Singapore-Uzbekistan FTA to boost trade and investment ties

Lee noted that FTAs have become more important at a time when the WTO is not functioning as it should as an international rules-based system.

“All the more you need FTAs bilaterally and regionally to give people some protection, which the WTO is not able to do,” he said.

He added: “It always takes effort to negotiate an FTA, but there’s market potential. Then we will put the effort in and try and reach an agreement.”

High regard for Singapore

Prior to Uzbekistan, Lee visited Kazakhstan, the first stop of his two-country trip to Central Asia.

He said his “most vivid impression” was the high regard both countries had for Singapore and founding prime minister Lee Kuan Yew.

In Kazakhstan, this was partly because the late Lee had visited the country in 1991 and several more times afterwards. In Uzbekistan, he was well regarded for his reputation and books.

Both countries were interested in learning from Singapore’s experience and having Singapore companies involved in projects there.

One example was Kazakhstan’s plans for an airport in Astana. Changi Airport Group is interested in the project, Lee Hsien Loong said, adding that the Kazakh side had made it clear it was keen to have the Singapore company involved.

A Changi Airport Group spokesman told The Straits Times on Aug 31 that Changi Airports International is in discussions with the Kazakhstan authorities to explore how it could contribute its airport development and management expertise.

Lee said that Singapore companies have already found opportunities in the region in areas including education, agriculture, venture capital and legal services.

Interest also flows in the other direction, with Central Asian companies using Singapore for wealth management and fund-raising, as well as a base from which to do business in South-east Asia.

“If we can make it grow over 10 years by four or five times, I think that will be something which will make a contribution to diversifying our economies,” Lee said.

“It won’t totally supplant the major trading partners we have, but it will be a valuable supplement.”

Stronger trade and investment ties could lead to closer people-to-people links, human resource cooperation and youth exchanges, as well as give Singapore more partners to work with at international forums such as the WTO and United Nations.

“That’s very valuable to us as a small country because we look for partners, we look for friends, and we support one another,” Lee said.

Nuclear power

Lee said the trip confirmed Singapore’s assessment that nuclear energy may need to be part of the energy mix for countries seeking to decarbonise.

Singapore has been studying its potential, including newer technologies such as small modular reactors, as it explores ways to cut emissions while meeting its growing energy needs. No decision has yet been made on deploying nuclear power.

He noted that Kazakhstan and Uzbekistan are both oil and gas producers, yet see a need to develop nuclear power as one component of their energy resilience.

Singapore, in contrast, does not have oil and gas and has limited renewable energy options. Even if every rooftop and reservoir were covered with solar panels, these would produce only about 10 per cent to 15 per cent of the energy the country needs, Lee said.

“If you want something which is reliable and not intermittent, it’s hard to run away from thinking about nuclear energy,” he said.

Singapore has to look at nuclear energy “very, very seriously”, although it is not ready to make a decision, Lee said.

New generations of nuclear power plants that are smaller, safer and require smaller safety distances could potentially be more suitable to Singapore’s circumstances, although it is still too early to say how successful these technologies will be.

Singapore will embark in 2027 on the Integrated Nuclear Infrastructure Review (INIR), a process to assess whether the country is ready to make a decision on nuclear power.

“In other words, we would like to get ourselves ready to make a decision. Let’s assess whether we’ve got there yet,” Lee said.

“It is not something which you can rush, but neither is it something where you want to just kick the ball down the road,” he added.