28-1-2024 (VIENTIANE) Singaporean Foreign Minister Vivian Balakrishnan, during his official visit to Laos, expressed optimism about Laos’s economic potential despite its current fiscal challenges. Balakrishnan highlighted opportunities for collaboration between Singapore and Laos to bolster the latter’s economy through infrastructure development and policy enhancements.
In discussions with reporters on January 27, Balakrishnan emphasized Singapore’s willingness to assist Laos in maximizing its economic prospects, particularly through education, training, and integration into global markets, including the trading of carbon credits.
Throughout the day, Balakrishnan engaged with key Lao officials, including Prime Minister Sonexay Siphandone, Foreign Minister Saleumxay Kommasith, and Mr. Thongsavanh Phomvihane, head of the Lao People’s Revolutionary Party external relations committee.
Laos, grappling with slowing growth, mounting debt, and high inflation averaging 31.2 per cent in 2023, seeks avenues for progress amidst fiscal constraints. Balakrishnan acknowledged Laos’s determination to explore opportunities despite its tight fiscal circumstances.
Balakrishnan underscored the potential for Laos to thrive amid the ongoing technological revolution, citing opportunities in renewable energy, carbon credit trading, and rare earth deposits. He also highlighted Laos’s agricultural potential as a significant contributor to regional food security.
The relationship between Singapore and Laos has seen tangible cooperation, notably in energy and environmental initiatives. Singapore began importing hydroelectricity from Laos in 2022 through collaborative projects like the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project, demonstrating mutual benefit and regional cooperation.
Discussions between the two nations also encompassed the transfer of carbon credits to support climate targets under the Paris Agreement. Balakrishnan stressed the importance of establishing robust cross-border policy frameworks to facilitate sustainable trade arrangements.
The visit also commemorated the 50th anniversary of diplomatic relations between Singapore and Laos, underscoring longstanding cooperation. Singapore’s commitment to capacity-building initiatives, including tailored courses for Lao officials, reflects its support for Laos’s chairmanship of ASEAN in 2024.
During his visit, Balakrishnan engaged with Singaporeans residing in Laos, acknowledging their contributions to local communities and fostering goodwill towards Singapore. The meeting also highlighted Laos’s admiration for Singapore’s educational opportunities, as observed by Ms. Lim Jue Hui, an assistant director at the Sunshine School in Laos.
Balakrishnan’s visit culminates with his attendance at the ASEAN Foreign Ministers’ Retreat in Luang Prabang on January 29, where regional integration and stability will take center stage. The discussions aim to strengthen ASEAN’s regional order and foster collaboration with external partners.
