Interview with HE Ng Shin Ein, Ambassador of the Republic of Singapore to Hungary

Zsolt Csepregi, August 2020, Budapest

HE Ng Shin Ein

Serving as Singapore’s Non-Resident Ambassador to Hungary since 2016, Ms Ng Shin Ein has strengthened connections between Singapore and Hungary through bilateral exchanges, bidirectional visits of business delegations and facilitated the establishment of people-to-people connections. She is also active in the private sector as a board member of various companies, e.g., Starhub Ltd, a leading homegrown telecommunications company, former director of Fairprice, Singapore’s largest supermarket operator, or advisor to Grab Holdings Inc, Southeast Asia’s largest mobile technology company.

Starting with the overall context of our interview on economic relations between Singapore and Hungary, how do you see Singapore’s economic development in the coming years, what are the main challenges, opportunities, and tasks?

Singapore has been a beneficiary of the rules-based international order, free trade, and the flow of investments. However, even prior to COVID-19, there were worrying trends that posed challenges to the global system. These include escalating US–China tensions, a pushback against globalisation and free trade, and the increasing bifurcation of technology and supply chains. Structural changes such as the fragmentation of global supply chains and technological disruptions were already in motion. There were also signs of a slowdown in international trade and investments. COVID-19 has accelerated these pre-existing trends, amplified them, and broadened the areas of impact. Looking beyond the pandemic, the global economy will not be returning so soon to the levels of openness and connectivity that we have been accustomed to. We will have to constantly adapt, restructure, and transform to emerge stronger.

There are certainly opportunities that come with these challenges. In particular, we now see real opportunities to further accelerate the digitalisation of Singapore’s economy, an effort that was in progress before the advent of COVID-19. Out of necessity, businesses have had to innovate and adapt to digital solutions that would have been alien to them a year ago. In this regard, Singapore’s efforts to digitalise in the past few years have paid off immensely, and we are in a good position to help businesses and citizens adapt. We have seen the equivalent of five years of consumer and business digital adaption in just eight weeks when COVID-19 began. There is no going back, and we will have to continue to accelerate digital transformation across all sectors and prepare ourselves for the postCOVID-19 world.

One silver lining of the pandemic has been the opportunity to deepen existing relationships and forge new ones. The pandemic has underlined the importance of international cooperation in the face of global challenges. In the past few months, Singapore has worked closely with friends in Europe and other global partners on issues of common interest, ranging from supporting multilateralism and keeping supply chains open to repatriating stranded travellers. This has reaffirmed the trust and strengthened the friendship between us. Even in this pandemic,

we can take comfort in being dependable partners to each other as we work together to tackle global challenges.

Could you describe Singapore’s economic relationship with its main regional partners in ASEAN? Is Singapore interested in further economic integration in ASEAN?

ASEAN was established fifty-three years ago with peace and prosperity as its founding principles. At the time, the region was mired in hostilities and confrontation, but ASEAN offered countries a platform to build trust and cooperation, thus bringing peace and stability to the region. This has been serving as the key pillar for the economic growth of Singapore and Southeast Asia. ASEAN has transformed the economic development of each of its member states, but it is our combined economic heft that is particularly salient. The establishment of the ASEAN Economic Community (AEC) in 2015 has made ASEAN more integrated and united. With a combined GDP of about USD 3 trillion in 2018 and a population of about 650 million, 60% of whom are under 35 years old, ASEAN represents a young, vibrant workforce and an attractive consumer market. By 2030, ASEAN is forecast to become the fourth-largest economy in the world.

To realise this potential, we will have to press on with our regional economic integration efforts. This includes pushing for the full implementation of the AEC Blueprint 2025, as well as working with like-minded countries to forge closer economic linkages. To date, ASEAN has concluded six Free Trade Agreements (FTAs) with key economic partners. The Regional Comprehensive Economic Partnership will be the world’s largest trading bloc when it is signed later this year.

The EU is a key Dialogue Partner with whom ASEAN is keen to deepen linkages. Singapore, as the ASEAN–EU Country Coordinator, is working actively to facilitate this. As two of the world’s leading regional organisations, ASEAN and the EU share much in common, including a belief in the importance of effective multilateralism, a rules-based international order, and a commitment to free trade and economic integration. We commemorated the 40th anniversary of dialogue relations in 2017 and are working to upgrade ASEAN–EU relations to a Strategic Partnership. On the economic front, the EU has concluded several bilateral FTAs with ASEAN member states such as Singapore and Vietnam, and we should work towards an ASEAN–EU FTA. Negotiations are currently ongoing for an ASEAN–EU Comprehensive Air Transport Agreement which would be the firstever bloc-to-bloc agreement to enhance air connectivity between the two regions. Taken together, these efforts will increase opportunities for exchanges and interaction among our people and further strengthen the links between ASEAN and the EU.

How does the US–China trade war affect Singapore, and how can you mitigate the great powers’ contest in your region when you have deep relations with both of them?

Asia depends on stable ties between the US and China to have a secure and predictable environment for prospering. Sharpening US–China tensions will impact not just Singapore but also the rest of Asia and the world. This is especially so for small, open economies that are highly dependent on trade. The US–China trade tensions have created uncertainty and volatility in global markets. The tit-for-tat tariffs have farreaching implications, given the integrated nature of today’s global supply chains. Should they be sustained, global business and consumer confidence will be reduced, exacerbating the damage COVID-19 has already done to our economies.

The world looks at the major powers to overcome their differences, build mutual trust, and work constructively to uphold a stable and peaceful international order. Much will depend on the strategic choices that the US and China are making. What we can do is to continue to remain open to all partners, be it the US, China, or Europe. Singapore will continue to work with like-minded partners to uphold an open and rules-based international trading system and support for multilateralism.

Zooming in on Central Europe and, especially, Hungary, what role does the region play in Singapore’s foreign economic relations and where could these relations develop? Is there a specific Singaporean approach or strategy towards Central Europe?

Singapore and Hungary have a cooperative and long-running relationship. In fact, this year marks the 50th anniversary of diplomatic relations between Singapore and Hungary. Over this time, Singaporeans have come to deeply appreciate the hardworking and innovative nature of the Hungarian people and their rich culture. One lesson that we have learnt through the course of this long relationship is that, despite the geographical distance that separates us, many of the challenges we face are remarkably similar. Underlying this is the fact that no country or city is immune to the global changes brought about by emerging technologies, shifting economies, urban challenges, and, now, COVID-19. It is important for cities to come together to share good ideas and best practices, explore collaborations, and test people-centric smart solutions.

Singapore and Hungary have worked together to overcome these challenges on numerous occasions, aided by the strong links between businesses, as well as in research and development. Recent examples include HungaroControl’s contribution to the Smart Digital Tower in Changi Airport and the Memorandum of Understanding between the Ministry of Foreign Affairs and Trade of Hungary and the Singapore Space & Technology Association to cooperate on space activities. To commemorate the 50th anniversary of diplomatic relations, Hungary Post and SingPost have also collaborated on a joint stamp that will be unveiled soon.

Singapore welcomes opportunities where we could work with Hungary to increase food imports from Europe as part of our broader efforts to diversify our food supply sources and markets. We import more than 90% of our food from 170 countries and regions, and I believe there are opportunities for agri-food trade cooperation between Hungary and Singapore. In fact, both

THE PANDEMIC HAS UNDERLINED THE IMPORTANCE OF INTERNATIONAL COOPERATION IN THE FACE OF GLOBAL CHALLENGES.

countries have been exploring the importation of agricultural products from Hungary, and I hope this will bear fruit in the near future.

Which kind of investments would you suggest for Singaporean partners in Hungary, and which sectors should Hungarian capital consider for investment in Singapore?

The EU–Singapore Free Trade Agreement, which entered into force on 21 November 2019, affords investors in both countries new opportunities for investments in both ways. Tech-based start-ups are likely to see significant growth given the rapid pace of digitalisation and, in some industries, the boost provided by COVID-19. As a matter of fact, Hungary is one partner country in the current EUREKA GlobalStars-Singapore Call where companies from Hungary and Singapore are encouraged to cooperate on joint technology development and innovation.

We also see great potential in Hungary’s automotive and aviation sectors where Singapore companies can benefit from your proximity to European customers and from good manufacturing capabilities. Furthermore, being located at the crossroads of three TransEuropean Transport Network Corridors, which grant access to 500 million EU consumers, Hungary is an attractive place for logistics activities by Singapore partners.

Singapore is also looking to grow its expertise in the agri-tech sector. Areas such as precision agriculture, sustainable farming, and value chain

design could be of interest to Hungarian food producers. Singapore is the top investment destination in ASEAN for agri-food tech startups, drawing in a total of USD 177 million in 2019. We would be pleased to have Hungarian start-ups, accelerators, and financiers join this growing ecosystem in Singapore.

Singapore is considered in the world as one of the best examples of successfully adapting to its environment, utilising technology and synergies between business, government, and academia. What would be the most important advice we, in Hungary could take from Singapore’s success?

Singapore has gone through various phases in its development, with each phase presenting new challenges that we had to find solutions to in order to progress. Our economy has undergone numerous transformations since 1965 when we became independent. To cope with the high unemployment back then, we focussed our energies on labour-intensive industries to create employment. We have since moved on to capital-intensive industries, embraced the knowledge economy and are busy laying the foundations for entering the digital economy.

To survive, small countries like Singapore have to continue to adapt to new circumstances and learn from our friends, including Hungary. We recognise that, in an interconnected world, Singapore can only thrive if all our friends and partners flourish. Hence, we are always happy to share our experience and best practices. To do so, we established the Singapore Cooperation Programme to curate courses, seminars, workshops, and study visits on a range of topics of interests to our friends in the developing world. However, we are cognisant that every country has its unique circumstances and development stage, and we do not presume to have all the answers. Much of what we have learnt from others has been adapted to our circumstances and needs. We encourage our friends to look at our experiences critically and to similarly adapt what is feasible.

While it is very soon to see the effects of the COVID crisis, generally, if it is true that supply chains will shorten, how will this affect Singapore’s economy? What can it do to mitigate the difficulties? Are there any opportunities in this tragic crisis for Hungarian–Singaporean cooperation?

In the wake of the COVID-19 pandemic, Singapore redoubled its efforts to maintain its connectivity and openness to the world. To this end, we also worked closely with like-minded partners. For example, Singapore and New Zealand initiated a Joint Ministerial Statement on ensuring supply chain connectivity amidst the COVID-19 pandemic to affirm our shared commitment to maintaining open supply chains. Ten other countries have since joined this collective response. This underscores our joint commitment to open trade links and seamless connectivity. Singapore also worked closely with ASEAN member states to issue the Hanoi Plan of Action on Strengthening ASEAN Economic Cooperation and Supply Chain Connectivity in Response to the COVID-19 Pandemic. Singapore welcomes more like-minded partners to join its continued efforts to keep trade lines open and refrain from imposing restrictions that hinder trade so that we can rebuild our economies and emerge stronger from this crisis.

The sharp falls in international trade and travel have exacerbated economic challenges. Amidst the disruptions brought about by the pandemic, we must work together to strengthen international trade and increase trade flows. This will be important for a strong, sustainable, and resilient recovery in our economies. In this regard, our EU–Singapore Free Trade Agreement has been useful in cushioning the impact of COVID-19. EU imports from Singapore actually increased by 12% in the first six months (between December 2019 and May 2020) after the Agreement had come into force. We should continue to encourage our businesses to seek out new opportunities, be it in terms of diversification of food sources and exports, digital economy, research & development, or innovative start-ups. Against this backdrop, I am confident that there are ample opportunities to deepen and strengthen cooperation between Singapore and Hungary. Thank you.