Vivian Balakrishnan, Singapore's Foreign Minister, stated that the current tensions in the Strait of Hormuz could represent a 'preliminary exercise' for a broader conflict between the United States and China in the Pacific. Making this statement at the CNBC CONVERGE LIVE event, Balakrishnan emphasized the global geopolitical risks, especially in key maritime transit areas. Singapore maintains strong relations with both powers, refusing to choose between Washington and Beijing, considering that the U.S. is the largest foreign investor in the city-state, while China is its main trading partner. The minister highlighted the importance of straits, comparing Hormuz to the Strait of Malacca, and warned about the risks of imposing transit fees. Singapore bases its policy on the UN Convention on the Law of the Sea, which guarantees freedom of transit. Balakrishnan emphasized that the predictability and credibility of states are essential for economic and geopolitical stability in the current context.
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