Committee of Supply – Head N (Ministry of Foreign Affairs)

ASEAN and Relationships with Neighbours

Dr Lim Wee Kiak: Sir, I beg to move,

That the total sum to be allocated for Head N of the Estimates be reduced by $100.

ASEAN nations have pledged to work towards a more united and harmonious ASEAN in the ASEAN 2020 vision as well as the Cha-am Hua Hin declaration on the roadmap of the ASEAN Community 2015.

Last November, Prime Minister Lee Hsien Loong attended the 19th ASEAN Summit in Bali and, together with ASEAN leaders, reaffirmed our commitment to ASEAN's 2015 Community building targets. The need to continue making progress on the implementation of the three Community Blueprints and the Master Plan on ASEAN Connectivity was emphasised. The blueprint aims to create a single market and production base that will allow for free flow of goods, services, investment, capital and labour throughout the region by 2015.

There were various reports casting doubts on whether this goal is realistic. ASEAN Secretariat Finance Integration head Aladdin D Rillo has expressed doubts regarding the integration of ASEAN in the timeframe outlined by the ASEAN Economic Community Blueprint. He said in an interview to Jakarta Post in 2010 "there will only be a semblance of economic integration. Not the full integration as the term implies. Because if we want to have full economic integration, it means really a single market, a single production base. It also means financial markets are fully integrated." He does not think that will be happening any soon.

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What progress has been made and how far advanced are we in terms of realising the ASEAN 2015 plan? Can MFA give an update on the ASEAN 2015 plan and ASEAN 2020 vision? Are we on target for the stated goals in the plan and the vision? If not, which goals can be achieved and which ones cannot? What are the challenges confronting ASEAN to achieving them?

Can MFA also give an update to the House on our relationships with our closest neighbours – Indonesia and Malaysia? What challenges lie ahead for us as some of our neighbours may be holding their general election this year or next?

Myanmar has shown significant progress in recent months with encouraging political reforms. Not only have elections been successfully held – we have also seen very significant releases of political prisoners, signing of ceasefire agreements with armed rebel groups, easing restrictions on the press, opening a dialogue with opposition leader and the participation of Aung San Suu Kyi in mainstream politics, and we will soon see the by-elections as well.

During President Thein Sein's visit to Singapore, he has also reaffirmed Myanmar's commitment to progressive reforms as he mentioned in his parliament address in Myanmar on 1 March this year. The US and EU have praised Myanmar for its recent progress and may lift sanctions imposed during the military rule. In addition, there has been a marked rise in business interest in Myanmar. This is a rich country, full of untapped potential and resources. Can we have an update on Myanmar and what is the most likely expected outcome leading to Myanmar's 2014 ASEAN chairmanship?

ASEAN is not a homogenous group. The least developed countries in the group are Cambodia, Myanmar, Laos and Vietnam (CMLV). How is this impacting on ASEAN to achieve the 2015 one ASEAN community goal? Are preferential treatments given to these countries? If so, what preferential treatment and how does that impact on Singapore? There will be no real peace and harmony if our region is unstable. What is the long-term goal of ASEAN? Are we going to be like the European Union? Given the problems we are witnessing in the EU now, how can we avoid those pitfalls and yet achieve one ASEAN community?

Relations with Malaysia and Indonesia

Mr Ong Teng Koon: Sir, Singapore was Indonesia's largest investor once again in 2011. Trade relations are also strong. What is the status of bilateral relationship with Indonesia? What is the status of the Extradition Treaty and Defence Cooperation Agreement package that were signed with Indonesia in 2007? There has been some controversy over these Agreements. Will they be a negative factor in our bilateral relations with Indonesia in the coming years? What are some of the challenges facing this relationship and how can we move forward to maintain peace and cooperation? Also, what is the status of our relationship with Malaysia, given positive developments there that have seemed to characterise the relationship over the past year? Have we reached a new stage in building this relationship?

Dr Intan Azura Mokhtar: Mr Chairman, Singapore and Malaysia have a substantial history of bilateral relations. In recent years, we have seen positive developments between the two countries, such as the recent Points of Agreement on land use and development in Iskandar Malaysia and Singapore, as well as developments in transportation between our borders. In addition, although one of our water agreements with Malaysia, the 1961 Water Agreement, expired last year, we had a smooth handover of the water works to Johor.

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In January this year, Prime Minister Lee Hsien Loong and Prime Minister Najib Razak had a Leaders' Retreat where they announced a set of new cooperative initiatives to bring our two countries and people closer together. It looks like we are currently at a high point in our relations with Malaysia. Can the MFA provide an update on the bilateral relations between Singapore and Malaysia? And what more can we expect the two countries to collaborate on and whether there will be any new challenges ahead?

1.00 pm

Dr Lam Pin Min (Sengkang West): Mr Chairman, the release of opposition leader Aung San Suu Kyi and the gradual democratisation of Myanmar has led to many countries in the West lifting certain sanctions against the once highly segregated country in the world. The Myanmar government also made a number of overtures to the opposition, including inviting pro-democracy leader Aung San Suu Kyi to a meeting with President Thein Sein in August last year and releasing many political prisoners in recent months.

These are welcome changes both by ASEAN and internationally. However, there is still much to be done before Myanmar becomes a true democracy, with its citizens enjoying freedom and equality like its ASEAN neighbours. How will ASEAN act as a catalyst in this democratisation process? With Myanmar taking over the chairmanship of ASEAN in 2014, what will be the geo-political concerns in the Asia Pacific region and how will it affect ASEAN's relevance and centrality in the East Asia Summit?

The Minister of State for Trade and Industry (Mr Teo Ser Luck): The recent visit by Myanmar political leaders has given much hope and expectations. Myanmar has undertaken very substantial political and economic reforms. IE Singapore and the Singapore Business Federation led a business delegation of 74 companies with 120 businessmen to Myanmar last month. And there are many prospects for trade relations and new markets emerging. Singapore businesses are upbeat about the opportunities. Yet, Myanmar remains under sanctions imposed by some countries. Aung San Suu Kyi has advised caution to investors looking at Myanmar as the country still lacks an effective judiciary system. We are watching with caution the election this April. Could the MFA provide an update on the current state of affairs in Myanmar and what is Singapore's position with regard to these changes that Myanmar is undergoing?

The Chairman: Mr Alvin Yeo is not around. Dr Lim Wee Kiak.

US-China Relations

Dr Lim Wee Kiak: Mr Chairman, Sir, how are evolving US-China relationships affecting Singapore and ASEAN? Currently, both powers are engaged in most of the regional forums. Will their relationships affect the architecture of these forums?

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China has become more confident and assertive on the international and regional stage with its economic rise. As it prospers, it will also gain in power and influence, especially in Asia. At the same time, the US has signalled its desire to strengthen its engagement of this region. During our Foreign Affairs Minister's recent visit to the US and China, he had made various remarks regarding the US' engagement of the region and China's role in the region. How did the US, China and other regional countries receive the remarks?

Moving forward, how should Singapore manage its relationship with the US and China, bearing in mind our close ties with both powers? What can we do to ensure that our political, economic and cultural relationships with these giants remain robust? From a broader perspective, China and the US are engaged with ASEAN and many other regional organisations built around ASEAN, such as the East Asia Summit, the ASEAN Regional Forum and the ASEAN Plus Three, not to mention the various Free Trade Agreements that have either been concluded or are being negotiated. How will their relationship affect the architecture of these forums?

Mr Alex Yam: Mr Chairman, almost exactly 40 years ago, Mr Richard Nixon became the first American President to visit China. He met Mao Zedong on 21 February 1972 and, on the very day, he left. On 28 February 1972, the Shanghai Communique was released. This was the result of intense negotiations between Nixon and Premier Chou En Lai. The Communique stated, and I quote, "express the hope that the gains achieved during that visit would open up new prospects for relationships between the two countries". For the first time since the Cold War, the Communique was a breakthrough and resulted in normalisation of the relationship between the US and China. This was not only in the interest of both countries but also contributed to relaxation of tension in Asia and in the world.

Forty years on, relations between these two diplomatic and economic giants have been an endless chess game, with equal share of dull moment and times of tense brinkmanship. This year, China will be undergoing a period of leadership transition. The 18th Party Congress will take place in the latter half of 2012, and the National Peoples Congress and the Chinese People's Political Consultative Conference would be held in 2013. This transition would usher in the so-called fifth generation of leaders in China. Would the Ministry share how this would affect our future relation with China? Compared to previous generations, do we have the links for us to work with this incoming generation of Chinese leaders to broaden and deepen bilateral relations?

On the other side of the Pacific, the US is headed towards a new electoral season. As such, two of Singapore's key strategic partners would be faced with a period of transition and uncertainty. What are the implications of this development combined for Singapore? What is our strategy to ensure that our interests are not adversely affected by this uncertainty? At the end of it all, when the chess game is over, the pawn and the king go back into the same box. For us, it is really about whether we are considered part of the same game.

The Chairman: Mr Alvin Yeo is not around. Mr Pritam Singh.

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Renewed US Emphasis on Asia

Mr Pritam Singh: Mr Chairman, I refer to the US Department of Defence announcement of a new strategic framework in early January this year that envisions a US military with smaller land forces and a shift in focus to the Asia-Pacific region. The Chairman of the Joint Chiefs of Staff, General Martin Dempsey, was quoted as saying, "All of the trends − demographic, geopolitical, economic and military trends − are shifting towards the Pacific. So our strategic challenges in the future will largely emanate out of the Pacific region, but also the littorals of the Indian Ocean."

Sir, we are smack in the middle of this region. The US' renewed emphasis on Asia is likely to cause increased anxiety in China, with specific concerns likely to be rekindled about the strategic encirclement of the country like the democracies such as Japan and India who, like Singapore, already have or are developing a unique strategic relationship with the US. In light of our significant economic relationship with many Asia-Pacific countries, particularly the key strategic players, what is Singapore's approach to managing our relationship with China? Does the Minister foresee the relationship coming under strain in light of the US' renewed emphasis on Asia? More specifically, in view of the Minister's recent trip to China and the US, does China appreciate why Singapore requires a strong US presence in the region in addition to the robust relation with other regional players, such as India?

Mr Ong Teng Koon: Mr Chairman, Sir, Clinton's November 2011 Foreign Policy Article heralded the 21st Century as America's Pacific century and the US strategic pivot or rebouncing strategy from the Middle East towards the Asia Pacific. However, if we look back at the past half a century, the US economic and military presence in Asia certainly is not new. This is perhaps why the recent talk about US pivot and a return to Asia has provoked some nervousness. A number of countries in the region have warned that the pivot would lead to growing tension and mistrust, or that it would provoke responses from the region that would be detrimental to regional stability. Questions have also been raised of the sufficiency of the US pivot and whether this initiative can be sustained. The pivot must be seen in the context of China's growing assertiveness. How should Singapore position ourselves with respect to the US pivot? How can we ensure that we are not caught in the middle of a conflict between China and the US?

Middle East and Latin America

Ms Ellen Lee: Mr Chairman, Latin America, as a region, has experienced solid and sustained economic growth over the past decade and is becoming increasingly linked with the economies in East Asia, in particular China. What are we doing to increase our engagement with Latin America? Have we managed to increase our presence there? Elsewhere in the world, the unrest that has come to be known as the Arab Spring continues to simmer. After having affected Tunisia, Egypt, Libya, Yemen and Bahrain, it is now strife and violence in Syria that occupy news headlines. Companies and investors with activities and interests in the region would no doubt have taken a hit. In this context, how have Singapore's not unsubstantial efforts to engage the Middle East be affected? In the long run, what are the prospects for this engagement? Is there a need for us to adjust our approach? More broadly, how best can Singapore continue to ensure that we are well positioned to tap on new areas of economic opportunity in the different regions around the world?

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Consular Assistance

Dr Lim Wee Kiak: Mr Chairman, Sir, with the increasing number of Singaporeans travelling overseas for work, study and leisure, there will be greater demand for consular service. We have also witnessed many natural and also man-made crises overseas recently. Overseas Singaporeans who are caught in these crises will need much assistance. Has MFA geared up our consular support to meet the increasing demand?

Over the past year, we have witnessed a number of major crises in different countries around the world. In the Middle East, the Arab Spring has caused turmoil and unrest in Egypt, Tunisia, Yemen, Bahrain, Libya and Syria. We saw Japan hit by a 9.1 magnitude earthquake, a subsequent tsunami and a nuclear emergency. We saw severe flooding in Thailand, affecting 12 million people. Not long after, tropical storm Washi swept across the Philippines, causing flash floods that affected thousands of people. Against the backdrop of natural and man-made disasters, Singaporeans made many trips overseas.

We can expect the number of Singaporeans travelling overseas to increase as our companies will continue to move into overseas markets and more and more Singaporeans will likely need to be stationed overseas for work. Inevitably, there will be greater demands for assistance from MFA. Not only in the case of natural disasters or man-made crises, but also in terms of cases of personal distress – Singaporeans who are the victims of crime abroad, who are unfortunately involved in accidents or simply lose their passports. What can the Ministry do to ensure that it is able to provide effective assistance to Singaporeans overseas? Has MFA geared up to keep pace with an increase in demand for assistance?

Mr Ong Teng Koon: Mr Chairman, Sir, as there are more Singaporeans travelling overseas either to the traditional work and leisure destinations or to a new more exotic locations, the number of consular cases will increase. We will also face a more challenging and demanding external environment in the coming years. Will the Ministry require more staffing to meet these challenges on the consular level? Could the Minister elaborate on the staffing situation and propose what must be done going forward?

Mr Alex Yam: Mr Chairman, Singapore is a nation of travellers. Recently, I met a young resident who shared that he was saving up for a trip to Fatu Hiva. I smiled and nodded, but honestly, it took me some time to make out where he was headed to. As Singaporeans continue to expand and explore opportunities for work, business and leisure across the world, very often, preparing for emergencies does not feature as one of the things to do. Recent unfortunate incidents perhaps marked out the significance and importance of such plans.

For our consular officers, the hope is perhaps never to have to deal with the tragedy not because of the work involved but because of the emotional cost for the people that they are helping. Yet our consular officers stand ready for any scenario. As more Singaporeans continue to move about in a globalised world, there will be increasing need for consular services. More complex issues will arise for travel and migration. More complex and responsive consular services are therefore vital. Internationally, since 9/11, consular service has emerged as an important task for Foreign Ministries due to the international migration and the increase in the travel activities of citizens. In this context, could the Ministry update on any plans to beef up our consular services for Singaporeans? Would the Ministry be increasing recruitment of consular officers to ensure adequate services are provided for this, our nation of travellers?

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Mr Chairman, in closing, Fatu Hiva is right in the heart of the Pacific Ocean. Before Members consider making travel plans to explore the valleys of the French Polynesia, may I invite Members to explore the equally laid back beauty of the Kranji countryside which is right in the heart of Yew Tee? No passports or consular services are required.

The Chairman: I thank the Member for that travel tip.

1.15 pm

The Minister for Foreign Affairs (Mr K Shanmugam): Mr Chairman, Sir, I thank Members of the House for their questions on Singapore's foreign relations. Our external environment has, of course, become more fluid. Last year saw many events unfolding across the world, from the political upheavals and tensions over a possible nuclear proliferation in the Middle East to the natural disasters in Japan.

There were also regional concerns – over the territorial claims in the South China Sea and over border skirmishes between Thailand and Cambodia. The global economic situation remains in a state of flux. The US economic recovery is sluggish and the Eurozone continues to be of serious concern. The global challenges are manifold, like climate change, nuclear non-proliferation, trade protectionism and financial reforms. All of these will continue to weigh heavily on the international agenda.

Regional and international institutions are evolving. They need to keep pace with an increasingly complicated and uncertain world. This will be a highly challenging year for the Foreign Ministry. We are confident of managing these challenges. Our bilateral relationships with our key partners are strong. Our relations with our immediate neighbours are on a firm footing, and ASEAN remains a cohesive unit and continues to play a central role in the evolving regional architecture.

Dr Lim asked about the progress of ASEAN towards its goal of achieving an ASEAN Community by 2015; in fact, I think he mentioned 2020. The 2020 vision, he mentioned, has been accelerated by the ASEAN leaders to 2015, given the imperative for regional integration.

That said, let me start with ASEAN's progress for last year under the chairmanship of Indonesia. Indonesia's 2011 ASEAN chairmanship was both effective and skilful. The President of Indonesia, His Excellency (HE) Susilo Bambang Yudhoyuno, and the Foreign Minister, HE Marty Natalegawa, as well as other key figures and institutions were determined to ensure that ASEAN became even more integrated and moved ahead.

The key achievements last year under the Indonesian chair were several. These included the adoption of Bali Concord III which serves as a blueprint for working towards "an ASEAN common platform on global issues"; the conclusion of the Implementation Guidelines for the Declaration on the Conduct of Parties in the South China Sea; the role played by Indonesia, as the ASEAN Chair, in facilitating a resolution to the Thai-Cambodian border dispute; and the endorsement by the ASEAN Leaders of a proposal to enhance tertiary exchanges within ASEAN through the "Community and Harmony Through Tertiary Education Relations" (CHARTER).

Economic development remains a key imperative for ASEAN. It is key to enhancing ASEAN's economic edge amongst greater regional competition. Barring unforeseen events, such as a global recession, we remain on the right track towards closer integration.

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The economic pillar has been focusing on the ratification and implementation of the ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN Comprehensive Investment Agreement (ACIA) signed in February 2009. These are critical to the establishment of an ASEAN Economic Community in 2015. The ASEAN Leaders also adopted the ASEAN Framework for Regional Comprehensive Economic Partnership in 2011. This will set out the general principles to broaden and deepen ASEAN's engagement with its FTA partners, with a view towards an ASEAN++ FTA. We also secured strong support for implementation of the Master Plan on ASEAN Connectivity, from ASEAN's Dialogue Partners last year, at the various regional fora. Greater connectivity in the region will complement the current network of FTAs, by bringing the markets closer, through improved infrastructure, and creating new business opportunities for our companies.

We are confident that Cambodia will lead ASEAN effectively as the Chair this year and continue to build on the progress achieved. We are ready to work with and support Cambodia during its chairmanship.

Dr Lim also asked about the economic development of Cambodia, Laos, Myanmar and Vietnam. Singapore is strongly committed to achieving the ASEAN Community. The development gap in ASEAN is an impediment and at the 19th ASEAN Summit last year, our Prime Minister announced the extension of our contributions to the Initiative for ASEAN Integration.

We will contribute $50 million from 2012 to 2015. This is our fourth contribution to the IAI to help narrow the development gap in ASEAN and, so far, we have contributed about $170 million or so, including the $50 million that has been committed. This demonstrates our belief that all of ASEAN must move together towards our targets and goals. An integrated ASEAN is important for Singapore. It maintains foreign investors' interest and confidence in the region, and helps us to be a competitive and attractive destination for trade and investment.

Dr Lim also asked about ASEAN's long-term goal, and what ASEAN could learn from the EU. The EU has massive experience in regional integration. It provides both positive and negative precedents. We have to learn from lessons from outside of ASEAN and apply them in our own unique context. We will keep our key objectives firmly in mind as we work towards achieving a stronger ASEAN Community by 2015. This is a major effort and I think that we are making progress

Dr Lim Wee Kiak, Mr Ong Teng Koon and Dr Intan Azura Mokhtar asked about our relations with Malaysia and Indonesia. Our relations with Malaysia are very good and continue to grow. We achieved a historic milestone in our relations last year, with the full implementation of the Points of Agreement on 1 July 2011.

We are also pleased with the smooth handover of the waterworks under the 1961 Water Agreement by Singapore to the Johor water authorities – free of charge and in good working order, after the expiry of the Agreement on 31 August 2011. Both sides also recently reaffirmed the terms of the 1962 Water Agreement. Under this Agreement, Singapore has the right to draw up to 250 million gallons of water per day from the Johor River until the expiry of the Agreement in 2061.

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The resolution of the long-standing POA issue put our two countries on an even more positive and forward-looking trajectory. Prime Minister Lee and Prime Minister Najib Razak had a very good Leaders' Retreat on 5 January 2012 in Putrajaya. Both sides agreed to explore several new, mutually-beneficial initiatives – to advance economic cooperation, enhance connectivity, and deepen people-to-people ties.

This year, the newly established high-level work group on industrial cooperation will consider ways of promoting the twinning of manufacturing activities between Singapore and Iskandar Malaysia. We will also embark on further co-operation in various sectors like tourism, education, immigration and environment.

Under President Susilo Bambang Yudhoyono, Indonesia has continued to achieve steady progress. Relations between Singapore and Indonesia are positive at all levels. Our leaders enjoy a good working relationship, building on firm foundations that have been established. The Indonesian Parliament has yet to ratify the Extradition Treaty and the Defence Cooperation Agreement. They were negotiated as a package and signed by the two governments. Both sides have agreed to put this issue aside for now and not let it affect bilateral relations.

We look forward to Indonesia's hosting of the Leaders' Retreat between Prime Minister Lee and President Yudhoyono later this month on the 13 March. That Retreat will review progress on the relationship, including the six economic working groups and a counter-terrorism working group formed during the last Retreat in 2010. These working groups aim to expand economic cooperation in a range of areas from investment to cruise tourism. In addition, we will continue our efforts to strengthen links with the various Indonesian provinces. In the middle of this year, we will be establishing a Consulate in Medan.

Overall, we are enjoying a period of optimism and growth in our bilateral ties with both Malaysia and Indonesia. Dr Lim Wee Kiak has rightly pointed out that Malaysia and Indonesia will soon be having their respective elections. They will naturally be more focused on domestic priorities, but we believe that we can keep up the positive momentum of co-operation that we have across a wide range of sectors.

Let me now turn to Myanmar. Dr Lim Wee Kiak, Dr Lam Pin Min and Mr Teo Ser Luck asked about Singapore's approach to developments in Myanmar, and Myanmar's Chairmanship of ASEAN in 2014. The Myanmar government has taken positive steps in its transition to democracy. Clear indications of the President's commitment in carrying out his reform agenda are there for everyone to see. We are encouraged by the positive developments. Singapore has, for a long time, taken the position that Myanmar needs to be constructively engaged and it needs to be encouraged in its process of reform. We hope that countries which have imposed sanctions can consider lifting them soon.

Of course, Myanmar continues to face many challenges. Primary among them is an urgent need for capacity building to continue reforms, particularly economic reforms. Singapore will help. We signed a Memorandum of Understanding on the Singapore-Myanmar Technical Cooperation Programme during President Thein Sein's State Visit to Singapore in January of this year.

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Under this programme, Singapore will continue to share its developmental experiences; provide training to the Myanmarese in three key broad areas in line with the Myanmar government's priorities, namely, economic development, human resource development and public administration. In view of the positive developments in Myanmar, Singapore and the other ASEAN countries supported Myanmar's bid for the 2014 ASEAN Chairmanship at the ASEAN Summit in Bali in November 2011.

As ASEAN Chair, Myanmar will be the external face of ASEAN. It will have to defend not only its own interests and record but also ASEAN's interests. Myanmar will also have to reassure our external partners that under its chairmanship, ASEAN will continue to make progress towards an ASEAN Community in 2015. The world will, of course, be watching. Singapore is ready to work with Myanmar to ensure successful outcomes under Myanmar's chairmanship, which is important for ASEAN as a whole.

Let me now turn to ties with the US and China. Mr Alex Yam and Mr Pritam Singh asked about our ties with the US and China. For the past 50 years, the US role has been irreplaceable in providing peace and stability to the region. That has allowed all of us to grow and prosper. The US still remains the market of last resort for East Asia. There is no alternative to the US dollar as the international reserve currency.

The future of the region and the US are intertwined. Our strong and enduring ties with the US are premised on our shared strategic and economic interests. Our relationship is underpinned by the Strategic Framework Agreement and the US-Singapore Free Trade Agreement. Our co-operation extends to other initiatives across the world.

I had an excellent introductory visit as Foreign Minister to the United States in early February. After a substantive meeting with Secretary Clinton, we issued a Joint Vision Statement which underscored the breadth and depth of our bilateral relationship. We signed two Memoranda of Understanding (MOU) − first, to establish a Strategic Partnership Dialogue between the Ministry of Foreign Affairs and the US Department of State; and, second, to create a Singapore-US Third Country Training Programme to jointly help developing countries, especially those in our region.

Minister Heng Swee Keat, who was also in the US at the same time, signed an MOU with his US counterpart to further education co-operation. The two of us, together with Minister Iswaran, then participated in a Singapore Conference. The conference allowed us to reach out to and exchange insights with some of the top opinion-shapers in the United States. From all of these meetings, as well as discussions with US Congressional foreign policy leadership and my legal counterpart Attorney General Eric Holder, it was clear to us that the United States appreciates Singapore's success and role in our part of the world, and is keen to explore new areas of co-operation to deepen and broaden our partnership.

1.30 pm

It is noteworthy, speaking at the Singapore Conference, Assistant Secretary of State for East Asian and Pacific Affairs Kurt Campbell said, "on almost any consequential issue that we deal with, we probably listen more closely to advice and counsel from Singapore than any other country in Asia". That public statement by such a senior official is extremely significant.

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Now, let me turn to China. The size, strength and resilience of the Chinese economy makes it a stabilising force and an engine of growth for regional economies, particularly so in the last few years. Singapore-China relations are excellent and they are anchored by a steady exchange of high-level visits, strengthening economic links, growing people-to-people exchanges. Our leaders visit China regularly. Chinese leaders, including Vice President Xi Jinping, Vice Premier Wang Qishan, as well as many other central government and provincial level leaders have visited Singapore in the past two years.

I also had an excellent introductory visit to China in February. I had good meetings with the Chinese leaders, including Vice Premier Li, and discussed several issues. Foreign Minister Yang and I reaffirmed the importance of continued support from both our governments on a range of bilateral cooperation projects. We discussed ways to expand bilateral cooperation in new areas. Moving forward, our continued high-level exchanges and institutionalised dialogues, for example, the annual Joint Council for Bilateral Cooperation, co-chaired by Deputy Prime Minister Teo Chee Hean and Chinese Vice Premier Wang Qishan, will provide a firm basis for further strengthening of bilateral relations.

Our relations with China are also underpinned by robust economic ties. In 2011, China was Singapore's third largest trading partner. Singapore was China's 15th largest. China remains our top investment destination. Besides our two flagship G-to-G projects, the Suzhou Industrial Park and Tianjin Eco-city, we have stepped up our economic engagement at the provincial level, through our seven provincial business councils, and through private sector-led cooperation, such as the Guangzhou Knowledge City and Sichuan Hi-Tech Innovation Park. As a mark of the maturity of the bilateral relationship, both sides are increasingly going beyond traditional parameters of economic cooperation.

Working on new areas of collaboration, such as the collaboration between the new SUTD, MIT and Zhejiang University; the establishment of the China Cultural Centre in Singapore; the two eagerly anticipated Giant Pandas Kai Kai and Jia Jia will arrive in Singapore in the first half of this year. These are all symbols of our excellent relations with China.

Mr Ong Teng Koon has asked about the US' "pivot" to the region and how Singapore should position itself, and Mr Singh asked about China's concern about containment and how we will manage that. I will try and answer these questions – maybe Mr Singh can clarify a little bit more precisely as to what he meant. But I will answer to the extent that I understood the question. I will also deal with the questions posed by Dr Lim Wee Kiak and Mr Alex Yam on how these changes will affect the evolving Sino-US relations and the regional architecture centred around ASEAN.

We welcome President Obama's announcement on the US' commitment to be a Pacific power. The US' interest in Asia is not a recent phenomenon. The US has been a vital part of our region, both strategically and economically, for decades and that point has been made many times. There is bipartisan support in the US for this policy. It is in the US' own interests to be engaged in this growing and dynamic region. We encourage the US to stay deeply engaged in this region, and to do so in a broad-based and multi-faceted way.

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China has expanded its engagement with the region in recent years. It is a key player, with strong linkages, through trade, investments, development assistance and projection of soft power. And as its economy grows and domestic demands increase, China's position as an important market for the region will increase. A stable and prosperous Asia-Pacific region will benefit China, just as ASEAN and the region at large have benefited from China's prosperity. We welcome China's commitment to a peaceful approach to development and we will continue to partner China in fostering peace and stability in the region.

The US-China relationship will remain as one of the most important bilateral relationships in the world for decades to come. A constructive relationship between the US and China will be essential for stronger global collaboration at a time when the global economy is unstable. There will inevitably be some competition between these two major powers, but it is not a zero-sum game. We believe that the US and China can manage their relationship within a cooperative framework.

Apart from their own direct bilateral channels, ASEAN and its related fora, including the ARF, ASEAN+1, ASEAN+3, East Asia Summit and APEC, can all play a role to help accommodate the interests of all stakeholders in the region.

Singapore has a strong equity interest in good US-China relations. As such, I had publicly and privately conveyed the importance of a stable and symbiotic Sino-US relationship during my visits to Washington DC and Beijing. These messages were accepted by both sides as necessary to ensure the peace, prosperity and progress for the US and China, as well as for our region, which would not want to be entangled in great power rivalries. East Asia is really big enough for both the US and China.

Specifically, on the question of containment − I think Mr Singh referred to that word − I had publicly stated in Washington that containment of China is not a feasible strategy, it is not tenable, and that it is not something that the US should be identifying as its strategy. And in my meetings with the US leadership, it was clear and I was assured that, that is not part of their strategy either. So, if I have not answered Mr Singh's questions fully, maybe he can clarify at the end of my speech.

Going forward, we will continue to maintain strong and friendly relations with both countries. We will also support the strengthening of regional platforms that will allow both the US and China to work with the region and contribute to all our stability and growth.

Let me now touch briefly on Singapore's ties with our other key bilateral partners. Singapore has maintained robust friendships with many of our key bilateral partners. Starting with Japan, a very important partner for us, Japan plays a key role in our region as a key Dialogue Partner of ASEAN. Japan has gone through a difficult year. Singapore will continue to do what we can to support Japan which has contributed so much to our and our region's development. And this was demonstrated by the outpouring of support by Singaporeans for Japan following the Tohoku disasters last March. We also supported Japan's decision to enter preliminary bilateral talks on its participation in the Trans-Pacific Partnership negotiations. We hope Japan can be a full member as soon as possible.

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Our relations with South Korea: characterised by close economic ties, a steady exchange of high level visits. Our Prime Minister is looking forward to visiting Seoul this month for the 2nd Nuclear Security Summit.

Our relations with India are excellent: cemented by various institutional linkages and the Comprehensive Economic Cooperation Agreement (CECA) which is currently undergoing its second review. Prime Minister Manmohan Singh visited Singapore in November last year, and our Prime Minister will visit India later this year.

Australia, like others, is another long-standing partner. Our relationship is underscored by deep interactions across multiple fronts: defence, trade and investments, education and people-to-people ties.

And the European Union is undergoing a period of difficulty. Its economic situation has created ripple effects across the world, including in Singapore. The EU is collectively our largest source of foreign direct investments and second largest trading partner. We are confident that the EU will eventually resolve its current financial and economic situation and Singapore is keen to conclude the EU-Singapore FTA.

Sir, Minister of State Masagos Zulkifli and Senior Parliamentary Secretary Sam Tan will respond to the remaining questions. But let me first reiterate what I had said at the beginning of my remarks.

MFA will face more challenges and demands given the geopolitical and economic uncertainties in the next few years. I am confident that we are capable of tackling these challenges. We have a corps of committed and professional Foreign Service Officers who are dedicated to defending and advancing Singapore's foreign policy interests, looking after the interests of our Singaporeans abroad. Nevertheless, I have to admit that my Ministry is at present greatly stretched in terms of manning resources. We have to ensure that our Foreign Service remains adequately and competently staffed and resourced, in order for us to maintain the high standards that we have set and in safeguarding and advancing Singapore's interests.

The Minister of State for Foreign Affairs (Mr Masagos Zulkifli B M M): Mr Chairman, Ms Ellen Lee asked about developments in the Middle East and Singapore's efforts to tap emerging markets like the Middle East and Latin America. Despite the political turmoil in some parts of the Middle East, Singapore's engagement in that region has continued. We have taken a longer term perspective in developing relations with the Middle East. While some Arab countries are understandably preoccupied domestically, this should not hold us back from engaging others in the region. On the whole, our relations with the region remain positive.

Ms Lee will like to note that despite the political upheaval last year, our trade in the Middle East countries had, in fact, increased 20% to a healthy $64 billion from 2010. Indeed, some of our companies are doing well. For example, in addition to its more than $1.1 billion portfolio of projects in Saudi Arabia, Rotary recently secured a $43 million deal to build storage facilities of an oil refinery in Jizan, Saudi Arabia. Keppel FELS also won a contract in Qatar to build two rigs worth more than $400 million.

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Our focus in the region remains in the Gulf countries, with whom we have developed strong relations since 2004. Emeritus Senior Minister Goh Chok Tong recently visited Saudi Arabia in January 2012, and had good meetings with Saudi leaders. Deputy Prime Minister Teo Chee Hean is scheduled to visit Qatar in March. Minister Shanmugam also plans to visit the Gulf later this year. Hence, at the political level, we have continued to engage and strengthen relations.

Nevertheless, a number of countries in the Middle East, such as Egypt, are undergoing a political transition and it will take time for the situation to stabilise. The situation in Syria also remains troubling, and there are concerns that sectarian strifes can spill over to other countries in the region.

Tensions also remain over Iran's nuclear programme. The politics in the Middle East is and will always be complicated. While we strive to understand the region better, we are cognisant that Singapore is not a major player politically. But this should not prevent us from engaging the region and exploring new areas of cooperation for mutual benefit. Our companies should also take a long-term view and continue to explore business opportunities in the region.

We are also looking at growing our economic interest in Turkey which occupies a strategic position at the crossroads between Europe and the Middle East. To this end, we will be opening an Embassy in Ankara later this year.

On Latin America – Singapore has a growing account with Latin America. Singapore's trade with Latin America has grown by 135% since 2007, reaching $31.3 billion in 2011. Politically, the region is home to three G-20 members: Mexico, Argentina and Brazil. It is in this context that we have made a decision to open an Embassy in Brazil, to broaden and deepen our engagement with the region. The recent signing of the Partial Visa Abolition Agreement with Brazil to facilitate business and tourism flows is an example of our growing cooperation in this regard.

1.45 pm

The Senior Parliamentary Secretary to the Minister for Foreign Affairs (Mr Sam Tan Chin Siong): Mr Chairman, Sir, Dr Lim Wee Kiak, Mr Ong Teng Koon and Mr Alex Yam asked for updates on how MFA is addressing the increasing demand by Singaporeans overseas for consular assistance, especially during times of emergencies. One of MFA's key challenges is providing round-the-clock consular assistance to Singaporeans across the world. Singaporeans are not only travelling more, but they are also travelling to more far-flung places, places where we cannot even pronounce their names, as mentioned by Mr Alex Yam just now. As a result, there has been a corresponding increase in requests for consular services and assistance. Singaporeans' expectations of our consular services have also risen over time. We take the safety and security of our Singaporeans abroad very seriously. So, we encourage Singaporeans who travel overseas to e-register with us so that MFA can render assistance in an emergency.

Sir, worldwide, we have 47 Embassies and Consulates, and this is in addition to a network of 27 Consulates run by Honorary Consuls who provide consular assistance to Singaporeans in locations where we do not have representation. Where we do not have representation, there is also an agreement among ASEAN countries to help each other's nationals when there is an emergency. In extreme situations and cases, we also request for assistance from friendly countries like the United Kingdom, Australia and New Zealand.

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Sir, in Singapore, we have a Duty Office which is manned 24/7 to deal with any emergencies. We constantly review our contingency plans to deal with potential flashpoints where Singaporeans could be affected. We have also participated in many inter-Ministry emergency preparedness exercises. If there is a need, we will also deploy Consular Response Teams (CRT) to help Singaporeans in crisis areas following natural and man-made disasters. For example, CRTs were deployed to Japan after the Fukushima nuclear incident, and also to Bangkok during the floods last year, to assist affected Singaporeans in these countries.

Sir, we constantly strive to improve the quality of our consular services. We encourage Singaporeans who travel overseas to e-register with us so that we can contact them in the event of an emergency. We also launched a Twitter feed in late 2011 to provide timely information on consular matters, such as our travel notices and advice. Some of our Missions are also active on the social media which gives them another platform to keep in closer touch with Singaporeans in the areas of their coverage. We also plan to launch our own smartphone application in the next few months. Besides providing early information to e-register, the smartphone application will also assist Singaporeans to locate the nearest Singapore overseas mission based on their current location. This application also makes access to consular information and services to Singaporeans on-the-go.

Sir, while we have and will continue to do all we can to assist Singaporeans in distress, there are also clear limits to what we can do. We have received many requests for assistance and not every request can be fulfilled or within reason to expect MFA to deal with. The decision to travel is a responsibility of the travellers and they should do all they can to secure their personal safety. Singaporeans, when abroad, should be prepared to put up with some inconveniences, unavoidable frustrations and the occasional delays, especially when dealing with unfamiliar foreign customs, cultures, rules and regulations. At the same time, they must also follow the rules and the laws of the countries that they are in.

Sir, every country has its own rules and laws that have to be respected by other countries as sovereign rights. We cannot interfere in the laws of other countries in the way that we will never allow a foreign country or government to interfere with the application of our own laws in Singapore. Notwithstanding all these constraints and conditions, MFA will continue to provide consular services to Singaporeans to the best of its ability.

The Chairman: Members, we have some time for clarification. Mr Pritam Singh.

Mr Pritam Singh: Sir, I refer to the Minister's remarks suggesting that I used the word "containment". That word was not used. But in reference to some of the queries that I had, I have to say that the Minister answered all of them, in particular, the reflections he made on his recent visit to China and the US.

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Mr Alex Yam: Mr Chairman, first, I would like to thank the Senior Parliamentary Secretary for his clear response despite his obvious discomfort in his throat and I wish him a prompt recovery.

I agree with the Senior Parliamentary Secretary that the responsibility for personal safety and health must lie with individual travellers. Singaporeans abroad must, of course, adhere to the rules and regulations of the countries they are in.

The Senior Parliamentary Secretary also made the point that there are limits to what MFA can or cannot do, and not all the requests made to MFA and their consular officers can be fulfilled. Perhaps the Senior Parliamentary Secretary could enlighten and elaborate so that Singaporeans are aware what is reasonable or unreasonable for MFA to deal with.

Mr Sam Tan Chin Siong: Mr Chairman, if I may apologise and if you would indulge with my sandy voice, which sounds like Rod Stewart!

The Chairman: It is all right. It is very soothing!

Mr Sam Tan Chin Siong: I would like to thank the Member, Mr Alex Yam, for giving me the opportunity to share some of the interesting stories in MFA which have been keeping us going strongly and heartily.

Mr Chairman, Sir, expectations of the sort of assistance that MFA provides continue to rise, sometimes it can be to an unrealistic level. This has become more evident in recent times, and it is not unique to Singapore. It happens to many other countries. Many of these extraordinary, if I may say so, sometimes unreasonable requests, stem from a misperception of the sort of consular assistance that MFA can provide. We receive many kinds of requests, and the MFA officers always try their best to do what they can to help. But sometimes, some things are simply just beyond our powers and abilities. Let me just share some interesting stories.

On one occasion, MFA received a complaint from a Singaporean who claimed that he was subjected to racial discrimination overseas because he received a smaller piece of KFC chicken, compared to what the locals had. He wanted MFA to investigate this incident and seek justice in that foreign country for the unfair treatment he claimed to have received. Sir, to accede to such requests will require the conduct of delicate "chicken" diplomacy with another foreign country. But, Sir, it would have been very difficult anyway, because the evidence, the subject of the complaint, had been consumed; so we could not follow up.

On another occasion, a Singaporean insisted that it was MFA's responsibility to retrieve a kitchen appliance he left behind in a foreign country because he had no money to pay for the excess baggage.

Sir, there also many other equally interesting stories and requests for consular services that have been put forth to MFA. MFA's consular roles and responsibilities in a country are strictly governed by the Vienna Convention on Consular Relations. Singaporeans must realise that there is a cost when we deal with such requests. It diverts our limited resources from dealing with many other cases where we can and we should help Singaporeans in real distress and where we are often really their only support in a foreign land. So, we should focus our energy and attention to render the much required assistance to people who are in real distress and we are their last resort of help.

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Sir, as I mentioned earlier, Singaporeans, when abroad, also have to be prepared to put up with occasional inconveniences, unavoidable frustrations and delays. MFA can do little in such instances. We cannot compel a foreign agency or commercial entity to satisfy each and every demand and request of every Singaporean. These countries have their own rules and we have to abide by their decisions.

But, Sir, by and large, most requests are very reasonable, and MFA's officers will do their best to help. Of course, needless to say, whatever help we provide will have to be carried out with the cooperation of the local authorities, and in accordance with the rules and regulations of the country that they are in.

We take a whole-of-Government approach and work very closely where necessary with other Ministries and agencies, like the Ministry of Home Affairs, Ministry of Community Development, Youth and Sports and the Ministry of Health, to assist Singaporeans facing difficulties abroad.

Sir, I wish to take this opportunity to assure Members that MFA treats all requests for consular assistance seriously and we will do our best to assist Singaporeans abroad when they are faced with difficulties or in an emergency situation and may need the assistance of MFA.

Dr Lim Wee Kiak: Sir, I would like to clarify with the Minister what the ASEAN 2015 "One Community" goal means to Singapore as well as the man-in-the-street.

Mr K Shanmugam: Sir, the vision of ASEAN Community 2015 in the economic, social and cultural aspects requires greater connectivity, both physical as well as people-to-people, and a greater understanding of ASEAN within the countries. Primarily, a lot of people will start taking notice of it if they see each other much more and there is greater physical connectivity, and also if it increases trade and investment flows. So, it has both direct tangible economic connotations and broader intangible cultural and social connotations to try and create a community that is bonded together, not just by economics but also social and cultural value, and we are trying to increase it. It is going to take a lot of effort. Simple things − if we can have, say, very good rail, air, sea and road connections all across ASEAN, it makes a big difference. I can go on for a long time on the many different aspects of the ASEAN vision, but I just use these as an illustration.

I thank Mr Singh for the clarification. The reference to the American relationship with the countries surrounding China and the agreements that the US has announced − some long-standing, some new − I think that was the context of Mr Singh's point and how China might view it, which is why I answered the question the way I did.

2.00 pm

The Chairman: Mr Low Thia Khiang, I am wondering whether you want to ask for a clarification.

Mr Low Thia Khiang (Aljunied): Sir, one clarification. I would like to know from MFA what specific assistance will be given to Singaporeans when a person passes away in a foreign country and they want to bring the body back to Singapore. For instance, if a person who is working or travelling in China passed away and the body is lying somewhere. I understand they usually face quite a lot of difficulty because of documentation and all that. So, I would like to know how, specifically, MFA would facilitate and help them to bring the body back.

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Mr K Shanmugam: I thank Mr Low for his question. This arises quite a number of times in China and elsewhere. There are a number of different aspects to it. The first is the clearance from the local authorities, and their own laws may require investigations as to the circumstances of the death, for example, and sometimes bringing back the body may not be possible immediately because of evidentiary and other legal requirements. And then there are the practical aspects of getting the body over through the appropriate transport channels.

What MFA does, when it is contacted, is to then liaise with the local authorities – I am giving you a generalised situation. Of course, it can vary from situation to situation depending on whether we have people there, but our approach is to do everything we can to try and help in such a situation. First, to liaise with the Singaporean next-of-kin, notify them, give them the data, help them access the place where the body is, whether it is a hospital or some other place, and also liaise with the local authorities to try and effect the speedy clearance and then help the family in terms of trying to bring the body back by liaising with the necessary authorities again in terms of transport. Those are the kinds of things that we do.

The Chairman: No further clarifications. Dr Lim, would you like to withdraw your amendment?

Dr Lim Wee Kiak: Sir, on behalf of the GPC as well as Members of the House, let me thank the Minister, the Minister of State as well as the Senior Parliamentary Secretary for their comprehensive replies to all the cuts, and I also want to thank the men and women of MFA as well as our Diplomatic Corps for their endless work to safeguard and advance Singapore's interests and serve Singaporeans overseas as well. Sir, I beg leave to withdraw my amendment.

Amendment, by leave, withdrawn.

The sum of $357,989,300 for Head N ordered to stand part of the Main Estimates.

The sum of $45,000,000 for Head N ordered to stand part of the Development Estimates.