Asean can boost trade cooperation amid uncertain geopolitical outlook: SM Lee

It can also work harder with external partners to conclude more FTAs, he says

- Vanessa Paige Chelvan

Amid a strained geopolitical outlook, Singapore and the rest of Asean can "cooperate more intensively" on trade to help stabilise the regional order in the Asia-Pacific, Senior Minister Lee Hsien Loong said on March 24.

"After all these years of cooperation, our share of intra-Asean trade, as a share of our global trade among Asean members, is still quite low," SM Lee said. "It is less than one-quarter, and it has been about that level for a very long time."

He compared this with the European Union, where trade within the bloc is 80 per cent or 90 per cent of the members' global trade.

The former prime minister made these comments in response to a question from Professor Chan Heng Chee, ambassador-at-large at the Ministry of Foreign Affairs, who was moderating a discussion with SM Lee at the opening of the Singapore Maritime Week.

Prof Chan had asked SM Lee how Asean might stabilise the regional order in the Asia-Pacific, and whether Singapore can shield itself from the turbulence and changes happening elsewhere.

In response, SM Lee said Singapore "can insulate ourselves, but we can't prevent some impact upon us".

Countries in the region want to cooperate and trade more with one another, he noted. China, India, Japan, South Korea and smaller countries such as the Asean members are some examples.

Countries with close links to the West, like Australia and New Zealand, also want to do this.

"All believe that they have to do business and trade together," SM Lee said.

He noted that the Asean economic community is not like the EU, but it "gives a broad basis for us to enhance our economic cooperation, and we can do better".