MAY 21 — Singapore Prime Minister Lee Hsien Loong gave an interview on May 14 to Japan’s Nikkei media organisation, ahead of his visit to Tokyo today and tomorrow to attend the international conference on The Future Of Asia, organised by Nikkei and the Japan Centre for Economic Research. Mr Lee will deliver the keynote address on Rising Asia — Messages For The Next 20 Years to mark the 20th anniversary of the Nikkei Conference.

Below are excerpts of Mr Lee’s interview with Nikkei.

We understand that Singapore is one of the regional countries involved in the Trans-Pacific Partnership (TPP) negotiations. How important is the TPP?

I think it is vital. We talk about the free trade area of the Asia-Pacific — that is the long-term ideal. But the very major step towards the ideal is in the TPP because it brings together both sides of the Pacific, it brings together developed countries as well as the developing countries. It brings together (Western) as well as Asian countries. And so it has strategic significance and not only an economic significance.

Recently, the tensions between South-east Asia and China have been rising, especially between China and Vietnam as well as the Philippines. Will it affect the relationship between China and the Association of South-east Asian Nations (ASEAN)?

Well, it is an issue between China and ASEAN in the sense that ASEAN has an interest in the stability of the region and ASEAN is discussing a Code of Conduct with China and, in fact, ASEAN has a Declaration of Conduct with China. So to that extent, ASEAN is engaged in this issue. It is one aspect of the relations between ASEAN and China. There are many other aspects; many of them are very positive — cooperation, financial assistance, human resource development, trade and we have an ASEAN-China free trade agreement, which we are planning to enhance. So the relations are multi-faceted and South China Sea is one. And we will have to try our best to make sure that it does not colour the whole relationship.

I want to ask you more about the framework in ASEAN. Recently, it seems that the presence of the United States has been decreasing and the presence of China is increasing. What framework do you think is needed to keep Asia stable and for some countries to live alongside China?

I do not think the American presence is decreasing; in fact, the Americans have talked about rebalancing towards Asia and US President Barack Obama has paid attention to the region and has visited Asia quite a number of times, including ASEAN. He has just been in several ASEAN countries recently. In fact, not only ASEAN countries, but he was in Japan too recently.

So, I think the Americans fully understand the importance of the region and have every intention of staying here over the long term. Right now, they have other items on their plate: The economic issues; their domestic political gridlock; I think, a certain weariness after the wars in Afghanistan and Iraq. And so they are reluctant to engage very aggressively in new foreign commitments, but they know that they have a major stake in this region. I think in the long term, they will continue to have a major stake and, therefore, every reason to be present in the region.

The Chinese presence is growing, there is no doubt, because the Chinese are getting much stronger and developing day by day, year by year. And so there will have to be a shift and adjustment in the balance and in the relationship between China and America, but also involving the other countries, Japan and ASEAN getting used to this new arrangement and finding the new role to play in this new balance.

So, you mean for ASEAN, the most important thing is to keep the balance between some big countries such as the US and China?

I think it is most important for both America and China to be positively engaged in the region. And to have a certain balance in their influence, in their interest, in the way in which they interact with one another.

What kind of strategies are you planning on to boost the popularity of the People’s Action Party in the next election?

I think we focus on doing the right things so that people have reason to vote for the government, which is doing good for them. And that is what we have been doing these past two years, addressing both immediate issues — whether it is making sure there is adequate supply of housing or improving public transport — or whether it is dealing with long-term issues — making sure we can grow our economy and upgrade our people so that we can earn a good living for ourselves.

Will there be any possibility of Singapore shifting towards big government in the form of, for example, hiking taxes?

I do not think we can be a big government as the Europeans are a big government. In Europe, the government takes up about half the gross domestic product; some countries more than half, but at least 45 per cent of the GDP, quite commonly. In Singapore, the Government is about 16 per cent of the GDP. (NB: Government spending was 14 per cent of GDP last year.)

I think if we go forward with greater social burdens, the Government’s share will go up. It may go up to 20 per cent of the GDP, but I do not think you can reach 40 or 45 per cent. And whatever it is we spend, we have to earn because the Government does not have a money machine producing money from heaven. And that means at some point, we will have to look to our revenue and decide whether we have enough and, if not, where we will be able to raise new revenue. It is unavoidable.

Do you have any timetable?

Well, I think for the immediate future we are all right. Over the next five to 10 years, we will have to look at this very seriously.

Speaking of an even longer term, what qualities do you look for in the next Prime Minister?

Somebody who can command the confidence of the population, solve their problems and inspire them to do even more.

Do you have any person in mind for the position?

We have a good team and I hope — from among the team — leaders will emerge. — Today

*This is the personal opinion of the writer or publication and does not necessarily represent the views of The Malay Mail Online.