Lawrence Wong: Global economic fragmentation to persist, But countries can act to mitigate

GYEONGJU, South Korea — Singapore Prime Minister Lawrence Wong said global economic fragmentation will likely continue despite the recent “temporary truce” between the United States and China, but stressed that other nations still have the power to shape outcomes. Speaking after the Asia-Pacific Economic Cooperation (Apec) summit, he compared fragmentation to global warming — inevitable but manageable with collective action.

Wong described the Oct 30 meeting between U.S. President Donald Trump and Chinese President Xi Jinping as a welcome relief that introduced short-term stability but noted that deep-rooted rivalry and distrust remain unresolved.

Economic fragmentation

He urged smaller economies to take proactive steps, citing Singapore’s Green Economy Partnership Agreement (Gepa) with Chile and New Zealand as a model for like-minded nations to advance trade and environmental cooperation.

Wong said such initiatives could eventually attract broader participation, similar to how the P4 pact evolved into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). He emphasised that trade remains vital for Singapore’s survival, both economically and culturally, and noted that Apec leaders’ Gyeongju Declaration reaffirmed their shared commitment to inclusive and sustainable growth.

Business News