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Obama’s absence from summit disappointing: PM Lee Hsien Loong

NUSA DUA (BALI) — Alluding to the significance of President Barack Obama’s no-show at what was supposed to be four highly anticipated trips to Asia, Prime Minister Lee Hsien Loong said the United States’ role in the region is one that no other country, including China, can replace.

Prime Minister Lee Hsien Loong (fifth from left) and his wife Ho Ching with delegates from the Singapore ‘Voices Of The Future’ delegation in Bali, Indonesia yesterday. Photo: MCI

Prime Minister Lee Hsien Loong (fifth from left) and his wife Ho Ching with delegates from the Singapore ‘Voices Of The Future’ delegation in Bali, Indonesia yesterday. Photo: MCI

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NUSA DUA (BALI) — Alluding to the significance of President Barack Obama’s no-show at what was supposed to be four highly anticipated trips to Asia, Prime Minister Lee Hsien Loong said the United States’ role in the region is one that no other country, including China, can replace.

The current political gridlock gripping the US, therefore, is “not helpful” in the face of key long-term policy decisions the superpower must make to keep fiscally balanced and competitive, added Mr Lee, in his first comments on the partial shutdown of the US government, now into its sixth day.

As other leaders, such as Philippine President Benigno Aquino, flagged concerns about the ripples the situation may have on the world economy, Mr Lee expressed his “great disappointment” about Mr Obama’s absence at the ongoing Asia-Pacific Economic Cooperation (APEC) summit.

“Obviously, we prefer a US government that is working than one that is not, and we prefer a US President who is able to travel and fulfil his international duties to one who is preoccupied with domestic preoccupations ... because America is a very important partner for us,” said Mr Lee, who is in Bali for the summit.

“But we understand his problems and his priorities, and we hope it can be resolved earlier.”

Despite the ongoing morass in US politics, Mr Lee expressed confidence that America’s vibrancy and resilience will mean it will still be a “powerful” country in the world in 20 years’ time. “And that is good.”

The impasse over budget spending at Capitol Hill, which has caused some 800,000 jobs to be furloughed in the US, led Mr Obama to scrap visits to the Philippines, Malaysia, the APEC Economic Leaders Meeting, which kicks off today, and the ASEAN Summit in Brunei starting Wednesday.

In particular, it has led to added scrutiny of how talks over the Trans-Pacific Partnership, a significant free trade pact involving 12 countries, including the US and Singapore, on the sidelines of the summit will go.

The impact of his absence, coming shortly after his administration signalled the intention to pivot to the Asia-Pacific region, has been contrasted with the highly visible stops Chinese President Xi Jinping made in Asia in the meantime, including a historic address last week to the Indonesian Parliament.

Mr Lee, who made these comments at an APEC CEO Summit panel discussion, also said that relations between big powers, particularly America and China, more than any geopolitical risks worldwide, was key to security and stability in the Asia Pacific region.

“It has to be managed stably and responsibly on both sides with a long term perspective and America has to continue to be engaged in this region because it plays a very important role, which not other country can replace; not China, not Japan, not any other power,” he said.

“This (US) administration have said that they intend to shift towards Asia Pacific — they’ve said ‘pivot’, but I think they have changed the term now — but basically to invest resources, attention and presence in this region in order to develop the relationship.”

Citing Syria’s civil war, though, among the examples of the “many preoccupations in the world” the US has, Mr Lee noted: “For all their intention and their will, the circumstances don’t always push in their direction. And that is a practical problem.”

So far at APEC, the focus has been on global economic growth risks, and Asia-Pacific leaders, including host leader Indonesian President Susilo Bambang Yudhoyono, said yesterday that fighting protectionism and pushing through difficult reforms are critical to the global recovery as the biggest economies struggle with internal obstacles to growth.

Dr Yudhoyono added: “APEC is in the ideal position to help the recovery of the global economy.”

In his opening remarks, Mr Lee said that prospects for developing economies are brighter than they are for the US and Europe, provided they continue strengthening their infrastructure and legal systems to avoid the “middle-income trap”.

Countries must take steps domestically to sustain growth, such as investing in infrastructure and skills development, as well as improving the overall business environment and beefing up regulatory and legal frameworks.

At the same time, countries need to work with one another to liberalise trade and integrate economically, such as through removing non-trade barriers, pursuing free trade pacts, as well as maintaining peace and stability in the region.

Yesterday, Mr Lee also had bilateral meetings with the presidents of Peru and Mexico. Today, besides the meetings lined up for APEC economic leaders, Mr Lee will also meet Australian Prime Minister Tony Abbott and Hong Kong Chief Executive Leung Chun-ying.

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