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Building strategic trust for peace, cooperation and prosperity in the Asia-Pacific region

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At the outset, I would like to express my sincere thanks to Prime Minister Lee Hsien Loong our Singaporean host, Dr. John Chipman and the organisers of the 12th Shangri-La Dialogue for your kind invitation to me to attend and address this important forum. Since its inception 12 years ago, the Shangri-La Dialogue has truly become one of the most substantive and meaningful security dialogues in the region. I do believe that the full presence of government officials, military leaders, prestigious scholars and all distinguished delegates at this forum reflects the interest and the efforts to jointly preserve peace and security in the Asia-Pacific region in the context of a dynamically changing world.

Ladies and Gentlemen,
While languages and expressions might differ, I am sure we all agree that without trust, there would be no success and harder work asks for bigger trust. In Vietnam, there is a saying that ‘if trust is lost, all is lost.’ Trust is the beginning of all friendships and cooperation, the remedy that works to prevent calculations that could risk conflicts. Trust must be treasured and nurtured constantly by concrete, consistent actions in accordance with the common norms and with a sincere attitude.

In the 20th century, Southeast Asia in particular and the Asia-Pacific in general were fierce battlefields and deeply divided for decades. It might be said that the entire region always had a burning desire for peace. To have peace, development and prosperity, it is a must to build and consolidate strategic trust. In other words, we need to build strategic trust for peace, cooperation and prosperity in the Asia-Pacific. That is what I wish to share with you at this forum.

To begin with, Vietnam has a profound confidence in the bright future of development and cooperation in our region. Yet the trend of increased engagement and competition, particularly by big powers, not only offers positive elements but also involves negative risks that require us to take initiative and work together to prevent.
The Asia-Pacific region now enjoys dynamic development and is home to the world’s three biggest economies, and many emerging ones. Here, the trend of multi-layer, multi-sector cooperation and linkages is evolving vigorously and is becoming the prevailing one of the day. This is quite a promising prospect for us all.
However, looking back at the full picture of the region in the past years, we cannot fail to be concerned over the simmering risks and challenges to peace and security.

Competition and engagement are by themselves normal facts in the course of cooperation and development. Yet if such competition and engagement embrace calculations that are only in one’s own interest, without equality, respect of international law or transparency, then strategic trust could in no way be reinforced, and there could be a chance for the rise of division, suspicion and the risk of mutual containment, thus adversely affecting peace, cooperation and development.
The unpredictable developments in the Korean Peninsula; sovereignty and territorial disputes from the East China Sea to the East Sea (South China Sea) that are evolving with great complexity, threatening regional peace and security – firstly maritime security and safety as well as the freedom of navigation – have indeed caused deep concern to the international community. Somewhere in the region, there have emerged preferences for unilateral might, groundless claims, and actions that run counter to international law and stem from imposition and power politics.
I would like to draw your further attention to the fact that maritime transport and communications are growing in scale and acquiring a much greater significance. It is projected that three quarters of global trade will be made via maritime routes and two thirds of that will be shipped across the East Sea. A single irresponsible action or instigation of conflict could well lead to the interruption of these huge trade flows, with unforeseeable consequences not only to regional economies but also to the entire world.

In the meantime, the threats of religious and ethnic conflicts, egoistic nationalism, secessionism, violence, terrorism, cyber security, etc. are still very much present. Global challenges like climate change, the rise of sea levels, pandemics or water resources and the interests of upstream and downstream riparian countries with shared rivers, etc. have become ever more acute.
We should realize that such challenges and risks of conflict are not to be underestimated. We all understand that if this region falls into instability and especially, armed conflicts, there will be neither winners nor losers. Rather, all will lose. Suffice it to say, therefore, that working together to build and reinforce strategic trust for peace, cooperation and prosperity in the region is in the shared interest of us all. For Vietnam, strategic trust is perceived, above all, as honesty and sincerity.

Secondly, to build strategic trust, we ourselves need to abide by international law, to uphold the responsibilities of nations, especially of major powers, and work to improve the efficiency of multilateral security cooperation mechanisms.
In global history, many nations have suffered from irreparable losses when they fell victim to power politics, conflict and wars. In today’s civilised world, the UN Charter, international law and the universal principles and norms serve as the common values of all humanity and must be respected. This also represents the precondition for the building of strategic trust.
Each state should always be a responsible stakeholder in the pursuit of common peace and security. Countries, both big and small, must build their relations on the basis of equality and mutual respect and, at a higher level, on mutual strategic trust. Big states have a greater role to play and can contribute more, but they should also shoulder bigger responsibilities in the cultivation and consolidation of such strategic trust. Besides, when it comes to the right voice or beneficial initiatives, it does not matter whether they come from big or small countries. The principles of cooperation and equal, open dialogue in ASEAN and other forums advocated by ASEAN, as well as this Shangri-La Dialogue, are born from and maintained by such a mindset.

I fully share the views of H.E. President Susilo Bambang Yudhoyono of Indonesia who said last year at this forum that small and medium countries could help lock major powers into a durable regional architecture. I also agree with Prime Minister Lee Hsien Loong on what he said in a speech in Beijing last September: that a reliable and responsible cooperation between the United States and China would positively contribute to the common interest of the region. We all understand that the Asia-Pacific has sufficient room for all intra- and extra-regional countries to work together and share their interests. The future of the Asia-Pacific has been and will continue to be, shaped by the roles and interactions by all countries in the region and the world, particularly by the major powers and certainly, by the indispensable role of ASEAN.
I believe that no regional country would oppose the strategic engagement of extra-regional powers if such engagement aims to enhance cooperation for peace, stability and development. We should expect more of the roles played by major powers, particularly the United States and China – the two powers having the biggest roles in and responsibilities to the future of the region and the world. What is important is that such expectation should be reinforced by strategic trust and such strategic trust must be reflected in concrete and constructive actions of these nations.
We attach special importance to the roles played by a vigorously rising China and by the United States – a Pacific power. We would expect and support the roles of the United States and China, once their strategies and actions conform to international law and respect the independence and sovereignty of nations, to not only bring about benefits to them, but also to contribute genuinely to our common peace, cooperation and prosperity.

What I want to further underline is that the existing regional cooperation mechanisms such as the ASEAN Regional Forum (ARF), East Asia Summit (EAS), ASEAN Defence Ministers’ Meetings Plus (ADMM+) as well as the Shangri-La Dialogue offer opportunities to foster multilateral security cooperation and find solutions to the challenges that arise. Yet it could be said that what is still missing, or at least still insufficient, is the strategic trust in the implementation of those arrangements. The first and foremost thing is to build a mutual trust when confronting challenges; taking account of the impacts of interactions, and enhancing practical cooperation in various areas, and at different levels and layers – both bilateral and multilateral. Once there is sufficient strategic trust, we could advance and expand cooperation and find solutions to any problem, even the most sensitive and difficult one.
Thirdly, when talking about peace, stability, cooperation and prosperity in the Asia-Pacific, we cannot help but mention an ASEAN of unity and consensus, playing its central role in many multilateral cooperation forums.
It was hard to believe that a South East Asia once divided and embedded in conflicts during the Cold War could become a community of nations united in diversity and playing a central role in an evolving regional architecture like ASEAN today. The participation of Vietnam in ASEAN in 1995 marked a new era of development in ASEAN towards building a common house for all South East Asian nations true to its name. The success of ASEAN is the fruit of a long persevering process to build trust, nurture the culture of dialogue and cooperation, and cultivate the sense of responsibility to the shared destiny of South East Asian nations.

ASEAN is proud to be an example of the principle of consensus and mutual trust in the making of its own decisions. That principle is the foundation for equality among the member states, whether it is Indonesia with nearly a quarter of a billion people or Brunei Darussalam with less than half a million. That principle also constitutes the foundation for extra-regional countries to place their trust in ASEAN as an ‘honest broker’ in guiding the numerous regional cooperation mechanisms.
With a mindset of shared interests rather than one of win-lose, the enlargement of the East Asia Summit (EAS) to include Russia and the United States, the ADMM+ process that was put into reality in Vietnam in 2010, and the success of EAS, ARF and ADMM in the years that followed, have further consolidated the ground for a regional architecture in which ASEAN plays the central role, bringing about trust in multilateral security cooperation in the region.

I also wish to refer to Myanmar as a vivid example of the success of persevering with dialogue on the basis of building and reinforcing trust, respecting the legitimate interests of each other, which has helped open up a bright future not only for Myanmar but also for our whole region.
There have been profound lessons learned about the fundamental value of ASEAN’s consensus and unity in maintaining equal and mutually beneficial relations with partner countries and maximising its proactive role in handling strategic issues of the region. ASEAN could only be strong and able to build on its role when it is united as one. An ASEAN lacking unity will by itself, lose its place and will not act in the interest of any country, even ASEAN member states or partners. We need an ASEAN united and strong, cooperating effectively with all countries to nurture peace and prosperity in the region, not an ASEAN in which member states are forced to take sides with one country or the other for the benefit of their own relationships with big powers. We have a responsibility to multiply trust in the settlement of problems, enhance cooperation for mutual benefit, and to combine our national interest harmoniously with that of other nations and of the whole region.
Vietnam and other ASEAN members always desire that other countries, particularly the major powers, support the ASEAN Community’s central role, its principle of consensus and unity.

To return to the issue of the East Sea, ASEAN and China have travelled a long way with great difficulty to come to the Declaration on the Conduct of Parties in the South China Sea (DOC) adopted during the ASEAN Summit in Phnom Penh in 2002. To commemorate the 10th anniversary of the DOC, ASEAN and China have agreed to work towards a Code of Conduct in the South China Sea (COC). ASEAN and China need to uphold their responsibilities and  mutually reinforce strategic trust, first and foremost by strictly implementing the DOC, and then redoubling efforts to formulate a COC that conforms to international law and in particular, the 1982 UN Convention on the Law of the Sea (UNCLOS).

We believe that ASEAN and its partners can work together to develop a feasible mechanism that could guarantee maritime security and safety and freedom of navigation in the region. In so doing, we will not only help ensure maritime security and safety, and freedom of navigation, and create conditions for the settlement of disputes but will also assert the fundamental principles of maintaining peace, and enhancing development cooperation in the modern world.

As for non-traditional security challenges such as the security of water resources on common rivers, by building strategic trust, enhancing cooperation and harmonizing national interests with common interests, I believe that we will able to achieve successes, thus making practical contributions to peace, cooperation and development in the region.
Ladies and Gentlemen,
Dear friends,
Throughout her thousands of years of history, Vietnam has suffered numerous pains and losses due to wars. Vietnam always aspires to peace and desires to contribute to the consolidation of peace and enhancement of friendship and development cooperation in the region and the world. To have a genuine and lasting peace, the independence and sovereignty of any country, whether large or small, must be respected; and differences in interests, culture, etc. must be subject to open and constructive dialogues of mutual understanding and mutual respect.
We do not forget the past but need to put it behind us and look forward to the future. With the tradition of offering peace and friendship, Vietnam always desires to work with its partners to build and reinforce strategic trust for peace, cooperation and development on the basis of the principle of respect for independence, sovereignty, equality and mutual benefit.

Vietnam consistently persists with a foreign policy of independence, self-reliance, multilateralisation and diversification of external relations, being a friend and reliable partner to all nations, and a responsible member of the international community. Vietnam wishes, and has spared no efforts to build and deepen, strategic partnerships and mutually beneficial cooperative partnerships with other countries. It is also our desire to establish strategic partnerships with all the permanent members of the UN Security Council once the principles of independence, sovereignty, non-interference in the internal affairs of each other, mutual respect, equal and mutually beneficial cooperation are committed to and seriously implemented.
At this prestigious forum, I have the honour to announce that Vietnam has decided to participate in UN peacekeeping operations, first in such areas as military engineering, military medicine and military observation.

Vietnam’s defence policy is that of peace and self-defence. Vietnam will not be a military ally to any country and will not allow any country to set up military bases on Vietnamese territory. Vietnam will not ally itself with any country to counter another.
In past years, sustained high economic growth has enabled Vietnam to increase its national defence budget at a reasonable level but lower than that of economic growth. Vietnam’s army modernisation is only for self-defence and the safeguard of our legitimate interests. It does not, in any way target any other country.

With regard to the present threats and challenges to regional security such as the Korean Peninsula, the East China Sea and the East Sea, etc, Vietnam adheres to the principle of peaceful dispute settlement on the basis of international law, respecting the independence, sovereignty and the legitimate interests of each other. All parties concerned need to exercise self-restraint and must not resort to force or threat to use force.
Once again, Vietnam reiterates its consistent compliance with the ASEAN Six-point Statement on the South China Sea and will do its utmost to work together with ASEAN and China to observe the DOC seriously and soon arrive at the COC. As a coastal State, Vietnam reaffirms and defends its legitimate rights and interests in accordance with international law, especially the 1982 UNCLOS.
Ladies and Gentlemen,
Dear friends,
Peace, cooperation and development represent the interest, the ardent aspirations and the common future of all countries and peoples. In the open spirit of the Shangri-La Dialogue, I would call upon you all to join hands and take concrete actions to build and reinforce strategic trust for an Asia-Pacific region of peace, cooperation and prosperity.

 

Posting granted exclusively for the Modern Diplomacy

(*)Keynote Address at the 12th Shangri-La Dialogue, Singapore, May 31st, 2013

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Southeast Asia

In Myanmar, Better Oversight of Forests a Vital Step in Transition to Rule of Law

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Authors: Art Blundell and Khin Saw Htay

For the first time, the Myanmar Extractive Industries Transparency Initiative (MEITI) has opened the books to share information with the public on revenue Myanmar’s government collects from harvesting timber. Last month, the MEITI released two reports juxtaposing statistics on production and tax payments from government ministries’ ledgers with corresponding figures reported by the state-owned Myanma Timber Enterprise (MTE) and forestry companies.

The reports are an important step toward improved transparency and accountability in Myanmar’s forest sector because they shine a light on irregularities that may point toward mismanagement or illegal activities. Unclear legal frameworks and weak enforcement in Myanmar’s forestry sector – a remnant of decades of military rule – have created an environment ripe for illegal logging and illicit trade, and mismanagement of natural resources.

The role of forests in Myanmar’s transition to democracy cannot be overemphasized. Money from illegal logging helped to fuel Myanmar’s decades-long civil war. Smuggling of illegally harvested timber to countries like Chinahas led to the loss of millions of dollars each year in government revenue. Corruption also fuels continued violence and prolongs armed conflict, especially in the heavily forested states that are home to most of Myanmar’s ethnic minorities.

The MEITI is committed to sharing its results at the state level—especially in Myanmar’s forest-rich regions. Myanmar’s citizens have the right to understand how their forests are being managed for the public good.

The EITI framework was launched globally in 2003 with a focus on oil, gas, and mining, given that these lucrative sectors are often key drivers of corruption in resource-rich countries. Myanmar is one of only a few countries (following Liberia’s lead) to add forestry to its EITI reporting, thanks to advocacy from civil society. 

Myanmar’s newest MEITI reports are a commendable step by the government toward transparency. But producing a report like this is not easy. The reporting highlights numerous disparities and irregularities in government record-keeping. This is not unusual for a first EITI report. It is also a major objective of the EITI: transparency leads to meaningful discussion about necessary reforms, while regular reporting creates an accountability mechanism to demonstrate progress.  MEITI is now preparing their next report covering fiscal years 2016-2017 and 2017-2018.

The MEITI is already driving progress. Myanmar’s Ministry of Planning and Finance (MoPF) has announced it will close the so-called “other accounts” maintained by State-owned Economic Enterprises, like the MTE, that have kept more than half their profits separate from the government’s central budget. Data in the MEITI report suggest that MTEretained74% of its $1 billion profits from fiscal years 2014-2015and2015-2016 in these other accounts–significantly more than the 55% that is permissible.

Myanmar’s Ministry of Natural Resources and Environmental Conservation (MoNREC) now holds important data that can be used to investigate and resolve irregularities uncovered by the MEITI reporting. For instance, the Forestry Department’s data on production does not match the data provided by the MTE, and it is substantially more than the Annual Allowable Cut (a government-determined sustainable level of harvest). Likewise, the MTE indicated that more teak was sold than its total reported supply. The source of the additional volume of teak logs is unexplained.

Reforms should help MoNREC address these irregularities.  Current reporting is obviously insufficient to capture reality.  With the help of a workshop that followed the MEITI launch, stakeholders are working with MoNREC to develop appropriate reforms for MTE and the Forestry Department, and to improve forestry sector governance in general. 

Opacity hurts the country in more ways than one. Illegal logging, corruption, and smuggling siphon off revenues meant for programs serving the public. Illegalities also threaten forests – and the communities that rely on forests for their livelihoods – and they drive off credible investment, leaving a gap often filled by investors with less regard for environmental and social regulations.

It is important to note that the MEITI reports cover only the period from April 2014 through March 2016, prior to Aung San Suu Kyi’s NLD Party coming into power. The current administration has committed to fairer distribution of benefits from Myanmar’s natural resources among its citizens, yet systematic barriers remain. Endorsing the recommendations from the MEITI report and implementing a roadmap for reform would signal the NLD’s commitment to good forest governance. Meanwhile, companies should do their part to comply with the law and accurately report production, sales, and other data in an accessible manner that allows for independent monitoring.

Myanmar’s forest resources hold great promise for the country’s people, its economy, and the government budget, if managed responsibly. The MEITI has a clear role in charting that path forward and in helping Myanmar manage its natural resources based on the principles of good governance.

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South-East Asia youth survey: Skills prized over salary

MD Staff

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Young people in South-East Asia face a relentless challenge to upgrade their skills as technology disrupts job markets, according to research released today by the World Economic Forum and Sea.

In a survey of 56,000 ASEAN citizens aged between 15 and 35, some 9% of respondents say their current skills are already outdated, while 52% believe they must “update their skills constantly.” Only 18% believe their current skills will stay relevant for most of their lives.

These concerns about skills are reflected in attitudes to jobs. ASEAN youths say the number one reason they change jobs is to learn new skills – the desire to earn a higher income comes second. 5.7% report having lost a job either because their skills were no longer relevant, or because technology had displaced them. Other reasons include the desire to create a more positive social impact and to have a more innovative working environment.

The survey also shows 81% of ASEAN youths believe internships are either equally important or more important than school education. In addition, over half are keen to spend time working overseas in the next three years, probably to gain new skills, with a significant portion wanting to work in another ASEAN country.

“It is impossible to predict how technology will change the future of work.” said Justin Wood, Head of Asia Pacific and Member of the Executive Committee at the World Economic Forum. “The only certainty is that job markets face accelerating disruption, where the lifespan of many skills is shortening. It is encouraging that ASEAN youths are aware of these challenges and show a deep commitment to lifelong, ongoing learning.”

Soft versus STEM skills

Overall, ASEAN youth attach greater importance to soft skills, and less importance to STEM skills – science, technology, engineering and maths. They see “creativity and innovation” as the most important skill – in which they also rank themselves highly – followed by the ability to speak multiple languages. They are confident about their soft skills, such as emotional intelligence, and list the two least important skills as “maths and science” and “data analytics”. They are particularly positive about their ability to use technology such as social media platforms, e-commerce sites, and e-payment systems.

Santitarn Sathirathai, Group Chief Economist of Sea, noted: “While it is essential that the region continues to invest in developing STEM skills among young people, we can also see that soft skills will have a vital role to play – even in the tech sector. In the world where knowledge becomes obsolete more quickly, soft skills such as adaptability, leadership and creativity will be crucial in ensuring young people have the resilience to constantly evolve their skill-sets in step with a changing market.”

The importance of re-skilling

Responding to the need to train workers in the face of technological change, the ongoing ASEAN Digital Skills Vision 2020 programme, launched by the Forum in Bangkok in November 2018 is assembling a coalition of organizations to train 20 million workers at ASEAN SMEs by 2020, and to provide internship and scholarship opportunities.

“The World Economic Forum’s ASEAN Digital Skills programme is delivering significant impact. In its first eight months, the initiative has already secured commitments to train over 8.9 million workers at SMEs, and to provide over 30,000 internships,” said Mr Wood.

Some 16 organizations have so far joined the programme: BigPay; Certiport, a Pearson VUE Business; Cisco; FPT Corporation; General Assembly; Golden Gate Ventures; Google; Grab; Lazada; Microsoft; Netflix; Plan International; Sea; thyssenkrupp; Tokopedia; and VNG Corporation.

“Government policy and business practices need to catch up to what is happening on the ground. Advances in technology will continue to impact labour markets into the future, and this requires ongoing education and skills training,” said Saadia Zahidi, Managing Director and Head of the Centre for the New Economy and Society at the Forum. “Anything less than a systematic shift in our approach to education and skills risks leaving people behind.”

Future jobs

When asked what type of organization they work for today, and where they would like to work in the future, ASEAN youths show a strong preference for entrepreneurial settings. Today, 31% are either entrepreneurs or work for a start-up. In the future, 33% want to work in an entrepreneurial setting. 19% of young people also aspire to work for foreign multinationals in the future (the current figure is 9%).

Traditional SMEs (as opposed to start-ups) are seen less favourably. While SMEs form the backbone of ASEAN labour markets, the survey reveals that small companies face recruitment challenges. 18% of youths work for SMEs today, but only 8% want to work for an SME in the future. One reason for the low interest is because young people say they receive less training at small companies compared to larger ones.

When asked what industry sectors are most attractive, the results reveal a clear preference for the technology sector, with 7% working in the industry today and 16% aspiring to work there in the future. In comparison, more traditional parts of the economy may face recruitment challenges. For example, 15% of youths work in manufacturing today, but only 12% want to work there in the future. Likewise, 8% work as teachers, yet only 5% want to work in education in the future.

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Being Wealthy Helps Singapore’s Naval Ambition

Bahauddin Foizee

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There’s an image that has been imprinted in the minds of the millions about Singapore, that it is a tiny yet wealthy city-state and an important Asian financial hub. But many are unaware of the fact that Singaporean armed forces are stronger than many regional forces, as it has one of the best navies, airforces and armies in the region.

Singapore’s navy, officially known as the Republic of Singapore Navy (RSN), in particular has been shaped over the years into a maritime force which is highly sophisticated and well-trained. An article on The National Interest ranked the RSN among the top five Asian navies, even when Indian Navy did not find a place in the list.

According to the aforesaid article, the RSN is a better navy than the Indian Navy in terms of quality, operation and policy-making, though the RSN lacks the experience, manpower and size of the Indian Navy. Arthur Waldron, an International Relations academic at the University of Pennsylvania, believes that if Chinese Navy, necessarily dividing the fleet, sends a taskforce to subdue the RSN at the Philip Channel, the narrowest part of the Strait of Malacca, the RSN would beat the Chinese taskforce.

Ambitious Procurement Plans

Singapore intends to build a navy that could protect its territories and economic interest from the potential hostility by any immediate larger neighbours, and more importantly a navy that could become lethal if combined with other regional and extra-regional navies (like Australia and Indonesia) against a greater navy (e.g. against Chinese navy). That is why, the RSN is currently on a spree to acquire more capabilities and next-generation platforms.

As part of its submarine force renewal program, the RSN is acquiring four Type 218SG submarines from Germany to improve the operational and combat capabilities of its submarine fleet. These new submarines will be having far more capabilities and durability — and are built to stay submerged about 50% longer — than those of the existing ones.

It’s worth mentioning here that submarines, unlike surface warships that have both peactime and wartime functions, is built to shoot and destroy targets as well as to conduct surveillance, even surveilling foreign coasts to gather vital intelligence. The very fact that a small city-state like Singapore has submarines in operation and is now renewing its fleet with even more capable submarines — shows how ambitious Singaporean navy has become about increasing its naval power.

Because of the larger capacity, these submarines have plenty of scopes for future upgrades, meaning that these submarines could be equipped with weapon systems such as long-range missiles to carry-out an offensive strike.

There’s more to the Singapore’s naval ambitions. Take for example the Joint Multi-Mission Ships (JMMSs), one of the RSN’s major new procurements. With full-length flight deck, these vessels would be almost 540 feet long with an estimated displacement of around 14,500 tons, and are expected to carry five medium and two heavy helicopters on a flight deck. What’s more, these vessels could potentially support limited operations of fixed-wing aircraft, including the F-35B warplanes which Singapore airforce is expected to purchase from the U.S. sometime in near future. Therefore, these vessels could potentially serve as aircraft carriers.

The RSN is also very well aware of the fact that wars these days are fought from a distant with the help of unmanned drones and unmanned vessels that carry cameras and weapons in order to see farther and respond quicker. Hence, the RSN plans to procure new vessels that will be having multiple unmanned air and surface vehicles to extend their reach and flexibility against threats. Take the eight new Littoral Mission Vessels (LMVs) for example. These LMVs will have a helicopter landing pad that will be able to carry an unmanned aerial vehicle. The aforesaid JMMSs and the new Multi-Role Combat Vessels (MRCVs) too will have unmanned air and surface vehicles.

Being Wealthy Helps

An Asian financial hub, the city-state of Singapore has a lot of wealth. The tiny landmass of the state and the already developed infrastructures allow the Singaporean government to allocate comparatively lesser wealth on infrastructures and other conventional sectors and to invest more on innovation and technology as well as defense and security. This is how the tiny state affords to make the quality defense procurements.

Singapore has been the Southeast-Asia’s largest military spender for several years now. Singapore was the top regional military spender in 2018 with an expenditure of US$10.8 billion and the Southeast Asian neighbour with the closest figures was Indonesia with an expenditure of US$7.4 billion. For 2019, Singapore has allocated US$11.4 billion for defense on its budget — something which amounts to about 19 percent of total government expenditures and around 3.3 percent of national GDP.

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