Global uncertainty over security will affect jobs, wages and prices in S'pore: Chan Chun Sing

Yahoo

4 days ago

SINGAPORE - An increasingly volatile global security environment will reinforce economic uncertainty, which will have implications on jobs, wages and prices in Singapore, said Defence Minister Chan Chun Sing.
Developments on the security front are closely intertwined with the economy, Mr Chan told reporters on June 25 in an interview with local media ahead of SAF Day on July 1.
When businesses see greater uncertainty, they are less likely to invest – leading to fewer jobs.
Mr Chan cited the conflict in Iran, which escalated in mid-June with Iran and Israel trading air strikes.
The US has waded into the fray, bombing Iranian nuclear facilities on June 22.
'If you look at the Iran conflict, the volatility of the oil prices feeding into the economic system – that again caused quite a lot of uncertainty and perturbations,' he said.
The war in Ukraine – which began with Russia's full-scale invasion in 2022 – has also disrupted the global supply chain for many food products.
Such disruptions are likely to increase prices, Mr Chan said.
'If prices go up, jobs go down, wages don't grow,' he added, noting that the impact of such wars should not be underestimated.
Positioning Singapore as an 'oasis of calm' amid the global volatility requires tremendous effort, he said.
'The fact that people say that 'I can invest in Singapore because I am less likely to face a security incident, whether it is terrorism or whether it is a disruption of our energy supplies, our water supply' – all that adds to our overall competitiveness.'
Amid these conflicts, Mr Chan said Singapore has to stay relevant and diversify its portfolio of defence relationships.
'We must continue to make sure that we are relevant and we can value-add to the relationship, both bilaterally and multilaterally,' he said.
'If we are not relevant, we will not have a voice.
'If we are not principled, we will not be able to engender trust for other people to want to work with us.'
The most important thing for Singapore is to take positions that are based on principles – like sovereignty – that best support its survival and success, he said.
Today, there are various challenges that transcend geographical confines, and these present opportunities to expand Singapore's network of relationships, Mr Chan said.
There is interest from many European countries to work with Singapore on the technological front and on supply chain resilience, he said, without naming any.
Other possible partners are South Korea and Japan, who face similar challenges to the Republic, he said.
Mr Chan added that Singapore will continue to work with its traditional partners, including Indonesia, Malaysia, Brunei, the US, China, Australia, New Zealand and the UK, he said, highlighting the Five Power Defence Arrangements (FPDA) agreement.
Under the FPDA, signed in 1971, Singapore, Malaysia, Australia, New Zealand and the UK are bound to consult each other in the event of an attack on any one of the partners.
Singapore is also looking at more opportunities to have bilateral exercises, Mr Chan said.
He had a recent conversation with his Indonesian counterpart Sjafrie Sjamsoeddin, where they discussed how the two countries can work together to develop training areas.
'This is also another example of how both sides can stretch our defence dollar and also to bring about greater interoperability between the armed forces,' Mr Chan said.
Singapore, he added, should play to its strengths as the country navigates the global uncertainty.
One of these is to continue to have a secure and stable business environment.
This requires the security and economic agencies, as well as the political leadership, to signal to people that the Republic is still a place where one can get stability, security and the rule of law, he said.
Another strength is Singapore's commitment to constantly invest in its people, he said.
'Even during tough times, and maybe particularly during tough times, we will continue to step up our investment for our people. That's why we have made SkillsFuture a central pillar of our social compact.'
He added that Deputy Prime Minister Gan Kim Yong, who leads a task force on economic resilience, will share more details on its work soon.
There are measures that the Government can take if the situation warrants it, but the task force is also looking at how to position Singapore in the longer term, given the shift in the global security and economic environment, Mr Chan said.
'We can take heart from all this. We don't have to panic. We have plans to help fellow Singaporeans tide through and go through this together.'
Source: The Straits Times © SPH Media Limited. Permission required for reproduction
Discover how to enjoy other premium articles here