AI Strategy & Vision · 2026-08-23 · 00:00

Singapore will not be illegal trade conduit: PM Wong

Speaker
Lawrence Wong
Prime Minister of Singapore
Type
Government Official
Source
CNA

In Brief

PM Wong said Singapore will not be used as a conduit for illegal trade, while addressing AI's impact on the workforce and rising global trade barriers.

Why it matters Lawrence Wong's August 23 statement equates rejecting illegal transshipment with AI's employment impact and global trade barriers, highlighting that Singapore's strategy of trading neutral credibility for AI investment faces a test

Readable transcript

Caption language: en · Fetched: 2026-08-25

Even as AI poses challenges to Singapore's workforce, the country also has to navigate rising global tensions, higher trade barriers, and pressure on global supply chains. Mr. Wong says Singapore will not allow itself to be used as a conduit for illegal trade practices and will take action where there is evidence of wrongdoing. But there are limits to what Singapore can do. His comments come after the US flagged Singapore as being at risk of being used by Chinese exporters to avoid US tariffs. Claudia Lim reports. >> A world that is more contested, unstable, and more dangerous than before. That was the reality PM Wong painted amid a shifting balance of power in the world, including between the US and China. COVID, he said, was also a wake-up call, exposing the vulnerabilities of global supply chains. Tariffs are now part of that equation.

Recently, the US raised concerns over goods allegedly made with forced labor and Chinese goods being routed through Southeast Asia to get around US tariffs. >> Singapore takes both issues seriously. We have clear rules and laws in place. We enforce them, and we expect companies operating here to comply. We will not allow Singapore to be used as a conduit for illegal trade practices. >> But PM Wong says Singapore also has to be realistic about what it can do. As a major hub for re-exports and transshipment, goods pass through Singapore from all over the world, and that means there are limits to how much Singapore can do to trace and verify the entire supply chain behind every product that passes through its shores.

PM Wong says tariffs are just one symptom of deeper tensions playing out around the world, and when those tensions escalate, the consequences can reach far beyond what was intended. >> We all hope never to see a global conflict in our lifetimes, but we cannot ignore the growing risk. We are also seeing more pressure below the threshold of open war, economic coercion, foreign interference, disinformation campaigns, and cyber attacks on critical infrastructure. People call these gray-zone tactics. You may not see troops crossing borders, but the damage can be just as real. >> For Singapore, he says this is the new normal, one it will have to endure and navigate for years to come. But PM Wong says getting through it means staying connected to the world while creating more opportunities for Singaporeans.

>> All of these strengths depend on one thing, trust. Countries trust us. Businesses trust us. Investors trust us. They know Singapore is a place where the rule of law prevails, institutions are strong, and contracts and commitments are honored. When Singapore gives our word, we keep it. And in a world where trust is becoming harder to find, this remains one of our greatest strengths. >> As ASEAN chair next year, PM Wong adds that Singapore will work to strengthen regional ties and deepen integration. But he says that Singapore must be able to stand on its own and prepare for deeper changes. The goal is to keep Singapore trusted, relevant, and resilient, and ready for what lies ahead.

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Singapore AI Observatory. Singapore will not be illegal trade conduit: PM Wong. Retrieved 2026-08-31, https://sgai.md/videos/v086/

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