Addressing delegates from 26 nations at the 6th International Institute of Strategic Studies' Asia Security Summit at Shangri-La Hotel, Mr Lee said a 'huge wave' of optimism is sweeping over Asia.
In his speech, he touched on the key strategic and geo-political issues of Asia's major players, including China, India, Japan and Asean.
Region's strategic environment stays favourable, he says at security summit
By Daniel Buenas
(SINGAPORE) The security outlook for Asia is stable and prospects are good in the coming years. But despite the positive signs, there are still risks that can derail the region's optimistic forecast, Prime Minister Lee Hsien Loong said last night.
Addressing delegates from 26 nations at the 6th International Institute of Strategic Studies' Asia Security Summit at Shangri-La Hotel, Mr Lee said a 'huge wave' of optimism is sweeping over Asia.
In his speech, he touched on the key strategic and geo-political issues of Asia's major players, including China, India, Japan and Asean.
The region's strategic environment remains favourable and relations between its major powers continue to be constructive, he said. 'Regional concerns are being managed, including in North Korea where some progress is being made on the nuclear issue. These conditions provide the essential backdrop for the region to grow and develop.'
One challenge for Asia is to develop the right framework so countries can 'deepen cooperation, discuss sensitive issues and contain and manage frictions' to ensure a stable environment, Mr Lee said. 'Over time, we hope that a robust regional architecture will emerge, which will enable Asian countries to work together on not just economic but also security issues. This is a prerequisite for prosperity and growth in the region, and indeed in the world.'
There are several potential security and political risks that could derail Asia's prospects, he said. One is the souring of US-China ties, with trade frictions a possible catalyst.
The misaligned exchange rate between the yuan and the US dollar has become a politicised and emotional issue, which, if not checked, could eventually lead to protectionist measures on both sides.
It could also cause 'friction and recrimination that would sour the broader relationship between the two countries and increase the risk of a cold war', which in turn would constrict trade and investment flows, Mr Lee said.
Another potential flashpoint is Taiwan, where recent political decisions and statements have been made that could 'raise the temperature' and lead to 'unintended and dangerous escalation of tentions between China and the US'.
A second potential risk is an upheaval in the Middle East caused by the Israel-Palestine conflict, a premature pull-out from Iraq by the US or if the nuclear issue in Iran - which Mr Lee called a 'critical uncertainty' in the region - is not resolved.
The final scenario with serious security implications is climate change.
'At the simplest level, climate change has the potential to create natural disasters and humanitarian crises,' Mr Lee said.
'In countries where the economic and political environment is already fragile, the stresses from climate change can cause social upheavals and civil strife.'
This is why it is vital that serious discussions on climate change take place and the problem be confronted head-on.
'Climate change can undermine the stable and predictable environment that underpins the growth and prosperity of all countries,' he said. 'This makes it a serious long-term threat to the security of the region, and the world.'
Despite the risks, Mr Lee is confident the transformation of Asia will continue.
'Virtually all Asian countries recognise that it would be counter-productive to resist change altogether, or try to maintain the status quo - they are modernising rapidly, absorbing new ideas, adapting them to their own situations, and influencing one another,' he said. 'Our response to the challenges ahead must be creative and far-sighted. Then we can continue to achieve sustainable development and growth, raise living standards for all and bring about an Asian renaissance.'
