- Lee Hsien Loong Highlights Trade and Security Challenges at Maritime Week.
- Geopolitical Tensions and Climate Change Reshape Global Shipping.
- Singapore Stays Committed to Open Trade Despite Protectionist Trends.
Senior Singapore Minister Lee Hsien Loong spoke about the changing maritime environment at Singapore Maritime Week 2025, highlighting the challenges and opportunities confronting world trade and shipping, reports SMI.
Singapore’s Growth Driven by Global Stability
In delivering his speech during the event’s opening session, he emphasized how the economic prosperity of Singapore in the last half a century was founded upon an orderly world underpinned by the US and international institutions. The stability created larger cross-border trade, more robust world supply chains, and rising investments from multinationals. Singapore took advantage of these trends to position itself as a major trade and shipping centre, enjoying globalization and interdependence.
Shifting Global Trade Dynamics
Minister Lee noted that geopolitical tensions are reshaping global trade. Nations are moving from interdependence to prioritizing security and self-reliance. “The US administration views tariffs as both economic tools and bargaining leverage, moving away from previous win-win trade perspectives,” he said. Rising protectionism and economic fragmentation are already impacting industries such as maritime shipping, as companies seek to reduce reliance on competitors.
Climate Change and the Shipping Industry
Climate change is interfering with trade routes, with global shipping emitting three per cent of greenhouse gas emissions. The shipping industry is moving towards decarbonization, with efforts aimed at cleaner fuels, more efficient vessels, and redesigning supply chains and trade routes to ensure sustainability targets are achieved.
The Importance of Trade for Global Stability
Minister Lee stressed that trade remains essential for global well-being. “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,” he said. He warned that ongoing 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’s Commitment to Open Trade and Maritime Growth
Despite these global challenges, Singapore remains committed to an open and multilateral trade system. “The nation has established 27 Free Trade Agreements (FTAs) covering 90% of its trade, enhancing its economic growth,” Minister Lee said. The maritime sector plays a crucial role in the economy, contributing over six per cent to GDP and supporting approximately one hundred and forty thousand jobs.
Investing in Future Maritime Capabilities
Singapore is investing heavily in maritime technology and infrastructure. The Tuas Port Project, a vision for the 2040s, is meant to consolidate container terminals with sixty-five million TEUs of annual capacity. Singapore is also building AI-powered vessel traffic management systems and deploying Digital Twin technology to optimize maritime operations.
Decarbonization and Sustainability Goals
Minister Lee reaffirmed Singapore’s commitment to sustainability, with a focus on peaking emissions before 2030 and achieving net zero by 2050 despite limited energy resources. “Singapore was investing in green technologies and alternative fuels to support the maritime industry’s decarbonisation,” he said. He also highlighted the importance of workforce training to ensure the industry is prepared for the widespread adoption of alternative fuels.
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Source: SMI
