SINGAPORE — The year 2012 was not one that the Association of South-east Asian Nations (ASEAN) could be “particularly proud of”, as its “unity and credibility were painfully tested” by the regional grouping’s failure to sign a joint communique during Cambodia’s chairmanship, due to disagreements on how to address territorial claims in the South China Sea, Foreign Affairs Minister K Shanmugam said yesterday

Speaking in Parliament during the debate of the ministry’s spending plans yesterday, he expressed optimism in Brunei’s “crucial” chairmanship this year, as “an experienced and committed member of ASEAN”. “We are confident that it will promote consensus through consultations with all ASEAN members and our dialogue partners,” added Mr Shanmugam.

He felt that the Republic’s external environment will remain “challenging” this year, due to the fragile international economic and financial situation.

While the United States’ global leadership “is indispensable for the foreseeable future”, it is preoccupied with overcoming its domestic political gridlock in order to overcome economic challenges.

China, meanwhile, is reluctant to assume the responsibilities of global leadership and is itself preoccupied with maintaining domestic stability and sustaining economic growth. And the shifting power balances are reflected in enhanced tensions in this region, such as maritime claims between China and Japan, as well as in the South China Sea disputes.

One strategy to protect Singapore’s interests in this “unpredictable environment” is by strengthening the Republic’s regional relationships through ASEAN, said Mr Shanmugam. “ASEAN reflects as well as mitigates diversities inherent in the region — it is strategically vital to Singapore as a buffer as well as an influence multiplier,” he added.

Mr Shanmugam also outlined strategies for ASEAN to regain unity and credibility: Realising ASEAN community-building targets by the end of 2015, taking positions on key issues affecting the region including on the South China Sea, and retaining ASEAN’s central role in the regional architecture, particularly in the East Asia Summit.

On engaging the major powers, Singapore’s “consistent” position is to maintain strong links with the US and China. “It is in our region’s interests to keep both the US and China engaged in the region, in a collaborative manner; accommodating each other’s and the region’s interest to enhance peace and stability in the region.

“The United States and China are deeply interdependent across a broad spectrum of areas. Neither can prosper without the other, and both know that,” Mr Shanmugam said.

He will be meeting US Secretary of State John Kerry next week, and plans to visit China later this year.