Singapore has a role to play in helping South-east Asia’s poorer economies improve their participation in regional trade, and is leading negotiations in two key agreements that will enhance trade in the digital realm.
In doing so, the Republic would stand to benefit from a more inclusive region, which can lead to further market expansion and increased demand for Singapore goods and services, Mr Jose-Antonio Monteiro, coordinator of the World Trade Organisation’s (WTO) 2024 World Trade Report, told The Straits Times.
“A more prosperous region drives demand for higher-quality products, which Singapore specialises in. In addition, economic convergence in the region reduces risks associated with economic volatility, allowing for sustained growth and investment,” said Mr Monteiro.
While average incomes in poorer economies have nearly tripled and caught up with richer ones as global trade has expanded over the past 30 years, some low-income countries have nonetheless been left behind.
Despite lower barriers to trade, one-third of low- and middle-income economies, representing 13 per cent of the global population, grew slower than the average high-income economy in per capita terms.
In South-east Asia, these economies include Myanmar and Laos.
For trade to be more inclusive and beneficial, these lagging economies must also have policies that integrate open trade and international cooperation.
These were among the main findings of the report, launched on Sept 9 by the WTO at its annual public forum in Geneva.
WTO chief economist Ralph Ossa said one way to better include poorer economies in international trade is by improving digital avenues that enable cross-border commerce to take place.
With around 90 per cent of Asean micro, small and medium-sized enterprises using social media channels to do business, and more than a third having online stores, according to consultancy Nextrade, this would also