12th Singapore Dialogue on Sustainable World Resources - Ms Grace Fu

1. Good morning. I am pleased to join you once again for the Singapore Dialogue on Sustainable World Resources. I thank Simon and SIIA team for having me at this annual event again. This year’s edition comes at a time of pivotal global geopolitical developments.

Climate change continues despite global headwinds

2. The rules based multilateral system is under pressure. Protectionism is rising, and trade barriers and supply chain disruptions are becoming more frequent. Governments and businesses are reassessing their priorities and strategies, including their environmental and climate ambitions.

3. We have also seen countries taking their foot off in climate action. Political support for decarbonisation is losing momentum and climate finance is becoming more elusive. Yet, we find ourselves confronted with an undeniable fact: climate change is here, and now. Its impact on lives is drastic and rising.

4. Many Southeast Asian countries have experienced extreme weather events recently:

   • In the second half of 2024, intense floods swept across Malaysia and Thailand, displacing thousands of people and damaging infrastructure worth millions of dollars;

   • Sweltering heatwaves are increasingly frequent across the ASEAN region. The Philippines experienced a severe heatwave throughout March and April this year, and Myanmar recording its highest ever April temperatures of 48.2°C last year.

Importance of regional cooperation

5. As climate change intensifies amidst these uncertain times, the need for greater ASEAN cooperation to address the challenges faced by our region is more salient than ever.

6. ASEAN is making progress in climate action.

   • Of the 10 ASEAN countries, eight have committed to an economy-wide net-zero target or carbon neutrality.

   • The ASEAN Centre for Climate Change will be set up in Brunei Darulssalam to facilitate regional cooperation and coordination on climate change initiatives. All 10 ASEAN member states have signed the Establishment Agreement and the Centre will be officially stood up once the Agreement is ratified by member states.

   • ASEAN is investing in renewable energy sources as the region’s energy demand is expected to more than double by 2040. As a region, we are working towards integrating the power systems to form an ASEAN Power Grid, which will enhance regional energy security while decarbonising the power sector.

7. Many of us here today are from the agribusiness industry. Agribusiness and sustainable forestry practices have a pivotal role in ASEAN countries’ climate adaptation and mitigation efforts.

Sustainable agribusiness and forestry practices

8. ASEAN countries are among the world's largest producers of agricultural commodities, contributing to about 80% of global palm oil, 80% of global rubber, and 20% of global rice production. The agriculture, forestry and fishing industries collectively contribute to about 10% of ASEAN’s GDP, and remains a primary source of jobs for many people across the region.

9. Agriculture production is both a cause and a victim of climate change. According to a UN study, the various steps of farming, transportation, consumption and disposal emit a third of all human-caused greenhouse gas. Meanwhile, changing weather patterns such as intense heat and droughts decrease yield and productivity.

10. Hence, sustainable agribusiness and forestry practices are instrumental in climate action and resource conservation. By avoiding unsustainable farming practices, such as burning stubbles and slash-and-burn techniques, we could reduce the risk of deforestation and transboundary haze. Notably, Thailand, Lao PDR and Myanmar have made such efforts through the joint Clear Sky Strategy 2024-2030 launched last October.

11. Similarly, Indonesia's efforts to reduce deforestation through legislations and continued monitoring, as well as Malaysia's sustainable palm oil initiatives such as the Malaysian Sustainable Palm Oil Certification Scheme, show how we can balance economic needs with environmental protection.

12. Sustainable agribusiness and forestry practices is therefore an imperative, not an option. Besides positive impact on the environment, there are business advantages.

    • Growing consumer awareness about environmental concerns has increased demand for certified-sustainable products. Certification marks such as the Singapore Green Labelling Scheme (SGLS) are helping the public to identify over 4300 products that meet eco-standards. In Singapore, the public sector has embarked on green procurement. Since 2016, the Singapore Government only buys paper that carry the Singapore Green Label, which gives assurance that suppliers practice sustainable forestry management.

    • Commitment to sustainability also strengthens supply chain resilience and risk management. Sourcing from suppliers that practice sustainable agriculture reduces the risk of supply disruptions caused by environmental events or regulatory changes. It also helps companies mitigate reputational risk by ensuring that operations are environmentally responsible.

    • There are also regulatory developments imposed by export markets. For example, the EU has announced its plans to introduce regulations on Deforestation-free Products (also known as EUDR). Companies that want to continue exports to the EU must therefore take compliance into consideration to maintain market access.

13. Singapore remains committed to supporting sustainable agribusinesses despite not having a significant traditional agriculture industry. We are a finance hub for many agribusinesses and commodity trades in the region, and we are growing our local agri-tech sector. We are also a very active centre in carbon services with many new carbon services company setting up headquarters and operations in Singapore.

14. We are collaborating closely with regional partners to develop climate-resilient crops and sustainable farming practices. Our researchers at the National University of Singapore’s Tropical Marine Science Institute are working closely with ASEAN countries to study the impact of climate change on ASEAN’s agriculture sector to enhance regional food security. The study is expected to be completed in the second quarter of 2026. The study will help ASEAN better manage the risks, so that we can plan our response to adapt to the impacts of climate change on crop production at national and local levels.

Conclusion

15. In conclusion, I would like to summarise three key points:

    • First, climate change waits for no one. We need to maintain the momentum of climate action in spite of the global headwinds, and keep a steady course in achieving the green transition.

    • Second, it is imperative for ASEAN to deepen our cooperation in climate action. Fortunately, we are not starting from ground zero, and ASEAN countries must build on the work that has been done and continue the spirit of cooperation to take ASEAN forward.

    • Third, sustainable agribusiness and forestry practices is good for business and the environment. We must ensure that our efforts to develop the agri-commodity sector align with our environmental commitments.

16. I hope that the 12th Singapore Dialogue on Sustainable World Resources catalyses thinking on the future of the agribusiness and forestry industry, and how they contribute to sustainability in ASEAN. I would like to thank SIIA once again for their efforts today.

17. I wish you fruitful discussions ahead. Thank you.