Singapore and Norway paired to succeed

By Espen Barth Eide, Published The Straits Times, 8 Nov 2012

WHEN I touched down in Singapore yesterday, I had arrived in Norway's No. 1 hub in Asia.

The spectacular rise of Asia is one of the most important developments of our time. For Norway, this is most apparent in Singapore. Singapore is home to the largest Norwegian business community in Asia. Both countries are also ever closer partners in innovative research and development.

The economic cooperation between Norway and Singapore goes beyond profitable business ventures alone; it is a strategic partnership that helps our nations to stay ahead.

Norwegian ships started calling on Singaporean ports hundreds of years ago. Over the last decades, Norway has seen the development of a complete cluster of Norwegian maritime companies in the Republic.

Of the more than 200 Norwegian companies based in Singapore, about 80 per cent are engaged in the maritime industry. Together, Norway and Singapore have become two of the most compatible maritime clusters in the world.

Norwegian companies in Singapore have helped Norway's shipping industry to stay competitive, while furthering Singapore's development as a global maritime nation.

Currently, maritime ties between Singapore and Norway also help the latter serve the market for vessels and rigs for the offshore oil industry. Again, the comparative advantages of both countries are paired in ways that enable both nations to succeed. Advanced solutions for tomorrow within maritime, offshore and energy industries have become the two countries' common objective.

Norway's strategic business partnership with Singapore and other Asian countries should be reinforced by a firmer political dimension. Before arriving in Singapore, I participated as the first Norwegian Foreign Minister in the Asia-Europe Meeting (Asem) summit in Vientiane, Laos. Participation in Asem enhances Norway's stake in Asian affairs as well as Oslo's ability to find common ground in meeting global challenges.

And just like the Norwegian business community views Singapore as a gateway to Asia, Norway's government agencies and scholars enhance their insights into Asian affairs through contacts with their Singaporean colleagues. I am glad, therefore, to witness during my visit the establishment of closer cooperation between the Norwegian Ministry of Foreign Affairs and the S. Rajaratnam School of International Studies.

Norway's long Arctic coastline makes it look to the north as well as to the east. I would contend that as an island state, as a maritime power and as a nation with a truly global outlook, Singapore's national interests are directly affected by developments in the Arctic, notably by the dramatic and accelerating melting of the Arctic ice.

The changes in the Arctic bring severe challenges as well as new opportunities. Prominent among the latter is that the Northern Sea Route will cut the sailing distance between Europe and Asia by 40 per cent. This is a point well taken by Singapore's government, its academics and the business community.

Norway welcomes Singapore's wish to contribute to developments in the Arctic. Norway, along with other Arctic nations, would like to provide an entry point for Singapore to the Arctic region. In this way, the two nations will support each other's interests in their respective parts of the world.

Singapore and Norway started out as business and trading partners. As these relations matured, the two nations became partners in research and development, with both countries becoming more aware of the necessity of continued innovation.

These relations will grow further as globalisation will necessitate innovative, sustainable solutions in areas like energy, maritime transport and green technologies. The many ties between Singaporeans and Norwegians will enable them to venture into new areas of cooperation. Based on this foundation, my ambition is to develop a broader bilateral relationship, based on shared objectives and interests in global affairs.

The writer is Norway's Minister of Foreign Affairs. Mr Eide is in Singapore today for a one-day official visit.

Arctic route not 'big concern' for S'pore

Ships with time-sensitive goods will still pass here, says Norway minister

By Himaya Quasem, The Straits Times, 8 Nov 2012

SINGAPORE will not be too badly affected by the new Arctic shipping route opened up by rapidly melting polar ice, Norway's Foreign Minister said.

The emerging Northern Sea Route (NSR), which shortens the journey from Europe to Asia by bypassing the Malacca Strait and therefore Singapore, should not be "a big concern" for the Republic, said Mr Espen Barth Eide.

Container ships carrying goods that need to arrive at a specific time will still take the traditional route through Egypt's Suez Canal, which is more reliable and brings trade closer to Singapore.

And Singapore can benefit by using its shipping expertise to develop ports along the NSR.

Norway is a member of the Arctic Council, an inter-governmental forum set up in 1996 to promote cooperation among Arctic states including Finland, Canada, Russia and the United States.

"I believe that container traffic will still go on the traditional route but certain types of traffic where the date of arrival is not as important... can use the other route," Mr Eide told The Straits Times during his first trip to Singapore.

For example, the Arctic route may be more appealing to those shipping goods such as iron ore, where transportation costs matter more than the date of arrival.

Currently, the NSR is only passable during the summer months when the ice melts. Ships also need to hire Russian icebreakers to ensure safe transit.

"If you run a company based on stability... you may want to take a warm route in order to avoid any hiccups," he added.

Arctic ice cover shrank to record lows this September, potentially making some of the region's natural riches more accessible.

The Arctic is thought to contain up to 20 per cent of the world's untapped oil and gas reserves. It is also home to the planet's largest cod stock and vast deposits of valuable minerals.

The prospect of extracting some of these treasures raises the possibility of territorial disputes.

But Mr Eide said that so far "a race for the Arctic" has been avoided because neighbouring states have opted to resolve debates using international maritime law, such as the United Nations Convention on the Law of the Sea. He said a good example was when Norway and Russia ended a 40-year dispute over claims in the Barents Sea in 2010, using this legal framework.

In the light of mounting tensions in the South China Sea, he said the episode with Russia provides an example of how maritime disputes can be overcome. "It's possible to manage these issues in a better way than to quarrel about them openly and to send naval ships."

Mr Eide met Singapore's Law and Foreign Affairs Minister K. Shanmugam on Wednesday. The Republic has applied for observer status at the Arctic Council.

Mr Eide described Singapore, where more than 2,000 Norwegians live, as "the primary hub for Norwegian business in Asia".

He delivered a lecture on "The Arctic - the New Crossroads between Asia and the West", organised by the S. Rajaratnam School of International Studies.