The US and China are competing within the same inter-linked and interdependent economic system, unlike the Cold War environment, said Heng, who is also Coordinating Minister for Economic Policies.
Both can't reach their maximum economic potential. There could be a downward spiral in living standards, not only for the US and China, but also the rest of the world. Economic decoupling is at worst a slippery slope towards strategic miscalculation and a disastrous conflict. He said that a new equilibrium will take time, and that both countries should not let strategic mistrust overshadow opportunities for mutual progress.
He said that the US and China will compete where they must, but it is important that there are safeguards in place to make sure that competition does not veer off course into conflict.
Any clash between the world's two largest economies will only be to the detriment of themselves and the world. Heng urged them to cooperate where necessary, pointing out that they share many areas of complementarity in economic development, even though they are at different stages of development.
He said that by working together to tackle shared challenges, and tapping on their vast resources of talent, capital and innovation, they can lead the charge on international progress and development.
Singapore can contribute to the multilateral system in this age of complexity by continuing to strengthen a rules-based system, so that all countries, big and small, will have their voices heard and sovereignty respected, he said.
As the world evolves, so too must the global rules and norms that govern our actions. The process of refreshing these rules is often protracted, especially when global leadership is contested, he said.
Individually, each of us may not be able to shape the course of global action. We have agency, and we can create new building blocks for meaningful change by working collectively. Singapore has an impact on global trade, according to Mr Heng, who said Singapore is a pioneering member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership CPTPP. Singapore is a pioneering member of the CPTPP, which was formed from a smaller trade agreement called P 4 between Singapore, New Zealand, Brunei and Chile, signalling a desire for greater economic integration and further liberalisation of trade and investment at a global level.
Since joining the CPTPP, more economies have applied, and this has catalysed the momentum for global change. He said that China recently indicated its wish to join the CPTPP.
He said that P 4 shows how a few determined small states can create building blocks over time to catalyse meaningful change in global trade.
While the US has revived the Quad and stepped up security cooperation through AUKUS, it is important for the US to be economically engaged, he said. It must have an equally substantial alternative if it is not through the CPTPP. Mr Heng noted that the US President Joe Biden announced an Indo-Pacific Economic Framework during his virtual summit with ASEAN leaders in October.
During a visit to Japan on November 18th, US Trade Representative Katherine Tai said that the US could set up a new Asian economic framework with allies and friendly nations as early as next year, the NHK public television reported on Thursday.
Heng said we look forward to the details and to the US substantial and inclusive engagement in the region.
In addition to the US and China, he said that Southeast Asia should strengthen links with India, South Asia, Australia and New Zealand, while remaining open to Latin America and Africa.
In particular, he said that the Association of Southeast Asian Nations ASEAN must work with any country that wants to work with it, where it is in its interests to do so.
He said we look forward to greater economic integration when the RCEP Regional Comprehensive Economic Partnership comes into force, making it the largest free trade agreement in the world.
We must continue to welcome global investments to help the region realise its potential. Heng said that the bloc's position on Myanmar shows that it can hold its own against external pressures to maintain its credibility, and that the bloc's position on Myanmar shows it can hold its own against external pressures.
He said that we have taken a principled position to forge consensus and urge other countries to do the same.
In recent years, support for globalisation has waned, as the benefits of the global economy are not well distributed within and across economies.
He said that the acute pain felt by disrupted workers and the angst of wage stagnation have come to dominate sentiments on globalisation.
Domestic disgruntlement has hampered the ability of governments to engage in free trade and to come to an agreement on reforms in the multilateral system and institutions.
COVID 19 has deepened societal fault lines. It has made it harder for governments to carry out international engagements coherently because of the lack of unity.