JANUARY 29 ― So the leader of the world's most powerful nation has declared "America first'.” Which appears to mean jobs for Americans, infrastructure for Americans, security for Americans... above everything else.

Now there's nothing wrong with that, in principle the leaders of nations should tend to their own people first  but the media is suggesting the essence of President Trump's statement is that America will be stepping back globalisation.

For decades, driven by the United States, the world order has been one of increasing global integration, global supply chains and capital flows. Among the principle beneficiaries of this have been small agile city-states with strong financial systems ― Singapore, Dubai, Hong Kong ― so any shift away from gobalisation is a threat.

Of course the US can’t and won’t roll back globalisation in its entirety but the rise of nationalist movements in Europe and Brexit all point to a more insular age which raises real questions for small states like Singapore.

We can’t retreat into our hinterland or stash our domestic economy behind a wall of tariffs;  we don't have a hinterland and our domestic market is tiny. Trade and free trade is everything for us.

Singapore's GDP is about US$300 billion (RM1.329 trillion) but our trade volumes are over US$700 billion; only a handful of nations  trade over and above their GDPs.  But let’s mull over the prospect of a new reality.

Say, if America insists on protection ― on strangling offshore manufacturing and investments ― then we need options, but what are our options? Asean as a region doesn't yet have the economic clout to balance American withdrawal, the EU is in disarray ― which leaves only one viable contender... China.

The People's Republic has been quite vociferous in its defense of the global free trade environment but things have been strained of late. The recently concluded Terrex saga, where Singaporean armoured vehicles transiting through Hong Kong after training exercises in Taiwan were seized brought up questions about Sino-Singapore relations.

So perhaps the answer is to take the offensive. If the US is opting out then we need to fly the flag for free trade.  Over 70 per cent of our trade is covered by free trade agreements and Singapore has more than 20 FTAs in place with everyone from the USA to Peru.

But there are yet more agreements we can sign. Singapore is built on free trade; it has worked for us but now we need to work for it. We need to make the case that low-tariff trade is the best way to create and spread wealth around the world. 

The bottom line is that Singapore companies and its government need to start investing ― and sharing our wealth with the region ― not for charity but for viable profit-driven projects.

To date Singapore's investments in the region have been modest. According to government statistics over the past decade, over US$600 billion of investments have flowed from Singapore to China but just US$50 billion has flowed from Singapore to Malaysia.

Our other regional partners have seen even less Singaporean (or Singapore-based) money.  The situation needs to be rebalanced and more of the money flowing through Singapore must go to places like Myanmar and Cambodia and even destinations further afield in South Asia, Central Asia and Africa.

This might seem counter intuitive, as with growth slowing globally the temptation is to keep the money at home and to use our cash piles and wealth funds domestically to keep people happy ― Singapore first. But for us this isn’t an option: if we retreat behind our reserves, we won’t have an economic future. 

For its own good, Singapore needs to lead the charge for free trade if no other leaders are forth-coming. Our Island is a trading post  so it is time for us to fight for trade. 

* This is the personal opinion of the columnist.