‘Adversity into Opportunity: Staying Ahead in a Troubled World’

Senior Singapore Minister Lee Hsien Loong addressed the turbulent maritime environment at Singapore Maritime Week 2025.

Addressing delegates at the opening session of the event, he stressed that over the past six decades, Singapore's economy had thrived due to a stable global order supported by the US and multilateral institutions, leading to significant international trade growth. Investments by multinational enterprises fostered economic growth in both small and large economies, enhancing global supply chains. Singapore capitalised on these trends, establishing itself as a vital trade and maritime hub.

 Geopolitical tensions have led to a shift from interdependence to prioritising security and self-reliance in global trade, and the US administration views tariffs as both economic tools and bargaining leverage, moving away from previous win-win trade perspectives, he indicated.

 Protectionism and economic bifurcation are increasing, affecting industries like maritime shipping, which seeks to reduce reliance on competitors. Climate change is disrupting established trade routes, with international shipping contributing 3% to global greenhouse gas emissions.

 The maritime industry is pursuing decarbonisation through greener fuels and efficient ships, potentially reshaping supply chains and trade routes.

 But trade is essential for survival, with 25% of global food production traded internationally and over 80% of the world's population living in net food-importing countries. Current strategic tensions and policy uncertainties could lead to a decline in the trade-to-GDP ratio, dampening economic growth and causing social and political issues.”

 Singapore, he said, remained committed to an open economy, collaborating with like-minded partners to preserve multilateral trade benefits. “The nation has established 27 Free Trade Agreements (FTAs) covering 90% of its trade, enhancing its economic growth.”

 Singapore's maritime sector contributes over 6% to its GDP and supports approximately 140,000 jobs and the ambitious Tuas Port project aims to consolidate container terminals with a capacity of 65 million TEUs annually by the 2040s. Investments in technology include an AI-enabled vessel traffic management system and a Digital Twin for the maritime ecosystem. Singapore aims to peak emissions before 2030 and achieve net zero by 2050, despite limited energy resources.

 He stressed that Singapore was investing in green technologies and alternative fuels to support the maritime industry's decarbonisation and is actively training workers to handle alternative fuels, preparing for their widespread adoption in the maritime sector.