13th Singapore Dialogue on Sustainable World Resources - Ms Grace Fu

1.    Good morning. I thank Professor Simon Tay and the Singapore Institute of International Affairs for convening this important annual Dialogue to discuss the sustainable management of agri-commodities in the region.

2.    We meet today in a landscape that has significantly shifted. This time last year, the world was reeling from the imposition of tariffs. This year, many of us in the room would prefer that this remains the top-of mind issue. But alas, the developments in the Middle East have occupied centre-stage and compounded economic fragilities, supply chain disruptions, and inflationary pressures. The crisis impacts all sectors, all countries and all communities. Agri-commodities in Southeast Asia is no exception.

Geopolitical Impacts

3.    Among the key concerns of the sector has been the increase in production costs and the paralysis of critical maritime passageways. High energy prices and shortage of oil and gas supplies have brought hardship to people around the world and threaten to bring economies to stagnation. Damages to energy infrastructure will prolong the disruption, with knock-on effects expected in the next few years. One sector that will be hard-hit is agriculture, where the production of fertilizers from the beleaguered refinery sector has been brought to a standstill. The high price and lack of fertilizers will have consequent impacts on crop production, animal feed and ultimately food prices.

4.    Even as events in the Straits of Hormuz unfold, climate change has not paused. Southeast Asian countries are experiencing more extreme weather events.

• Last year was a year of extremes in Singapore, with 2025 recording the wettest March and hottest June and November.

• Tropical storms triggered deadly floods and landslides in the Philippines, Malaysia, Vietnam, Thailand and Indonesia.

• Earlier this year, temperatures spiked in Bangkok which experienced dangerous heat levels for 18 consecutive days, with the heat index exceeding 52 degrees Celsius on Monday!

5.    A warmer-than-usual dry season is also expected in coming months, with some meteorological agencies forecasting a “Godzilla El Nino” cycle. The World Meteorological Organisation predicts that this will amplify the impacts of climate change, including potential droughts in Southeast Asia. The projected hotter and drier conditions later this year could trigger more intense land and forest fires and generate smoke haze. ASEAN Member States will therefore need to be more vigilant this year and pursue closer regional cooperation through the ASEAN Agreement on Transboundary Haze Pollution, and the Sub-Regional Ministerial Steering Committee on Transboundary Haze Pollution.

6.    In other words, Southeast Asia faces a perfect storm caused by a double whammy of geo-political developments and climate change, which have severe implications for the region’s agri-commodity sector, and downstream impacts on jobs, public health, and food security.

7.    As we brace for volatile times, we should “not let a good crisis go to waste” and seize opportunities to enhance our resilience. The current crisis underscores how sustainability enables long-term resilience and growth. I will briefly elaborate on this from three angles.

Sustainability for Resilience

8.    First, sustainability enhances supply chain resilience. The Middle East conflict has demonstrated that trade arteries can be disrupted, including for the agri-commodity industry. But circular practices, such as producing organic fertiliser from palm oil waste or biogas from Palm Oil Mill Effluent, could pivot and reduce dependence on fossil fuel markets. Sustainable production and practices could therefore enhance resilience of input factors.

9.    Second, sustainability enhances economic stability. Southeast Asia is a major exporter of agri-products to the EU. In 2024, agricultural products made up close to 10% of ASEAN’s total exports to the EU. Adoption of compliant, sustainable practices could enhance the reputation of ASEAN products and help ASEAN companies secure long-term market advantage. Financial institutions and investors are also more discerning in terms of prioritising capital for firms with clear sustainability roadmaps. As such, sustainable production is not only about regulatory compliance, but also about access to market and capital for investment and innovation.

10.    Third, sustainability addresses climate change. Southeast Asia is home to some of the world's most productive but ecologically fragile agricultural land. Rising temperature causes crop stress, and prolonged droughts risk devastating harvests and increasing the risk of land and forest fires. Crop rotation, regenerative agriculture, and responsible land-use help maintain ecological balance while sustaining consistent produce. The use of climate-smart technologies such as soil monitoring and precision irrigation further mitigates the impacts of extreme weather events. Prioritising climate adaptation and sustainable land use practices will support productive yields, compounding over time, nurturing more rewarding jobs and stable income, and stabilizing food prices for people in the region.

11.    The geo-political backdrop has also created new risks that we should collectively monitor and manage.

•  “Green protectionism”, where trade barriers erected along with sustainability standards, could stifle trade, leaving growers, exporters and importers worse off.

• The risk of “the weakest link”. Robust sustainability requires traceability along the chain of activities, with increasing public scrutiny on the weakest link. Non-compliance by a single supplier could jeopardise the entire ecosystem. Collective responsibility and concerted action by all are therefore essential for sustainable businesses.

• And as we pursue sustainable energy supplies, such as biofuels, we need to manage the pressures on land use and increased risk of deforestation.

Emerging Stronger

12.     We can emerge stronger if we adapt, coordinate and cooperate quicker.  ASEAN Member States, under the leadership of the Philippines, have been quick to respond to the situation in the Middle East. Last week, ASEAN convened a Special ASEAN Ministers on Agriculture and Forestry Meeting on the Latest Situation in the Middle East.  The Members adopted a Statement to reaffirm the importance of regional cooperation to safeguard food security and agricultural supply chains through open markets and avoidance of trade restrictions. The meeting also reaffirmed the ASEAN Trade in Goods Agreement (ATIGA), which ensures the continued flow of essential goods, food and fertilisers. Similar discussions have been undertaken by both the ASEAN Economic Ministers and the ASEAN Foreign Ministers, calling for freedom of navigation, avoiding trade barriers and watching for impact on food systems.

13.     Singapore will continue to work with ASEAN Member States through the ASEAN Agreement on Transboundary Haze Pollution, and the Sub-Regional Ministerial Steering Committee on Transboundary Haze Pollution. We should remain vigilant to the heightened risks of haze this year, in view of the warmer-than-usual dry season prediction.

14.    In ASEAN’s collective endeavour for sustainability, another consequential opportunity for the region is the development of an ecosystem to unlock green economy opportunities, enhance resilience and accelerate decarbonisation. This can be achieved through the ASEAN Power Grid, the ASEAN Strategy for Carbon Neutrality, and the ASEAN Framework for Circular Economy for the ASEAN Economic Community.

15.    At home, we have designated 2026 as our Year of Climate Adaptation. We are developing a comprehensive National Adaptation Plan, involving the public, private and people sectors.

• We launched the Singapore Food Story 2, a refreshed food security plan with sharpened strategies to secure our food sources.

• It includes a new pillar on “Global Partnerships” to increase mutually beneficial arrangements with countries to strengthen resilience of food trade.

• We signed the first-of-its-kind legally-binding bilateral supply chain resilience agreement – the Agreement on Trade in Essential Supply ("AOTES") - with New Zealand earlier this week (4 May). The agreement commits both countries to strong obligations to: (a) not implement unnecessary export restrictions and (b) provide additional assurances to facilitate essential good movement during supply chain disruptions. It exemplifies our bilateral partnership to path-find forward-looking innovative initiatives with trusted partners.

• To keep our food supply flowing during disruptions, we have also signed the Memoranda of Cooperation on rice trade and food security with Viet Nam, Thailand, and Cambodia.

• To contribute to regional food security, we have also commissioned a study on ‘Climate Change in the Southeast Asia Region and its Impact on the Agricultural Sector’, leveraging the results of Singapore’s Third National Climate Change Study. The Study will be completed later this year, with results to be shared with ASEAN.

16.     Singapore is deeply committed to supporting and advancing ASEAN's climate and environment agenda. We will work with all ASEAN Member States to make meaningful progress together. Some of the challenges we face in the months ahead and foresee in the years to come will feed into Singapore's ASEAN Chairmanship next year. We see this as a sustained, collective endeavour to build momentum and enhance resilience.

Conclusion

17.      In conclusion, I urge all stakeholders to navigate these challenges by being nimble and accelerating the implementation of sustainable farming practices and responsible land usage.

18.     The good news is that we are not starting from zero. We can build on the strong foundations laid by predecessors and continue to forge ahead to build a more resilient agri-commodity sector. I am confident that when the storm clears, we will emerge stronger.

19.     I wish you fruitful discussions at this Dialogue. Thank you.