Latest news with #BorgeBrende
CNA
2 days ago
- Business
- CNA
WEF on global economy's resilience amid geopolitical challenges
CNA's Olivia Siong speaks to Borge Brende, WEF President and CEO, about this year's World Economic Forum in Tianjin, China against the backdrop of tensions between Israel and Iran.
Straits Times
3 days ago
- Business
- Straits Times
Multilateralism will need to evolve to become more ‘flexible', says PM Wong at WEF
PM Lawrence Wong (left) and WEF President Borge Brende attending a session of the WEF Annual Meeting of the New Champions in Tianjin, China on June 25. PHOTO: AFP Multilateralism will need to evolve to become more 'flexible', says PM Wong at WEF TIANJIN – With global rules weakening and economic nationalism on the rise, Singapore is proposing a workaround of getting like-minded countries to cooperate on specific issues, while leaving the door open for others to join in future. 'This is what we would call a flexible multilateralism,' Prime Minister Lawrence Wong said during the question-and-answer segment of a World Economic Forum (WEF) event on June 25 in Tianjin. 'It is not about an ad-hoc array of different rules but starting first laying the building blocks, and eventually others can join, and we can steer progress in the right direction.' PM Wong added: 'Whatever we do, it is open, it is inclusive. Others may not be ready to join, but in time to come, they can join and we can multilateralise these efforts.' He called for countries to find ways to evolve the multilateralism system, rather than abandon it altogether. The American-led post-war global order which had allowed for free trade and prosperity for countries big and small has come under threat with the US imposition of high tariffs on goods from much of the world, especially from China. The United States has imposed a 10 per cent tariff on Singapore, even though it has a Free Trade Agreement and a trade surplus with the Republic. 'For small countries like Singapore, we are worried because we have limited options, we have limited bargaining power, and we risk being marginalised,' said Mr Wong in his opening remarks during the dialogue. He said bigger countries will also find it hard to deal and operate in the new environment, because it will be harder for the world to address common threats, such as pandemics, climate change or financial shocks. In response, Singapore will still strive to bring people together, promote integration, bring down barriers and strengthen multilateralism, he said. Mr Wong said he hoped to see a kind of 'multilateralism that is more resilient, more inclusive and better suited to the realities of our time', adding that Singapore will do its part in this endeavour. 'The efforts may seem small and incremental, but if like-minded countries everywhere were to do our part, then collectively, I think we can make a difference, and then step by step, hopefully we can lay the groundwork for a new and more stable global order in time to come,' he said. During the question-and-answer segment with WEF president Borge Brende, Mr Wong cited an example of what Singapore has done to this end. During the question-and-answer segment with WEF president Borge Brende, Mr Wong cited an example of what Singapore has done to this end. PHOTO: AFP Singapore, together with Japan and Australia, had pushed for a joint initiative at the World Trade Organisation (WTO) on e-commerce. After five years of negotiations, more than 70 countries have joined this initiative, which serves as the building block for the first set of global rules on digital trade. 'It is painstaking work, but there is no alternative. A new system does not just appear by magic. You have to work at it and with creative, pragmatic solutions, bringing along like-minded countries,' he said. When asked to comment on how Singapore balances its ties between the US and China, Mr Wong said Singapore has 'broad and substantial' ties with both of them. 'I know everyone monitors and tracks what we say and what we do very closely. Trying to parse every hidden meaning behind every word, behind every action, whether we are moving closer to one or the other. But that is not how we look at things,' he said. Singapore's starting point, Mr Wong explained, is to look at how it advances its own national interest. 'Our interests are to have close, good relations on substance with both America and China, and we will continue to do whatever we need to do to promote and advance Singapore's interest ,' Mr Wong said. 'It is not about balancing between the two superpowers, but it is about being consistent and principled in advancing and promoting Singapore's interests, and that is what we will continue to do.' Yew Lun Tian is a senior foreign correspondent who covers China for The Straits Times. Join ST's WhatsApp Channel and get the latest news and must-reads.
Malay Mail
3 days ago
- Business
- Malay Mail
At WEF in Tianjin, Singapore PM Wong calls for ‘flexible multilateralism' amid weakening global rules, US tariffs, and rising tensions
TIANJIN, June 25 — Countries should respond to weakening global rules by fostering integration, dismantling trade barriers, and reinforcing multilateralism, Singapore Prime Minister Lawrence Wong said today. Speaking at the World Economic Forum's Annual Meeting of the New Champions in Tianjin, Wong emphasised that while reforming global trade rules and improving multilateral systems is challenging, 'there is no alternative' to sustained international cooperation, according to a report in The Straits Times. He proposed 'flexible multilateralism', where like-minded countries could initiate collaboration, allowing others to join when ready, during a dialogue with WEF president Borge Brende. Wong noted that post-Cold War globalisation had spurred integration, but recent years have seen rising discontent, amplified by the Covid-19 pandemic and global security concerns. He warned that global institutions and norms are weakening, with economic nationalism increasingly replacing cooperative international engagement. 'Unfortunately, the world is changing,' he said. 'We see over the years, more pressures, discontent against globalisation has risen.' This trend poses particular risks to small countries like Singapore, which have limited leverage and could be sidelined in global decision-making, he said. However, even larger nations would struggle to address common challenges such as pandemics, climate change, and financial instability in the absence of multilateral cooperation, he added. Wong cited the World Trade Organisation as an example of a system in need of reform, especially in light of developments like digital trade, but stressed the solution lies in updating—not abandoning — global rules. He highlighted Singapore's role in co-convening the Joint Statement Initiative on E-Commerce with Australia and Japan, which led to more than 70 countries agreeing on new digital trade rules after five years of negotiations. Commenting on the 10 per cent US tariffs imposed on Singapore, Wong said the trade balance favours the US and that a zero tariff should apply under the free-trade agreement, but acknowledged that 10 per cent is likely America's baseline. Wong added that Singapore is engaging US officials and hopes the tariffs on Southeast Asian countries will be adjusted closer to this level. On managing ties with both the US and China, he said Singapore maintains 'broad and substantial' relationships with both and focuses on advancing its own national interests. 'It's not about balancing between the two superpowers,' he said. 'It's about being consistent and principled in promoting Singapore's interests.'
Saudi Gazette
3 days ago
- Business
- Saudi Gazette
Turmoil and trade wars dominate China's 'summer Davos'
TIANJIN — Oil prices have hit their lowest in two weeks after Israel agreed to US President Donald Trump's proposal for a ceasefire with Iran. But business leaders at a key economic meeting in the northern Chinese port city of Tianjin find themselves troubled by the state of the global economy, and the prospect for meaningful growth. The rapid escalation of the conflict between Iran and Israel - which has now pulled in the United States - temporarily replaced trade, tariffs and inflation at the top of a long list of concerns with far-reaching consequences. "It is the most complex geopolitical and geo-economic backdrop we've seen in decades," Borge Brende, president and chief executive of the World Economic Forum (WEF), said ahead of the summit, dubbed the "Summer Davos". "If we are not able to revive growth again, we can unfortunately see a decade of lower growth." WEF has long been a symbol of the merits of free trade and a globalised world - but Trump's tariff wars have upended supply chains and the ability of businesses to plan for the future. "We live in an environment of radical uncertainty," says Jeffry Frieden, professor of international and public affairs and political science at Columbia University. "Businesses have to figure out what has happened over the past several years as we come to the end of an era, in my view, of international economic and political affairs and move into a new era." Geopolitical risks have significant implications for the global economy. Higher oil prices can push up the operational costs of energy for goods producers - and at some point, those additional costs may be passed onto the consumer. People may in turn hold back on spending, as increased prices dampen demand. If inflation remains high, central banks will be reluctant to bring down interest rates. Geopolitical tensions can also lead to losses as the result of other factors, such as the rerouting of flights and disruption to tourism activities. Investors can get rattled by uncertainty, leading to sell-offs on the market and a rush for safe haven assets like gold and the US dollar. Iran's threat to close the Strait of Hormuz – one of the world's most critical transit routes, through which roughly a quarter of the world's global oil supply passes – would leave China especially vulnerable. It is estimated that Beijing imports 90% of the oil Iran sells. Chris Torrens, head of China at advisory and advocacy firm APCO, points out that some of the country's bigger machinery sectors, including the new high technology industries that Beijing is trying to support, still rely on oil. "So anything that disrupts that oil supply is going to be a worry to Beijing," he says. The WEF event comes at a critical moment for China's economy, which has for years struggled from a protracted property crisis, high unemployment and sluggish domestic spending. Beijing has unveiled a string of measures to try to stimulate the economy. Until now, China is still achieving its official growth target of around 5%, and economists say the country could account for almost 30% of global growth this year. Mr Torrens says Chinese officials detect an opportunity, and suggests that in a sense the country is opening its doors through the WEF event. "I think the US is giving China a massive PR opportunity to portray itself as a champion of globalisation," he says. "To say that China is a bastion of free trade is still a work in progress, because there are still market access issues. But China is certainly keen to play its part and step up as a regional and a global player." With Trump's trade war now threatening exports from the manufacturing powerhouse, Beijing is looking to emerging technologies like Artificial Intelligence (AI) as potential sources of growth. "Trade has been an important engine of growth for the last decade or two, but it's clear that certain technologies have a huge potential to help us with new sources of growth and competitiveness," said Mirek Dusek, managing director at WEF. Accounting firm PwC says AI could boost global growth by 15% by 2035. At the WEF event, though, tariffs are never far from the minds of business leaders, as they try to make alliances and navigate an uncertain economic environment. In the coming weeks, Trump's pauses on his hefty reciprocal levies are due to expire. And there's little certainty as to how the global business landscape might look after that. "It's very difficult for businesses to make long term plans," Frieden explains. "If you don't know what the level of goods on your tariffs are, you can 't figure out if it makes sense to relocate in the US or keep your activities overseas – whether you're an American corporation, or a non-American corporation." — BBC
Business Recorder
4 days ago
- Business
- Business Recorder
Turmoil impacting global growth: WEF chief
TIANJIN, (China): The world is facing the 'most complex' geopolitical situation seen in decades, the head of the World Economic Forum (WEF) told AFP Tuesday, warning that turmoil was 'impacting global growth'. 'It is the most complex geopolitical and geo-economic backdrop we've seen in decades,' WEF President and CEO Borge Brende said ahead of a meeting of the multilateral forum in the northern Chinese city of Tianjin. 'If we are not able to revive growth again, we can unfortunately see a decade of lower growth,' he warned. Officials including Singaporean Prime Minister Lawrence Wong will attend this week's WEF meeting in the port city of Tianjin — known colloquially as the 'Summer Davos'. The meeting comes hard on the heels of the United States' involvement in the Iran-Israel conflict and follows months in which the global economy has been battered by a tariff war launched by US President Donald Trump. This month, the World Bank cut its forecast for global growth this year from 2.7 percent to 2.3 percent, following a similar reduction by the International Monetary Fund. Brende told AFP it was still too soon to predict the impact of Trump's swingeing tariffs. It is 'too early to say what these tariffs will end with because the negotiations are still ongoing', he said. 'I think the jury is still out, but the traditional globalisation we saw is now changed into a different system,' he said. 'That is a new chapter... especially since trade was the engine of growth.' Brende also warned mounting conflict could have a 'very negative impact' on global growth. The WEF gathering in Tianjin comes at an uncertain juncture for the Chinese economy, which has struggled under a years-long property sector crisis and sluggish domestic spending. 'China really does matter,' Brende said, adding he expects the country to account for almost 30 percent of global growth this year. 'China is pivoting its economy more towards digital trade, towards services and also now opening up for increasing domestic consumption — something that is important,' Brende said.
