As trade tensions grow and Donald Trump issues new tariff threats, Singapore Prime Minister Lawrence Wong said on Wednesday that it’s more important than ever for ASEAN nations to deepen economic integration. He stressed the need to reduce tariff barriers and boost regional trade collaboration. “We should aim for 100% tariff elimination across the region and boost intra-ASEAN trade. We should further reduce non-tariff barriers to make it easier for businesses to operate across ASEAN. We should also conclude the ASEAN Digital Economic Framework Agreement (DEFA), and upgrade our FTAs with key partners like China, India and the Republic of Korea,” stated Wong.

During the S Rajaratnam Lecture, Wong emphasised the need to speed up work on the ASEAN Power Grid. He said that trading electricity across borders would support the region’s shift to green energy, bring in more investment, and boost energy security. “We should also accelerate the development of the ASEAN Power Grid. By facilitating cross-border electricity trade, the Grid will help our region to transition faster to green energy, draw in new investments, create better jobs, and strengthen our collective energy security,” Lawrence Wong said further.

He emphasised the importance of greater global cooperation and cautioned against nations isolating themselves from one another. Wong added that Singapore won’t remain a passive observer and will act with determination and flexibility to contribute to a more stable and inclusive world.

“For a small open economy like Singapore, these global developments are deeply worrying. Our prosperity has depended on a stable rules-based global order and the free flow of trade, capital, people and ideas… Despite our limitations as a small state, we cannot afford to be passive bystanders in this evolving landscape. Instead, we must respond with agility and resolve, and actively shape our own destiny,” Wong stated in his address.

Wong stated that the existing global order is falling apart and will eventually be replaced by a new one. He noted that this emerging order will probably be more fragmented, less unified and marked by more significant competition. He further mentioned that it won’t be dominated by a single superpower or universally accepted by the central powers, but somewhat shaped by the decisions and actions of a wide range of countries.

“Singapore today is not without agency. We are better resourced, more capable, and more connected than we were in 1965. We have forged strong friendships around the world. The Singapore brand is well-regarded, and we enjoy a deep reservoir of international goodwill,” he expressed.