Trade Issues Between the US and China:
The trade issues between the US and China need to be addressed and updated, considering China’s significant growth and impact on the world economy.

Beyond Trade:
Trade issues, if not handled well, can lead to broader conflicts over investments, currency, and other areas, fostering mutual suspicions and distrust.

Core of Distrust:
Some Chinese believe that the US wants to hinder China’s rise to its rightful place in the world, while some Americans fear China’s ambition to supplant America as the dominant superpower.

America’s Perspective:
China is not necessarily a top priority for most Americans, but if issues are not handled well, stereotypes and policy consequences may arise.

Singapore’s Role in China’s Development:
Singapore has been influential in China’s development, seen as a model of how China can progress while maintaining its unique Asian perspective.

China’s Perception of Singapore:
China is intrigued by Singapore’s ability to have regular free and open elections, multi-party politics, and a meritocratic system.

China’s Future:
China may not see Singapore as a direct model for its own evolution, but it seeks to understand how Singapore achieves its unique governance and societal structure.

China’s Future:
PM Lee foresees China’s economic growth and regional engagement to increase significantly in the next decade. China’s economy is already the dominant trading partner for most Asian countries. Domestic challenges include income inequality and the need for economic, social, and political reforms.

ASEAN’s Perspectives on China:
Countries in ASEAN have varying strategic perspectives towards China. Indochina countries like Vietnam aim to maintain independence while seeking aid and cooperation from China. Thailand strives to maintain friendly relations with all major powers, including China. Countries with disputes in the South China Sea, such as the Philippines, Malaysia, and Brunei, have complicated relations with China, seeking to avoid conflict while considering broader interests. Singapore has no stake in the South China Sea disputes but values China’s prosperity, stability, and the region’s openness and security, which depend on both China and the United States.

Regional Tensions and Rivalries:
PM Lee acknowledges that rivalries between major powers can impact smaller countries in Southeast Asia. Disputes and complexities exist between neighboring countries, including Malaysia and Indonesia, which require constructive and win-win solutions while respecting core interests. Elections in Malaysia and Indonesia are significant events, but Singapore remains committed to working with the elected administrations. ASEAN countries experience gravitational and tidal forces from major powers, influencing their perspectives and requiring accommodation in discussions and consensus-building.

China and America in the Region:
Both China and the United States have significant influence and interests in the region. ASEAN countries must navigate these different views and accommodate varying perspectives in order to develop a consensus ASEAN position on various issues. The EU also faces similar challenges in dealing with China and the United States, requiring accommodation of different views among its member states.

ASEAN Meeting Attendance:
President Xi does not usually attend ASEAN meetings, and instead sends the Premier. This year, Premier Li Keqiang will be making an official visit to Singapore. President Trump is unable to attend and is sending Vice President Pence.

Singapore’s Healthcare System:
Singapore’s healthcare system is based on the principle of personal responsibility, with the government providing subsidies and expecting some co-payment from individuals. This principle is not accepted everywhere, with the UK’s National Health explicitly refusing to adopt it. Singapore’s compulsory savings fund, the Central Provident Fund (CPF), has been built up over time and is accepted by the population.

Singapore’s Education System:
Singapore’s education system is relatively unstructural and easy to navigate, with a focus on firing bad teachers. This is an unusual approach, especially in the United States. Singapore has moved away from a system based on seniority and pay scales to one with proper promotions and career advancements, allowing for the development of master teachers, educational leaders, and specialists. Despite interest from other governments, Singapore’s education system is difficult to replicate due to the need to persuade teachers’ unions and the public to accept a system with a strong government role.

Singapore’s Aging Population:
Singapore is facing an aging population, with the median age rising to 41 and the proportion of people aged 65 and above expected to increase from one in seven to one in three by 2030.

Government’s Role in Encouraging Longer Work:
The government cannot force people to work longer, but it can provide incentives and make it feasible for older workers to continue working. One such incentive is a subvention to employers who keep older workers on their payroll, helping to cover the cost of their compulsory CPF savings.

Immigration:
Immigration is a complex issue that involves economic, social, and cultural factors. Singapore has a large foreign worker population, with one-third of the workforce being foreign workers. The country also accepts a significant number of permanent residents, with around 30,000 new permanent residents granted each year.

Balancing Native-Born and Immigrant Populations:
Singapore aims to maintain a balance between native-born citizens and immigrants, ensuring that the native-born population remains satisfied with the level of immigration. The government’s goal is to have enough native-born children to sustain the next generation, while also welcoming immigrants who can contribute to Singapore’s society and economy.

Challenges in Achieving a Desired Population Balance:
Singapore’s fertility rate is below the replacement level of 2.1 children per woman, making it difficult to achieve the desired balance between native-born and immigrant populations. The government has implemented various measures to encourage couples to have more children, but these efforts have not been fully successful.

Balancing Immigration and Cultural Identity:
Countries around the world face trade-offs in managing immigration, balancing economic benefits with concerns about cultural identity and social cohesion. Japan, for example, has a more closed immigration policy, emphasizing language proficiency and cultural integration for immigrants. Singapore is trying to strike a balance by allowing immigration but also ensuring that the native-born population remains satisfied and that Singapore’s unique cultural identity is preserved.

Singapore’s Unique Path:
Singapore’s history and circumstances are vastly different from the United Kingdom, making it unrealistic for the UK to replicate Singapore’s model. Singapore has a much smaller size, is located in a volatile region, and has a smaller government footprint compared to the UK. Prime Minister Lee Hsien Loong emphasizes that Singapore’s success cannot be directly transferred to other societies due to fundamental differences.

Singapore’s Trade Deal with the UK:
Singapore is open to establishing a short-form trade deal with the UK post-Brexit to maintain existing trade arrangements. A more substantial agreement will be pursued in due course.

Prime Minister Lee’s Reflections:
The Prime Minister’s achievements in the past year, including the Kim-Trump summit and Singapore’s portrayal in “Crazy Rich Asians,” have not led to delusions of grandeur. He acknowledges that Singaporeans should not aspire to live like the wealthy characters depicted in the movie.

Election Timing and Political Dynasties:
Prime Minister Lee remains open to the possibility of calling an early election in 2021, although various factors influence such decisions. He confirms that none of his children have expressed interest in pursuing a political career, and he respects their choices.

Challenges of Governance in the Modern Age:
Prime Minister Lee highlights the increasing complexity of governance due to social media’s impact. The prevalence of fake news and rapidly shifting public opinion pose challenges for leaders trying to maintain a long-term perspective. Long-term strategic thinking becomes more difficult as leaders must constantly address immediate issues and public reactions.

Advice for Young People and Long-Term Planning:
Prime Minister Lee emphasizes the importance of long-term planning, even amidst technological disruptions. He advises young people to focus on acquiring basic skills, analytical abilities, and adaptability to changing circumstances. Long-term planning is crucial for issues like education, social safety nets, healthcare, and physical infrastructure, regardless of global uncertainties. He encourages people to think beyond immediate concerns and consider the well-being of future generations.

Biomedical Industry Development in Singapore:
Singapore focused on building capabilities in biomedicine, attracting scientists and companies, and investing in research institutes. Over 15-20 years, Singapore has seen positive results in biomedical innovation and development. PM Lee emphasizes the importance of patience, persistence, and adaptability in driving progress in this field.

Challenges in Identifying the Next Big Trend:
PM Lee highlights the difficulty in predicting the next major breakthrough or trend, such as AI or blockchain. He emphasizes the need for sober evaluation and comparison to venture capital approaches.

Advice on Resolving the US-China Trade War:
PM Lee cautions against being a mediator between Donald Trump and Xi Jinping. He believes the trade issues between China and America are genuine and require separate treatment from macroeconomic problems. PM Lee emphasizes the importance of addressing trade concerns, such as intellectual property and investment restrictions, through negotiations. He notes that trade negotiators are skilled at finding solutions, but leaders must show willingness to reach an agreement.

Managing the US-China Relationship Amidst Trade Tensions:
PM Lee stresses the need to prevent tensions from boiling over and respond with restraint. He emphasizes the importance of maintaining overall relations, especially given areas of cooperation like North Korea.

America’s Changing Role in the World Order:
PM Lee acknowledges America’s historical isolationism and its recent shift towards internationalism. He expresses concern about America’s potential retreat from this role and its impact on Singapore and the region. PM Lee emphasizes the need to adapt and survive in a world where America’s role is changing.

America’s Changing Role:
PM Lee Hsien Loong believes that America is rethinking its role in the world and considering a more unilateral approach to foreign policy. He notes that America’s dominant position in the world economy has allowed it to provide global public goods, such as maintaining peace and stability. However, as America’s share of global GDP has decreased, it is questioning whether it should continue to bear this burden and is considering a more isolationist approach.

The Consequences of America’s Changing Role:
If America adopts a more unilateral approach, it would result in a very different global environment, with no one able to play the role America has traditionally played. This would lead to a world where bilateral arrangements and arm-wrestling determine outcomes, which would be uncomfortable for small countries. America’s interest in stability, prosperity, global economic integration, and free access to markets depends on a multilateral global order supported by supranational institutions like the UN, World Bank, and IMF.

The Benefits of a Multilateral Global Order:
A multilateral global order has benefited America for generations, providing stability, prosperity, and global economic integration. It has allowed American companies to operate freely and access markets worldwide. While it may not be popular during elections, this multilateral order has served America well and should be sustained even as the global balance of power shifts.

America’s Ability to Reinvent Itself:
PM Lee believes that America has the ability to reinvent itself and overcome challenges, as it has done many times before. He warns against betting against America, as history has shown that such bets have often failed.

The Issue of Li Guangyao’s House:
PM Lee acknowledges the public disagreement within his family regarding the handling of Li Guangyao’s house and memory. He has recused himself from all decisions concerning the house, leaving it to the government to decide its fate. The Deputy Prime Minister, Mr Teo Chee Hean, is responsible for making decisions on this matter and has stated that no decision will be made until PM Lee’s sister moves out of the house.

Estonia’s Admiration for Singapore as a Role Model:
A questioner from Estonia expresses admiration for Singapore as a role model for small countries and praises its innovative services.

Global Inspirations for Singapore’s Future:
* Singapore looks to countries like Estonia for inspiration in e-government, cashless transactions, and going paperless.
* China’s Alipay and WeChat Pay systems are also admired for their success in replacing cash payments.
* The World Waters Prize is awarded annually to cities that excel in water management, and Singapore studies the winning cities to learn from their best practices.

Aspirations for Singapore’s Future:
* Singapore aims to be a small country with the “elixir of life,” meaning the ability to adapt, change, and remain successful over time.
* The city-state wants to reinvent itself continuously as the world changes to ensure its continued success and relevance in the future.

Venice as a Model for Longevity:
* Venice is seen as a model for Singapore’s aspirations, having thrived for 900 years before facing challenges due to changing global dynamics.
* Singapore’s goal is to emulate Venice’s longevity and adaptability, ensuring its success for many years to come.

Conclusion:
* The discussion concludes on time, highlighting the Singapore government’s efficiency and punctuality.