The Netherlands, Singapore, Our Regions, Our World: Connecting Our Common Future 9789814762618

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THE NETHERLANDS, SINGAPORE, OUR REGIONS, OUR WORLD

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The ISEAS – Yusof Ishak Institute (formerly Institute of Southeast Asian Studies) was established as an autonomous organization in 1968. It is a regional centre dedicated to the study of socio-political, security and economic trends and developments in Southeast Asia and its wider geostrategic and economic environment. The Institute’s research programmes are the Regional Economic Studies (RES, including ASEAN and APEC), Regional Strategic and Political Studies (RSPS), and Regional Social and Cultural Studies (RSCS). ISEAS Publishing, an established academic press, has issued more than 2,000 books and journals. It is the largest scholarly publisher of research about Southeast Asia from within the region. ISEAS Publishing works with many other academic and trade publishers and distributors to disseminate important research and analyses from and about Southeast Asia to the rest of the world.

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Singapore Lecture 24 November 2016

THE NETHERLANDS, SINGAPORE, OUR REGIONS, OUR WORLD Connecting Our Common Future

Mark Rutte

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Published in Singapore in 2016 by ISEAS Publishing 30 Heng Mui Keng Terrace Singapore 119614 E-mail: [email protected] Website: http://bookshop.iseas.edu.sg All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photo­copying, recording or otherwise, without the prior permission of ISEAS – Yusof Ishak Institute. © 2016 ISEAS – Yusof Ishak Institute, Singapore ISEAS Library Cataloguing-in-Publication Data Rutte, Mark, 1967 The Netherlands, Singapore, Our Regions, Our World : Connecting Our Common Future. (Singapore lecture series, 0129-1912 ; [39]) 1. Netherlands—Foreign relations—Singapore. 2. Singapore—Foreign relations—Netherlands. I. Singapore Lecture (39th : 2016 : Singapore) II. Title. III. Series: Singapore lecture series ; [39]. DS501 I597 no. 39         2016 ISBN 978-981-4620-30-7 (soft cover) ISBN 978-981-47-6261-8 (E-book PDF) Typeset by International Typesetters Pte Ltd Printed in Singapore by Markono Print Media

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CONTENTS I Welcome Remarks

Tharman Shanmugaratnam 1

II The Netherlands, Singapore, Our Regions, Our World: Connecting Our Common Future

Mark Rutte 5

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I Welcome Remarks Tharman Shanmugaratnam Deputy Prime Minister and Coordinating Minister for Economic and Social Policies, Singapore

His Excellency Mark Rutte, Prime Minister of the Netherlands; Minister for the Environment and Water Resources Masagos Zulkifli and Cabinet colleagues; Distinguished Guests; Ladies and Gentlemen A very warm welcome to the 39th Singapore Lecture. It is my pleasure to welcome Prime Minister Mark Rutte on his first Official Visit to Singapore. The Singapore Lecture has been privileged in the past to have welcomed two of Mr Rutte’s predecessors — former PM Ruud Lubbers who delivered the 11th Singapore Lecture on International Economic Developments in 1991, and former PM Jan Balkenende who gave the 30th Singapore Lecture on New Global Partnerships in 2009. Today, Prime Minister Rutte carries on the strong tradition, reflecting the high regard we have always held for the Netherlands. The Netherlands and Singapore share longstanding and deep bonds which were developed well before our independence in 1965. The Dutch have also left a strong and positive imprint on modern-day Singapore. Dutch economist Albert Winsemius’ advice was invaluable in helping Singapore find a role for itself in the world economy quickly after independence.

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Today, we have a robust economic relationship with the Netherlands. It is our 3rd largest European trading partner and 5th largest global investor, with over 1,300 Dutch companies based in Singapore. We also feel connected to each other because Singapore and the Netherlands are global-minded and practical-minded countries. Being connected to the world has always been part of our history and our beliefs. As pioneers of ASEAN and the European Union, respectively, we are firm advocates of regional integration. We also share a deep commitment to open economies as the foundation for global prosperity and security. In this regard, the EU-Singapore Free Trade Agreement (EUSFTA), when ratified, will strengthen our economic links. We also look forward to the EU-ASEAN Comprehensive Air Transport Agreement (CATA), which will improve our connectivity and people-to-people ties. On the international stage, the Netherlands is an active promoter of international peace and legal order, as evidenced in the Dutch support of counter-piracy efforts in the Gulf of Aden, and its active contributions to UN peacekeeping efforts in conflict zones such as Afghanistan, Mali, and South Sudan. In this regard, I would like to congratulate the Netherlands on its successful bid as a non-permanent member on the United Nations Security Council in 2018. Looking forward, we face an uncertain and complex regional and global environment. In Europe, the decision of the United Kingdom to leave the European Union earlier this year has added to the already challenging agenda facing Europe. As the 60th anniversary of the signing of the Treaty of Rome approaches

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in 2017, the European project is facing enhanced challenge domestically in several of its member states. Strong leadership and active policies to help those who lose out because of technological change or global competition are needed to reinvigorate inclusive growth and preserve faith in internationalism. But before we hear the views of our distinguished speaker, a brief introduction: Prime Minister Rutte began his political career as State Secretary for Social Affairs and Employment in 2002, and was appointed State Secretary for Education, Culture and Science in 2004. Before that, he had over 10 years of experience in the private sector, including at Dutch multinational Unilever. When he was elected in 2010 at the age of 43, he was the Netherlands’ second-youngest Prime Minister. Mr Rutte is well known for his pragmatism, optimism and energy — qualities he displayed when the Netherlands assumed the presidency of the European Council during the first half of 2016 when the EU had to deal with some of its biggest challenges, in particular the migrant crisis and the immediate outcome of the Brexit referendum. Domestically, he has displayed a similar steady hand and clear vision, especially in guiding the Dutch economy out from the global financial crisis to its current position of strength and stability. Without further ado, let me invite Prime Minister Rutte to deliver the 39th Singapore Lecture on the “The Netherlands, Singapore, Our Regions, Our World: Connecting Our Common Future”. Thank you.

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II THE NETHERLANDS, SINGAPORE, OUR REGIONS, OUR WORLD Connecting Our Common Future Mark Rutte Prime Minister of the Netherlands

Your Excellency Deputy Prime Minister Tharman Shanmugaratnam, Professor Wang Gungwu, Your Excellencies, ladies and gentlemen, students. Thank you for giving me the opportunity to speak to you here today. I’d also like to thank my host, Prime Minister Lee, for inviting me to visit your country. 2015 was a notable year for Singapore. You celebrated fifty years of independence with a parade of 11,000 people, fireworks and 600,000 roses made from recycled plastic bags. For me, those roses are typical of Singapore. Both creative and responsible. Even on a public holiday, you uphold the principles of the circular economy. On 23 March of the same year your country was plunged into mourning by the death of Lee Kuan Yew. He is greatly missed. In the words of his son and your prime minister Lee Hsien Loong, “To many Singaporeans, and indeed others too, Lee Kuan Yew was Singapore.”

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Lee Kuan Yew’s life ran parallel with Singapore’s transformation from a colony to one of the best-performing countries in the world. He was the architect of the republic. In his memoirs he noted, “We had to create a new kind of economy. Try new methods and schemes never tried before anywhere else in the world, because there was no other country like Singapore.” His vision and dedication helped turn Singapore into an economic superpower. With its low unemployment rate, high GDP, low levels of corruption, and well-maintained public spaces, Singapore has rightly been described as “the little city that could” and “the envy of the world”. So what is your secret? What makes us so jealous when we look at Singapore? I expect you know better than I do. But if I were to hazard a guess, I would say it’s all down to education. Singaporeans make Singapore what it is, and this country invests in its people. You value your human capital. Thanks to ISEAS and other research and education institutions, Singapore is a world-class knowledge hub. Its universities are among the best in Asia and even the world. But it all starts with primary schools and teachers. And they too are among the world’s best. Your focus on education is all part of your focus on the future. On the next generations. On the world in 2020, 2030 and even 2050. Indeed, your unofficial motto is “staying ahead of the curve”. You ask: what will the city look like in the future? How will we live and work together? You don’t say “let’s worry about that later”, because today we sow the seeds of tomorrow’s world. Take those recycled plastic bags. Or your urban environment, where breathtaking architecture goes hand in hand with sustainability.

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Lee Kuan Yew wrote that there was no other country like Singapore. And that is still true today. But let me ask you to picture a map of the world. It will show that Singapore and the Netherlands are thousands of kilometres apart, at opposite ends of the giant Eurasian land mass. From the Netherlands, Singapore is one of the most distant places you can get to by land. And yet, our similarities are striking. Let me start with the obvious ones: Singapore and the Netherlands are both small in terms of size, but big in terms of influence. Not without pride, you call yourselves “the little red dot”, and I can see why. Singapore may only be a dot on the map, but its influence is out of all proportion to its geographical size. For our part, the Netherlands also punches above its weight. We are slightly bigger than a dot, but not by much. And if you look at the World Economic Forum’s ranking of the most competitive economies, you’ll find Singapore in second place and the Netherlands at number four, and we beat the Germans last year. Both countries also make the top ten in the Global Innovation Index. And what about the “Where-to-be-born index”? Here, too, the Netherlands and Singapore are both in the top ten. How can we explain this? It’s partly to do with our strategic coastal locations. Singapore is the springboard to the big economies of China and Southeast Asia. The Netherlands is the gateway to a continent of over 500 million consumers who have money to spend. So it’s hardly surprising that trade is in our DNA. With airports serving millions of passengers a year, and two of the biggest and busiest ports in the world, Singapore and the Netherlands have evolved into logistical hubs. And your ties with the Port of Rotterdam are excellent.

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A coastal location obviously has many benefits, but it also has a disadvantage. If the polar ice caps melt, both Singapore and the Netherlands are at risk of flooding. But as the late Dutch football legend Johan Cruijff was fond of saying, “Every disadvantage has an advantage”. Keeping back the water has made us creative. It has made us think in terms of opportunities instead of problems. If we don’t have enough room, we make space. By turning water into land. We have created polders and all the same is now taking place at Pulau Tekong. Or by building upwards instead of outwards. This may help explain why Lee Kuan Yew and the Dutchman Albert Winsemius got on so well when they met in 1960. They recognised something in each other. They were both pragmatic, optimistic and forward-looking. Winsemius came to Singapore in 1960 as an economic adviser. His involvement with your country lasted until 1984. In that time he played an important role in industrialisation and the development of the port. Albert Winsemius Lane in the west of Singapore bears witness to the lasting impression he made. And this was a two-way process. An article in The Straits Times with the telling headline “Adviser turned friend” noted that Winsemius “became so committed to Singapore’s cause that even members of his own family started calling him a Singaporean”. Albert Winsemius advocated an “open door” policy. For him, the success of small industrialised nations like the Netherlands and Singapore depended on free trade and an open economy. Lee Kuan Yew agreed wholeheartedly with Winsemius on this point. We have to stand up for those shared values of free trade, openness and optimism. The Netherlands and Singapore particularly in these days must form a united front.

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Especially in today’s world. At a time when support for protectionism and nationalism is on the rise, when the British want to leave the EU, and when unrest is growing on the edges of our continents, it’s important that we think hard about the future. About what matters to us. What will the world look like in 2020, 2030 and 2050? How can we ensure a safe and prosperous future for our people? We have no easy answers to these questions. The trend towards ever growing free trade, which has brought our countries great prosperity, is now meeting with resistance. In Europe, the Brexit vote has created uncertainty. After Ireland and Malta, the Netherlands has the highest percentage of GDP derived from goods and services exported to the UK. Both Singapore and the Netherlands will take a hit due to our positions in the global value chain. And the Netherlands is losing an ally in the EU. For now, little has changed. The UK is still an EU member and still subject to EU rules. It’s up to Britain to take the first step. But the Brexit vote does mean that we in the EU have to consider the way forward from here. The bottom line is this: the EU post-Brexit will still number 27 member states that are fully committed to working for jobs, economic growth and the safety of their people. It may not be “business as usual”, but one referendum in one member state will not endanger the Union as a whole. The point of the European Union is to enable us to tackle problems and take opportunities that transcend nation states. Member states each have their own interests, but generally we all want the same thing. We all want growth and jobs. We all want

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to promote Europe’s stability and security. We all want to do something about the refugee problem. These common interests make up the EU’s sphere of activity. They are the basis for its support and legitimacy. During my country’s Presidency of the EU earlier this year I saw once again what a difference the EU can make. How working together produces results that individual member states could never achieve working alone. The Dutch economy is firmly anchored at the heart of the EU. The Netherlands has the euro, it is part of the Schengen Area and it is one of the Union’s founding members. The EU single market is crucial to our trade position. For a trading nation like mine, with an international mind-set, membership of the EU is vital. It means the Netherlands remains a safe and reliable location for foreign investment, and a gateway to major European markets, served by excellent infrastructure and logistics. But it’s important that the EU continues looking beyond its own borders. We have to stay committed to securing free trade agreements so that the world stays connected. Signing CETA with Canada was an important step. The EU-Singapore free trade agreement is now before the European Court of Justice. It’s high time this agreement entered into force. I appreciate the patience Singapore has shown. The Netherlands stands ready to ratify at the earliest opportunity. Because of our locations and our size, our two countries place a high value on a well-functioning international legal order. The Netherlands plays an important role here, with The Hague as the legal capital of the world. And the eminent lawyer, Professor Tommy Koh, has made a major contribution to the development of international maritime law, whose origins go back to a treatise by the Dutch jurist Hugo Grotius, The Free Sea.

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The UN Convention on the Law of the Sea, on which Koh worked so hard, has become the standard point of reference for determining the rights and duties of nations in relation to the sea. Ladies and gentlemen, Our era will be defined by how we respond to the forces ranged against globalisation, and how we respond to technological change. The consensus behind free trade agreements is perhaps yesterday’s reality. And uncertainty and resistance to agreements may be the situation today. But the solution for tomorrow is definitely cooperation, cooperation and cooperation. We must not retreat into our own countries, behind walls, barriers and borders. We need to go out into the world. We need to embrace cooperation and show what it can accomplish. Knowledge and innovation are the engines of future economic growth and the answer to tomorrow’s questions. How can we protect our nations from a rising sea level? How can we continue to provide the world’s growing population with sufficient drinking water, food and energy? How can we deal with demographic aging and climate change? We, the Netherlands and Singapore, have the resources to come up with the answers to these questions. We can innovate together. We both have dynamic and creative economies in which our universities, the private sector and government work together. And we have a solid basis to build on. The Netherlands is one of Singapore’s main trading partners within the European Union. And Singapore is by far the Netherlands’ biggest trading and investment partner in the ASEAN region. No fewer than 1,300 Dutch companies have established a presence in Singapore, in part as a springboard to the fledgling ASEAN Economic Community,

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for which they have high expectations. They want to be part of ASEAN’s continued development. Our tradition of cooperation and knowledge-sharing goes back to Albert Winsemius and Lee Kuan Yew. Since then Singapore and the Netherlands have continued working together in the sectors that are so important for our countries: water management, biomedicine, transport and urban infrastructure. One example is NUSDeltares, the knowledge alliance between the National University of Singapore and Deltares, the Dutch water research institute. It pools expertise on water management in both countries, so that we can reach new heights. In this way we are helping each other to keep water in check where necessary, and to use water where we can. Cyberspace is another area which presents both opportunities and dangers. The Netherlands and Singapore are among the most connected societies on the planet, but that also makes us vulnerable. A cyberattack could have a major impact, on our own countries and regions, and even on the world as a whole. That’s why in recent years public, private and academic partners from Singapore and the Netherlands have been working together to keep our societies cyber-resilient. Urban infrastructure is another subject that is familiar to both our countries. How do we use limited space as efficiently as possible? Climate change adds a second challenge. How can you build in a way that causes minimal harm to the planet? Singapore is leading the way here. Your City in a Garden is now full of “Green Mark” buildings — I’m honoured you named this system after me, by the way. They meet the strictest requirements for sustainability. In the Netherlands, the Dutch Sustainable Growth Coalition is demonstrating business leadership by anchoring

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sustainability in business models and practices. And my government aims to have a fully fledged circular economy in place by 2050. Businesses, public authorities and research institutions are working together towards this goal. Lee Kuan Yew once said, ‘What I fear is complacency. When things always become better, people tend to want more for less work.” Wise words. His warning is especially relevant today. We cannot afford to sit back and take our achievements for granted, as global trends have shown once again. We have to stand up for what we believe in: free trade, an open economy, democracy, and the rule of law. We must not only safeguard the legacy of Lee Kuan Yew and Albert Winsemius, but also update it for the present day. By promoting prosperity and quality of life, while staying mindful of the planet’s limited resources. And we must do so by drawing on all the courage, creativity and cooperative spirit we can muster. These are the foundations on which today’s Singapore and the Netherlands are built. These are the foundations of our success. Later today, I will be talking to young people from Dutch start-ups who are part of the Startup Academy. Something about the Singaporean mind-set drew them here to make connections. They are now planting the seeds which will determine what Singapore and the Netherlands will look like in 2020, 2030 and beyond. They are connecting us to our common future. And that means we can look forward to that future with confidence. Thank you.

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MARK RUTTE Mr Mark Rutte has been the Prime Minister of the Netherlands and Minister of General Affairs in the government since October 2010. He served as State Secretary for Social Affairs and Employment, from July 2002 to June 2004, and State Secretary for Education, Culture and Science, from June 2004 to July 2006 during the first and second Jan Peter Balkenende governments. Mr Rutte was national chair of the JOVD (Jongeren Organisatie Vrijheid en Democratie), the youth organisation of the People’s Party for Freedom and Democracy (Volkspartij voor Vrijheid en Democratie – VVD), from 1988 to 1991. He was a member of the VVD party executive from 1993 to 1997 and was elected leader of the VVD party in 2006. Mr Rutte was born on 14 February 1967 in The Hague in the Netherlands. He studied at Leiden University, obtaining a degree in Dutch history in 1992. He worked as a human resource manager in Unilever, responsible for staff training, before becoming personnel manager of Van den Bergh Nederland (Calvé), which is part of Unilever in 1997. In 2002, he became director of human resources at the IGLOMora Group BV, another Unilever subsidiary. Since 2008, Mr Rutte has been a guest teacher at the Johan de Witt group of schools in The Hague, teaching Dutch and social studies.

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THE SINGAPORE LECTURE SERIES

Inaugural Singapore Lecture 14 October 1980 The Invisible Hand in Economics and Politics by MILTON FRIEDMAN Professor of Economics, University of Chicago 2nd Singapore Lecture 30 October 1981 American Foreign Policy: A Global View by HENRY KISSINGER U.S. Secretary of State 3rd Singapore Lecture 2 December 1982 Peace and East-West Relations by GISCARD D’ESTAING President of France 4th Singapore Lecture 10 November 1983 The Soviet Union: Challenges and Responses as Seen from the European Point of View by HELMUT SCHMIDT Chancellor of the Republic of Germany 5th Singapore Lecture 8 November 1984 The Future of the Western Alliance and Its Implications for Asia by JOSEPH M.A.H. LUNS Secretary-General of the North Atlantic Treaty Organization (NATO)

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16 6th Singapore Lecture 5 December 1985 Deficits, Debts, and Demographics: Three Fundamentals Affecting Our Long-Term Economic Future by PETER G. PETERSON Chairman of the Blackstone Group 7th Singapore Lecture 25 November 1986 Trends in the International Financial System by RAYMOND BARRE Prime Minister of France 8th Singapore Lecture 27 November 1987 The Challenge of Change in the Asia-Pacific Region by BOB HAWKE Prime Minister of Australia 9th Singapore Lecture 14 December 1988 Regionalism, Globalism and Spheres of Influence: ASEAN and the Challenge of Change into the 21st Century by MAHATHIR BIN MOHAMAD Prime Minister of Malaysia 10th Singapore Lecture 15 October 1989 Trade Outlook: Globalization or Regionalization by BRIAN MULRONEY Prime Minister of Canada 11th Singapore Lecture 3 April 1991 International Economic Developments by R.F.M. LUBBERS Prime Minister of the Netherlands

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17 12th Singapore Lecture 4 January 1992 U.S. Policy in the Asia-Pacific Region: Meeting the Challenges of the Post Cold-War Era by GEORGE BUSH President of the United States of America 13th Singapore Lecture 8 September 1994 India and the Asia-Pacific: Forging a New Relationship by P.V. NARASIMHA RAO Prime Minister of India 14th Singapore Lecture 17 January 1996 Australia, Asia and the New Regionalism by PAUL KEATING Prime Minister of Australia 15th Singapore Lecture 14 January 1997 Reforms for the New Era of Japan and ASEAN: For a Broader and Deeper Partnership by RYUTARO HASHIMOTO Prime Minister of Japan 16th Singapore Lecture 6 March 1997 South and Southern Africa into the Next Century by NELSON R. MANDELA President of the Republic of South Africa 17th Singapore Lecture 30 November 1999 China and Asia in the New Century by ZHU RONGJI Premier of the State Council of the People’s Republic of China

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18 18th Singapore Lecture 14 February 2000 Global Values: The United Nations and the Rule of Law in the 21st Century by Kofi A. Annan Secretary-General of the United Nations 19th Singapore Lecture 27 November 2000 Peace on the Korean Peninsula and East Asia by KIM DAE-JUNG President of the Republic of Korea 20th Singapore Lecture 14 January 2002 Japan and ASEAN in East Asia: A Sincere and Open Partnership by JUNICHIRO KOIZUMI Prime Minister of Japan 21st Singapore Lecture 9 April 2002 India’s Perspectives on ASEAN and the Asia-Pacific Region by ATAL BIHARI VAJPAYEE Prime Minister of India 22nd Singapore Lecture 6 July 2002 EU-Asia Relations: Sharing Diversity in an Inter-regional Partnership by ROMANO PRODI President of the European Commission 23rd Singapore Lecture 13 May 2003 Investments into the Future: State and Economy at the Beginning of the 21st Century by GERHARD SCHRÖDER Chancellor of the Federal Republic of Germany

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19 24th Singapore Lecture 30 April 2004 Global Challenges in the 21st Century: A View from Chile by Ricardo Lagos President of Chile 25th Singapore Lecture 16 February 2005 Indonesia: The Challenge of Change by Susilo Bambang Yudhoyono President of the Republic of Indonesia 26th Singapore Lecture 21 April 2005 Africa’s Season of Hope: The Dawn of a New Africa-Asia Partnership by thabo mvuyelwa mbeki President of the Republic of South Africa 27th Singapore Lecture 1 February 2006 Evolution of Enlightened Societies on Our Planet by A.P.J. ABDUL KALAM President of the Republic of India 28th Singapore Lecture 11 April 2006 Asia-Middle East Cooperation: Opportunities and Challenges by PRINCE suLtan bin abdul aziz al-sAud Crown Prince and Deputy Prime Minister of the Kingdom of Saudi Arabia 29th Singapore Lecture 12 August 2008 Australia, Singapore, Our Region and the World by kevin rudd Prime Minister of Australia

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20 30th Singapore Lecture 23 October 2009 Towards New Global Partnerships: Economics, Governance, Values by JAN PETER BALKENENDE Prime Minister of the Netherlands 31st Singapore Lecture 2 June 2011 by ANGELA MERKEL Chancellor of the Federal Republic of Germany 32nd Singapore Lecture 13 March 2012 The Importance of Governance for Sustainable Developments by HELEN CLARK Administrator of the UN Development Programme and Former Prime Minister of New Zealand 33rd Singapore Lecture 26 July 2013 Japan and ASEAN, Always in Tandem: Towards a More Advantageous Win-Win Relationship through My “Three Arrows” by SHINZO ABE Prime Minister of Japan 34th Singapore Lecture 22 April 2014 The Future of ASEAN by HIS MAJESTY SULTAN HAJI HASSANAL BOLKIAH MU’IZZADDIN WADDAULAH Sultan and Yang Di-Pertuan of Brunei Darussalam 35th Singapore Lecture 29 June 2015 Our Common Challenges: Strengthening Security in the Region by TONY ABBOTT Prime Minister of Australia

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21 36th Singapore Lecture 7 November 2015 Forging a Strong Partnership to Enhance Prosperity of Asia by Xi Jinping President of the People’s Republic of China 37th Singapore Lecture 23 November 2015 India’s Singapore Story by narendra modi Prime Minister of India 38th Singapore Lecture 30 August 2016 Strengthening Partnership for Regional Sustainable Development by tran dai quang President of the Socialist Republic of Vietnam 39th Singapore Lecture 24 November 2016 The Netherlands, Singapore, Our Regions, Our World: Connecting Our Common Future by mark rutte Prime Minister of the Netherlands

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