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Could we see a strengthening of New Zealand-Singapore relations through collaborative efforts in food security, infrastructure, and energy investment?
New Zealand could become a vital partner for Singapore in areas of food security, infrastructure development, and energy investments, as highlighted by Resources Minister Shane Jones following his recent visit to Singapore. This diplomatic outreach seeks to leverage New Zealand’s strengths in agriculture and renewable energy potential, aligning with Singapore’s drive to secure sustainable resources amid global economic uncertainties.
Addressing Singapore’s Food Security Needs
For Singapore, food security is a pressing concern. With limited land and resources, the country relies heavily on food imports to feed its 6 million residents. Supply chain disruptions caused by the pandemic highlighted the risks of relying solely on international supply chains, prompting Singapore to set a goal of producing 30% of its nutritional needs domestically by 2030. However, the country still anticipates importing a significant portion of its food, and New Zealand could play a key role in meeting these demands.
Minister Jones points to the advantages of New Zealand as a dependable food supplier and suggests that Singapore consider “pay-to-play” options—investments directly in New Zealand’s food production to secure stable supply channels. This arrangement would allow Singapore to hedge against future geopolitical and supply chain disruptions. Singapore is already showing interest in New Zealand’s meat and dairy sectors, with trade figures reflecting a notable 359% increase in red meat exports to Singapore this past August.
A Singaporean food delegation is scheduled to visit New Zealand in December, further underscoring the mutual commitment to exploring food security strategies.
A Mutual Opportunity in Infrastructure Investment
New Zealand’s infrastructure needs are a focal point for investment, especially in essential sectors like roads and water management. The New Zealand government’s commitment to extensive road development and the need to upgrade ageing water infrastructure present a promising investment avenue for Singapore’s state-owned funds and private investors.
During his meetings with officials, Jones emphasised New Zealand’s openness to foreign investment to meet pressing infrastructure needs. He noted that New Zealand does “not have the taxpayer revenue to meet the infrastructure expectations the public are expecting us to deliver on” and will increasingly require foreign capital given the precarious state of government finances, making trade-offs essential. He also referenced Singaporean expertise in projects like dry docks—a priority in NZ First’s business case for Marsden Point, where Singapore could bring both expertise and capital to New Zealand’s port infrastructure needs.
Water infrastructure is another area of strategic interest. As Jones highlighted, securing efficient and sustainable water resources enables diversified land use and greater resilience in the face of environmental challenges, both of which are vital to New Zealand’s agricultural and industrial sectors. Jones was joined on his visit by Te Tai Tokerau Water Trust, a Northland-based organisation seeking investment to expand water infrastructure.
Energy Investments to Align for a Green Future
Energy security, a long-standing concern for Singapore, was another critical topic during Jones’s visit, which coincided with Singapore’s International Energy Week. Singapore’s demand for stable and affordable energy sources positions New Zealand as an attractive partner, particularly as the city-state explores options to diversify its energy portfolio, including oil, gas, and renewable sources like geothermal energy.
Jones highlighted New Zealand’s potential to support Singapore’s energy goals with both oil and geothermal options. Deep geothermal energy, with wells reaching up to 10 kilometres into the Earth’s crust, presents a unique investment opportunity for Singapore, which is exploring hydrogen and ammonia as sustainable energy solutions. By tapping into this “clean, green” energy source, Singapore could secure a renewable energy supply from New Zealand that aligns with its shift towards cleaner fuels.
Although geothermal energy still faces engineering challenges, Jones expressed optimism that advancing technology will make these projects feasible. The interest in geothermal energy extends to developing New Zealand’s hydrogen and ammonia production, industries that align with both countries’ ambitions to innovate in renewable resources.
Broader Implications for New Zealand-Singapore Relations
This strengthened partnership holds strategic importance beyond the immediate economic benefits. For Singapore, securing food and energy resources in a stable partner country like New Zealand reduces reliance on more volatile markets. For New Zealand, the relationship brings needed foreign capital into its infrastructure and energy sectors, helping meet public expectations for development despite budget constraints.
Jones also acknowledged concerns voiced by Singaporean investors about the sovereign risk associated with New Zealand’s shifting policies, especially with potential administration changes every three years. However, he remains optimistic that strengthening diplomatic ties and aligning on mutual interests will provide investors with confidence.