Singapore, Malaysia and Indonesia 'strategically aligned' in keeping Strait of Malacca open: Vivian Balakrishnan

SINGAPORE: Singapore, Malaysia and Indonesia have a shared strategic interest to keep the Strait of Malacca open, Singapore's Foreign Affairs Minister Vivian Balakrishnan said on Wednesday (Apr 22) as Middle East tensions put global maritime routes under strain.

Speaking in an interview at CNBC's Converge Live event, Dr Balakrishnan said that as the littoral states of the Strait of Malacca, all three countries have a "cooperative mechanism" not to collect tolls and to keep it that way.

"We do not have tolls. All of us are trade-dependent economies. All of us know it is in our interest to keep it open," Dr Balakrishnan said.

"The point here is that all three countries have a strategic interest and are strategically aligned in keeping it open. That is not something which you can take for granted in many other places."

Dr Balakrishnan’s comments come amid concerns about the closure of the Strait of Hormuz, where restrictions have raised fears about the weaponisation of trade routes.

He stressed that Southeast Asia’s approach remains firmly anchored in international law.

"With respect to both America and China, we have told both of them, we operate on the basis of UNCLOS," Dr Balakrishnan said, referring to the United Nations Convention on the Law of the Sea.

"The right of transit passage is guaranteed for everyone. We will not participate in any attempts to close or interdict or to impose tolls in our neighbourhood."

When asked by CNBC's Steve Sedgwick if Singapore would choose between the US and China, Dr Balakrishnan reiterated: "We will not participate in any attempt to close or to interdict or to impose tolls of traffic, maritime traffic, and overflight in this age."

CHOOSING BETWEEN THE US AND CHINA 

Dr Balakrishnan pointed out Singapore’s longstanding position of not taking sides between the US and China, even as strategic competition between the two powers intensifies.

"To quote Mr Lee Kuan Yew, we will refuse to choose. The way we conduct our affairs is we assess what is in Singapore’s long-term national interest," he said, referencing Singapore's first prime minister. 

"And if I have to say no to Washington or Beijing or anyone else, we do not flinch from that. But they will also know that when we say no, it is not at the behest of the other party; we are acting in our own long-term national interest.

"We will be useful, but we will not be made use of."

On whether there may be a time when the US or China would exert more pressure on nations like Singapore, the minister replied: "Not yet, for us."

He added that when Singapore engages with the US, he would point out that Washington has more invested in Southeast Asia than America has invested in India, China, Japan and South Korea combined. 

"I remind the president that you have got very healthy returns from your investments in Singapore," he said during the interview.

"I also remind the US administration that you have got a significant trade surplus against us, both in goods and services. So, do you have skin in the game? I always remind the president, you have good skin in the game down here."

As for China, Singapore is one of its largest sources of foreign investment. "So, are we exquisitely positioned to take advantage of developments in both America and China? We are," Dr Balakrishnan said.

The risk, he warned, lies in a potential fracturing in US-China relations, which could have far-reaching consequences beyond current conflicts in the Middle East.

"If they go to war in the Pacific, what you are witnessing now in the Strait of Hormuz is just a dry run," Dr Balakrishnan said.

"So, the biggest if, the biggest variable, is not just what happens in the Middle East, but what happens in the Pacific."