SINGAPORE, July 19 — In a globalised world, it is important that countries stay open or everyone would be "worse off” because the levels of cooperation seen around the world would not be possible, said Prime Minister Lee Hsien Loong yesterday.

But it is important that governments see to equitable distribution of the benefits of globalisation, he added, at a dialogue session at the third South Asian Diaspora Convention gala dinner, which was held at the Raffles City Convention Centre.

Although some may hold the view that reverting to a closed world would make their lives "simpler, safer, pleasanter”, the reality is that doing so would make them "a lot poorer off”, said  Lee, who cited how components of many products, from iPhones to aircraft, come from countries across the globe.

"If you go back to a closed world I think you’re going to be a lot poorer and you’ll not be able to cooperate the way you are (doing) right now.”

While some may wish to operate within markets without the "most unfair” competitors, "if you’re going to (have) that attitude, then I think many of these companies would no longer exist, certainly would no longer be able to operate the way they have done around the world and that means we are all worse off”, Lee said.

The challenge, he added, was to make this "fundamental” reality vivid to "hundreds of millions” whose economic well-being depends on globalisation.

This is only possible with politicians who have the courage and eloquence to tell the people that this was the case, even though they might want to hear "something different”.

Lee added: "It’s not easy but I think that if you’re going to make the system work, such leadership is necessary.”

Lee was addressing more than 1,000 people, including academics, policy-makers and business leaders from South Asia at a dialogue moderated by Mr Shyam Saran, India’s former Foreign Secretary.

Globalisation was the main topic of discussion during the 45-minute session, although  Lee also touched on subjects such as the reaction to the Hague ruling on the South China Sea, recent global events including terror attacks and Brexit, as well as tackling climate change.

Lee said that with globalisation, governments have to accept that not all movements of people are within their control.

The European Union, for instance, sees an influx of refugees from the Middle East and sub-Saharan Africa.

But where possible, governments must manage the flows of people, he said.

In Singapore too, the government works to keep the Republic open, but manage inflows at the same time, so that Singaporeans "do not feel that something has happened to the world and Singapore is not the same”.

For example, companies that may comprise a large number of foreigners from around the world must also make an effort to recruit a "reasonable complement of Singaporean staff who can make a contribution and fit into the company” and develop local talent.

Gradually, companies would have gained a presence not only in the economy, but also insight into the community, he added.

"But if (the company) comes in and everybody who works in that company is from somewhere else, well they may pay your taxes, but somehow it doesn’t feel as if you have been integrated into the society,” said Lee.

He noted that globalisation has brought considerable benefits to "hundreds of millions” of people across the world.

But while more globalisation was the way forward, attention must also be given to increasing the distribution of the benefits of globalisation to those who have not enjoyed it. — TODAY