1.

Thank you Secretary Blank for your kind introduction and for taking time
out of your busy schedule to be here. Your work at the Commerce Department has b
een so important in strengthening the business links between our countries. I al
so thank the US Chamber of Commerce and the US-ASEAN Business Council (USABC) fo
r hosting this dinner. Both are old friends of ASEAN and Singapore. You have con
tributed to our development, and help anchor the US s longstanding presence in the
region.
INTRODUCTION
2.
I am delighted to be back in Washington. Much has changed since my last v
isit in 2010 for the 1st Nuclear Security Summit. President Obama is now in his
second term, and has assembled a new team. The first Obama Administration streng
thened the US s engagement with Asia. It was called a pivot , although the US has bee
n in Asia since the Second World War. The President and his officials visited As
ia many times. In fact, the President s first trip after re-election was to Southe
ast Asia. Next month, we look forward to welcoming Secretary of Defense Chuck Ha
gel to the 12th Shangri-La Dialogue in Singapore. We also join our ASEAN friends
in welcoming Secretary of State John Kerry to the region in June.
3.
The US has maintained stable relations with China and developed its ties
with ASEAN. US-Singapore relations have also strengthened under President Obama.
I had a good meeting with President Obama earlier today. I expect President Oba
ma and his new team will sustain this engagement in his second term.
DEVELOPMENTS IN WORLD
4.
The last six years have also seen major changes in the world. The Global
Financial Crisis was a big shock. Technology and social media are fundamentally
transforming societies, as we saw during the Arab Spring. Fortunately, Asia weat
hered the Crisis relatively unscathed. Individual countries are prospering, whil
e the region is integrating further.
China
5.
China has been a big part of the Asia story. Its GDP has more than double
d in US$ terms since 2007, and it is now the world s second largest economy. More
significantly, China has integrated smoothly into the international system, cons
idering how large its impact has been.
6.
China has just completed its leadership transition. Its new leaders are f
ocused on domestic priorities, such as income inequality and corruption. Polluti
on is a growing issue, especially in Beijing. According to a recent Wall Street
Journal article, Beijingers joke that they can open their windows and get a free
smoke!
7.
China s leaders know change is necessary, and that it will not be easy. Pre
sident Xi said that China must have courage to implement its reforms, and dare t
o gnaw a hard bone and wade through a dangerous shoal ( ??????,????? ). In the economi
c domain, the PRC State Council has worked with the World Bank to develop ideas
to transform China into a modern, harmonious and creative high-income society by 2
030 . These include liberalising its markets, strengthening safety nets and inte
grating more with the global economy. However, no such roadmap exists for China s
political and social evolution. China s leaders are learning from other countries.
Having carefully studied the former Soviet Union under Gorbachev, they are caut
ious about political reform. They want to understand how Singapore balances our
economic and social goals.
US-China Relations

8.
China s most important external relationship is with the US. As President X
i recently told Treasury Secretary Lew, the US and China have numerous shared int
erests . I am therefore glad that US-China ties have remained stable, though there
are significant issues to manage. The US considers cyber-security as an importa
nt issue not just for its companies, but also from a national security perspecti
ve; whereas China denies that it is responsible and resents the presumption that
it is to blame. Internationally, your interests on some global and regional iss
ues will diverge, but there is broad convergence in many areas.
9.
A difficult regional issue is the territorial and maritime disputes in As
ia, between China and Japan (the Diaoyu/Senkaku islands), and between China and
several ASEAN members (in the South China Sea). We in ASEAN have urged restraint
by all parties, and have encouraged claimant states to resolve their disputes p
eacefully and in accordance with international law, including UNCLOS. We should
seek to prevent any miscalculation or mishap which will set the region back for
many years. This is also in the US s interests because though the US is not party
to these disputes, it nevertheless shares a fundamental interest in freedom of n
avigation and maintaining regional peace and stability.
10.
I am glad that US and Chinese leaders have committed to maintaining stro
ng and mutually beneficial US-China ties. I believe there is enough common groun
d for the US and China to accommodate each other. However, the two countries nee
d to build strategic trust in each other. The US, as the incumbent superpower wh
ich will remain dominant for decades to come, naturally has interests to protect
. China s development represents a major shift in the balance of power. China unde
rstands that its success depends on a stable international environment. It wants
its rightful place in the sun, and will be wary of any perceived attempt to con
scribe its freedom of action. Each side will be watching the actions and reading
the motives of the other, and reacting to them. China and the US have to streng
then mutual confidence, in order to manage this shift in the global balance wise
ly and prudently.
Southeast Asia
11.
In Singapore s own corner of the world, Southeast Asia is progressing stea
dily. Southeast Asia avoided the worst of the Crisis because many countries had
restructured their economies after the Asian Financial Crisis a decade earlier.
Today, ASEAN s members are growing steadily. Collectively, we have a population la
rger than Europe s, and a GDP larger than India s or Russia s. We are forging closer e
conomic, socio-cultural and political ties, and making progress towards an ASEAN
Economic Community by 2015. For a while we even considered fielding a combined
soccer World Cup team!
12.
Singapore benefits from a stable and prosperous Southeast Asia. We enjoy
good relations with our neighbours. We are cooperating with Malaysia on Iskanda
r Malaysia a special development zone in Southern Malaysia that is larger than S
ingapore. Iskandar and Singapore can be like New Jersey and Manhattan. We are al
so planning a High-Speed Rail link from Kuala Lumpur to Singapore, which are as
close together as DC and New York. Our relations with Indonesia are similarly wa
rm. Singapore is Indonesia s largest foreign investor, despite our small size, whi
le Indonesia is our biggest source of tourists.
13.
Elections are coming up in both countries. Malaysia s elections are likely
to be held within a few months. In Indonesia, President Yudhoyono will step dow
n at the end of his term next year but there is no frontrunner to replace him ye
t. Singapore hopes for continuity and stability in Indonesia and Malaysia so tha
t we can grow and prosper together.
14.
Beyond Singapore s immediate neighbours, one of the encouraging developmen
ts in Southeast Asia is the ongoing political and economic changes in Myanmar. A

fter a long difficult period, Myanmar is now going through delayed but essential
reforms, and opening up to the world. Aung San Suu Kyi is participating fully i
n the democratic process. But Myanmar is a complex society whose problems cannot
be solved immediately or by the process of elections alone. One such challenge
is managing tensions between its 135 official ethnic groups, as the current conf
lict between the Buddhists and Muslims in Meiktila show. The country also needs
assistance in areas where it has major capability gaps, such as public administr
ation, rule of law, and basic infrastructure, to deal with its challenges.
ASEAN s Relations with US and China
15.
Amid these changes, ASEAN remains committed not only to pursuing closer
regional integration, but also to cultivating its ties with external partners. W
e expanded the East Asia Summit to include the US and Russia. We are also improv
ing on our ASEAN+1 FTAs with Australia, China, India, Japan, Korea and New Zealand
by negotiating a Regional Comprehensive Economic Partnership (RCEP) that will c
omprise almost half the world s population and about a third of global GDP.
16.
ASEAN is also keen to develop its ties with the US. On Singapore s part, w
e are helping the US develop its ties with our ASEAN neighbours through the Sing
apore-US Third Country Training Programme. The US s longstanding presence in South
east Asia has contributed to the security of our region, and enabled countries t
o prosper in peace. You also wield soft power in Southeast Asia and beyond. Many
Asian students aspire to attend US universities. American culture remains popul
ar, be it TV shows like Glee or pop stars like Lady Gaga. Occasionally the influ
ence goes the other way, such as with Gangnam Style , but Harlem Shake reflects the d
ominant trend.
17.
ASEAN and the US celebrated our 35th anniversary of dialogue partnership
last year. During the US-ASEAN Leaders Summit in Phnom Penh, we agreed to elevat
e our relationship to a Strategic Partnership by 2015. We also welcomed the US s E
xpanded Economic Engagement (E3) Initiative to promote economic links between th
e US and ASEAN, which have grown, but more slowly than each side s economic partne
rships with other countries. Over the last decade, China has become the top trad
ing partner of almost all Southeast Asian nations, including US allies such as t
he Philippines and Thailand.
18.
The US should thus adopt a more active trade agenda with ASEAN. In Asia,
trade is strategy. A more active trade agenda will benefit the US economically
and strategically. It reflects the US s ethos
open, confident, competitive, and wi
n-win and sets a positive example for the rest of the world especially when prot
ectionist sentiments are rising. Whether it is the executive in Bangkok tapping
on her iPhone or the subway planner in Jakarta seeking infrastructural expertise
, Southeast Asia is a huge market for US goods and services.
19.
An active trade agenda includes pushing the Trans-Pacific Partnership (T
PP) energetically, while taking into account the constraints of TPP members. I w
elcome Japan s decision to join the TPP. It is a strategic move that brings an imp
ortant US ally in Northeast Asia into this important grouping. Like the RCEP, th
e TPP can pave the way for an eventual Asia-Pacific FTA.
20.
I know that free trade is not always a popular issue, here and elsewhere
. Ordinary Americans are worried about unfair competition and exporting jobs . But
pushing ahead with efforts to seek new overseas markets and keeping markets open
is critical to the US s long-term economic growth and employment.
21. The US is well-placed to succeed in a more open world. Yours is a creative e
conomy with many strengths. Your place names Silicon Valley, Madison Avenue, Hol
lywood are synonymous with technology, buzz and creativity. Whether it is green
technology, 3-D printing, or robotics, the leading edge of the 21st century rema

ins in America. You have a young, growing and dynamic population, drawn from the
world s best. Add to that the current energy renaissance in America and you will
see many bright spots in America s economic future.
22.
I am therefore glad that President Obama has promised to put trade at th
e heart of his agenda. His Administration is pushing for Trade Promotion Authori
ty from Congress, and intends to pursue a Transatlantic Trade and Investment Par
tnership with the EU. I hope that Congress will take an enlightened approach and
keep US markets open to the world.
US-SINGAPORE RELATIONS
23.
Within this context, I am confident that US-Singapore relations will con
tinue to flourish. Our partnership goes back a long way. In fact, some say that
Hawaiian leis were originally made with the same orchids as our national flower!
24.
We enjoy excellent security cooperation under our Strategic Framework Ag
reement. The Singapore Armed Forces appreciates the opportunities to train in th
e US. I certainly recall my year in Fort Leavenworth fondly. Our Chinook helicop
ter pilots and families in Arizona feel like a part of the local community, and
during Hurricane Katrina immediately volunteered to fly sorties to help with rel
ief efforts. Singapore is happy to reciprocate the friendship. US forces are the
most frequent foreign visitors to our military facilities, and we look forward
to welcoming your first Littoral Combat Ship shortly.
25.
We also have excellent partnerships in education, such as the Yale-Natio
nal University of Singapore College and the Singapore-MIT Alliance for Research
and Technology. Last year, Singapore and the US signed an MOU to enhance educati
on collaboration. Some US schools are even trying out Singapore maths textbooks,
including Sidwell Friends School here in Washington. I understand that we had t
o change the references in the textbooks from counting durians to counting grape
fruit!
26.
Our economic relations are robust, with many new opportunities emerging.
The US-Singapore Free Trade Agreement (USSFTA) was the US s first FTA in Asia, an
d has supported the business engagement for nearly a decade. US investments in S
ingapore have continued to develop with our economy, and today, help to broaden
the reach of US companies into Asian markets and to Asian communities. For examp
le, Procter and Gamble established its regional consumer insights and design tea
m in Singapore, which helps it not only customise their existing products, but a
lso innovate new ones specifically for the Asian market. Maintaining the economi
c relationship with the US is crucial, especially as Singapore transforms our ec
onomy.
27.
Singapore is entering a new phase. We are transitioning from rapid expan
sion to slower, qualitative transformation and upgrading. We are encountering an
d tackling demographic challenges encouraging Singaporeans to have more babies,
helping our elderly age with peace of mind, and integrating new arrivals. We are
striking a new balance between our economic and social goals. This transition i
s challenging, but inevitable for a maturing economy.
28.
I want to assure everyone here that Singapore remains open for business.
We are focussed on growing a vibrant economy, to generate opportunities for Sin
gaporeans. We continue to welcome talent and investments, while being mindful of
our physical and social constraints. We will maintain a pro-business environmen
t which helps companies succeed in Singapore. We may not be the cheapest place t
o do business, but we promise efficiency, predictability and high standards of e
xcellence. I am confident that Singapore and US companies can seize the many opp
ortunities in dynamic Asia and prosper together.

CONCLUSION
29.
The future is bright. I believe that the US will overcome your present c
hallenges and prove once again your dynamism and resilience to the world. Asia i
s developing rapidly and will offer many opportunities to the bold and enterpris
ing. Singapore, in the middle of this dynamic region, can play a useful role con
necting the US and Asia. By working together, I am confident that we can build a
better tomorrow for ourselves, our companies and our people.
30.
I thank the US Chamber of Commerce and the US-ASEAN Business Council onc
e again for your generous hospitality, and look forward to continue working with
both of you for many more years of peace and prosperity.
31.

Thank you very much.