Gan Kim Yong outlines efforts to lower trade barriers and enhance regional collaboration
As global trade tensions rise, with the US imposing higher tariffs, Singapore is actively working to lower trade barriers, aiming to maintain its open and facilitative trade environment.
At the CNBC Converge Live conference on March 12, Deputy Prime Minister and Minister for Trade and Industry, Gan Kim Yong, highlighted Singapore’s strategy of leveraging its memberships in ASEAN and the Regional Comprehensive Economic Partnership (RCEP) to combat growing protectionism.
DPM Gan noted that ASEAN members, including Singapore, have made significant progress in reducing import duties. Six out of ten ASEAN countries have eliminated tariffs on nearly all taxable products, while the remaining nations impose duties of no more than 5% on 99% of goods.
“We’re striving to go even further,” said DPM Gan. “We’re working to enhance the ASEAN Trade in Goods Agreement (Atiga), addressing non-tariff barriers, integrating sustainable practices, and improving trade aspects like supply chain connectivity.”
The updated agreement aims to strengthen intra-ASEAN trade, ensuring a resilient regional economy, particularly in light of external disruptions and rising protectionist policies. Furthermore, DPM Gan mentioned that Singapore is focusing on developing the green and digital economies, with initiatives such as investing in low-carbon energy and creating an interconnected power grid to facilitate cross-border trade in low-carbon energy.
The digital economy, projected to grow from US$300 billion to US$1 trillion by 2030, is another key area of focus, with talks ongoing on the framework agreement to boost investment in the sector. DPM Gan outlined efforts to align digital rules and standards, which would enhance cross-border digital trade by promoting interoperability in systems like digital identities and payment platforms.
The RCEP, which has eliminated tariffs on approximately 92% of products, is also set to be further enhanced to bolster regional cooperation and trade.
Addressing the conference, DPM Gan also praised Singapore’s position as a global business hub, as evidenced by the event’s hosting in the city-state, and welcomed the ongoing collaboration with industry leaders like Marc Benioff of Salesforce and Ray Dalio of Bridgewater Associates.
Dalio, a major investor, commented that Singapore, as a neutral country, is well-positioned to thrive amidst a divided world, drawing capital and talent due to its resilience and strategic neutrality. “Neutral countries, like Singapore, thrive during periods of global tension,” he said.
Singapore’s approach to trade aims to foster an inclusive and resilient future, with a focus on digital transformation and sustainable practices, ensuring the city-state’s ongoing prosperity despite global challenges.
