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Prime ministers Anwar Ibrahim of Malaysia (left) and Lee Hsien Loong of Singapore have warned of the impact of the big power rivalry on Asia, a region heavily dependent on China for trade but where the US is a major security partner. Photo: dpa

Boao Forum: Singapore, Malaysian leaders voice concerns over spillover effects of US-China rivalry

  • ‘Big powers have a heavy responsibility’, Singaporean Prime Minister Lee Hsien Loong tells Boao Forum for Asia in southern China
  • Malaysian Prime Minister Anwar Ibrahim highlights tech rivalry, saying ‘unfettered competition must give way to spirited collaboration’
Southeast Asian leaders attending an annual economic forum in China have warned of the spillover effects of great power rivalry, calling for healthy competition instead in the latest sign of deepening worries in the region over US-China tensions.
The US-China relationship was the “most worrying” and tensions between the two were felt “keenly” across the world, Singaporean Prime Minister Lee Hsien Loong told the Boao Forum for Asia in the southern Chinese province of Hainan on Thursday morning.

“Big powers have a heavy responsibility to maintain stable and workable relations with one another, because any clash between them will have grievous consequences, for themselves and the world,” Lee told world leaders, business executives and academics gathered for the forum.

“And yet, the US and China are at odds over many intractable issues, including trade and investment, supply chains, cybersecurity, emerging and critical technologies, as well as freedom of navigation.

“We hope that China and the United States will succeed in stabilising their relationship and establishing mutual trust and respect, to cooperate in areas where their interests are aligned.”

Singaporean Prime Minister Lee Hsien Loong has voiced hopes for “a more stable and balanced region”. Photo: AP

Lee’s remarks come at a time of fierce US-China stand-offs on issues ranging from trade and military and tech supremacy to ideology, leaving smaller nations around the world struggling to find a middle path.

The Russian invasion of Ukraine 13 months ago further strained ties between the two, after Washington accused Beijing of siding with Moscow for refusing to condemn the military action or join the West in imposing sanctions.

“Russia’s invasion of Ukraine has gravely violated the UN Charter and international law, and profoundly undermined the rules-based international order,” Lee said.

Worries over the fallout of the US-China tussle appear to be deeper for Asia, a heavily trade-dependent region where China is the top trading partner to most nations but the United States is considered as a major security partner.

Malaysia, Singapore to showcase ‘proactive’ diplomacy as leaders visit China

Lee said the rift between the great powers would not only take its toll on the regional economy but also hamper efforts to tackle urgent global problems, such as climate change, energy and food security, as well as pandemic preparedness.

Economic imperatives are being overshadowed by national security concerns. Countries are pursuing self reliance and resilience by onshoring, or friend-shoring, their supply chains,” Lee said.

“The bifurcation in technological and economic systems is deepening and this will impose a huge economic cost on countries as well as further exacerbate rivalries.”

Rising to speak after Lee, Malaysian Prime Minister Anwar Ibrahim stressed the need for talks among top leaders to prevent competition – especially in the tech sector – from taking a taking a destructive turn.

“While geoeconomic competition in the past was focused on commodities and resources, the current race is about cutting-edge technology, as demonstrated for example in the competition in the semiconductor industry,” said Anwar, who is on his first visit to China since taking office in November.

Malaysian Prime Minister Anwar Ibrahim wants tech rivalry to be discussed at the highest levels. Photo: AP

He also called for intellectual property rights protection so that countries can stay ahead of the competition.

“We need to establish certain guardrails so that the competition does not lead to a bifurcation in the technological world, one that will only raise costs and impede further progress,” Anwar told the high-profile economic forum sometimes labelled as the “Davos of Asia”.

“That is why I believe that technological competition should be one of the principal agenda items for discussion at the highest levels, right up there with discourses on security and general economic matters.

“Unfettered competition must give way to spirited collaboration.”

01:36

AI chip maker ordered by US government to halt exports to China

AI chip maker ordered by US government to halt exports to China
Malaysia accounts for about 7 per cent of the world’s semiconductor trade and is a critical link in the global supply chain for advanced chips, with China one its major export markets.

There are concerns that Malaysian chip makers will be caught in the crossfire as the US restricts China’s access to advanced semiconductor technology, which has hit investor confidence in the sector.

Both Anwar and Lee head to Beijing next for meetings with top-level Chinese officials, including President Xi Jinping.

Malaysia, China to announce major deals as investors buoyed by Anwar: minister

Countries in Southeast Asia have so far avoided taking sides in the US-China power rivalry, and Lee said the region would stay open to building ties with the rest of the world to maintain healthy competition.

“Strong economic ties across regions will foster greater interest among more stakeholders to engage constructively in Asia,” he said.

“This will encourage healthy competition, spur innovation and partnerships, moderate tensions when they arise, and make for a more stable and balanced region.”

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