SINGAPORE: Given heightened strategic tensions and policy uncertainty, it cannot be assumed that global trade will continue to keep up with the world’s gross domestic product (GDP), said Senior Minister Lee Hsien Loong on Monday (Mar 24).
If the trade-to-GDP ratio starts to fall, there will be “serious economic and strategic implications”, he added.
At the least, it will dampen economic growth in many countries, which will cause further social and political problems, both domestically and internationally. This could prove to be a “turning point”, he said.
“In that event, the world would truly enter a new epoch, which it has not seen since the Second World War,” he added.
“Naturally, our hope is that whatever the uncertainties and turbulence ahead, world trade will continue to grow, not just to sustain the maritime industry, but to enable more productive and prosperous lives for the peoples of the world.”
Mr Lee was speaking on the opening day of Singapore Maritime Week (SMW) held at the Suntec Singapore Convention and Exhibition Centre.
He noted in his speech that SMW takes place amid an “increasingly turbulent environment”. As the world globalised over the past six decades, Singapore’s small and open economy flourished, said Mr Lee.
As international trade bloomed, the global maritime industry grew with it, and the world economy benefited as well.
“Singapore rode these waves, and made the most of them,” said Mr Lee.
For instance, Singapore made investments and implemented policies to build an open, reliable and trusted trade and maritime hub. It also became a key link to global supply chains, and a gateway between the East and West.
