Ambassador Gopinath Pillai
Chairman, Institute of South Asian Studies, National University of Singapore

 

Professor Tan Tai Yong
Director, Institute of South Asian Studies

 

Excellencies

 

Distinguished Guests

 

Ladies and Gentlemen

 

1.       It is my great pleasure to address this distinguished gathering on the occasion of the seventh annual International Conference on South Asia. I am glad to have this opportunity to share with you my thoughts on the theme of this year’s conference: ‘South and Southeast Asia Engagements: Realities and Opportunities’.

 

2.       Very few regions of the world display such intensive historical, political, economic, social and cultural interfaces as South and Southeast Asia do. The record of such interfaces dates back to the Srivijaya Empire during the 7^th -13^th century, which exhibited profound characteristics of South Asian influences in its culture and administration. Similar influences were also visible in the imprints of the powerful Buddhist Sailendra dynasty, the best example of which is the splendid temple of Borobudur. South Asian influence on the region did not ebb with the fading out of the Srivijaya and Sailendra kingdoms, but continued through the Hindu-Javanese Majapahit empire during the 13^th and 14^th centuries. Indeed, the various renderings of the celebrated Indian epic Ramayana in different parts of Southeast Asia is testimony to how South Asian culture has impacted the indigenous cultures of this region.

 

3.       The maritime spice trade in the pre-colonial era was instrumental in forging networks of linkages between different coastal communities in both regions. These linkages became even stronger during the centuries that experienced European colonization. Large migrations from South Asia engineered by colonial powers not only led to new settlers in Southeast Asia, but also a South Asian presence in various professional activities and services.

 

4.       The large dispersion of the South Asian Diaspora in the region, along with the prevalence of South Asian languages, and practices of numerous South Asian customs and traditions, are probably the most telling reflection of the long and deep historical ties that have existed between the two regions.

 

5.       In the second half of the 20th century, despite a promising start where nationalist leaders inspired each other in the quest for national independence, interactions between South and Southeast Asia became somewhat muted. This had much to do with the dynamics of the Cold War and the strategic alignments chosen by different countries of Asia. Economic and political interaction became limited with the two regions following different economic development courses influenced by distinct political philosophies. India’s proximity to the Soviet bloc and reliance on inward-looking policies of import substitution for achieving economic self-sufficiency weaned it away from Singapore and other major economies of the region, which pursued outward-oriented economic strategies. Pakistan, on the other hand, maintained some links through its inclusion in the Southeast Asia Treaty Organisation (SEATO).

 

6.       The regions embarked on a new course of constructive engagement from the early 1990s. The post-Cold War global dynamics and the surge of economic globalisation made both regions appreciate each other’s strategic significance and encouraged countries to connect to each other for building constructive long-term partnerships. India, the largest country in South Asia, declared its ‘Look East Policy’ (LEP) in the year 1992. The policy opened a new chapter in the history of engagement between India and Southeast Asia. Since then, India’s political, economic and strategic links with ASEAN have considerably deepened and widened. At the same time, other countries in South Asia have also been active in building durable relationships with ASEAN. Pakistan’s ‘Vision East Asia’ policy reflects its commitment to play a constructive and meaningful role in Southeast Asia. The region’s engagement and linkages are also increasing with Bangladesh, Nepal and Sri Lanka, and other countries of South Asia.

 

7.       Economics has been the key driver of contemporary cross-regional engagement. The India-ASEAN economic relationship has grown from strength to strength. India-ASEAN bilateral trade was about US$58 billion in 2010-11, a quantum jump compared to the US$2 billion two decades earlier and even the US$7 billion just a decade ago. ASEAN now accounts for almost one-tenth of India’s total trade.

 

8.       Deeper economic linkages between India and ASEAN have been driven by expansions in bilateral economic ties between India and different countries of Southeast Asia. As the Chief Negotiator for the Singapore side for the Comprehensive Economic Cooperation Agreement (CECA), I am particularly pleased that India concluded this agreement with Singapore in 2006. This agreement became India’s template for similar agreements with Malaysia last year and with Thailand, and for on-going negotiations with Indonesia.

 

9.       More importantly, when we negotiated this agreement, it was not just with a view of an agreement between India and Singapore. Our hope was for it to catalyse a bigger trade liberalisation movement, and between India and ASEAN. I am very happy that it has helped catalysed the ASEAN-India Free Trade Agreement (AIFTA) for trade in goods, which was signed in 2009. This agreement among economies with a combined market of almost 1.8 billion people and a combined GDP of US$2.75 trillion will promote even closer integration of our economies. It will provide opportunities for all countries, including CLMV (Cambodia-Laos-Myanmar-Vietnam). The impact will be even greater if we are able to conclude the current negotiations on an ASEAN-India Trade in Services and Investment Agreement.

 

10.      Trade is not the only component of economic engagement. Cross-border investments have picked up rapidly with India and Singapore emerging as major investment destinations for each other. Singapore is now the second largest source of incoming foreign direct investment (FDI) into India. It is also the top destination for India’s overseas investments. More than 5,000 Indian companies are incorporated in Singapore with a noticeably strong presence in IT and software industries. Malaysia and Thailand are two other major Southeast Asian investors in India. While Indian investments in Southeast Asia are mostly in IT, software, chemical, pharmaceuticals and metal products, Southeast Asian investments in India are in diverse industries such as telecommunications, construction, roadways and financial services. Investment linkages between ASEAN and the other countries of South Asia are also growing.

 

11.      Cross-regional trade and investment flows have been facilitated by the remarkable improvement in connectivity. During the last decade, air connections between the two regions have expanded at a rapid pace with multiple carriers and flights connecting important cities. Such connections have helped business and accelerated tourist movements across the regions. There are 385 direct flights a week between Singapore and 11 cities in India. The number of tourists from South Asia to Singapore in 2010 totaled over a million, compared to about 500,000 in 2001.

 

12.      People-to-people movements and contacts between the two regions have grown over the years. The remarkable penetration of South Asia’s entertainment products, particularly movies and music, in different parts of Southeast Asia is remarkable. Bollywood movies of all genres are hugely popular in the region, as are South Asian performers, and cuisines from different parts of South Asia.

 

13.      There have also been moves to exhibit and harness greater people-to-people engagement in other ways. In 2008, for example, Singapore hosted a mini-version of the Pravasi Bharatiya Divas (Overseas Indian Day). This was only the second occasion when the event was held outside India. Singapore will soon have an Indian Heritage Centre for exhibiting the continuing affinity between the two regions. There are regular teacher and student exchanges between schools in Singapore and South Asian countries in the areas of language learning and co-curricular activities. Southeast Asian universities have also developed linkages with South Asian counterparts for staff and student exchanges, information sharing, and research and development collaborations including the commercialisation of technology. The establishment of the Nalanda University in India’s eastern state of Bihar symbolises another initiative involving India and Singapore along with other countries of East Asia and should serve to bring together the two regions in active intellectual exchanges and debates.

 

14.      One of the most crucial drivers for future engagement is economics. The potential shift of the economic centre of gravity from the west to the east will provide strong drivers and a strong foundation for all forms of engagement. In this respect, ASEAN’s geographical co-ordinates have helped it in functioning as an efficient intermediary for facilitating India and South Asia’s interface with Northeast Asia and the Asia-Pacific. Southeast Asia, particularly Singapore, has played an enabling role in India’s burgeoning trade with China and Australia. Much of the trade traffic between South Asia and the rest of the Asia-Pacific flows through the Straits of Malacca. ASEAN’s importance as an economic hub is expected to grow even more in the foreseeable future as South Asia expands economically and trades more with the Asia-Pacific.

 

15.      The consciousness of engaging Southeast Asia for greater strategic dividends is also not lost on South Asia. India has been trying to deepen strategic ties with ASEAN not only bilaterally, but also through regional forums such as the East Asian Summit (EAS). The EAS includes several major powerful economies and is one of the most important regional strategic forums given Asia’s growing clout in the world economic order. South Asia’s desire to establish greater strategic interface with Southeast Asia is also reflected in cross-regional forums like the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC), which includes South Asian countries like Bangladesh, Bhutan, India, Nepal and Sri Lanka, and Southeast Asian countries like Myanmar and Thailand. The Mekong Ganga Cooperation, involving India from South Asia and Cambodia, Laos, Myanmar, Thailand and Vietnam from Southeast Asia, is another important forum aiming to expand linkages between the two regions.

 

16.      The complementarities between the two regions in natural and economic endowments raise the potential for win-win cooperation. However, there are also many practical difficulties. While there are many common points of reference, Southeast Asia and South Asia comprise heterogeneous groups of countries. The pace and quality of development is uneven across the region. Such uneven development leads, for instance, to different outlooks on greater trade integration and delays in evolution of integrated trade architectures. In some areas, the economic relationships are competitive, and many economic sectors resist greater openness. Another example is the increasingly contrasting demographic structures between South Asia and certain parts of Southeast Asia. In theory, the young populations in South Asia make it a major source of labour reserves for some of the Asian, including Southeast Asian countries with ageing populations like Singapore, but the movement of labour will always be politically contentious.

 

17.      Our challenge is to make diversity productive, and to find common challenges where a collaborative approach benefits all. For instance, several parts of Southeast Asia and South Asia face common challenges such as the scarcity of water and environmental degradation; and the need for clean energy, infrastructural and human resources development. The two regions can work together to develop solutions tailored to meet the unique demands of countries in both regions.

 

18.      A major avenue for co-operation in this respect is to conceive models for increasing land connectivity between the two regions. Efficient land routes will greatly increase people-to-people contact and also enhance economic activity. However, a critical challenge to overcome in this respect is the relative lack of co-ordination between South Asian states themselves, which is critical for progressing on cross-regional transport infrastructure. A more cohesive and well-knit South Asia would be desirable in this regard.

 

19.      From a larger strategic perspective, the Indian Ocean, and its adjoining stretches such as the South China Sea are becoming increasingly important global strategic spaces given their large trade volumes, particularly for energy-intensive products. Greater economic prosperity in Asia will enhance the strategic dimensions of these maritime spaces. The region is drawing the attention of key players in the international community. The presence of US and Europe in the East Asia Summit is an illustration of this. A strategic balance is important to Southeast Asia, and as a benign regional power, Southeast Asia will have to practise open regionalism and engage all parties.

 

20.      In short, despite the difficulties and challenges, we can expect both strategic and economic engagements to deepen between South and Southeast Asia. It is my hope that Singapore can play a catalytic role to further strengthen the linkages between the two regions. Historically, Singapore was an entrepôt port that connected South Asia and Southeast Asian trade routes. As the careful work of scholars like Prof Tan Tai Yong shows, Singapore was playing the role of an ‘early emporium’ for trade between these two regions, even before the arrival of Sir Thomas Stamford Raffles in 1819. In 1946, Prime Minister Jawaharlal Nehru of India paid Singapore a great tribute when he said, “Singapore will become the place where Asian unity is forged.”

 

21.      As a small outward-looking country, Singapore should contribute towards facilitating the flow of ideas of knowledge, capital, technology and development experiences between the two regions. In specific areas like skills and vocational training, waste, water and urban management, Singapore can be a catalyst for change. I hope Singapore develops as a springboard for South Asia’s engagement with Southeast Asia as well as the rest of Asia.

 

22.      Given the diversity of both regions, the interests of countries will diverge on certain issues. It is important that countries from both regions get to articulate and understand these divergent viewpoints, and find areas of common interest where we can work together for the benefit of all. This, of course, is never an easy task. This is where an institute like ISAS can play an important role.

 

23.      ISAS, as a Southeast Asian institute working on South Asia, is ideally poised to highlight the different aspects of strategic engagement between the two regions. ISAS can also play a vital role in fostering mutual understanding between the two regions; seed new ideas and build lasting links through events like the successful inaugural South Asian Diaspora Convention (SADC), which was held in Singapore a few months ago. The role of the diaspora in enhancing people-to-people contact and facilitating greater understanding and appreciation of each other’s interests and limitations is promising.

 

24.      Given the growing intellectual grasp of South Asian issues and its strategic location, ISAS can provide a platform for inter-regional dialogue on challenges which are common to both regions. Since its inception, ISAS has been playing a commendable role in increasing awareness in Singapore and the region on South Asian issues of contemporary relevance. It should expand this role by combining scholastic research with constructive engagement. It should, indeed, become the natural choice and forum for all dialogues and discussions involving South Asian leaders and key personalities in this part of the world. This conference marks another important step in this effort.

 

25.      I wish you success.

 

Thank you.