DPM Heng Swee Keat at the 12th Lujiazui Forum

Read DPM Heng Swee Keat's Keynote Speech translated into Chinese below.

大家早上好!

Let me first congratulate the Shanghai Municipal People’s Government for hosting this event as planned.  

Let me also congratulate China for bringing the COVID-19 pandemic under control in China or it would not be possible to have this Forum today.

Singapore is honoured to be the Forum’s partner city this year.

World in Crisis

The global economy has encountered a major crisis almost every decade – the Asian Financial Crisis, the dot-com bubble, the Global Financial Crisis, and now, this COVID-19 pandemic. This pandemic is by far the most severe. 

It has dealt a major demand and supply shock simultaneously to the global economy.  

It is also accelerating major structural changes which were already taking place. 

The road ahead is highly uncertain. 

Some countries have brought the pandemic under control, but it is still raging in many parts of the world.  

It is not clear when the pandemic will end, or when an effective vaccine can be available.

The huge uncertainty and disruptions to global supply chains are affecting investments and consumption.  

For the financial sector, emerging risks will have to be closely watched, especially with the huge increase in sovereign and corporate debt. 

Thankfully, the regulatory reforms following the Global Financial Crisis have led banks to build stronger capital and liquidity buffers, which will help them to weather this storm.

Post COVID-19, the world will not return to where we were before.  

We will need to rebuild for a very different future. 

It is therefore timely that we are discussing “New Starting Point, New Mission, New Vision” at this Forum. 

Globalisation in a New Normal

Our New Vision starts with an old truth: An open and connected global economy enables all countries to develop and prosper.

Since global trading rules were established after the Second World War, world export had increased by more than 300 times.

The expansion of trade and investment has enabled economic growth of an unprecedented scale.

China has benefitted by being part of the global economy.

I was in Doha in 2001 when China made the significant step to join the World Trade Organization.

To harness the opportunities of globalisation, countries need to undertake domestic reforms to build up new strengths.

China’s policy direction of pursuing ‘reform’ and ‘opening up’ (改革开放) has enabled China to benefit from the global division of labour.

Opening up to competition drives structural changes and reforms. Reforms in turn strengthen competitiveness.   

President Xi Jinping reaffirmed this direction in 2018, when he said “中国开放的大门只会越开越大” – China’s door will only open bigger.

In my visits to China, I saw how China has lifted hundreds of millions out of poverty.

But globalisation has not worked well for all parts of the world.

The pursuit of economic growth often comes at the expense of environmental sustainability. 

The benefits of globalisation are unevenly distributed between the rich and poor, and across countries.

Consequently, many countries have turned inwards, putting the global system under stress.

Countries must work together to safeguard the global commons.

The COVID-19 pandemic shows that the virus respects no borders, and no one is safe unless all of us are safe.

In the same way, we need global solutions to many longer-term global challenges, such as climate change, food security and terrorism, and Singapore, China, Japan and many parts of Europe are facing a rapidly ageing population.

Nations must work closely with one another on these common challenges, learn from each other, and strengthen the global governance system. 

Strengthening Global Cooperation

I am glad that countries are now coming together to share expertise, and to develop a vaccine against COVID-19.

Singapore participated in the Global Vaccine Summit to coordinate efforts across the globe.

China has similarly pledged that vaccine development in China, will be made a global public good. 

This new starting point is important, because a world that is highly connected, but deficient in trust and cooperation, will be problematic.  

All countries, particularly the major powers, must work out a new model of constructive cooperation to share global opportunities and global responsibilities. 

This should be done within the framework of an open, and rules-based multilateral order where trade, capital and ideas can flow freely; where commitments and agreements are honoured; and where the interests of all countries, big and small, are taken into account.

We must evolve a new form of globalisation that works for all countries. 

As we move towards recovery, countries are progressively re-opening our economies and borders.       

Singapore and China recently launched a “fast lane” to facilitate essential business and official travel between our countries.

This is the first such arrangement that Singapore has with another country, and China’s first with a Southeast Asian country.

This “fast lane” signals our trust with each other’s public health management.

Our collaboration on managing the COVID pandemic builds on the depth and breadth of our bilateral relationship, built up even before we established diplomatic relations 30 years ago.

Our broad-based collaboration is overseen by the Joint Council for Bilateral Cooperation, co-chaired by Vice Premier Han Zheng and me.  

Financial cooperation, in particular, is an important area to nurture. 

Finance Cooperation

Global finance is crucial in rebooting the global economy. It can shape a more sustainable and resilient future.

A key lesson from the Asian and Global Financial Crises is that finance is the life blood of the economy.

It must flow to productive uses, to support sustainable growth of the real economy, and improve the standards of living of our people. 

The misallocation of capital, or worse, the use of creative accounting for quick results, will eventually fail. 

Looking ahead at the needs of the real economy in the coming decades, let me suggest three areas.

The first is in meeting the infrastructure needs of developing Asia, which is estimated at US$1.7 trillion annually.

China’s Belt and Road Initiative can contribute to the development of sustainable infrastructure, based on an inclusive, transparent and market driven approach.

Countries can also work in partnership with Multilateral Development Banks, such as the World Bank, the ADB and AIIB.

The second area is in green financing, to drive sustainable change to tackle environmental and climate risks. There is good potential.

China’s estimated annual demand for green financing is about US$600 billion, and Southeast Asia’s is about US$200 billion.

The third promising area is FinTech and digital finance.

The digital revolution will reshape finance, by lowering transaction costs and improving access. 

Through digital finance, we must also aim for greater financial inclusion, which helps to reduce poverty. 

I am glad that these areas will be discussed at this Forum.

Singapore and Shanghai are working in close collaboration on many areas.

Last year, I was here to launch the Singapore-Shanghai Comprehensive Cooperation Council to further strengthen our longstanding partnership. 

As international financial centres, our two cities are well-placed to contribute to the global efforts, to promote cooperation, and to forge new channels of connectivity.

RMB cooperation is a key feature of our bilateral relations.

Singapore is one of the largest RMB centres outside Greater China.

Global usage of the RMB has grown, driven by investments and cross-border trade.

Our two cities can further deepen our collaboration on cross-border RMB initiatives, to better support trade and investment flows between Southeast Asia and China.   

We can also strengthen capital market linkages, and expand digital and green finance cooperation between our two cities. 

With the many potential areas of stronger collaboration, 

I am happy to announce that the Monetary Authority of Singapore will be setting up its second China representative office in Shanghai this year.

Conclusion

COVID-19 is the crisis of our generation.

The pandemic will eventually end.

But its impact on our societies, our economies and on the global system will be long lasting.

What the world would look like after the pandemic, depends on each and every one of us.

I am heartened that members of the international community are pooling our efforts to tackle this unprecedented crisis together.

The global financial community is also stepping up.

Singapore stands ready to work with all like-minded countries to recover from the pandemic.

Let’s use this crisis as a New Starting Point, to embark on a New Mission, and to forge a New Vision for our collective future. 

I wish you all a successful Luijiazui Forum. 

*****

Chinese Translation of DPM Heng Swee Keat's Keynote Speech at the 12th Lujiazui Forum on 18 June 2020

大家早上好!

首先，我要恭贺上海市人民政府成功主办本次陆家嘴论坛。

我也要赞扬中国成功控制国内的冠病疫情，让本次论坛能够顺利举行。

新加坡很荣幸担任本次论坛的伙伴城市。

全球陷入危机

全球经济几乎每十年就遇上重大危机 –亚洲金融危机、互联网泡沫、全球金融危机，以及目前的冠病疫情。这场冠病疫情是我们至今所面对最严峻的危机。

疫情重创了全球经济，也对各领域的供需造成巨大冲击。

这场危机也加速了已经出现的重大结构性变化。

前方道路仍充满未知数。

有些国家的冠病疫情已经受到控制，但冠病仍在全球多个地区肆虐。

我们不知道冠病疫情何时会结束，也不确定我们何时能研发出有效的疫苗。

冠病疫情已严重干扰全球供应链并带来诸多不确定性，对投资和消费造成冲击。 

随着主权债务和企业债务激增，我们更必须密切留意金融领域所出现的新风险。

庆幸的是，自从爆发全球金融危机后，各国监管当局已推出监管改革措施协助银行建立更充足的资本缓冲和流动性缓冲。这将能协助各国银行应对眼前的风暴。

冠病疫情结束后，世界也不可能回到疫情暴发前的情况。  

我们需要进行重建工作，为一个截然不同的未来做好准备。

因此，本次论坛以“新起点、新使命、新愿景”作为讨论主题，是再恰当不过了。

新常态下的全球化

在勾勒我们的新愿景之前，且让我重申一个亘古不变的真理，那就是只有全球经济体系保持开放和互通，各国才能取得发展和繁荣。

自从全球贸易规则在第二次世界大战后确立以来，全球商品出口量增长了三百多倍。

日益扩大的贸易和投资活动，使经济增长达到前所未有的规模。

中国也从全球化经济受惠。

中国在2001年正式加入世界贸易组织，这是中国改革开放的重要一步，而我也参与了当时的多哈会议。

各国要把握全球化所带来的机遇，就必须在国内推行改革措施，以建立新的优势。

中国所实行的改革开放政策，让中国从全球劳动分工中受惠。

中国对外开放并与其他国家进行竞争，带动了国内的结构性转变和改革，进而加强了中国的竞争力。

习近平主席在2018年就重申：“中国开放的大门只会越开越大”。

在我多次访华的行程中，我见证了中国如何让几亿人成功脱贫。

然而，全球化并没有让所有国家受益。

有些国家为了追求经济增长，往往会牺牲环境的可持续性，全球化让富裕阶级比一般市民获益更多，国与国之间的利益分配也不均匀。

这造成本土主义在许多国家抬头，为全球体系增添压力。

各国必须携手合作，维护全球公域。

冠病疫情显示，病毒不分国界，没有任何国家可以独善其身；只有在每个人都安全的情况下，大家才会安全。

同样地，我们需要各国针对许多长期性的全球挑战共同制定解决方案。这些挑战包括气候变化、全球粮食安全和恐怖主义等。

另一方面，新加坡、中国、日本和许多欧洲国家都面对人口迅速老龄化的问题。

各国必须紧密合作应对这些共同挑战、互相学习，并加强全球治理体系。

加强全球合作

因此，我很欣慰看到各国为了对抗冠病疫情而共享相关信息和专门知识，并携手研发冠病疫苗新加坡最近参与了旨在协调世界各地疫苗研发工作的全球疫苗峰会。

中国也承诺，其冠病疫苗若成功应用，将作为全球公共产品提供给全人类。世界各国在这方面的合作是个重要的新起点，因为我们的世界如果高度互联，但缺乏互信与合作，这将会带来问题。

所有国家，尤其是大国，必须共建一个建设性的合作模式以共享全球机遇，也分担全球责任。

这个模式应该以一个开放、以规则为基础的多边秩序作为框架，让贸易、资金和创意点子能够自由流通，并确保各方会信守承诺、履行协议，同时，无论国家大小，把各国的利益都考虑在内。

我们必须发展出一种新的全球化形式，让所有国家都能受惠。

随着我们采取行动，控制疫情，各国也逐步重启经济，开放边境。

新加坡和中国最近建立了一条“快捷通道”，方便新中两国之间有必要的商务和公务人员进行往来。

这是新加坡第一次与他国作出的安排，也是中国同东南亚国家建立的第一条“快捷通道”。

新中的“快捷通道”标志着两国对彼此公共卫生管理的信任。

新中两国在抗疫工作方面的合作，建立在两国深厚广泛的双边关系之上。这是两国建交30年以来，甚至更久以前就建立起的一份情谊。

由中国国务院副总理韩正和我担任联合主席的新中双边合作联合委员会，其宗旨正是为两国建立广泛实质的合作关系。 

金融合作尤其是一个重要的发展领域。

金融合作

全球金融对于重启全球经济至关重要。它能塑造更可持续和更具韧性的未来。

我们从当年的亚洲和全球金融危机所得到的一个重要教训是：金融是经济的命脉。

各国必须善用金融体系，促使实体经济取得可持续的增长，提升人民的生活水平。

反之，如果无法妥善分配资本，或甚至使用“创造性会计”取得短期成果，最终将导致失败。

放眼未来数十年的全球实体经济需求，我认为各国可以在三大领域展开合作。

首先，亚洲基建融资每年需要1.7兆美元。

中国的“一带一路”倡议可通过包容、透明和面向市场的原则，协助建设可持续的基础设施。

各国也可以和多边开发银行如世界银行、亚洲开发银行和亚洲基础设施投资银行在这方面展开合作。

第二，我们可以通过绿色融资推动可持续的改变，应对环境和气候方面的风险。

这个领域的潜力相当可观：据估计，中国每年的绿色融资需求大约是6000亿美元，东南亚每年的需求则估计是大约2000亿美元。

第三个有潜力的领域是金融科技和数字金融。

数字革命将重塑金融领域，使人们能够以较低廉的收费更轻易地获得金融服务。

我们也必须通过数字金融推广普惠金融，以支持减贫工作。 

我很高兴这些课题都已纳入本次论坛的议程。

新加坡和上海正在多个领域中展开紧密合作。

去年，我在上海这里启动了新加坡-上海全面合作理事会，以进一步加强双边的长期合作关系。

作为国际金融中心，新加坡和上海能为全球尽一份力，带动各国进行合作，以及打造新的渠道促进互联互通。

人民币业务合作是我们双边关系的一大特点。

新加坡是大中华地区以外最大的离岸人民币中心之一。

投资和跨境贸易提升了人民币在全球的使用率。

新加坡和上海之间的跨境人民币合作项目也可以进一步深化，以更好地支持东南亚与中国之间的贸易与投资流动。

我们也可以加强资本市场的互联互通，并扩大我们两个城市之间在数码和绿色金融方面的合作。

鉴于我们在多个潜在的领域将展开更密切的合作，我很高兴向大家宣布新加坡金融管理局今年将在上海设立第二个驻华代表处。

总结

冠病是我们这一代的危机。

这场大流行病虽然终究会结束，但它对我们社会、经济和全球体系的影响将是深远的。

我们每个人的行为，将决定世界在冠病疫情结束后的面貌。

国际社会正齐心协力，共同应对这场前所未有的危机，这让我感到非常欣慰。

全球金融界也挺身而出，迎向挑战。

新加坡已经准备就绪，随时与志同道合的国家合作，携手走出疫情。

让我们以这个危机做为新起点，

肩负起新使命，为我们共同的未来打造新愿景。 

谨祝本届陆家嘴论坛圆满成功。

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