Singapore offers support to unlock Laos’ potential

AT an official visit to Laos, Singapore’s Foreign Minister Vivian Balakrishnan expressed optimism about the country’s economic potential, emphasising that with the right infrastructure and policy frameworks in place, it can thrive despite its fiscal difficulties.

Speaking to reporters on Saturday, he said Singapore can work closely with Laos to maximise its economic potential through education and training, as well as provide assistance to help it plug into the global markets, including in the sale of carbon credits.

Over the course of the day, Balakrishnan met Lao Prime Minister Sonexay Siphandone, Foreign Minister Saleumxay Kommasith and head of the Lao People’s Revolutionary Party external relations committee, Thongsavanh Phomvihane.

Laos, one of the world’s few remaining communist states, is currently grappling with slowing growth, rising debt and inflation that averaged 31.2% in 2023.

“They have also been quite open and candid that their fiscal circumstances have also been quite tight.

“And yet, they do want to move forward and look at the opportunities,” Balakrishnan told reporters.

“We are now at the start of another technological revolution characterised by advances in artificial intelligence, quantum computing, digitalisation, synthetic biology and the need for renewable energy to create a more sustainable and safe world.”

These present opportunities for Laos, which has plentiful supplies of renewable energy, especially hydropower, that can be a source of carbon credits.

“As the world moves and tries to achieve a genuinely zero emissions target in 2050, you are going to need the resources and the availability of what Laos has to offer, particularly in the carbon credit trading space,” he said.

Laos also has significant deposits of rare earths needed in the electronics industry, and it is a net food exporter. — The Straits Times/ANN