OPENING SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY (TRADE), AT THE PECC-SINGAPORE CONFERENCE AT GRAND COPTHORNE WATERFRONT HOTEL, SINGAPORE
ON MONDAY, 13 FEBRUARY 2017, 9.30 AM
“The Importance of Globalisation and
Inclusive Growth:
Opportunities and Challenges Ahead”
HE Bui Thanh Son,
Distinguished Guests,
Ladies and Gentlemen
1.
I am glad to join you today at the 2017
Pacific Economic Cooperation Council (PECC)-Singapore Conference.
2.
We are meeting at a time when globalisation
and free trade are in question. It is therefore timely to remind ourselves why
APEC was set up and why we joined it – to promote trade and economic
integration across the Asia Pacific.
Revisiting
the Bogor Goals: Pursuing free and open trade
3.
In 1994, APEC Leaders gathered in Bogor,
Indonesia, and committed to 'free and open trade and investment' by 2020. APEC leaders believed that growth could be
achieved through greater economic cooperation and integration; by lowering
barriers and promoting a greater flow of people, businesses and trade, across the
far reaches of Asia and the Pacific, where few cross-regional trade and
business links had existed.
4.
Over the last two decades, APEC has worked
hard to achieve the Bogor Goals, with tariffs falling considerably and some of
the services restrictions lifted. Between 1994 and
2014, APEC’s real GDP grew at 3% per annum, outpacing the rest of the world,
which grew by 2.5% per annum. Poverty has also fallen significantly. The number
of people living under poverty conditions within APEC fell by more than 800 million
between 1993 and 2012.
Making
Globalisation Work Better
5.
As we approach the deadline for the Bogor
Goals, APEC is at an inflection point. Amidst a backdrop of sluggish growth and
concerns about unemployment, income inequality and immigration, anti-trade sentiments
have been on the rise. There is also a growing notion that globalisation has
failed.
6.
Indeed, globalisation is not a panacea for all
economic woes nor does it come without costs. While globalisation has lifted
hundreds of millions of people out of poverty, and brought immense benefits to
consumers, we have to acknowledge the growing discontent. Benefits from
globalisation have not been distributed evenly. We also have to recognize the
impact of disruptive technologies, which can result in skills becoming obsolete
and being displaced.
7.
However, we should not make globalization the
scapegoat for slowing growth and unemployment. Closing borders and turning
inward is not the answer. Economies are so interdependent nowadays that it would
be very difficult to disconnect from the global value-chain. If we do so, our
businesses and communities will lose out. Markets will shrink, fewer jobs will
be created and consumers will have to bear higher costs and will have fewer
choices. We should avoid actions which will only hurt ourselves and lead to
retaliatory measures, undoing the good progress that we have achieved so far.
8.
Let’s focus instead on ensuring the growth we
achieve is inclusive. We should endeavour to put in place domestic policies that
will enable benefits and growth to trickle down to all levels, including
through equipping our workers with the skills required to adapt to new
challenges.
Post 2020
vision
9.
These are conversations we have been having
in APEC in the past few years. I am also glad to see that APEC has started to
look at the role it can play post 2020.
10.
Greater cooperation amongst economies and
keeping markets open are the best ways to boost growth and create jobs. Thus, economic
integration should continue to remain APEC’s priority. We are still a distance
away from achieving APEC’s goal of free and open trade. While average tariffs
have fallen, tariffs still remain high in certain sectors and services
restrictions vary across sectors.
11.
The realisation of the Free Trade Area of the
Asia Pacific (FTAAP) should continue to be key to APEC’s agenda as the FTAAP embodies APEC’s original vision for
regional economic integration and contributes to the realisation of free and
open trade.
12.
We must also continue to place emphasis on inclusive
growth. This is vital if we want to have sustained support for our economic
integration agenda from our domestic constituencies. Governments must
restructure their economies and find new growth and opportunities for their
businesses and citizens. They need to equip their people with the right skill
sets and invest in education and training.
APEC has made good headway on initiatives to help Micro, Small, and
Medium Enterprises (MSMEs), improve inclusion of women and vulnerable
communities and boost education, training and human resource development. APEC
should continue to advance such initiatives, promote the sharing of experiences
and offer capacity building.
13.
The focus on MSMEs will be particularly critical.
MSMEs are the engines of growth and innovation in the APEC region, accounting
for over 97% of enterprises and 50% of the workforce across APEC economies.
APEC can continue to help improve their access to information, credit and provide
technical assistance to help MSMEs adopt new technologies and to embrace the
digital economy. The digital economy offers new opportunities to MSMEs. It can
allow MSMEs to internationalize and participate in Global Value Chains in a
more cost effective way.
14.
This brings me to two other areas I think the
APEC post 2020 agenda should also focus on to support sustainable economic
growth and prosperity- digital economy and services. The digital economy will
play a greater role in our economies and in the creation of jobs. APEC has made progress in certain areas such
as data privacy rules, promoting digital platforms through paperless trading.
But more can be done to facilitate e-commerce goods and services and address
gaps in areas from customs and tariffs to data flows and cybersecurity.
15.
The Services sector is becoming a substantial
and rising component of our economies. It is the biggest contributor to GDP in
many APEC economies. I am glad that APEC economies will embark on the APEC
Services Competitiveness Roadmap in the coming years to help each other assess
and improve their services sectors, in terms of transparency,
inter-connectivity and reducing structural barriers.
Conclusion
16.
Ladies and gentlemen, the current global
economic landscape is a very challenging one. APEC’s leadership is more
important than ever to stem the tide of protectionism and anti-globalisation. APEC
economies need to work together, focus on collaborative wins and continue the
dialogue on how we can balance open trade with domestic considerations and make
globalisation work better for all.
17.
I would like to thank SINCPEC and PECC
Vietnam for organizing the conference and wish you a fruitful session ahead.
