SINGAPORE: The rules-based international order that has been in place for 80 years is in danger of eroding into the “law of the jungle” where “might make correct”
And in its place, a new world order is emerging, with profound unpredictability, instability, and volatility, according to Singapore’s Foreign Affairs Minister Vivian Balakrishnan on Monday ( Mar 3 ).
In addition to laying out his ministry’s annual spending schedule for the year, he said,” the world is now shifting from unipolarity to multipolarity, from free trade to protectionism, from multilateralism to unilateralism, from globalization to hyper-nationalism, from openness to xenophobia to optimism to anxiety.”
According to Dr. Balakrishnan, the great powers are adopting a more contextual, often coercive, approach to their national interests.
Add to that a lack of proper confidence between them and a strong desire to outshine one another, and the end result is sharper rivalry, anarchy, and global supply chains that are fracturing.
According to Dr. Balakrishnan,” countries have turned inward, apparently in the name of regional security, resilience, and de-risking, to safe their personal interests in this stormy environment.”
” We may be going back to a time when the world is divided into alliances controlled by large powers, and by definition this means that smaller states will lose their freedom.”
A NEW WORLD ORDER
Dr. Balakrishnan therefore outlined three broad implications for Singapore: industry, war, and the world commons in his conversation.
He cited the new US administration , as well as other major nations, for using restrictions like tariffs to address non-trade-related policy objectives and applying them to colleagues, competitors, and enemies on the financial front.
Dr. Balakrishnan warned that “tit-for-tat tariffs by other countries can quickly lead to a global industry war.”
Although Singapore has not been specifically targeted, tariffs will have a significant impact on the volume and patterns of global business and will have a significant impact on the nation’s reputation as a shipping gateway.
But the issues extend far beyond tariffs and trade, he continued.
As an open market, Singapore allows businesses from all over the world to run their businesses there as long as they adhere to the laws, according to Dr. Balakrishnan.
However, this paradigm is now in danger as technology becomes the center of geopolitical alliances between the major powers, and many nations place restrictions and export controls on semiconductor chips, important minerals, and data.
Singapore does been criticized for working with or organizing companies and representatives from one side or the other or both in light of the increased scrutiny over advanced technology, the secretary noted.  ,
Centrifugal pressure will be felt on all fronts, which may threaten our empty hub mission and put us in danger of operating even harder.