On August 14, DBS CEO Piyush Gupta expressed optimism about the global landscape, stating that he did not foresee an "Iron Curtain" dividing the East
On August 14, DBS CEO Piyush Gupta expressed optimism about the global landscape, stating that he did not foresee an “Iron Curtain” dividing the East and West, nor did he believe a new Cold War would arise between the U.S. and China. Gupta shared his insights at the Reinventing Destiny conference, commemorating the 100th birth anniversary of Lee Kuan Yew, during a panel discussing Singapore’s economic transition in the 21st century.
A Defense of Globalisation
Gupta made a strong case for globalisation, questioning predictions about the demise of the global system. He outlined three key considerations for Singapore regarding its economic future.
Doubling Down on Globalisation
He argued that Singapore must “double down” on globalisation, asserting that the link between the nation’s prosperity and the global economy remains as vital today as it was 60 years ago. “Singapore will collapse if the global system collapses,” Gupta stated emphatically.
However, he expressed a more positive outlook compared to many skeptics about the global system’s future. “I do not see an Iron Curtain falling between East and West. I don’t see a Cold War emerging,” he stated, explaining that China’s significant integration into the global economy makes such a division unlikely. Gupta noted that China is the top trading partner for 68 countries, including eight ASEAN nations.
Despite potential restrictions in specific sectors like semiconductors, he asserted that it would be “very hard” to fully decouple China from the global system. Instead, he envisioned a world that is increasingly multi-polar rather than bi-polar. He also recommended broadening Singapore’s economic focus to include more engagement with India and Indonesia.
Embracing Emerging Trends
Gupta highlighted the need for Singapore to embrace digitisation and sustainability. He pointed out that a substantial portion of global GDP is now generated online, presenting both challenges and opportunities. Gupta encouraged the audience to not only develop digital businesses but also establish the norms that will define the future of operations in the digital realm.
While acknowledging that Singapore may not generate as much data as larger countries like China, he posited that the nation could serve as a hub for data collection and trading, aligning with its established role as an intermediary. Gupta also noted Singapore’s potential to be a center for sustainability solutions, particularly in carbon markets.
Nimbleness and Leadership
Gupta’s final point centered on the importance of strong leadership and the collaboration between the public, private, and people sectors, which have been crucial to Singapore’s success. He described Singapore as a “living lab,” leveraging its size and technological advancements to remain nimble.
Though he recognized the challenges posed by global changes and the difficulties faced by small states, Gupta maintained a positive outlook, emphasizing the need for adaptability and resilience. “To be nimble, adaptable, and resilient, how you work will be far more important than what you do,” he concluded, highlighting Singapore’s ability to unite and collaborate in the face of adversity.
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