A top official in Singapore’s financial watchdog and de facto central bank has lauded recent and future free trade deals in Asia and further afield.

A top official in Singapore’s financial watchdog and de facto central bank has lauded recent and future free trade deals in Asia and further afield, speaking at a time when the seemingly inevitable march towards globalisation has hit geopolitical headwinds.

Lim Hng Kiang, deputy chairman of the Monetary Authority of Singapore, and minister for trade and industry, said in a recent speech that regional free trade deals in Asia were essential for jobs and growth.

As a large port and given its relative small landmass, Singapore has championed the free trade cause for a long time, contrasting sometimes with the stance of other jurisdictions. China and the US, for example, have frequently clashed on such issues, although the Chinese have more recently looked to open up their financial system - to some extent - to outsiders. Policymakers have sometimes voiced concerns that varied responses by countries to the 2008 financial crisis could prevent, or even reverse, market liberalisation. 

“Integration will also benefit businesses, as trade liberalisation and regulatory coherence will reduce cost, improve productivity, and facilitate the participation in the global supply chain,” he said in a speech entitled “When Giants Stir: Asia’s prospects as US recovers and China recalibrates”. He was speaking at a forum organised by Oversea-Chinese Banking Corporation, or OCBC.

He spoke of the Trans Pacific Partnership and Regional Comprehensive Economic Partnership, two important initiatives in Asia. “Both the RCEP and the TPP are pathways towards the goal of a Free Trade Area of the Asia-Pacific,” he said. To convey some scale of what is at stake, Lim Hng Kiang said the TPP links 12 parties from either side of the Pacific and will integrate 40 per cent of the world’s GDP and one third of world trade.

“The financial sector is a good example of how Singapore has benefitted from an open global trading system. Today, we have a thriving financial ecosystem of over 100 foreign banks here, offering an extensive suite of financial services, especially in wholesale and offshore banking,” he continued, noting that the city-state’s financial sector accounts for around 12 per cent of GDP, employing over 180,000 people.