He said the world should remain interdependent despite pressures to break up, as any kind of fracture would make individual countries “suboptimal” and suffer economically. “With interdependence comes risk, but a fragmented world with less interdependence, where people and large countries believe they can enhance their own security and indirectly exacerbate another country’s insecurities, that cannot be a win-win situation.” Chan said. “Global businesses have a voice and they need to make their voice heard, that you prefer an integrated world and not a fragmented world,” said Singapore’s Education Minister Chan Chun Sing (pictured here in 2019). Bloomberg | Bloomberg | Getty Images “It is important to remember that a more interdependent world is a safer world. But today, because of the pressures, both domestically and globally, there is a temptation to think that if the world is fragmented, two different blocs, each of different blocks you will be safer.” Chan said that if fragmentation continues, countries and companies will perform less than optimally, “instead of … enjoying the last 50 years of rapid growth based on a globally integrated system.” In recent months, when Russia moved into Ukraine, we objected. People are asking, is this a pro-US move? Or is it a move against Russia or against China? Neither. Chan Chun Sing Singapore’s Minister for Education Now, the international rules-based security system and trade order are once again “under pressure” and cannot be “taken for granted,” he added, citing the example of the Cold War. He cited Russia’s war in Ukraine and the World Trade Organization’s dispute settlement crisis as some of the cracks in the system. Speaking directly to business leaders and investors at the investment conference, Chan called for global integration. “Global businesses have a voice and they need to make their voice heard, that you prefer an integrated world rather than a fragmented world,” Chan said. He said Singapore would also play its part by bridging and “interoperating” between the fragmented blocs. “We believe there will be a premium for connectivity, stability, progressiveness, consistency and trust,” Chan added. Fragmentation is starting to chip away at the stability of the global economy, Morgan Stanley Investment Management said in a separate note on Wednesday. Deglobalization and the disruption of supply chains, for example, are fueling inflation, said Andrew Harmstone, senior portfolio manager at the firm.

“World trade as a percentage of GDP has been rising very quickly in the past, which has contributed to a very low rate of inflation. But the upward trend will tend to reduce trade,” he said. According to the Hinrich Foundation, although terms such as “buddy favors” have been added to the trade policy lexicon of the US and those of other countries such as Japan, little has been revealed about what they mean. “If governments seek to intervene in a supply chain, they need to argue that they see the risks better than business. But it’s unclear what market failure support-friend policies will fix without further fragmenting the global trading system,” Khalit said. . Harput, author of the Hinrich report.

“The best guarantee” for the survival of a small country

Chan said Singapore will continue to refrain from taking positions, but will take positions that are consistent. “In the last few months, when Russia moved into Ukraine, we opposed it. People ask, is this a pro-US move? Or is it an anti-Russian or anti-Chinese move? Neither. When the US moved into Grenada, we When the USSR moved into Afghanistan, then we resisted,” Chan said. “We believe that the rule of law, especially on the international front, is the best guarantee for the survival of a small country.” “And this is not only true for Singapore, but I will suggest, this is true for every ASEAN country.” And while positive words were exchanged between US President Joe Biden and Chinese President Xi Jinping on the sidelines of the Group of 20 meeting on Monday, Chan said, it is important to watch the actions that follow.