BILATERAL RELATIONS BETWEEN SINGAPORE AND THAILAND

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BILATERAL RELATIONS BETWEEN SINGAPORE AND THAILAND:

* 2. *Mr Low Thia Khiang asked the Minister for Foreign Affairs if he will give an assessment of the bilateral relations between Singapore and Thailand in view of the current developments in Thailand.

Mr Raymond Lim Siang Keat (for the Minister for Foreign Affairs): Mr Speaker, Sir,

Singapore-Thailand relations are excellent. The relationship is longstanding and multi-faceted. The close friendship between the two countries was forged in the 1980s when Singapore stood with Thailand over the Cambodian issue. This friendship continued, stretching over decades of cooperation with successive Thai Governments. Political links are excellent at the highest level. In January 2005, President S R Nathan made the first ever State Visit to Thailand by a Singapore Head of State. President Nathan was received most graciously by the Royal Family, the Thai Government and the people of Thailand.

Singapore and Thailand have strong economic ties. In 2005, bilateral trade between Singapore and Thailand amounted to S$28.2 billion, an increase of almost 16% over 2004. Thailand was Singapore's 8th largest trading partner in 2005, while Singapore was Thailand's 5th largest trading partner in 2004. Singapore is also one of the top five investors in Thailand from 2003-2004.

Mr Speaker, Sir, institutional links between the civil services are well established under the Thailand-Singapore Civil Service Exchange Programme (CSEP), which was mooted by then PM Goh Chok Tong and then Thai PM Chavalit Yongchaiyudh in 1997. Educational ties are also growing, with extensive teacher and student exchanges. Our cooperation at the people-to-people level is also strong. This is evident in the aftermath of the 2004 tsunami disaster

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where Thais extended a helping hand to distressed Singaporeans. On our part, Singapore also responded swiftly in the tsunami relief efforts.

Against the backdrop of such excellent bilateral relations, it is unfortunate that there have been attempts by some groups in Thailand to drag Singapore into that country's internal politics. All sorts of allegations were made against Singapore and our relations with Thailand. These allegations are without basis. Where necessary, the Singapore Government will set the record straight and address gross misrepresentations.

Singapore is a friend of Thailand. A prosperous and peaceful Thailand is important for Singapore and ASEAN. The Singapore Government has worked hard with the various Thai governments over the years to establish a mutually-beneficial relationship. In particular, we have encouraged our companies, including our GLCs, to seriously consider Thailand as one of its key investment options. And the Thais themselves have encouraged Singapore to invest in Thailand. This is also why Temasek went ahead with the purchase of Shin Corporation, which is a purely commercial deal.

We hope the Thai people will resolve their differences peacefully. This would be good for Thailand as well as for the region as a whole. I note that elections have just taken place in Thailand yesterday. We hope the elections will help in the resolution of the current situation in Thailand.

Mr Low Thia Khiang (Hougang): Mr Speaker, Sir, we have understood the good long-term bilateral relations between Singapore and Thailand. However, given the circumstances, as what the Minister has described, certain groups in Thailand are against Singapore, especially in the recent fiasco about the purchase of Shin Corporation leading to the burning of the

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effigies of our Prime Minister and Mrs Lee, I wonder whether this opposition to Singapore's good relations is building up. I would like to know from the Minister what is his projection of the future bilateral relations between Singapore and Thailand and how he sees the current development in which there are some groups which seemingly are getting stronger against Singapore. What is his assessment of that situation?

Mr Raymond Lim Siang Keat: Mr Speaker, Sir, I think the key thing to address, first of all, is the point that the Member brought up, and it is an important point: what is the impact on Singapore-Thai relations given the current developments? As I have said, our relationship with Thailand is a strong and durable one and I am confident that the relationship will remain strong. I believe that Thai leaders and government officials understand that the relationship is mutually beneficial. It would be a disservice to present and future generations of Thais and Singaporeans to allow recent events to impact negatively on Singapore-Thailand bilateral relations.

The Singapore Government will continue to work with the Thai government to strengthen bilateral relations for the benefit of our two countries and people.