Singapore Government Press Release, Media Relations Division, Ministry of Information, Communications and the Arts, MITA Building, 140 Hill Street, 2nd Storey, Singapore 179369

Tel: 6837-9666

SPEECH BY PRIME MINISTER LEE HSIEN LOONG AT THE 7^th ASIAN-EUROPEAN EDITORS’ FORUM, 6 OCTOBER 2006

Mr Werner vom Busch, Regional Representative, KAS

Distinguished guests,

Ladies and Gentlemen,

1. I am happy to join you for the Asian-European Editors’ Forum. Let me extend a warm welcome to those who have come from abroad. These are exciting and challenging times in Asia, and I hope that your stay here will give you a better feel of the rapid changes in the region and also in Singapore.

2. The organisers have asked me to talk about the new landscape in Asia. I am sure many of you are familiar with the rise of China and India, so I will not dwell on them this morning. Instead, I will discuss more broadly the transformation taking place in Asia, and major challenges that lie ahead.

Asia Transformed

3. The emergence of China and India is rapidly transforming the whole continent. Besides these two emerging giants, Japan’s economy has revived after more than a decade of stagnation, and Korea has successfully restructured its economy after the Asian financial crisis. In Southeast Asia, ASEAN member countries are integrating their economies and participating in the growth of China and India, although some of them face political difficulties. Overall, Asia is on the move, and surging ahead at a pace unprecedented in recent history.

4. The broader strategic environment is favourable to Asia. The US continues to exert a decisive benign influence, as the dominant economic and military power in the region. This provides the overarching stability for China and India to grow, while maintaining the balance with Japan and other countries in the region.

5. US-China ties are the most important bilateral relationship for Asia, and perhaps for the world. The US needs to adjust to the emergence of China as a major economic power, and China must manage its renaissance without disrupting the peaceful international order. Both countries have strong incentives to build a constructive relationship. In his recent successful visit to China, US Treasury Secretary Hank Paulson said that America has a huge stake in a prosperous, stable China – a China that is not only an economic partner but also a joint stakeholder in the international system. For its part, China needs a stable external environment to grow and to solve its domestic problems, and needs access to US markets and technology. A stable relationship with the US is critical to achieving both.

6. One potential flashpoint in US-China relations is Taiwan. China has left no doubt that if Taiwan goes for independence, there will be war. Two years ago, there seemed a real risk of Taiwan stepping over the line and triggering an armed conflict which would drag in the US and Japan. Since then tension has eased. The US has reaffirmed its opposition to Taiwan going independent, and China and Japan have also made their respective positions clearer. The Taiwanese public as well as Taiwan’s leaders now know that independence is out of the question. Taiwanese politicians will still make provocative statements from time to time, especially when under domestic political pressure; but they know the limits.

7. Between America and Japan, relations are good. There is now strong support in Japan for the US-Japan Security Alliance, unlike a decade ago. This anchors the US security presence throughout East Asia and the Pacific, and assures Japan of the security it needs, without requiring it to build up its own military forces and alarm its neighbours. What is less good is that Japan’s warm ties with the US are in part a reaction to the problems between Japan and its Northeast Asian neighbours, especially China. Going forward, Japan cannot substitute one for the other. Japan needs to maintain good relations with both America and its Asian partners.

8. The visits by former Prime Minister Koizumi to the Yasukuni Shrine soured Japan’s relations with China and South Korea, and became emblematic of Japan’s failure to come to terms with its war past. Mr Shinzo Abe has now succeeded Mr Koizumi as Prime Minister. He is a nationalist who wants Japan to be a “normal” country and to play a bigger role in the world. At the same time, he has announced his intention to improve relations with China. In this, he will be supported by many Japanese who do not want a collision with Japan’s largest trading partner. China also hopes to make a fresh start with Mr Abe, and to do business with Japan. Thus Mr Abe will be visiting China this weekend, the first foreign country he is visiting as Prime Minister. This bodes well for improved bilateral relations.

9. Despite a late start, India is rapidly becoming a key player in the region. India’s strategic partnership with the US, and its growing engagement with East Asia have created a new dynamic. One concrete result is the five-fold increase in trade between India and Southeast Asia in the last decade. The once frosty China-India ties have transformed into a “strategic and cooperative partnership for peace and prosperity”. Indian Prime Minister Manmohan Singh has said that the world is large enough to accommodate the growth and ambitions of both China and India. Chinese Premier Wen Jiabao put it differently: the two great civilisations have been engaged for 2,500 years, but have been suspicious of each other for less than 50 years. If both countries maintain this approach, both will grow, and together completely transform Asia.

Open Regional Framework

10. While the outlook is positive, Asian countries face several major challenges. One is to develop the right architecture for regional cooperation. New patterns of trade and investments have emerged, linking Asian countries not just with China and India, but with each other across the region. It is too early to determine the final form of the regional architecture, but Asian countries are working towards an open and inclusive configuration. Our future lies in being part of the global economy, not in a closed Asian bloc.

11. Asia has taken the first steps to define an outward-oriented Asian-wide community. One outcome is the East Asia Summit (EAS). This is a new cooperation forum which comprises ASEAN countries, their three dialogue partners in Northeast Asia – China, Japan and South Korea, plus India, Australia and New Zealand. This grouping will foster intra-regional cooperation, while enabling Asia to nurture its links with the rest of the world.

12. Europe needs to play a bigger role in Asia, commensurate with its economic strength and weight in the world. Thus far Europe’s attention in Asia has centred primarily on China, and to a lesser extent India. Europe needs to broaden its focus, and deepen links with other parts of Asia including Japan, Korea and ASEAN. Europe’s interests in the Asia are not just economic, but extend to many other shared areas of concern. One is nuclear non-proliferation, where the situations in North Korea and Iran continue to be unresolved. Another is international terrorism, which is a continuing threat to both continents.

13. Europe and Asia have established many forums to discuss common issues. These include the EU-ASEAN dialogue partnership, the ASEAN Regional Forum (ARF) and the Asia-Europe Summit Meeting (ASEM). Indeed this Asian-European Editors’ Forum will also make a contribution towards dialogue and mutual understanding. As the new Asia takes shape, both continents need to take stakes in each other’s success, and bring about a more integrated and stable pattern of global cooperation.

14. ASEAN aims to be at the centre of these networks of cooperation, both within Asia, between Asia and Europe, as well as with the US. But to play this role ASEAN must also be a strong and cohesive organisation, able to partner China and India effectively. If ASEAN itself is disunited, or stagnates while the rest of Asia forges ahead, it will be rendered less and less relevant. This is why ASEAN is developing a Charter to strengthen its institutions, and aiming to achieve an integrated Economic Community by 2015, five years sooner than the original target.

Economic Restructuring

15. Besides establishing the right framework of regional cooperation, Asian countries must also restructure their economies to keep up with a rapidly changing global environment. Asia is vibrant, but growth does not mean effortless expansion. The rise of China and India has intensified competition for all. Patterns of production are changing, and both countries and companies must continually adapt and readapt themselves in order to remain productive and relevant to the global economy.

16. Countries with low wages and surplus labour, like Vietnam and Indonesia, feel the heat directly, because they occupy similar niches in the international economy as China and India. But even more developed countries like Singapore face similar pressures. These pressures are most acute at the lower end of the workforce, where less skilled workers are competing against millions more joining the world economy. But as China and India diversify their industries and move up the value ladder, white collar workers and professionals too will have to adjust and adapt.

17. To do well in this new situation, countries must adopt a mindset that accepts globalisation and change as a reality, and welcomes its great potential to benefit them. Globalisation can work for all countries if they pursue the right policies and position themselves for the future. Countries must help their workers to learn new skills, master new jobs, and prosper by adding value in the global marketplace. At the same time, governments must help those who find it hard to keep up, so that they too can benefit along with the rest of the society.

18. The alternative to this strategy of plugging in and liberalising is to slow down or resist change altogether, and try to maintain the status quo. But that would be counter-productive. No new jobs will be created, unemployment will rise, and the economy will decline. In Asia, virtually all countries are embracing change and plugging into the global grid. There are one or two die-hard holdouts, but their parlous state demonstrates the awful price of erecting barriers and going it alone.

19. Nevertheless, pressures to resist change do exist. For restructuring economies is difficult and often painful. It means exploring new and risky approaches, and abandoning familiar arrangements. It means accepting the certainty of disruption today, for the hope of a better life the day after tomorrow. This explains the sentiments for protectionism in many countries, and the great difficulty in negotiating the Doha Round of WTO talks. But it is the duty of governments to resist these pressures and make a globalisation strategy work, in order to secure the long term interests of their peoples.

Good Government

20. Good government is therefore an essential prerequisite for Asia’s economic success. To cope with globalisation, countries need competent and honest leaders who can run the government machinery properly, anticipate problems, prepare for the future, and deliver stability and progress for their peoples. How each country does this will depend on its culture and history, the structure of its society and the institutions it has evolved. The government must have legitimacy, enjoy the people’s trust, and engage the energies and talents of the people to build the nation.

21. Many Westerners, and some Asians, believe that the standard and best way to achieve good government is through a Western style liberal democracy, such as is found in the US or Europe. But this is not a magic formula for success. In Asia, Western style democracy has not always delivered stable, legitimate and effective government. The reasons are many. Many Asian countries lack a long history of shared nationhood. Some have populations which vote on racial or religious lines. Others lack firmly established democratic institutions and a tradition of civilian rule.

22. The most recent example is Thailand. Former Prime Minister Thaksin Shinatawatra had won two general elections with landslide majorities, especially in rural areas outside the South, but he aroused implacable opposition from the Bangkok establishment. General elections were therefore scheduled for November as a way to break the impasse. But the military decided to remove Thaksin through a coup instead of waiting for the verdict of voters. This is a setback for Thailand, which has been trying to establish a democratic system after a long series of seventeen coups since 1932. The coup leaders have now installed an interim Prime Minister, endorsed by the King, to help prepare a new constitution and hold fresh elections.

23. Indonesia also opened up its political system after President Soeharto fell during the Asian financial crisis. Under Soeharto, power was concentrated in the President, and the DPR or parliament was docile and compliant. But now Indonesia has an activist parliament, plus a free-wheeling press and constant politicking at all levels – national, provincial, and local. These democratic reforms have produced more checks and balances. But they have also made it much harder for the country to forge a consensus for change or push through critical reforms. For example, the Indonesian government wanted to reform inflexible labour laws, which investors have cited as a major barrier to doing business. But the unions mounted fierce demonstrations, forcing the government to back down. Vice-President Jusuf Kalla has cited this as an example of Indonesia’s teething problems with democracy, which he said had come “too early” and gone “too far”.

24. These examples show how hard it is for Asian countries to develop political systems which are well adapted to their specific circumstances, and at the same time are well suited to the country’s future challenges. In every country, leaders and institutions that uphold the rule of law, ensure accountability to stakeholders, and provide a voice for the people are critical aspects of good government. But unthinkingly importing institutions from other countries and grafting them into the local political system can end up doing more harm than good.

25. Indeed, ensuring that Asian countries have good government is a dynamic challenge, because the situation that these countries face is not static. As their economies develop, they will increasingly need transparent government policies and the rule of law, if only to facilitate financial transactions or protect intellectual property. As new generations come of age, better educated, more exposed to the world, and with different life experiences and aspirations, they will want their say in the affairs of their countries. Leaders must be able to respond creatively to this new situation, and political systems must evolve to remain effective. Each country, including Singapore, will have to make changes in its own way and strike its own point of balance, taking into account its unique circumstances.

26. Singapore society is opening up. We are encouraging frank debate and diverse views. We are providing more opportunities for people to take ownership of the issues that affect them. We are harnessing the power and potential of the internet and online channels, to engage one another and to keep abreast of the world. At the same time, we want to stay cohesive and united, and preserve the stable and predictable environment that has served us well. These are twin imperatives which we must reconcile in order to thrive as Asia prospers.

Role of Media

27. Good government delivers economic growth and progress, and builds a resilient and inclusive society. Responsible journalism, which understands and furthers the larger national interest, supports both of these goals. Ultimately, both exist for the people they serve.

28. In every country, the media occupies a position of power and responsibility. It is the source of news and views, accessible to all. It informs, educates and entertains. It influences and shapes public opinion. However, the media operates differently across countries. In some, media players consciously seek to uphold their responsibility to society and further the broader national interest. In others, the media reports and publishes stories based on what sells, or pushes particular ideological views, on the theory that the marketplace of ideas will automatically sort out the good from the bad.

29. The Western, particularly the American, model is an unfettered and rambunctious press, championing issues, competing to set the agenda, holding the elected government to account, and subject to minimal legal restraints. In Asia, some countries approximate this Western model of the media more closely than others. But the countries which have been most successful at improving the lives of their people do not always have the most aggressive media. For example, the Japanese media are less adversarial, and put more emphasis on consensus building. Their approach is different from the Western one, but it suits Japan’s culture and circumstances and has contributed to Japan’s success.

30. As with the political system, each country will have to evolve its own model of the media that works for it. Here too the situation is dynamic, not least because the internet is changing everything.

31. The internet is enabling ordinary citizens to post news and views on the web, making information available more quickly and plentifully than ever. The conventional wisdom is that the free flow of information on the internet is universally a good thing. It is undoubtedly very difficult to control information flow. But as we find terrorist groups using the internet to plan murderous attacks, and paedophiles using it to prey on defenceless children, we are learning that while the internet is a great boon to mankind, it is not an unmitigated one.

32. In the pre-internet age, newspapers and television stations not only reported news and opinions, they also filtered, processed and verified the information, in order to present coherent perspectives which shape the public debate and the public’s collective understanding of the world around us. The internet short circuits and undercuts this model.

33. Even in the internet age, there will still be a role for serious journalism, whether in print or on the web, because people will still seek out information sources which are reliable, verified and insightful. But it will not be easy to keep the public debate on this high plane, especially on controversial issues. For the internet also enables clever propaganda, inflammatory opinions, half-truths and untruths to circulate freely and gain currency through viral distribution, and these are not always easily countered by rational refutation or factual explanation. How to deal with this is something which every newspaper, and indeed every society, is grappling with.

34. Singapore regulates the internet with a light touch. But the same laws of sedition and defamation apply whether on the internet or in print, and we have prosecuted persons who have incited racial and religious hatred on blogs. Our mainstream media – television and newspapers – have kept their credibility and followings, though they are constantly tracking developments in cyberspace. We cannot say what the position will be in 10 or even 5 years’ time, with new technology continually emerging and a new internet generation growing up. Our position will evolve as we feel our way forward, but we do not believe that we should just drift with the tide. We still need anchor points that reflect our values, our vulnerabilities and our ambitions. The media in Singapore must adapt to these changes, do their best to stay relevant, and continue to contribute constructively to nation building.

Conclusion

35. Despite these challenges, Asia’s transformation will continue. The countries in the region are growing and modernizing rapidly, absorbing outside ideas, adapting them to their own situations, and influencing other economies and societies. The economic, social and political changes sweeping across the region are creating an Asian renaissance. They are opening up new opportunities for trade and investment, sustaining global growth and lifting billions out of poverty. In both Asia and Europe, we need to reach out across continents, understand one another, and work together to create a more peaceful and prosperous world.