Discuss the role Singapore can play in helping her ASEAN neighbours develop their economies, and how this can benefit Singapore in the long run.

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NEEWC Essay

Discuss the role Singapore can play in helping her ASEAN neighbours develop their economies, and how this can benefit Singapore in the long run.

1000-2000 words

    The ASEAN community consist of member countries Singapore, Malaysia, Indonesia, Philippines, Thailand, Cambodia, Vietnam, Brunei Darussalam, Laos and Myanmar, whose collective will is through cooperation and friendship and through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom and prosperity. Upon the foundations as a major maritime and air transportation hub for the region, Singapore has developed as an “international financial capital”. At the same time, it is still highly dependent on its neighbours due to its inherent resource scarcity and small size, and despite its sound economic fundamentals, including the largest per capita government surplus in the world, the future economic success of Singapore depends largely on the success of its ASEAN neighbours. Therefore it is in Singapore’s best interests to help its neighbours prosper and this essay shall examine the role Singapore can play in doing so, as well as how this can benefit Singapore in the long run.

    Singapore is the financial hub of Southeast Asia, and has been consistently ranked at or near the top among preferred international investment cities and top choice for a regional headquarters (FEER 13 December, 1996). With such an influence, Singapore can use its economic wealth, expertise and reputation to help her ASEAN neighbours develop their economies. Singapore has little barriers or obstacles in doing so with the ASEAN Free Trade Agreement (AFTA) signed in 1992 and the various collaboration councils initiated, such as the ASEAN Industrial Cooperation scheme, Framework Agreement on Services, e-ASEAN Task Force, etc. Hence Singapore has merely only to work and participate through these avenues to boost her neighbours’ economies.

    The first avenue for these is through AFTA which promotes intra-regional trading. Singapore’s role is highlighted in the dependency on major sources of imports from ASEAN countries. This comes in the form of energy, Brunei earning substantial foreign exchange from the exports of oil and natural gas as fuel sources for Singapore. Moreover the growing size of value-added industry with regards to oil refinery and oil-based products like cosmetics ensures a stable growing demand for Brunei. This helps to consolidate and boost the Brunei oil industry, especially since Brunei’s main GDP contributor is from the oil industry and this sector is the second biggest employer after the government. Development of the Brunei economy through Singapore’s demand for oil is highly likely to increase, with it being a viable substitute in the light of growing problems with the oil-exporters of the Middle East.

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    The importing of other natural resources comes in the form of water. While this recognizably has reduced in demand with the new desalination plants and Newater plants in Singapore, this is still a booster to the Malaysian economy. The pipelines ensure political peace between the two nations and as a clause of the water agreement, this has resulted in improved infrastructure in Malaysia, through the construction of the Second Link and a third Causeway in the near future. This promotes high accessibility between the two nations and good transportation links would promote increased Malaysian exports.

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