PM Lawrence Wong interviewed by the Financial Times

In his FT interview, Wong says the world is in a turbulent transition to a post-American order with no clear destination. The US is stepping back from its role as global insurer, and no country can or will fill the vacuum. Old rules no longer apply; new ones aren't written. This is not a passing phase — it reflects deeper change in American political culture and society that goes beyond the current administration. Singapore's response is not to wait but to act with like-minded countries: pushing plurilaterals at the WTO, partnering with the UAE and other small and medium trade-dependent economies on the Future of Investment and Trade, and standardizing rules, customs, e-invoicing, and data flows where tariffs are already near zero.

On the great-power balance, Singapore got 10% US tariffs while neighbors generally landed at 19%, and there is a growing sense in the region that the Trump administration has turned its back on Southeast Asia. But the US remains the region's largest investor — Wong notes that during former Commerce Secretary Gina Raimondo's visit, US firms alone accounted for an estimated $50 billion of digital infrastructure and utilities investment in Singapore. Pharmaceutical and semiconductor tariffs are still being negotiated; some large US pharma firms have already secured their own exemptions through US investment. On export controls, Singapore protects its business environment's integrity and lets US authorities investigate companies of interest within Singapore — and offers similar arrangements to other countries.

Wong calls US-China the most dangerous fault line in international relations. The two economies are deeply intertwined, and weaponizing any dependency just pushes the other side to find alternatives — when the US restricts chips, China pivots to lower-end chips and self-reliance; when China restricts rare earths, everyone realizes they aren't that rare. He expects the two to reach a new modus vivendi. China, he argues, will not converge with Western norms but find its own path — its per-capita GDP is one-fifth of America's, yet it already leads in advanced manufacturing and renewable energy. Asked what was hardest as PM, Wong says it was not meeting Trump (which hasn't happened yet) but party renewal — sitting down with PAP team members one by one before elections and telling them, "I'm sorry, I have to drop you." Painful, but central to PAP's continued success.

Caption language: en · Fetched: 2026-05-02

Well, Prime Minister, Singapore is perhaps the most globalized country in the world. And you like rules, you like precision, you like mathematics. >> We like stability. >> You like predictability. Of course, you like visibility. >> You must be having to adapt to to a new world order. Tell me a little bit whether this requires fundamental change in the way that Singapore operates. >> We are certainly in the midst of a great transition to a multipolar world, a postamerican order and a multipolar world. Uh no one can tell how the transition will unfold. But there is no doubt it will be messy and unpredictable because America is stepping back from its role as global insurer. But there is no other country that's able to or willing to fill the vacuum.

So we are in an uncomfortable position where the old rules do not apply anymore but the new ones have not been written and we must brace ourselves for more turbulence ahead. So what are we to do in this environment? I think we cannot afford to just wait for things to happen or hope somehow that things magically will fall in place. We have to take actions now, plan now and start taking actions to invest together in tackling the problems of the glo global commons or in building new trade connections and keeping up the momentum of trade liberalization. So that's something that Singapore is keen to do. We can't do it alone, but we will do it with other like-minded countries. >> Can you envision a world without the US?

The US may not be able or willing to join these plans now, but we have to press ahead and hopefully in time to come they will come along as well. But given the uncertainties and the unpredictabilities, we cannot just leave things to chance. We have to start taking actions now to lay the foundations of the new multilateral architecture. But there are two views that the next few years are more of a passing phenomenon >> or that there are deep structural changes in the world order that are that that we are now living. You are in the second camp. >> Yes, we are. We are because we believe what has happened in America is not just a temporary phenomenon.

It reflects broader change in political culture and also in American society itself a feeling that America has not benefited from the current global order that it had put in place and it is not prepared to do as much of the heavy lifting uh to keep the order going and I think that goes beyond this administration. >> Is some of this sentiment justified? Does Donald Trump have a point when he says that the US has been taken for granted that it's been taken advantage of? >> Some of it may well be justified in the sense that there may well have been free riders so to speak and countries do need to do more to invest in their own economic security and also stability. We do that in Singapore. We have never taken it for granted.

We have consistently invested year by year in our own security and our defense and also facilitated America's presence in the region. Certainly what the Trump administration has done is to motivate and catalyze many countries to do this self-reflection and you see that happening now more countries are indeed investing >> there's certainly self self reflection you see it you see it in Europe and people are taking matters into >> alternative but so while there may be truth in some of this of what uh Mr. Trump has said and the positive result of this is countries taking more responsibility and spending more on their own security. We worry that the consequence of these actions will also mean as I just said a weakening of the global order today and we think there's no going back. There will be a new multipolar world.

Multipolarity itself does not provide a stable framework for countries to work together to cooperate and to ensure shared prosperity and security. So we have to think about what we can do together to engender that. Does this multi-polarity mean spheres of influence? Because you often look at the way the US administration operates and it looks like what the president prefers are sort of three strong countries. That wouldn't work very well for Singapore, would it? We hope it will not end up like that because if the world ends up in exclusionary blocks and fears of influence, I think it will be more dangerous and unstable. So from our point of view, multipolarity should still have a way to bring about global connections.

We would prefer a world where ASEAN in Southeast Asia we are platform that allows for open and inclusive engagements with all the major powers. Do you think Azan could become a more credible block politically but also economically? >> Certainly we have ambitions to do so. >> I know that this is what Singapore hopes for but are there concrete moves to make it such >> I wouldn't first of all belittle the achievements of ASEAN? Southeast Asia is a very diverse region, highly complex um made up of so many different ethnicities, languages, religions. It used to be called the Balkans of Asia because of the geographical fragmentation and the potential for instability. And yet all these decades since the end of the Vietnam War, Southeast Asia has been able to maintain relative peace and avoided major conflicts. And a lot of it is credit to ASEAN.

ASEAN is certainly not perfect, but it is indispensable. And we are continuing to build on the foundations that have been laid. There are plans to accelerate ASEAN integration to make ourselves a more attractive and competitive single market. and in some ways the tariffs imposed by America have indeed catalyzed and motivated ASEAN leaders to come together with more urgency on this endeavor. >> So you you got off pretty lightly but of course the US does not have a trade deficit in goods or in services with Singapore. So you got 10%. >> It's not the same for your neighbors. They have some of the highest uh tariffs. So there is a growing sense in the region that that the US under Trump has turned its back on Southeast Asia. Do you agree? >> The actions of the tariffs have certainly impacted America's standing in Southeast Asia.

There is no doubt. But I would say all Southeast Asian countries still recognize that America is remains the largest investor in the region. Not China. China is the largest trading partner. But as far as FDI flows are concerned, America remains the largest investor. America still has significant stakes in Asia and all of us in Southeast Asia want to maintain good links with America and that's why many countries have had extensive negotiations with the US and eventually they have landed on slightly lower tariffs >> more around 19 19%. It's it's interesting how now we think of 10 or 20% as as as rel practically as relief. >> I I agree fully with you that >> but we started with nothing >> exactly. So from our point of view the correct figure is 0%. Yeah. >> But 10% has become the new normal. What to do?

>> You could though still suffer from um semiconductor tariffs on and pharmaceuticals. Are you in discussion with the US and and do you think that you will get exemptions? >> We remains to be seen. We are in discussions with the American officials on this. But from what we understand from some of the large American firms like the pharmaceutical companies, some of them on their own have already negotiated their own exemptions because they are investing back in America. >> So these are the pharmaceutical companies in Singapore, right? They're American companies. They're investing in America. So they get their own exemptions. That's right. So, so we are, you know, looking at this in greater detail also to understand fully what's the impact on our economy. >> You're a logistics uh hub.

There are a lot of reexports from Singapore and supply chains have been disrupted because there is pressure also from the US to remove Chinese elements from these uh supply chains. Have you felt this pressure and what impact has it had? not so much on the overall flows because if you look at global figures, trade flows continue. They are just being reconfigured into new patterns of trade and so long as they are continuing especially in Asia, Singapore can remain a relevant node and we see that continuing to be the case and we are determined to remain at the center of these uh global patterns. >> I know that you are under pressure to stop US advanced chips from getting to China, right? advanced trips that you get in in Singapore. What are you doing to stop these flows? >> Well, opposition is very clear.

We've we've established a business hub on the basis of our reputation for rule of law and trust. And so, we are determined and fully committed to maintain the integrity of our business environment. Uh we will not tolerate businesses violating our laws. We'll take, you know, strict actions. And when it comes to export controls, we will also not condone businesses or individuals taking advantage of their association with Singapore to circumvent the export controls of other countries. So where America is concerned, what we have done is put in place robust arrangements so that the US government can take actions, investigate companies of interest in Singapore if they so wish.

And we will also extend similar arrangements for other countries if they would like also to have the same treatment where it comes to their export controls because nowadays export controls is not limited to America only. >> Are you surprised that economic growth hasn't really suffered? tariffs were supposed to do a lot of damage and yet whether you look at the global economy the recent IMF report or indeed in in Singapore economic growth has not yet been affected. Did we get it wrong? >> No, I don't think we got it wrong. I think there are several reasons for it. One, the actual roll out of the tariffs have not been as high as what they initially were indicated to be.

Uh second there has been a lot of frontloading of activities which has dampened the impact and third generally speaking because of AI because of new technologies the rest of the economy has been quite resilient so far but there will be an impact. I think we already start to feel it in our own economy. In many ways, we always say the Singapore economy is like the canary in the coal mine because we are so open and so exposed to the external environment. We are the first to feel it when the external environment starts to weaken. We didn't feel it in the first half of this year. >> So, how are you feeling? >> We are starting to feel some slowdown now in this as we approach the second half of this year because of uncertainty.

businesses are holding back on new investments and new hiring and we are starting to see a general slowdown in uh business activities. >> I'm just wondering how you and your neighbors navigate the tensions between the US and China. There may be a trade deal, there may not be a trade deal. One day it's on, one day one day it's off. H how difficult is it for you? I suppose we have to take a step back and look at first of all the US and China relationship itself. Uh it's the most consequential relationship in the world and it's also the most dangerous fault line in international relations. Uh for now you can see both countries wanting to insulate themselves from each other. There are also many interdependencies between them. Their economies are deeply intertwined and they are looking at potential choke points to use as leverage.

But when one economy squeezes, the other squeezes back right away. So you end up in a path in a dynamic of mutually assured destruction. We see this happening already as you know even now. And and furthermore, when one side starts to weaponize a particular dependency, it just motivates the other to look for alternatives. So when America puts controls on chips, China will start looking for workarounds because you can use lower-end chips as workarounds and China will start looking for to become more technologically self-reliant. And when China puts controls on rare earths, I think all of us will start to realize these are not so rare after all. and America and its allies, I'm sure, will look for alternatives. These things will happen. It will take time.

But the economist in me says that uh we should never underestimate the elasticity of supply. So when you look at these sorts of dynamic and and the consequences of actions, I think America and China may well come to a new modus vivendi. think about how they can coexist with one another even while they compete intensively. It's not easy to see how this may arise. >> Yes, I'm trying to I'm trying to imagine what you what you are describing if it's unstable in in some areas. It will be unstable in in other areas. You often hear um the Chinese saying that it's they look at the relationship as a whole and they cannot compartmentamentalize it. whereas the US prefers to compartmentamentalize. So >> do you think they'll get a trade deal in the next few weeks? >> We hope so.

It may not be a strategic agreement that resolves everything, but even some form of a guard rail to manage the economic relationship in trade is better than nothing. And if the US and China continue to coexist and not end up with a full decoupling which is going to be highly damaging to both economies and also highly destabilizing for the entire global economy. So if they can find ways to coexist going back to your earlier question Singapore and all of ASEAN countries will be able to navigate this new environment we will be able to therefore continue to have relations with both America and China.

Do you think that a lot of the US sort of economic nationalism, the America first strategy is is leading more to a China first strategy and in some ways giving them this impetus to produce the chips themselves to make themselves even more independent and paradoxically stronger. You can see growing confidence in China throughout its entire society at its own developmental model. China's rise gives rise to a lot of unease in many parts of the world. Not just because of its a rising power of tremendous scale, but because it's a power with a different economic model and political system. But I think the world must realize that China will not converge with western norms and it will find its own path to modernity.

And while there's still tremendous catch-up growth because its per capita GDP is just 1/5if of America's uh in some areas it's gone beyond catchup. It's a technological leader in many areas in advanced manufacturing in renewable energy. So we have to contend with and and and accept the reality that China is not just a rising power. It is a risen power and the moves that it has made in recent years. I think just demonstrate that China itself recognizes its growing weight and is thinking about what responsibilities it might exercise as a leader in the global system. For example, it recently decided to forgo its special and differential treatment provisions in the WTO. In just this past year or so, it has doubled down on its support for global institutions.

And I think these are examples of how we have to embrace the reality that China will be a key player and potentially a key leader in this new global system. But doesn't a country like Singapore then have to make a choice because you have navigated a strong political defense relationship with the US and a very strong trade relationship with China. Do you not feel that you are reaching a point where this balancing act doesn't work anymore? Having said all that I just described of China, we are talking about China today still not being able to or willing to replace America's role in the global system because it's not quite at the same level as America. It's still a middle inome country with a lot of domestic challenges. So there is no new global leader yet emerging and we are in this very messy period of transition. >> Yes.

>> And this will be a long >> what does Singapore do then? >> Therefore in this very unpredictable messy period of transition which can continue for years maybe more than a decade. I think we will have to work with like-minded countries as I said just now find ways to preserve and reinforce the multilateral frameworks that matter. >> So describe to me a little bit this sort of multilateral system that that you see. I know that there's a new grouping that you are promoting with other smaller countries. >> Um how do you see that system working and and surviving? The efforts are multiprong. One, we have to reinforce and reinvigorate existing institutions like the WTO. For example, in the WTO, the consensus decision-m process, which is a treasured principle, has become a recipe for paralysis. We have to change that.

We have to find ways for plurilaterals to take off in the WTO. >> You need the US for that though. >> You do. So, we're not discounting the role of America. They're saying some of us should start moving, keep keep you know keep the momentum going and in time to come even if the America is not willing to or able to make a decision today maybe down the road it might and so we have to do that in terms of uh refreshing global institutions which we are doing. The second front is to look at pathfinding initiatives new initiatives which we are working on too with like-minded countries.

So the future of investment and trade partnership which you >> that's the one with the with the UAE and that's right we bring together small and medium trade dependent economies because we are all alike in um wanting to uphold a rules-based trading system and we can come together to push the frontiers for new initiatives amongst these 15 or so economies we already have virtually tariff-free so the point is not to come together to do an FTA PA, but to think about what new ideas we can put on the table, including facilitating investments, making it easier for businesses to interoperate across our economies by standardizing rules, regulations, customs, documentation, and enabling using technology as an enabler with electronic invoicing, documentation, data flows, these sorts of things.

And if we can have new initiatives like that in time to come, we might be able to multilateralize them as part of WTO precepts. >> You are a massive investor in in the US. Um and and around and around the when you hear of the attacks on uh on the Federal Reserve, when you see the unpredictability of of economic policy, does that make you less likely to invest? Are you reducing investments? Are you shifting more towards Europe or is it there is no choice? Your largest investments have to be in the US. >> We are not scaling back right now because when we look at investments, we look at macro risk environments, but we also look at the individual company dynamism and you know prospects for growth.

And for now while the risk premiums at the macro level may have increased uh in America we still see a lot of leading edge technologies tremendous dynamism in American enterprises. So we remain invested in these companies but it's not America alone. We continue to look out for opportunities around the world in Europe and in Asia and other parts of the world as well. >> What about Europe? there is an opportunity for Singapore politically, economically on the investment front to have a closer relationship with the EU. >> We think Europe will be also a key player in this multipolar environment. Europe is a major power in its own right and Europe will be a key player in this new global environment. So we are keen to forge closer links with Europe.

We already have very close links with Europe, between Singapore and the EU, but we are looking at how we can bring different groupings together and there are opportunities to do so. Between the CPTP and the EU, for example, we have been having discussions on a more formal partnership that accounts for something like 40% of global trade between EU and ASEAN. Incidentally, EU has already signed or moved on FDAs not just with Singapore but with several ASEAN member countries. So if we can get EU and ASEAN together on an FDA discussion, that will be another one-third of global trade. So these we see as new opportunities to reinvigorate trade.

I mean we are in a world where the global system is starting to see more and more becoming more and more clocked up but we would like to keep the arteries of trade open and maybe create new arteries and that's why we see these uh strategic opportunities with Europe. Does this new world order that is yet uh to to emerge, does it require any domestic changes in in Singapore towards more political liberalization? I ask also because you would have seen that there's a new youth movement that's emerging in different parts of the of of the world in Asia and also in um in Africa, the Gen Z movement. Tell me how you are thinking about the future on domestic, social and and and political liberalization. >> The two are connected. It's a it's a relevant question.

The changes in the global order as well as the sort of youth movement that you see around the world. And we see growing anxiety amongst young people everywhere in the world. In China, they talk about lying flat. In Japan there's a term hiko hiko komori uh staying in the home not going out and uh I think in America Europe you talk about the great resignation and all sorts of other terms. So you see that level of growing anxiety amongst young people because we are in a different environment less stable more chaotic more disorderly. So naturally young people are more concerned about their future. We feel that in Singapore too.

So from do from a political point of view uh from a domestic point of view our focus must be to find ways to give assurance to our young to give them that confidence that they can chart a better future for themselves and that's what we are determined to do in Singapore. >> What's been the hardest thing that you've had to do since you became prime minister? Uh many hard things. I don't know that I can hardest. >> Hardest. >> Uh >> have you been to see Trump? >> Not yet. >> Okay. So you haven't done the hardest. >> We are. We might have a chance to meet when he comes if he comes for the ASEAN summits which he has said he would. >> Yes. Yes. Because he has to sign the peace agreement. >> Yeah. Well, I'm not sure whether it's just for that, but if he comes to the ASEAN summits, there may be a chance to meet him.

I I've had a phone call with him >> late last year. >> Uh it went well, but I'm sure there'll be opportunities to meet. >> Okay. So, we take that out. That's that that's not the hardest. What is the hardest has been really in managing people? You don't realize the extent of it until you get into this job, right? Which is that I'm not just prime minister. I'm leading a party. I'm leading a party. I go into elections and you have to then think about which are the me members of my team who I have to drop because I want renewal and one of the keys to the PAP success has been a full focus on renewing our team every election. And this is not easy to do at all.

it it's very easy to say let's just continue with the status quo I don't want to offend anyone you know it's okay we all move along but then if I do less of the renewal I will pay the price for it 5 10 20 years from now so having to look hard at the members of the team speak to each one of them individually and say I'm sorry I'm not able to help allow you to continue I have to drop you. That was very painful. >> So, party management. >> Yes, that was very painful. Um, not easy to do and you I had to steal myself to do it and and manage it and I'm glad we had a good election outcome at the end of the day. >> Thank you for uh your time and hope to see you again soon. >> Thank you. Good talking to you. [Music]