Minggu, 15 November 2020

Asia-Pacific nations sign world's largest trade pact RCEP - CNA

SINGAPORE: Fifteen Asia-Pacific nations signed a mega free trade deal on Sunday (Nov 15) as they concluded an annual summit of Southeast Asian leaders and their regional partners, held virtually this year due to the COVID-19 pandemic. 

The Regional Comprehensive Economic Partnership (RCEP) is the world's biggest trade agreement. It will progressively lower tariffs across many areas in the coming years.

The pact, which was first proposed in 2012, loops in 10 ASEAN economies along with China, Japan, South Korea, New Zealand and Australia.

They make up nearly a third of the world's population and account for 29 per cent of global gross domestic product.

READ: Signing of RCEP agreement 'the bright spot' in a challenging year - Chan Chun Sing

READ: What is the RCEP trade deal?

"After eight years of negotiating with blood, sweat and tears, we have finally come to the moment where we will seal the RCEP Agreement this Sunday," Malaysia's trade minister Mohamed Azmin Ali had said ahead of the summit.

"DIFFICULT TRADE-OFFS"

Prime Minister Lee Hsien Loong, who led Singapore’s delegation, on Sunday hailed the signing of the RCEP as a "major milestone" and congratulated the 15 participating countries. 

Singapore RCEP signing
Prime Minister Lee Hsien Loong (left) and Trade and Industry Minister Chan Chun Sing at the 4th Regional Comprehensive Economic Partnership Summit on Nov 15, 2020. (Photo: Ministry of Communications and Information)

"We have reached a major milestone of signing this agreement today. It has taken us eight years, 46 negotiating meetings and 19 ministerial meetings to get here. I am very grateful for the tireless efforts of ministers and negotiators from all participating countries who have worked so hard during the process.

"The RCEP is a major step forward for the world, at a time when multilateralism is losing ground and global growth is slowing," said Mr Lee. 

Now, he added, "the hard work of implementing the agreement and encouraging our businesses to take full advantage of it begins". 

"We have all made difficult trade-offs to advance the negotiations. And we will have to work hard to persuade our citizens that the RCEP will benefit them," said Mr Lee.

"But I have no doubt that the RCEP is a plus for all of us, and will help stem the tide against globalisation and economic integration. 

"Singapore looks forward to working with participating countries on the timely implementation of this momentous agreement," the Prime Minister added. 

After the signing, all countries would have to ratify the RCEP within two years before it becomes effective.

READ: PM Lee says Singapore to contribute US$100,000 to COVID-19 ASEAN fund, hails RCEP signing as 'major achievement'

In his remarks following the signing, Singapore's Trade and Industry Minister Chan Chun Sing described the signing as a "result of the hard work of many stakeholders over the last eight years".

"RCEP's diversity shows how free and open trade and investment is in the common interest of all economies, regardless of our development stages," said Mr Chan.

"And our determination to carry this through in this challenging year shows an awareness that our prosperity and success are interlinked. Deeper integration and a more interdependent world will ultimately lead to a safer and more prosperous world," he added.

Mr Chan also spoke of ASEAN and its "critical role" in this journey, specifically how its "leadership as a trusted and neutral group" has enabled partners to come together "in an unprecedented way" and cooperate under the RCEP umbrella.

"Without the RCEP, it would have been much harder for some of us to do bilateral or trilateral trade deals," he said.

The four-day ASEAN summit included meetings between Southeast Asian leaders and their counterparts from China, Japan and South Korea in the ASEAN Plus Three Summit, as well as the East Asia Summit and RCEP Summit.

"INTEGRATED MARKET"

The 15 RCEP countries agreed on the terms of the deal last year, setting up the path for it to be signed during the summit.

India pulled out of talks last year, worried that the elimination of tariffs would open its markets to a flood of imports that could harm local producers. Other countries have said the door remains open for New Delhi.

In his speech, Mr Lee said he joins fellow RCEP countries "in hoping that India too, will be able to come on board at some point so that the participation in the RCEP will fully reflect the emerging patterns of integration and regional cooperation in Asia".

Mr Chan also said that without India, the RCEP is "still a very significant agreement".

Given the existing economic links between India and RCEP countries, investors "will also take into account India's economy" when investing in the region, he added. 

Regarding China, Mr Chan said the RCEP will allow many of the Chinese companies to invest in the regional markets, while the other countries will also benefit from having access to the "huge" Chinese market.

The RCEP will also help attract investors beyond the region as the Chinese and regional markets will be seen as an "integrated market", and exports to the rest of the world will become "much more competitive", added Mr Chan.

Moving forward, the minister said greater global integration and economic recovery through leveraging comparative advantages will be on the agenda at the upcoming Asia-Pacific Economic Cooperation (APEC) and Group of Twenty (G20) conferences.

When asked about cooperation with the United States, which recently saw a close presidential election won by Joe Biden, Mr Chan said: "We'll be in close consultation with the US after they settle down."

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2020-11-15 07:38:04Z
52781188680355

Asia-Pacific nations sign world's largest trade pact RCEP - CNA

SINGAPORE: Fifteen Asia-Pacific nations signed a mega free trade deal on Sunday (Nov 15) as they concluded an annual summit of Southeast Asian leaders and their regional partners, held virtually this year due to the COVID-19 pandemic. 

The Regional Comprehensive Economic Partnership (RCEP) is the world's biggest trade agreement. It will progressively lower tariffs across many areas in the coming years.

The pact, which was first proposed in 2012, loops in 10 ASEAN economies along with China, Japan, South Korea, New Zealand and Australia.

They make up nearly a third of the world's population and account for 29 per cent of global gross domestic product.

READ: Signing of RCEP agreement 'the bright spot' in a challenging year - Chan Chun Sing

READ: What is the RCEP trade deal?

"After eight years of negotiating with blood, sweat and tears, we have finally come to the moment where we will seal the RCEP Agreement this Sunday," Malaysia's trade minister Mohamed Azmin Ali had said ahead of the summit.

"DIFFICULT TRADE-OFFS"

Prime Minister Lee Hsien Loong, who led Singapore’s delegation, on Sunday hailed the signing of the RCEP as a "major milestone" and congratulated the 15 participating countries. 

Singapore RCEP signing
Prime Minister Lee Hsien Loong (left) and Trade and Industry Minister Chan Chun Sing at the 4th Regional Comprehensive Economic Partnership Summit on Nov 15, 2020. (Photo: Ministry of Communications and Information)

"We have reached a major milestone of signing this agreement today. It has taken us eight years, 46 negotiating meetings and 19 ministerial meetings to get here. I am very grateful for the tireless efforts of ministers and negotiators from all participating countries who have worked so hard during the process.

"The RCEP is a major step forward for the world, at a time when multilateralism is losing ground and global growth is slowing," said Mr Lee. 

Now, he added, "the hard work of implementing the agreement and encouraging our businesses to take full advantage of it begins". 

"We have all made difficult trade-offs to advance the negotiations. And we will have to work hard to persuade our citizens that the RCEP will benefit them," said Mr Lee.

"But I have no doubt that the RCEP is a plus for all of us, and will help stem the tide against globalisation and economic integration. 

"Singapore looks forward to working with participating countries on the timely implementation of this momentous agreement," the Prime Minister added. 

After the signing, all countries would have to ratify the RCEP within two years before it becomes effective.

READ: PM Lee says Singapore to contribute US$100,000 to COVID-19 ASEAN fund, hails RCEP signing as 'major achievement'

In his remarks following the signing, Singapore's Trade and Industry Minister Chan Chun Sing described the signing as a "result of the hard work of many stakeholders over the last eight years".

"RCEP's diversity shows how free and open trade and investment is in the common interest of all economies, regardless of our development stages," said Mr Chan.

"And our determination to carry this through in this challenging year shows an awareness that our prosperity and success are interlinked. Deeper integration and a more interdependent world will ultimately lead to a safer and more prosperous world," he added.

Mr Chan also spoke of ASEAN and its "critical role" in this journey, specifically how its "leadership as a trusted and neutral group" has enabled partners to come together "in an unprecedented way" and cooperate under the RCEP umbrella.

"Without the RCEP, it would have been much harder for some of us to do bilateral or trilateral trade deals," he said.

The four-day ASEAN summit included meetings between Southeast Asian leaders and their counterparts from China, Japan and South Korea in the ASEAN Plus Three Summit, as well as the East Asia Summit and RCEP Summit.

"INTEGRATED MARKET"

The 15 RCEP countries agreed on the terms of the deal last year, setting up the path for it to be signed during the summit.

India pulled out of talks last year, worried that the elimination of tariffs would open its markets to a flood of imports that could harm local producers. Other countries have said the door remains open for New Delhi.

In his speech, Mr Lee said he joins fellow RCEP countries "in hoping that India too, will be able to come on board at some point so that the participation in the RCEP will fully reflect the emerging patterns of integration and regional cooperation in Asia".

Mr Chan also said that without India, the RCEP is "still a very significant agreement".

Given the existing economic links between India and RCEP countries, investors "will also take into account India's economy" when investing in the region, he added. 

Regarding China, Mr Chan said the RCEP will allow many of the Chinese companies to invest in the regional markets, while the other countries will also benefit from having access to the "huge" Chinese market.

The RCEP will also help attract investors beyond the region as the Chinese and regional markets will be seen as an "integrated market", and exports to the rest of the world will become "much more competitive", added Mr Chan.

Moving forward, the minister said greater global integration and economic recovery through leveraging comparative advantages will be on the agenda at the upcoming Asia-Pacific Economic Cooperation (APEC) and Group of Twenty (G20) conferences.

When asked about cooperation with the United States, which recently saw a close presidential election won by Joe Biden, Mr Chan said: "We'll be in close consultation with the US after they settle down."

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2020-11-15 07:30:00Z
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Sabtu, 14 November 2020

Asia-Pacific nations sign world's largest trade pact RCEP - CNA

SINGAPORE: Fifteen Asia-Pacific nations signed a mega free trade deal on Sunday (Nov 15) as they concluded an annual summit of Southeast Asian leaders and their regional partners, held virtually this year due to the COVID-19 pandemic. 

The Regional Comprehensive Economic Partnership (RCEP) is the world's biggest trade agreement. It will progressively lower tariffs across many areas in the coming years.

The pact, which was first proposed in 2012, loops in 10 ASEAN economies along with China, Japan, South Korea, New Zealand and Australia.

They make up nearly a third of the world's population and account for 29 per cent of global gross domestic product.

READ: Signing of RCEP agreement 'the bright spot' in a challenging year - Chan Chun Sing

READ: What is the RCEP trade deal?

"After eight years of negotiating with blood, sweat and tears, we have finally come to the moment where we will seal the RCEP Agreement this Sunday," Malaysia's trade minister Mohamed Azmin Ali had said ahead of the summit.

Prime Minister Lee Hsien Loong, who led Singapore’s delegation, on Sunday hailed the signing of the RCEP as a "major milestone" and congratulated the 15 participating countries. 

Singapore RCEP signing
Prime Minister Lee Hsien Loong (left) and Trade and Industry Minister Chan Chun Sing at the 4th Regional Comprehensive Economic Partnership Summit on Nov 15, 2020. (Photo: Ministry of Communications and Information)

"We have reached a major milestone of signing this agreement today. It has taken us eight years, 46 negotiating meetings and 19 ministerial meetings to get here. I am very grateful for the tireless efforts of ministers and negotiators from all participating countries who have worked so hard during the process.

"The RCEP is a major step forward for the world, at a time when multilateralism is losing ground and global growth is slowing," said Mr Lee. 

Now, he added, "the hard work of implementing the agreement and encouraging our businesses to take full advantage of it begins". 

"We have all made difficult trade-offs to advance the negotiations. And we will have to work hard to persuade our citizens that the RCEP will benefit them," said Mr Lee.

"But I have no doubt that the RCEP is a plus for all of us, and will help stem the tide against globalisation and economic integration. 

"Singapore looks forward to working with participating countries on the timely implementation of this momentous agreement," the prime minister added. 

READ: PM Lee says Singapore to contribute US$100,000 to COVID-19 ASEAN fund, hails RCEP signing as 'major achievement'

The 15 RCEP countries agreed on the terms of the deal last year, setting up the path for it to be signed during the summit.

India pulled out of talks last year, worried that the elimination of tariffs would open its markets to a flood of imports that could harm local producers. Other countries have said the door remains open for New Delhi.

After the signing, all countries would have to ratify the RCEP within two years before it becomes effective.

The four-day ASEAN summit included meetings between Southeast Asian leaders and their counterparts from China, Japan and South Korea in the ASEAN Plus Three Summit, as well as the East Asia Summit and RCEP Summit.

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2020-11-15 05:48:45Z
52781188680355

Asia-Pacific nations sign world's largest trade pact RCEP - CNA

SINGAPORE: Fifteen Asia-Pacific nations signed a mega free trade deal on Sunday (Nov 15) as they concluded an annual summit of Southeast Asian leaders and their regional partners, held virtually this year due to the COVID-19 pandemic. 

The Regional Comprehensive Economic Partnership (RCEP) is the world's biggest trade agreement. It will progressively lower tariffs across many areas in the coming years.

The pact, which was first proposed in 2012, loops in 10 ASEAN economies along with China, Japan, South Korea, New Zealand and Australia.

They make up nearly a third of the world's population and account for 29 per cent of global gross domestic product.

READ: What is the RCEP trade deal?

"After eight years of negotiating with blood, sweat and tears, we have finally come to the moment where we will seal the RCEP Agreement this Sunday," Malaysia's trade minister Mohamed Azmin Ali had said ahead of the summit.

Prime Minister Lee Hsien Loong, who led Singapore’s delegation, on Sunday hailed the signing of the RCEP as a "major milestone" and congratulated the 15 participating countries. 

"We have reached a major milestone of signing this agreement today. It has taken us eight years, 46 negotiating meetings and 19 ministerial meetings to get here. I am very grateful for the tireless efforts of ministers and negotiators from all participating countries who have worked so hard during the process.

"The RCEP is a major step forward for the world, at a time when multilateralism is losing ground and global growth is slowing," said Mr Lee. 

Now, he added, "the hard work of implementing the agreement and encouraging our businesses to take full advantage of it begins". 

"We have all made difficult trade-offs to advance the negotiations. And we will have to work hard to persuade our citizens that the RCEP will benefit them," said Mr Lee.

"But I have no doubt that the RCEP is a plus for all of us, and will help stem the tide against globalisation and economic integration. 

"Singapore looks forward to working with participating countries on the timely implementation of this momentous agreement," the prime minister added. 

READ: PM Lee says Singapore to contribute US$100,000 to COVID-19 ASEAN fund, hails RCEP signing as 'major achievement'

The 15 RCEP countries agreed on the terms of the deal last year, setting up the path for it to be signed during the summit.

India pulled out of talks last year, worried that the elimination of tariffs would open its markets to a flood of imports that could harm local producers. Other countries have said the door remains open for New Delhi.

After the signing, all countries would have to ratify the RCEP within two years before it becomes effective.

The four-day ASEAN summit included meetings between Southeast Asian leaders and their counterparts from China, Japan and South Korea in the ASEAN Plus Three Summit, as well as the East Asia Summit and RCEP Summit.

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2020-11-15 05:07:02Z
52781187990175

What is the RCEP trade deal? - CNA

HANOI: Backed by China, the sprawling Regional Comprehensive Economic Partnership (RCEP) is seen as a coup for Beijing in extending its influence across the region and marks its dominance in Asian trade.

After eight years of wrangling over the details, the trade pact - the world's largest in terms of GDP, say analysts - will be signed on Sunday (Nov 15).

WHAT IS RCEP?

Launched in 2012, RCEP is a trade pact between the 10-member ASEAN bloc, along with China, Japan, South Korea, Australia and New Zealand. India had been due to sign but pulled out last year.

The deal includes 2.1 billion people, with RCEP's members accounting for around 30 per cent of global GDP.

READ: Southeast Asian leaders begin ASEAN Summit amid 'major power rivalries'

Its aim is to lower tariffs, open up trade in services and promote investment to help emerging economies catch up with the rest of the world.

Specifically, RCEP is expected to help reduce costs and time for companies by allowing them to export a product anywhere within the bloc without meeting separate requirements for each country.

It also touches on intellectual property, but will not cover environmental protections and labour rights.

"A key priority area for further RCEP negotiations is likely to be e-commerce," said Rajiv Biswas, Asia Pacific chief economist at global business consultancy IHS Markit, after nations struggled to fully agree on some of the provisions on digital trade.

It is unclear when the pact will be ratified but it could come into force next year.

WHY DOES IT MATTER?

It mainly matters because it sets new trade rules for the region - and has China's backing but does not include the United States.

Observers say it solidifies China's broader geopolitical ambitions in the region, where it has faced little competition from the US since President Donald Trump pulled out of a trade pact of its own.

That deal, called the Trans-Pacific Partnership (TPP), was on track to be the world's biggest trade pact, until Washington pulled the plug, saying it funnelled off US jobs.

READ: Asia-Pacific closes in on world's biggest trade deal

However, observers say the RCEP is not as extensive as the TPP, or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), as its successor is known.

It "is not a fully completed, fully rationalised agreement," said Alexander Capri, a trade expert at the National University of Singapore Business School.

"The problem with RCEP is that you have 15 incredibly diverse countries at different stages of development and with completely internal priorities," he added.

WHY NO INDIA?

India withdrew last year over concerns about cheap Chinese goods entering the country, though it can join at a later date if it chooses.

It raised alarm about market access issues, fearing its domestic producers could be hard hit if the country was flooded with cheap Chinese goods.

Textiles, dairy, and agriculture were flagged as three vulnerable industries.

Prime Minister Narendra Modi faced mounting pressures at home to take a tougher stance on the terms, and proved unbending as the RCEP negotiations came to a close.

WHAT DOES IT MEAN FOR THE US?

It is likely that a new US administration under President-elect Joe Biden will focus more on Southeast Asia, analysts say, although it remains unclear whether he would want to rejoin the CPTPP.

The topic remains a politically sensitive issue in the US.

"The administration will be looking at this very closely," said Capri.

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2020-11-15 01:18:54Z
52781188680355

Huge Asian trade pact to be signed in coup for China - CNA

HANOI:  Fifteen countries will on Sunday (Nov 15) sign a sprawling Asian trade deal they hope will help them bounce back from the pandemic and which is seen as a huge coup for China in extending its influence.

The Regional Comprehensive Economic Partnership (RCEP) - which includes 10 Southeast Asian economies along with China, Japan, South Korea, New Zealand and Australia - will be the world's largest trade pact in terms of GDP, analysts say.

The agreement to lower tariffs and open up the services trade within the bloc does not include the United States and is viewed as a Chinese-led alternative to a now-defunct Washington trade initiative.

READ: Asia-Pacific closes in on world's biggest trade deal

The RCEP "solidifies China's broader regional geopolitical ambitions around the Belt and Road initiative", said Alexander Capri, a trade expert at the National University of Singapore Business School, referring to Beijing's signature investment project that envisions Chinese infrastructure and influence spanning the globe.

"It's sort of a complementary element."

Eight years in the making, the deal will finally be signed at the end of a Southeast Asian summit - held by video because of the pandemic.

Many of the signatories are battling severe coronavirus outbreaks and they hope the RCEP will help mitigate the crippling cost of an illness that has ravaged their economies.

Indonesia recently tumbled into its first recession for two decades while the Philippine economy shrunk by 11.5 per cent on-year in the latest quarter.

"COVID-19 has reminded the region of why trade matters and governments are more eager than ever to have positive economic growth," said Deborah Elms, executive director of the Asian Trade Centre, a Singapore-based consultancy.

"RCEP can help deliver it."

INDIA ABSENT

India pulled out of the agreement last year over concerns about cheap Chinese goods entering the country and will be a notable absentee during Sunday's virtual signing.

It can join at a later date if it chooses.

Even without India, the deal covers 2.1 billion people, with RCEP's members accounting for around 30 per cent of global GDP.

Crucially it should help shrink costs and make life easier for companies by letting them export products anywhere within the bloc without meeting separate requirements for each country.

READ: PM Lee says Singapore to contribute US$100,000 to COVID-19 ASEAN fund, hails RCEP signing as 'major achievement'

The agreement touches on intellectual property, but environmental protections and labour rights are not part of the pact.

The deal is also seen as a way for China to draft the rules of trade in the region, after years of US retreat under President Donald Trump which have seen Washington pull out of a trade pact of its own, the Trans-Pacific Partnership (TPP).

Though US multinationals will be able to benefit from RCEP through subsidiaries within member countries, analysts said the deal may cause President-elect Joe Biden to rethink Washington's engagement in the region.

This could see the US eye the potential benefits of joining the TPP's successor deal, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), said Rajiv Biswas, APAC chief economist at IHS Markit.

"However, this is not expected to be an immediate priority issue ... given the considerable negative response to the TPP negotiations from many segments of the US electorate due to concerns about US job losses to Asian countries," he added.

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2020-11-15 01:15:34Z
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Forming an air travel bubble with Singapore: After Hong Kong, which destination could be next? - CNA

SINGAPORE: Countries such as Thailand, South Korea and Japan could potentially partner Singapore in setting up air travel bubbles in future, although any decision is likely contingent on how effectively COVID-19 is controlled in those countries rather than the push for tourism receipts, said travel experts. 

Earlier this week, it was announced that the Singapore-Hong Kong air travel bubble will start on Nov 22, with an initial one flight a day into each city with 200 passengers each way. This will increase to two flights a day from Dec 7.

Travellers, who must test negative for COVID-19, have to take the dedicated flights but will have no restrictions on their travel purpose. They do not have to follow a controlled itinerary and will not be subject to quarantine or stay-home notice.

Singapore, Hong Kong air travel bubble to start on Nov 22 with 200 travellers each way per day

This arrangement sets up a potential model for future air travel bubbles.

"We are proceeding cautiously, but if the arrangement is successful and the pandemic continues to stay under control on both sides, we can look forward to expanding the bubble to more flights, and hopefully, to more destinations as well," said Prime Minister Lee Hsien Loong in a Facebook post following the announcement.

"Travellers will have to get used to new regulations and COVID-19 swab tests – all part and parcel of the new normal."

Speaking to CNA, Ngee Ann Polytechnic senior lecturer in tourism Michael Chiam said countries that could eventually set up a travel bubble for leisure will likely be those that currently have green and fast lane arrangements with Singapore for essential business and official travel. 

These include South Korea, Japan and China, he noted.

"We have received visitors from these countries and it allowed us to assess the intensity of infection there as well as their effectiveness in infection control to make an informed decision as to whether these countries should be included in the travel bubble for leisure travellers," he added.

SINGAPORE: Fast lane, green lane, air travel bubble: What you need to know about Singapore's COVID-19 travel measures

Mr Kevin Wee, a senior lecturer at Nanyang Polytechnic’s School of Business Management, said it is "difficult" to predict the next destination to have a bilateral travel bubble arrangement with Singapore.

Two key factors in the Singapore-Hong Kong travel bubble were the effective control of the virus and the ability to conduct successful negotiations, he noted.

"In that same vein, countries that have pre-existing arrangements with Singapore such as those with reciprocal green lane arrangements like Japan could have a higher chance to form a travel bubble with Singapore," he said.

READ: COVID-19: What is preventing countries lifting border restrictions to travellers from Singapore?

TOURISM RECEIPTS NOT AS 'CRITICAL'

Experts CNA spoke to said that tourism receipts would not be the main consideration when it comes to a decision on whether to form a travel bubble with a particular country.

According to the Singapore Tourism Board, the top three markets in 2019 based on tourism receipts were mainland China (S$4,124 million), Indonesia (S$3,704 million) and India (S$1,624 million), contributing 41 per cent of overall tourism receipts. Japan ranked fifth, South Korea ninth and Vietnam 10th.

This expenditure excludes spending on sightseeing, entertainment and gaming.

Changi Airport tourists covid-19 masks
Travellers, wearing face masks at the departure hall of Changi International Airport in Singapore on Feb 27, 2020. (Photo: AFP/Roslan Rahman)

"Singapore, like countries around the world, is treading carefully around the global pandemic. The crucial factor for choosing another country to form a travel bubble with should be based on the selected country’s ability to manage and minimise the spread of COVID-19 when their residents travel into Singapore," said Mr Wee.

"Conversely, the country will also assess Singapore’s ability to contain COVID-19 within our country, before agreeing to the travel bubble arrangements for Singaporeans to enter their country. Hence, safety is the key consideration, and tourism receipts may not be as critical in this new norm."

READ: Singapore-Hong Kong air travel bubble: What you need to know

Mr Christopher Khoo, the managing director for international tourism consultancy Masterconsult Services, told CNA that Japan, South Korea and Taiwan all "deserve to be considered" for inclusion in travel bubbles with Singapore in the future.

He pointed out the main criteria behind such decisions would be "reciprocal trust" in the public health systems of the destination that one forms a travel bubble with.

"(For) Singapore and Hong Kong, both parties have shown great success in controlling (the pandemic), and have got mechanisms in cutting down (the amount of air traffic) if necessary - if there is a flare up (in cases). There is trust on both sides, because ... it is a public health issue - it's not so much I want to open up my economy," he explained.

Hong Kong has weathered the pandemic better than most, with more than 5,400 cases so far and about 100 related deaths. However, it reported 23 new infections on Thursday (Nov 12), the most since Sep 20.

"The choice of partner country would really be - do I trust their system? Is there enough business, or is there enough interaction already in place, previously generated, that will justify MFA (Ministry of Foreign Affairs) or whoever opening up a dialogue and talking," said Mr Khoo.

Commentary: Masks could be secret behind Vietnam’s COVID-19 success

ASEAN nations could be potential options for Singapore to form travel bubbles with, noted experts. Vietnam for one, could be an option, said Mr Khoo.

"Naturally given their good state of COVID preparedness or COVID suppression, Vietnam would be a likely choice very soon," he said. "The (visitor) numbers may not be as great as some other ASEAN destinations, but they give us confidence."

Vietnam has been lauded for its response to the pandemic, with the country of about 97 million recording 35 COVID-19 deaths so far.

Ar present, Singapore has unilaterally opened its borders to travellers from Vietnam, Brunei, New Zealand, Australia and mainland China.

Unlike the fast or green lane arrangements, this includes all forms of short-term travel, including for leisure. Visitors have to apply for an Air Travel Pass and must have remained in the departing country for 14 consecutive days prior to arrival in Singapore.

New Zealand and Australia could also be potential partners for a travel bubble down the line, said experts. However, these countries have been more "conservative" in opening borders to foreign tourists, said Dr Wong.

"Australia and New Zealand are also in my prediction, but it seems like they more conservative in reopening their borders," she added. "Although they would like tourists to bring them more GDP, higher GDP but then they have internal resources, so it’s okay (for them)," she said.

READ: COVID-19: Singapore to lift border restrictions for visitors from mainland China and Australia's Victoria state from Nov 6

Thailand is also a possibility, said Dr Wong. "Their number of cases are not that high, (and) are quite stable. Thailand is also in very urgent need to receive more tourists," she added.

According to recent reports, Thailand has been in talks with China to form a travel bubble.

It also has a Special Tourist Visa programme which allows tourists to enter the country under specific conditions. Under the plan, which was first approved by the Thai Cabinet in September, foreign tourists who commit to a stay of at least 30 days are issued 90-day visas that can be renewed twice.

After arriving, they have to stay in government-approved quarantine at a hotel or hospital for 14 days and show confirmation that they have made arrangements for long-term accommodation. They must also have special insurance policies and undergo pre-departure testing for the virus.

On the likelihood of an air travel bubble between Singapore and China, experts said it is a possibility, but given the country's large domestic tourism market, it may not need international travellers as urgently as other countries.

"I think there is the possibility but they don’t need us ... their domestic tourism has already recovered (to) pre-COVID (levels). So even if they don't have international tourists, they are doing fine. They can still talk to different countries, but it is not their first priority," said Dr Wong King Yin, who is a digital and tourism marketing lecturer at Nanyang Technological University.

China Golden Week Travel
China Golden Week Travel

Chinese domestic tourism saw a robust rebound over the Golden Week holiday last month. Tourism sites were visited by 637 million domestic tourists over the eight-day National Day holiday that started Oct 1, 79 per cent of last year's total, according to China's Ministry of Culture and Tourism in a statement.

“They have actually shown that domestic tourism can start to restart. And I see really no reason why they are not going to go full steam ahead,” added Mr Khoo.

“(The) COVID-19 (pandemic) is going to see the strengthening of China's internal domestic tourism ... Now, Singaporeans into China is such a minuscule number. So it really doesn’t play a part at all. But China's opening up for Singaporeans to go in is really part of their overall campaign to open up to reliable partners."

'THEY HAVE NOWHERE TO GO'

While there is definitely demand for travel, experts noted that many continue to have a "wait and see" attitude, given the widespread nature of the pandemic.

"There will always be a group ready to travel as they may be bored staying at home. That said, most will be cautious and will likely take a wait and see attitude to assess if it is safe to travel, based on the experience of other travellers," said Ngee Ann Polytechnic's Dr Chiam.

READ: No 'huge increase' in demand expected from Singapore-Hong Kong air travel bubble, say aviation analysts

Mr Wee noted that the appetite for travel in Singapore has always been strong and continues to be.

"Overseas trips have almost always been seen as an integral part of many Singaporeans’ holiday plans," he said. "However, many travellers are still cautious and will opt for private group tours, with a preference for less crowded resorts when leisure travel resumes."

While the desire to travel remains, the associated costs with flying abroad could also temper outbound demand, noted Dr Wong.

"In the past when Singaporeans travel to Asian countries, it’s much more affordable than (it is) now because the flight tickets are much more expensive (now) and also the cost for all the tests that you need ... for COVID-19 is very expensive," she said.

"Definitely, the demand for outbound travel ... is here. Many people really need to escape from their own place but then it is just that they don't know where to go. They have nowhere to go."

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2020-11-14 22:06:46Z
CBMic2h0dHBzOi8vd3d3LmNoYW5uZWxuZXdzYXNpYS5jb20vbmV3cy9zaW5nYXBvcmUvc2luZ2Fwb3JlLWFpci10cmF2ZWwtYnViYmxlLXdoaWNoLWRlc3RpbmF0aW9uLW5leHQtY292aWQtMTktMTM1MzI1OTDSAQA