Transcript of Keynote Speech By Minister of Foreign Affairs Dr Vivian Balakrishnan at the Europe Conference 2025

Mr. Teo Siong Seng, SBF Chairman

Mr. Koh Ping Soon, SBF CEO

Mr. Jens Rübbert, EuroCham President

Mr. Jarno Syrjälä, Under Secretary of State for International Trade, Ministry of Foreign Affairs, Republic of Finland

Excellencies

Ladies and Gentlemen

A very good morning to you. I'm happy to join you for this inaugural Europe Conference. I want to give special thanks to SBF and EuroCham for organising this conference. I think in these uncertain, tumultuous times, it's all the more vital that our two regions, Europe and Southeast Asia, with Singapore in the heart of Southeast Asia, deepen links, have candid, open, constructive dialogue, and have a realistic appreciation of both the opportunities and the risks in these times. 

Europe and Southeast Asia have been closely connected by history, by commerce and people-to-people ties. Europe's influence on Southeast Asia goes back more than five centuries. From the arrival of the Portuguese in Malacca in 1511, the Spanish, the Dutch, the British, the French have all had a presence in our region. They were in search of resources, spices, and with the Industrial Revolution, the need for new and emerging materials, including tin and later, rubber. The influence of these empires is deep, and in fact, persists to this day. You can see it in our institutional structures, the architecture, the culture, the language, and, of course, the food. 

Fast forward to the 20th century, and we're all painfully aware that the first half of the 20th century was marked by two World Wars, which were devastating, both for Europe and for us in Southeast Asia. An estimated 50 million people died in both wars. Europe's share of global GDP, which was around 45% at the start of the 20th century, declined to about 25% in 1945. The terrible experiences of the two World Wars led them to commit to the phrase: “Never again.” Together with the United States, which was the ultimate winner of the two World Wars, Europe created and underwrote a global rules-based world order, which has prevailed for eighty years, until more recently. We should acknowledge that the US did help to rebuild Europe with the Marshall Plan. But it is also worth noting that from the ruins of the war, the project for European integration began. The first step was reconciliation, particularly between France and Germany, who put aside centuries of repeated cycles of enmity and adverse competition. In May 1950, the Schuman Declaration proposed the creation of the European Coal and Steel Community, and this, in fact, was the precursor of the European Common Market, and ultimately the European Union. 

Today, there are 27 European countries in the EU, which include, as I've said, previous adversaries, and increasingly, also the states that were behind the Iron Curtain. The freedom of movement of people in the EU and the use of the euro would have been unimaginable at that time, 80 years ago. In fact, the most precious achievement of the EU has been to make war unthinkable in Western Europe. I know I have the Ambassador from Ukraine here. Yes, there is, unfortunately, a terrible tragedy still going on in Ukraine. But, if we can all hope and pray that ultimately some peace will prevail, the courage, the determination, the innovation of the Ukrainian people mean that when peace emerges, and Ukraine is able to take its rightful place amongst its European partners, I think there will be a very bright future there as well.

I believe Europe's past, in fact, provides valuable lessons for all of us. Europe and Southeast Asia can and must work together to shape a better future for all of us. So today, I'm going to touch on three themes: first, on trade and commerce, second, on upholding a rules-based order, and third, on the opportunities in the emerging green and digital economies, with particular emphasis on the interaction between Europe and Southeast Asia. 

First, commerce and trade remain major drivers for our collaboration. Unlike the previous relationship, based on imperial empires, our partnership today is underpinned by mutual respect, by collaboration, by strong mutual investments, by two-way trade, the flow of people, ideas, and businesses. The EU is, in fact, a very significant economic player. If you add up the combined GDP of the EU, I think you would constitute the second-largest economy in the world in terms of nominal GDP. Europe is a leader in high-tech manufacturing, pharmaceuticals, electronics, and in services. It's home to major companies, including names which you all recognise: ASML, Airbus, SAP, Novo Nordisk, Siemens, Sanofi, Philips, Neste, and the list goes on. We are glad that many, if not all, these companies have a presence in Singapore. The EU is, in fact, cumulatively, Singapore's second-largest source of FDI. Number one is America. Number two is the EU, and there are over 14,000 European companies based in Singapore. The EU-Singapore Free Trade Agreement (EUSFTA), signed in 2019, further boosted trade and investments. Since the agreement was signed, the FDI from the EU into Singapore has grown by more than 50% and Europe's links with Asia are continuing to grow. 

The EU is already ASEAN’s third-largest trading partner, and there is immense opportunity for these figures to grow further. ASEAN’s economy is expected to double in the next two decades. About 300 million or about half the population in Southeast Asia are under the age of 35, and there is a growing middle class that will constitute a vital market for the European Union. We are also enhancing connectivity. We signed the ASEAN-EU Comprehensive Air Transport Agreement in October 2022 while Singapore was Chairman of the ASEAN Air Transport Working Group. The prospects are bright, and it is up to us to seize them. While some parts of the world, unfortunately, have become more protectionist, have turned inwards, more transactional, we believe the EU and ASEAN, and others — we were just discussing Africa and South America — are still willing to subscribe to make common cause for trade liberalisation and economic integration. This is precisely why Singapore has suggested that the members of the CPTPP, which now also includes the UK, can do more in partnership, in collaboration with the EU. This is a natural fit between people who still believe in integration and trade liberalisation — the CPTPP plus the EU. 

The second theme is on the need to continue to support multilateralism and a rules-based world order and liberal economics. Europe remains deeply committed to upholding the concept of multilateralism and the rules-based global order, a world where might does not make right, and a world which, in fact, will be much better aligned for the long-term interests of both the EU and Southeast Asia, and especially for a small city-state like Singapore. Singapore and many European countries, and here I want to highlight France, played an important role in the consensus adoption of the BBNJ agreement. Singapore's Ambassador Rena Lee presided over the Intergovernmental Panel that led this historic High Seas Treaty. I highlight this as an example of our commitment to a multilateral approach to protecting our global commons. Whether it's the high seas, climate change, or pandemics, these are all areas in which we need to work together to look after the global commons. Coming back to Agreement under UNCLOS on the Conservation and Sustainable Use of Marine Biological Diversity of Areas Beyond National Jurisdiction (BBNJ Agreement), 16 out of the 27 EU countries have ratified the treaty, and the EU has also launched a €40 million Global Ocean Programme to support partner countries in ratifying and implementing the BBNJ Agreement. On climate, just last month, the first ASEAN-EU Ministerial Dialogue on Environment and Climate Change was held in Pulau Langkawi in Malaysia. Both ASEAN and the EU have reaffirmed our commitment to the Paris Agreement and to foster international partnerships to support the ambitious and necessary implementation of its goals. 

The third theme I want to touch on and to emphasise is that there are many emerging opportunities in both the green and the digital economies. I'm very glad that the EU-Singapore Digital Trade Agreement was signed in May this year. It will establish rules that will facilitate digital trade and cross-border data flows. As the EU's first bilateral digital economy deal with an ASEAN member state, this agreement, I believe, will be a pathfinder that will support greater region-to-region digital connectivity. The digital economy is actually a key component of Singapore's economy. The digital economy accounted for about 18.6% of Singapore's GDP in 2024. In fact, it now accounts for about S$128.1 billion. So, we have a real stake in the digital space. Singapore companies are increasingly making digitalisation central to how we operate, and this includes, particularly the SMEs, which are increasing their use of AI, deploying e-payments, e-commerce, the Cloud, and data analytics in their day-to-day operations, as well as equally importantly, focusing on cybersecurity. We know that EU firms have expertise in these areas, and we look forward to working closely with EU companies in both the green and digital economies. 

Enterprise Singapore supports the Eureka Clusters, where Singapore firms can tap on funding to access partners in Europe, and that is a significant part of the agenda in this meeting. European partners actively participate in the annual Singapore Week of Innovation and Technology (SWITCH), which brings together investors, accelerators, entrepreneurs, and start-ups in the innovation sphere. Let me give you one more example: the German firm, Siemens, works with Artisan Green, a Singaporean vertical farm, to support automation and digitalisation, to optimise crop quality whilst reducing water and energy consumption. We believe that European companies, with your combination of both investment and technical expertise, can help support Southeast Asia's transition into a green economy, as we look to expand the use of renewables and also develop an ASEAN Power Grid. We also welcome the UK's pledge in July of up to £70 million of capital to Financing Asia's Transition-Partnership (FAST-P), which will provide blended finance to support low carbon energy projects and to bolster energy security and climate resilience. 

So let me close by emphasising that our partnership with Europe is anchored. There's a history, but it is also anchored in a deep, mutual understanding that we all benefit by working together. It is in our common interest to uphold multilateralism, rules-based systems, open economies, the flow of trade and investments, and that means we've got a full agenda ahead. So, let's all confront the uncertainty of the current times, deal with the risks, but fully exploit the opportunities that are emerging. Let's catch the winds and take advantage of all the opportunities; work together, work with governments, with business associations, and more importantly, at the people-to-people level, because without meeting face to face, shaking hands, looking into each other's eyes, you can't build that essential element of trust. I thank all of you for being here today. I wish you a very fruitful conference. Thank you very much.

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