Dear Ms Shirley Qi,

Dear Dr Tim Philippi,

Dear representatives of German businesses in Singapore,

Ladies and Gentlemen,

It gives me great pleasure and it is an honour to address you at today‘s SGC luncheon, shortly after my arrival as new German Ambassador to Singapore. Thank you for the invitation.

To arrive in Singapore not only means to arrive in the heart of the ASEAN region, but also at the gateway to the wider Indo-Pacific. And this is the topic I would like to speak to you about today.

Four years ago, in 2020, the Federal Government, for the first time, adopted policy guidelines on the Indo-Pacific. The reasons for doing so were much debated at the time, but in my view they are as relevant today as they were four years ago:

1) It can be argued that the global centre of gravity is gradually shifting from the Euro-Atlantic to the Indo-Pacific region. Decades of steady economic growth - not only in China, but also in South and Southeast Asia – have led to growing political clout of this part of the world.

Of course, Germany is not an Indo-Pacific nation. But we nonetheless have vital interests in the region: Interest in open markets, accessible maritime routes, sustainable supply chains, accepted norms and standards, and global agendas like climate and environmental protection.

2) Germany is well aware of the long-term challenge that an increasingly assertive China poses to the stability and peace in the Western Pacific. Chinese capabilities and ambitions have been growing. This is posing a threat to the existing order in the region. We see how many countries of the Indo-Pacific look towards China with growing concern.

3) The increasing great-power antagonism between the US and China is driving the world into a looming bipolarity. In addition, armed conflicts such as in the Middle East or in Ukraine drive wedges into the system of international relations.

A bipolar world order would come at huge political and economic cost, not just to Germany and Singapore. We will do our utmost to avoid such a scenario. Therefore, we are well advised to come up with credible and attractive offers to partners in the region. The Indo-pacific Policy was written to guide these efforts.

Before I get to a stock-taking of the Indo-Pacific Policy in more detail, please allow me a word on China, arguably the most dynamic challenge in the region.

The current Federal Government, already in its coalition agreement, set out to draft Strategy on China, and after a period of hard work and negotiations led by the Foreign Office, it was adopted by Cabinet in July last year. I know this strategy has already been discussed in events organized by this Chamber, but please allow me to reiterate some key points:

I believe we are in full agreement that a confrontational policy towards China would not be a very wise approach, neither for Germany nor Europe. On the contrary - it would limit our options with partners here in the region. Germany‘s policy guidelines on the Indo-Pacific are explicitly bound to the principle of inclusiveness; they include China. Diversification does not mean exclusion.

The countries of the Indo-Pacific, and in particular in South and Southeast Asia, are also pursuing a differentiated approach towards China. They follow an inclusive vision for the whole region, as reflected by the ASEAN Outlook on the Indo-Pacific.

This said, regarding China we are following a three-dimensional approach:

1) China is our partner in coping with global challenges like the protection of climate and biodiversity or fighting global health crisis. We cooperate with China on regional issues such as the Middle East and DPRK. We also work together in the field of economic development - globally and in specific countries, in particular in Africa.

2) China is our competitor in a strained trade and investment relationship as it is suffering under considerable asymmetries. We are determined to reach a level playing field. In order to achieve that, be it in e-vehicles or solar panels, just to give some examples, the European Commission and the EU member states see no choice but to impose countervailing duties on Chinese products such as battery electric vehicles.

3) China is our systemic rival - in terms of governance, human rights, its understanding of the international order or its selective respect for international conventions like UNCLOS. Therefore, we have to defend our values, our interests, and our sovereignity with appropriate means and instruments. We have to strengthen the resilience of our societies and economies.

Germany is now four years into implementing our policy guidelines on the Indo-Pacific.

Where do we stand in concrete terms? Looking back a lot has either already been achieved or is happening as we speak. I would like to highlight a few examples in the areas of political dialogue, security policy, and economic relations.

One of the most visible signs of our intensified engagement with the countries of the Indo-Pacific is increased political dialogue. Ever since countries opened up again following the Covid pandemic German political representatives have shown face extensively and at all levels. Just to give you few examples:

• Federal President Steinmeier travelled to the region three times including to Singapore in June 2022.
• Federal Chancellor Scholz has visited several countries in the region including China, Vietnam, Japan, Indonesia, and Singapore.
• Vice Chancellor and Minister for Economics and Climate Action Robert Habeck not only attended the APK in November 2022 here in Singapore. He also visited China and India amongst others.
• Foreign Minister Baerbock, despite the crises in Ukraine and the Middle East, traveled to the region twice, focusing in particular on the Pacific islands. And our decision to open a German embassy in Suva on Fiji is an expression of clear political commitment to the Pacific island nations.
• Defense Minister Pistorius not only attended the ShangriLa Dialogue; he also partially accompanied German soldiers on their missions to the region. Most recently he was in Manila.
• Other ministers such as Labour Minister Heil signed agreements on skilled workers.

Let us now take a look at Germany’s security engagement.

Germany is committed to maintaining the rules-based international order and the freedom of navigation in this region - by enhancing our cooperation with valued and new partners in the region, by stepping our participation in military exercises and by strengthening defense industrial cooperation in the Indo-Pacific.

What does that imply exactly?

• Following the Indo-Pacific deployment of 2020/21 – you may recall the port visit of the frigate Bayern here in Singapore –, the German forces are stepping up their military engagement. Our plan are annual Indo-Pacific deployments.
• In May of this year another naval deployment and an air force detachment have been dispatched to the Indo-Pacific. The frigate Baden-Württemberg and the support ship Frankfurt are expected to arrive here in Singapore in early October.
• The combined Indopacific Deployment of the Bundeswehr – the naval presence plus and air detachment, and other contributions across the Indo-Pacific including ambitious joint exercises with India and Japan - are testimony to Germany’s unwavering commitment to a free and open Indo-Pacific.

How do we look at the region from an economic perspective?

The countries of the Indo-Pacific region are shaping the 21st century. Almost two thirds of global GDP are generated here. Over the past decades, this region has become a powerhouse in many respects. Its economies are growing fast and are well integrated into the world economy. Its population is well-trained and well-educated, full of expectations and ambitions.

Today, trade with the Indo-Pacific region accounts for around one-fifth of Germany’s global trade. Jobs in Germany depend on trade with this vibrant region.

Consequently, we want to invest in our economic and trade relations with the countries of the Indo-Pacific. And we do so in many ways.

In March this year, Germany Trade and Invest (GTAI) opened a regional office here in Singapore. It will pursue the task of cexamining significant trends and developments across all Southeast Asian countries and markets, and provide German companies with orientation, in a region they take into focus in their efforts to diversify.

The same is true for export and investment guarantees. To promote and enhance diversification strategies of German businesses the German government has eased access to such guarantees for projects to be implemented in key ASEAN countries.

Obviously, trade relations fall under the domain of the European Commission. Nonetheless, Germany is actively promoting an expansion of trade relations by the EU.

• In May 2024 the FTA between the EU und New Zealand entered into force.
• Also in spring of this year, the EU and the Philippines decided to resume their FTA negotiations.
• And FTA negotiations with India, Indonesia and Thailand may progress at a small pace, but they move ahead.

In the digital sphere Singapore and the EU concluded negotiations on a Digital Trade Agreement in July of this year. This agreement will open up opportunities for European companies to intensify their digital trade with Singapore and, hopefully, beyond.

In parallel, Germany and Singapore have agreed to start a bilateral digital dialogue, in order to operationalize digital trade.

Our Indo-Pacific Policy as set out four years ago has guided our efforts in to allocate more resources - political and economic - to this part of the world.

And while I have focused my remarks on the commitment on the Government side, I would like to stress that the guidelines provide a frame for all stakeholders to step up their engagement.

Last but not least: The fact that PM Wong and Chancellor Scholz agreed in spring of this year to work towards upgrading the bilateral relations between Germany and Singapore to a strategic level is yet another proof our increased engagement, and the mutual interest therein.

We are still working on the substance of this agreement, and hope to see it finalized soon. If and when that is case, maybe this will be a topic for another SGC Luncheon...

Thank you.