAF training facilities.

Minister of State Teo Ser Luck, Senior Parliamentary Secretary Hawazi Daipi, Dr Lim Wee Kiak and Ms Irene Ng asked about the United States engagement with Asia in the light of the appointment of a new Secretary of State and the growing US-China competition in this region, and how it might affect Singapore's bilateral relations with the United States and China. The US-China relationship is a defining relationship for the region and the world. The United States has strong historical presence in the region since the end of World War II. That has brought a long period of peace, prosperity and stability for the region and it is a foundation for growth.

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It is an important trade and investment partner for Singapore and the region. It is our single largest foreign direct investor and the fifth largest trading partner, at about US$200 billion of bilateral trade with ASEAN and the fourth largest foreign direct investor in ASEAN. It is a vital source of technology and management expertise. The United States' engagement of our region has to be based on US' interests and not personalities. That has been a basic continuum for more than 30 years, although the tempo of engagement has stepped up of late. This is welcomed and it is significant that President Obama attended the ASEAN-US Leaders' meeting every year. We hope that the new Secretary of State, John Kerry, will continue the US' active engagement of the region and will make an early visit to Southeast Asia.

China, geographically, is obviously an intrinsic part of the region with strong historical links, as well as growing economic ties with all ASEAN members states. China's growth is fundamental for Singapore's own success and for the region's success. It has provided strong support for ASEAN Connectivity, for example, the US$10 billion ASEAN-China Investment Cooperation Fund and US$15 billion credit support scheme.

It is in our region's interest to keep both the United States and China engaged in our region in a collaborative manner, accommodating each other's and the region's interests to enhance peace and stability in the region.

The US and China are deeply interdependent across a broad spectrum of areas. Neither can prosper without the other, and both know that. Many bilateral platforms of engagement between the two exist as well as engagement within the regional architecture, for example, the East Asia Summit and the ASEAN Regional Forum (ARF), but we must recognise that competition is an intrinsic part of any great power relationship – interdependence co-exists with strategic wariness. If tensions rise within them, that will unsettle the region, and the domestic politics in both countries is an unknown x-factor.

Singapore's consistent position is to maintain strong links with both – close cooperation and common interests across a range of issues, and good personal relationships between our leaders and theirs, sustained through leadership changes in both countries. And there are good institutional links, for example, the Joint Council for Bilateral Cooperation with China and the US-Singapore Strategic Partnership Dialogue. These relationships are maintained by frequent high level exchanges. I will be visiting the United States shortly, in fact, next week, where I will meet Secretary Kerry. If schedules allow, I also plan to visit

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China later in the year.

Second Minister Grace Fu, Senior Minister Masagos Zulkifli and Senior Parliamentary Secretary Sam Tan will respond to the remaining questions. But let me emphasise some key points.

The uncertain geopolitical situation and global economic uncertainties continue. We have worked hard to ensure that we are well positioned to meet those challenges. We have worked to strengthen ASEAN, built up bilateral accounts with our regional neighbours as well as major powers, but we cannot be complacent. We will continue to stay alert and nimble, and to respond to challenges and opportunities.

People are the key to diplomacy – there is no substitute for people – and MFA is fortunate to have quality staff. The Foreign Service must remain competitive, both with other services in the public sector and in the private sector. And that is necessary for maintaining the high standards in safeguarding and advancing Singapore's interests.

Madam, Mr Ong Teng Koon and Ms Ellen Lee asked about our relations with the EU and other major economies, including the Latin American countries. Ms Ellen Lee also asked about the time taken to conclude our FTA negotiations with the EU.

Negotiations on the US-Singapore Free Trade Agreement started in March 2010. It was substantively concluded on 16 December 2012. This is about the same time as we have taken to negotiate our FTAs with the US, China and India. Both the EU and Singapore wanted the FTA to be comprehensive and ambitious. It covers not just conventional trade issues, such as tariffs and custom procedures, but also newer issues, such as renewable energy generation and sustainable development. MFA and MTI had to negotiate these issues carefully, consulting multiple stakeholders, including our local agencies and business associations and the 27 EU member states and understanding the present and future realities and needs of both parties. Our general approach towards all negotiations is that it is more important to do it right than to do it fast. We are confident that we have secured a comprehensive and high quality agreement that will benefit both businesses and consumers of both regions.

We are also negotiating the EU-Singapore Partnership and Cooperation Agreement (ESPCA), which is a broad framework agreement for deeper

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economic, political and cultural cooperation between Singapore and the EU. Approval of the EU FTA and ESPCA by the EU Council and ratification by the European Parliament and national Parliaments of 27 EU member states is a complex process and will take time.

Ms Ellen Lee also asked about people-to-people exchanges with the EU. In fact, we agree with Ms Lee that we need to promote broad-based exchanges between Singapore and the EU and, in fact, we have been doing so. On the education front, the Universities have already started many exchange programmes and also, on the cultural front, we have many offerings from European countries and performance groups in the area of film festivals, performances, exhibitions of paintings and art work. There are extensive exchanges across a broad range of areas, from political, economic to people to people.

EU countries are important sources of investments in Singapore. Similarly, investments from Singapore into EU countries have been gaining strength. It stands at $47 billion as at 2011. Repsol is the latest. It is a commercial decision by our business. For increasing our presence in EU and in Singapore, it is important to have deep economic relations. We will continue to be supportive to our businesses in expanding the economic opportunities overseas.

We have maintained good relations with other key partners of strategic importance to us. The EU-Singapore FTA joins a network of FTAs that Singapore has with the world's major economies – ASEAN, US, China, Japan, the Republic of Korea, India and Australia. We are also negotiating the Transpacific Partnership Agreement which started with Brunei, Chile and New Zealand, and now includes the US, Australia, Peru, Vietnam, Malaysia and, more recently, Mexico and Canada. We hope Japan will join soon. Japan is a strategically important country that should not be excluded.

These FTA networks are not just important economically but also strategically. They provide strong institutional links to key global and regional powers. Members will know how vital international trade is to Singapore. As our FTAs are all WTO-plus – in other words, they have better terms than WTO commitments – collectively, they help to provide an added impetus to global trade liberalisation talks.

We would like to thank Mr Ong Teng Koon for highlighting the potential of Latin America as well as giving us an education on football. It is important that we continue to engage emerging markets in Latin America. We fully recognise

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that it is increasing in economic and political influence. Trade with the region has more than doubled since 2005 to reach US$30 billion in 2011. Countries like Brazil and Mexico are playing important roles in international bodies, such as the UN, G20 and WTO. This is why we opened our first Embassy in Latin America in Brazilia in September 2012. Minister Shanmugam will be visiting Brazil in early April.

It is also interesting to note that the Latin American countries are expressing greater interest in Asia, in ASEAN and in Singapore. We have stepped up political engagement in the past few years, both at the leaders' and at the official levels, through institutionalised bilateral political consultations. In the past three years alone, we have concluded five air services agreements with Brazil, Ecuador, Paraguay, Colombia and Uruguay. We have signed a DTA with Panama and are in negotiations with Ecuador, Peru and Uruguay. We have also signed a partial Visa Abolition Agreement with Brazil, and both Uruguay and Mexico have unilaterally waived visa requirements. These agreements, including work on investment guarantee agreements, will make it easier for our companies to do business in Latin America.

Ms Ellen Lee asked about the passing of Venezuelan President Mr Hugo Chavez. First of all, let me express my condolences to the people of Venezuela on the passing of President Hugo Chavez who will be sadly missed by his people.

Singapore enjoys good economic ties with Venezuela. We understand that presidential elections will be held in 30 days and Vice-President Nicholas Maduro will assume the presidency in the interim.

We will continue to work closely with President Chavez's successor in strengthening our bilateral relations. Senior Minister of State Mr Masagos Zulkifli, will now speak about our engagement of major markets in the Middle East.

Mdm Chairman, Minister of State Teo Ser Luck and Senior Parliamentary Secretary Hawazi Daipi asked about developments in the Middle East and Singapore's efforts to tap on the emerging markets in the Middle East and Turkey.

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Singapore is actively expanding our reach to emerging markets in the Middle East. We are monitoring the fluid geopolitical situation in the region closely where the uncertainties are mainly in Levant and the Maghreb. Our focus in the region remains on the Gulf countries which are stable, perhaps except for Yemen. Last year, our trade with Middle East countries reached S$75.9 billion. We will establish a Consulate-General in Muscat, Oman, later this year. With this, we now have a diplomatic presence on the ground in Egypt, Saudi Arabia, Abu Dhabi, Dubai, Qatar and Oman.

Our engagement is not only economic. There remains keen interest to learn from Singapore's developmental experience. For instance, the Crown Prince of Abu Dhabi, Sheikh Mohamad bin Zayed Al Nahyan, instructed officials to visit Singapore just a few months ago to understand our water management strategies – a strategic issue for the UAE.

We also received study visits by the Egyptian Muslim Brotherhood to learn from our developmental experience in areas, such as economic planning, developing SMEs, public administration and port management. I called on President Mohamed Morsi when I visited Cairo last November, and he expressed admiration for Singapore's achievements. As Egypt undergoes a challenging political transition, Singapore is happy to share our experiences where relevant.

The Palestinians have also expressed interest in learning from Singapore. Last month, I attended the Conference on Cooperation among East Asian Countries for the Palestinian Development in Tokyo where we pledged Singapore's assistance towards the Palestinian National Authority's capacity-building efforts – an enhanced technical assistance package worth S$5 million over five years. I also met Prime Minister Salam Fayyad, who highlighted education as one area they are keen to learn from Singapore's experience.

Singapore has been expanding relations with Turkey too, which has a growing importance both in the Middle East and Asia. We opened an Embassy in Ankara in July 2012 and there has been increased bilateral engagement. Minister Shanmugam visited Turkey in January 2013 and he had a good discussion with Turkish leaders on how to enhance economic, transport and cultural relations.

Another emerging market that we have been watching is Africa, where recent developments and economic performance have opened up possible

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opportunities for Singapore companies.

Let me now hand over to Senior Parliamentary Secretary Sam Tan who will respond to the rest of the questions on Singapore's technical assistance to other countries and MFA's consular assistance to Singaporeans.

Mdm Chairperson, Mr Teo Ser Luck and Ms Irene Ng asked about the rationale behind Singapore's assistance to other countries and how this has benefited Singapore.

Mdm Chair, Singapore extends technical assistance to other countries, mainly through the Singapore Cooperation Programme (SCP). This is the right thing to do because we want to give back something to the international community for the assistance that we had received in the early days of our independence. However, we do not extend financial aid or fund infrastructure projects as we find that giving technical assistance is actually the most effective and the prudent way for us to help others.

Through the SCP, we train officials from many other countries in areas where Singapore is strong, such as public administration, economic development, port management, civil aviation and water management, and the list goes on. Helping our neighbours and friends through the SCP can, in return, benefit Singapore, too. A good part of the SCP is aimed at strengthening ASEAN. It is in our interest that our region is well governed and attractive to international investment. So, Singapore also benefits when other countries are well equipped to deal with transnational challenges, such as financial crises, terrorism and pandemics.

The SCP also helps Singapore build friendships. The SCP is very well received and well regarded by our friends and partners and, since the establishment of the SCP in 1992, we have trained more than 80,000 officials from over 170 countries. So, for a small country like Singapore, it is important to have this international network of friends who help us defend our interests at the United Nations and also other international organisations.

Mdm Chairperson, Mr Sitoh Yih Pin and Mr Alex Yam asked about what MFA deems as reasonable or unreasonable requests by Singaporeans for consular assistance. I would like to take this opportunity to assure Mr Alex Yam that our consular officers have long passed through the stage of "Cinderalla", although they may not have been transformed into princesses. Nonetheless,

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they live quite happily ever after, so long as they do not receive too many of those weird or unreasonable consular requests.

Madam, there is an increasing challenge of meeting the rising demands for prompt and effective consular services. From 2001 to 2012, overseas travel by Singaporeans increased by 67% from 3.8 million to 6.4 million annually. In 2012 alone, MFA handled almost 4,000 cases of consular requests for assistance. MFA treats all the requests for consular assistance seriously and we will continue to do all we can to assist Singaporeans in distress. But there are also clear limits to which and to what we can do. We need to act in accordance with international conventions, for example, the Vienna Convention on Consular Relations. We also need to respect local laws and the judicial processes in other countries.

Mdm Chairperson, most of the consular requests are reasonable and have been rendered the necessary and appropriate assistance. But like what was mentioned by Mr Sitoh Yih Pin just now, he quoted the BBC's report on weird consular requests and I would also want to report to this House that, in Singapore, we, too, face a fair share of such unreasonable and weird requests. Just let me cite a few examples. We had a request for assistance from a Singaporean to seek a refund after he had procured illegal sexual services. Another case involved a Singaporean living in Indonesia and he requested MFA to ship to him a desktop computer that he had ordered online from the US. Another Singaporean had also sought MFA's assistance to persuade his foreign girlfriend to expedite her divorce proceedings with her husband so that he could marry her.

Such requests divert our limited resources from handling cases of Singaporeans in genuine distress. We are continuing to train and professionalise our Consular Officers at headquarters and at our Overseas Missions. We are also constantly reviewing our work processes to better meet the public needs for effective consular services.

Our 47 Overseas Missions are supported by another 29 Honorary Consuls-General offices which provide consular coverage in countries where Singapore does not have resident missions. Where we do not have representation, there is also an agreement among ASEAN countries to help each other's nationals when there is an emergency. We can also request assistance from friendly countries like the UK, Australia and New Zealand to render consular services to Singaporeans in places where we do not have a presence while these countries

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have a presence.

Finally, we are also leveraging on new technology to improve the quality of our consular services. We launched a mobile application called MFA@SG in August 2012 to allow the public to eRegister and access useful consular information on their smartphones. So, I would like to take this opportunity to encourage Singaporeans to eRegister with MFA when they travel overseas. This will allow MFA to provide timely information to them should there be emergencies in the countries that they travel to.

In conclusion, Mdm Chairperson, as Minister Shanmugam mentioned, MFA will face increasing demands and challenges, not only because of external uncertainties, but also from rising expectations of Singaporeans. We will continue to work hard to tackle these challenges so as to uphold Singapore's and MFA's credibility and good standing, both in the international arena and also amongst Singaporeans.

Mdm Chairperson, I would like to thank the Senior Minister of State for talking about the launch of the electronic service. That was one of my suggestions last year. I would like to ask the Minister regarding visa-free travel. I understand that the Singapore passport can actually be used to travel to 164 countries visa-free. Within ASEAN itself, the only country that we cannot travel to visa-free is Myanmar. I am not sure whether MFA is working on this, and when will Singaporeans be able to travel visa-free to Myanmar. That is one question.

The other question is on ASEAN Community 2015. What is the Minister's assessment on ASEAN Community 2015, and whether we will be able to achieve the target? Last of all is that when the KL-Singapore high-speed rail is achieved, will there be a possibility there will be a passport-free travel between Singapore and Malaysia?

Let me take those three questions in sequence. For visa-free travel to Myanmar, it depends on the Myanmar authorities. Each country decides the framework for immigration, and the current approach of the Myanmarese government is that they require visas. Sometimes, these issues depend on reciprocity as well. In general, and I am not just talking about Myanmar, if reciprocity is required, then from our end, we will also have to

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consider and assess the security situation which depends on Home Affairs and its agencies. That really answers the third question as well in terms of Malaysia and Singapore.

As regards ASEAN 2015, it is a goal, a vision, something that we want to achieve. It is in our interests as well as the interest of all the ASEAN countries to achieve it. And we have a two-speed process for that because different countries are at different levels of development. We have made considerable progress in terms of removing tariff barriers, in terms of people-to-people connections and political and strategic issues. What I can say to Members is that we will continue to work very hard to try and achieve it. It does not just depend on us; it depends on other countries, their internal processes and political processes. So, we will have to see.

Thank you, Madam. In my speech I spoke about the challenges facing ASEAN and urged Singapore to play a more proactive role in getting ASEAN back on track. Can I ask the Minister, how he sees Singapore's role in improving relations in ASEAN and guiding ASEAN through this turbulent and uncertain time, even if it is leading from behind? Does MFA have any specific ideas on how we can drive ASEAN in the right direction towards a more cohesive and strong and autonomous ASEAN?

I think the question raises two aspects. It is not just about relationships within ASEAN that may have an impact on ASEAN unity. It is also about relationships between specific ASEAN countries and external powers, which could have an impact on ASEAN unity. ASEAN, as an organisation, moves on the basis of consensus. The inherent logic of ASEAN acting together is obviously there, but at the same time, each country looks at its own interests while looking at it within the framework of ASEAN unity. And on specific issues, any country may well decide its interests do not coincide with that of the other countries. In such situations, it is not often easy to convince any particular country that, for the sake of ASEAN unity, they should take a particular position. Every country understandably will put its own interests, front and centre.

What are we doing about it? We work closely with many other countries to try and move ASEAN further, for example, towards the vision of ASEAN 2015. If you take the South China Sea dispute, the Foreign Ministers' meeting last year in Phnom Penh did not end in a glorious success. There was no joint

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communique. But soon thereafter, we had the Six-Point principles issued at the initiative of Indonesia. We were very supportive of Indonesia's initiative. Likewise, we, in our own way, have talked to all the different ASEAN countries to see how we can come together and move together. We have played a significant role in the ASEAN 2015 vision, both on the trade and industry side, as well as on the MFA side. We work very closely with our partners in ASEAN. But there is a limit to what we can do in the context of an ASEAN where each member has its own interests and where many, many countries are interested in ASEAN, because it is a region which is dynamic and growing.

Mdm Chair, I am happy to hear that Cinderella now lives a somewhat happier-ever-after life. But this brings me to a question that I raised earlier that has not been covered as yet. I understand that our Foreign Service Officers are paid in a separate pay scale as compared to the rest of the Administrative Service, as such, I would like to know whether or not our officers are adequately compensated for what is definitely challenging work that they are doing.

Mdm Chair, I thank the Member for the clarifications. The Foreign Service Officers are paid within the overall framework of the civil service, so although their pay scale may be slightly different, but it is still within the framework. From the number of the turnover that we have seen in the Ministry, it suggests that the morale is still high, people are still fairly happy and, therefore, we are quite happy to see the situation. However, as the civil service has done, we will also be periodically reviewing all the terms and conditions to make sure that the Foreign Service Officers will remain a happy lot.

Madam, listening to Senior Parliamentary Secretary Sam Tan talking about the unreasonable requests of some Singaporeans, such as the illegal sexual services procured and asking MFA to intercede on behalf of his foreign girlfriend, reminds me of the saying that the twist to the words "Foreign Affairs" may be taken too seriously by some Singaporeans.

MFA has done a great job of providing our Singaporeans with consular services. But can I ask the Senior Parliamentary Secretary given the increasing demands, whether there is sufficient funding to our Missions and also to improve its programmes. As the Minister has mentioned, diplomacy involves human contact and personal relations and engagement on the ground. Do we invest enough in programmes for our Missions to carry out, to build relations

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and to build goodwill, and at the same time to project a softer face of Singapore to the world, especially through cultural programming?

Madam, as regards Ms Irene Ng's point, we will certainly try and do that – or to continue, within our limited resources. But we will certainly try and continue. If I may also deal with the point about remuneration of Foreign Service Officers. We try and keep morale up; we try and reward them appropriately. But, of course, there is always a difference in perception, within the service, as to whether the remuneration is adequate. It is a continuing conversation that we will have to have in the Foreign Service with the Public Service Division.