Press conference - Sydney

MR LAWRENCE WONG, PRIME MINISTER OF SINGAPORE: Let me extend a very warm welcome to Prime Minister Albanese and your delegation to Singapore. It's very good to see you again, my friend. I would have preferred, of course, for us to meet under more favourable circumstances. Unfortunately, these are difficult times, not just for Australia and Singapore, but for countries everywhere. The conflict in the Middle East is disrupting global supply chains and energy markets. The effects are rippling across the global economy. As open and trade-dependent nations, Singapore and Australia feel these pressures directly. That is why in times like these, we must work closely, move faster, and stand together. Not just to manage the risk, but to protect the wellbeing of our people. And that's exactly what Prime Minister Albanese and I have been doing. Two weeks ago, we spoke and issued a joint statement to strengthen our energy security. Today, we took that further with concrete steps to reinforce our resilience and to keep supply lines open.

First, we agreed on a simple but critical principle. We will keep trade flowing between our two countries. Essential goods will continue to move between Australia and Singapore. That includes liquefied natural gas or LNG, which Australia supplies to Singapore, as well as refined petroleum products like diesel, which Singapore supplies to Australia. And I appreciate Prime Minister Albanese's assurance that Australia will continue supplying LNG to Singapore because this is vital for us. Natural gas is our main source for power generation. Likewise, I have assured Prime Minister Albanese that Singapore will continue supplying refined fuels to Australia. As a global refining hub, we will keep these flows going as long as upstream supplies continue.

Second, we are moving quickly to translate these commitments into action. We are working towards a legally binding protocol on economic resilience and essential supplies, covering energy and other critical sectors. This is not just about managing today's crisis. It's about building trusted supply lines for a more uncertain future. Our officials have already had extensive discussions on the protocol, and we've agreed to accelerate the negotiations, and we aim to conclude the agreement soon. Third, we will step up coordination. Our teams will stay in close contact to manage and respond quickly to any external disruptions that may affect us or impact our supply chains. We will convene our first energy ministerial dialogue soon and establish an economic resilience dialogue. And these platforms will enable us to deepen cooperation as the situation evolves and preserve the flow of essential supplies between our two countries.

To conclude, these are uncertain and unprecedented times, but it is precisely in such times that partnership matters most. Singapore and Australia have tackled challenges together before. During the COVID pandemic, we worked closely to keep critical supply chains open. Our partnership is built on trust, and that trust is enabling us to act decisively today. In a more fractured and volatile world, we choose to stay open, to stay connected, and to stand together. Through the strength of our partnership, I'm confident that Australia and Singapore will not just get through the crisis, but we will emerge stronger and more resilient. So once again, Prime Minister Albanese, thank you for your friendship. Thank you for your partnership and for the excellent discussions we've had today.

ANTHONY ALBANESE, PRIME MINISTER OF AUSTRALIA: It's great to be alongside my friend, Prime Minister Lawrence Wong, and to be back here in Singapore. Australia and Singapore have such a strong relationship. It's based on deep trust built over 60 years of diplomatic relations between our two great nations. Singapore is Australia's largest two-way trade partner in Southeast Asia. And my Government, upon coming to office, had developed the Southeast Asia Economic Strategy to 2040, closely and clearly saying to all of our partners here in Southeast Asia that we were prioritising the relationships in our own region. Singapore is one of our closest strategic and economic partners, and my Government has invested a great deal in this relationship. This is my third official visit to Singapore as Prime Minister, and it's the fifth time that Prime Minister Wong and I have met bilaterally. The last time we met was in Canberra last year when we formally upgraded our comprehensive strategic partnership.

We are in a time of global uncertainty, and at a time like this, trust, friendship, and cooperation with our neighbours matters more than ever before. This is a relationship, importantly, that helps deliver energy security for both of our nations. Around 25 per cent of Australia's fuel comes from Singapore's refineries, and we visited them this morning. And Australia supplies around 32 per cent of Singapore's LNG. That's so important. And we witnessed, literally, the ship there at Jurong Island this morning. So, it's vitally important that we coordinate our response to the global fuel crisis and cooperate so that both of our economies are more resilient. This is a win-win. That is why Prime Minister Wong and I have just signed the joint statement that will protect our mutual energy security and to support the flow of fuels and LNG between our two countries. The conflict in the Middle East is a long way from our region, but every nation in our region is being affected by it.

By building regional cooperation on energy security and economic resilience, we strengthen our own fuel security and our own economy. Our friendships in the region help our farmers back home. And the best way to deal with this global crisis is indeed to work together as partners and as neighbours. And I look forward to continuing to engage with the Prime Minister. We had a very wide-ranging discussion today, and that's what friends can do, because you come to the relationship with that position of trust and mutual interest. And we also talked about how Australia and Singapore could work with other nations as well, like- minded countries, to expand what we are achieving here today. Thank you.

JOURNALIST: We wanted to ask, with the rising competition for energy supplies globally, are you already seeing signs of countries competing or outbidding each other? And how can Singapore and Australia avoid being squeezed in the environment? Thank you.

PRIME MINISTER WONG: The global energy market is what it is now, facing a significant disruption. And when markets are tight, when demand exceeds supply, naturally there will be pressure on prices. That's what we are seeing today. There's not very much individual countries can do to influence the global energy market, but what Australia and Singapore have decided to do now is to work together, is to provide mutual support and to find ways in which we can strengthen our cooperation, key essential supplies flowing, and by doing so, we believe we will further strengthen our energy security and resilience.

PRIME MINISTER ALBANESE: I think Singapore is in a particularly strong position because of what we witnessed firsthand this morning at Jurong Island, with the significant players in the oil industry all having a presence there. And that means that some of the supplies that have been disrupted have been replaced by suppliers from West Africa, from the Americas. And the relationship between that and then Australia being able to have greater access to suppliers because of the relationship between our two countries strengthens our position, just as our position as a reliable supplier of LNG gives Singapore confidence as well to be able to engage in the way that it does, as such an important part of not just its own economy, but the region's economy as well. So, these are challenging times, and we need to recognise that. We need to respond to that in an orderly, cohesive way that seeks to not just develop solutions to the immediate challenges in terms of supply, but also one of the things we've talked about today, and was foreshadowed by the Prime Minister, is how do we emerge from this more resilient, strengthening those relations in trade and cooperation going forward as well? And that is certainly our intention.

JOURNALIST: Good afternoon, Prime Ministers. Prime Minister Albanese, when it comes to energy security, do you think countries should negotiate and pay tolls to pass through the Strait of Hormuz? And Prime Minister Wong, your government has already ruled out these negotiations. Will you then look to rely more heavily on alternative suppliers, including Russia?

PRIME MINISTER ALBANESE: We think the Strait of Hormuz should be opened, and that is our very clear position and one we will continue to put, one we've advocated for.

PRIME MINISTER WONG: Our position on the Strait of Hormuz is clear. It's consistent. We've stated that this is international law, and it's important to us that countries uphold international law, including the right of transit, passage through international waterways like the Strait of Hormuz. Because you are asking me then, what do we do in terms of energy supplies? As far as energy supplies are concerned, we believe it's a global energy market. Our companies source feedstock from all over the world, subject to prevailing laws and whatever sanctions, regimes, or arrangements are in place, we expect companies to uphold these international agreements and obligations. But subject to that, oil is fungible. As long as more oil enters the global energy market, it is good for the world. And our companies based here in Singapore are deeply connected to the different flows of energy supplies around the world. That's something we've built up over a considerable amount of time as an energy hub, as a refining hub, as an oil trading hub. And so, because of that position, because of that strategic position, companies here are able to access flows of oil from different parts of the world, and that ensures that we continue to have feedstock going into our refineries and our refineries in turn are able to provide supplies to all their different export markets.

JOURNALIST: Good afternoon, Prime Ministers. The first question I have is for Prime Minister Albanese. Is Australia prepared to increase LNG exports to Singapore or the region if supply shocks persist? And then the next question is to both prime ministers. You've both talked about energy resilience in the longer term. Are there discussions on long-term LNG contracts, joint stockpiling, or shared strategic reserves between the two countries to manage future supply shocks? Thank you.

PRIME MINISTER ALBANESE: On the first question, Australia has been a very reliable supplier of LNG, and we will remain so. Contracts are fulfilled. We believe very critically that our reputation as a reliable supplier of energy, not just to Singapore, but to other nations in the region, is a critical part of the way that Australia is perceived, quite rightly. And what that has done is to lead to confidence as well for investment in extraction of those goods. One of the things that today's agreement speaks about is maximising contributions. So, one of the things we want to be, positions we want to be in, is that if Singapore requires through commercial processes further LNG, there is over a period of time as well, additional fields are going to come online, and we will continue to provide support for Singapore, which is important for your economy, but also produces benefit for Australia.

PRIME MINISTER WONG: Australia is a very important supplier of natural gas to Singapore. As you heard just now, around one third of our LNG supply comes from Australia. Recently, we have centralised gas procurement for our country. Rather than rely on multiple commercial importers, we have centralised it under one entity, a single gas company. So, that allows that single entity to look at managing our overall gas portfolio, diversify different sources, and also manage the risk in terms of the duration of contracts. So, this gas company is doing just that right now, overseeing its entire portfolio of gas procurement and looking at how we can best manage the risk and certainly in the process of doing so, it will look to Australia to access more gas on a commercial basis and hopefully more long-term gas as well.

JOURNALIST: Prime Minister Wong, if Singapore does have to start restricting exports, will Australia be prioritised?

PRIME MINISTER WONG: We do not plan to restrict exports. We didn't have to do so even in the darkest days of COVID, and we will not do so during this energy crisis.

JOURNALIST: If it were to happen though, would Australia be prioritised?

PRIME MINISTER WONG: It's hypothetical. It won't happen.

PRIME MINISTER ALBANESE: And the Prime Minister is just as confident in private as he is in public.

JOURNALIST: To both prime ministers, in the event of a prolonged crisis, beyond energy corporation, what other areas of mutual support could Singapore and Australia explore? For instance, was food security, such as increased food imports from Australia, part of the discussion?

PRIME MINISTER WONG: The arrangements that we are putting in place, this protocol that we are negotiating and hoping to conclude soon, covers more than energy. It covers essential supplies and certainly areas like food. Australia is a significant supplier of food to Singapore. Wheat, dairy, meats, vegetable, fruits. We would like to get more food from Australia and continue to diversify our food sources. So yes, these will be covered as part of our wider agreement.

PRIME MINISTER ALBANESE: Certainly, I agree with the Prime Minister. We are major suppliers of food here in Singapore. By definition, we have more space than Singapore in order to have a vibrant agricultural sector, which is a great benefit for us, but also a benefit for the region. But in addition to that, can I add the issue of defence? So, one of the issues that we discussed is visits and using the port here of Singapore for the Australian Defence Force will be very important. Australia is a major destination, again, using our space for the training of defence force personnel from Singapore, whether it be in Queensland with the army, or whether it be around the Rockhampton area, just north there, or whether it be pilots, both commercial and military, training at Jandakot in WA. The relationship is so strong, and one of the things that we are talking about is how do we strengthen those protocols going forward so across the full spectrum -- one of the areas that I have found on visits to Singapore over many years as well, is the education sector is another area. There are so many members of the government and other officials who are graduates from Australia. That's good for Singapore, but it's also good for Australia, but it does something else as people-to-people links between us are absolutely critical. At times like this, being able to pick up the phone and have that sense of familiarity with each other is so important.

JOURNALIST: Prime Minister Albanese, is the Government considering any changes to the tax treatment for new gas export contracts in the May budget? And Prime Minister Wong, would Singapore have any concerns about any moves by Australia to raise taxes on gas exports?

PRIME MINISTER ALBANESE: We have three priorities when it comes to energy, both now and certainly in the immediate period. They are supply, supply, and supply. That is our priority. That is what we are focused on. That is what I'm engaged with. And as well, if there's a fourth, but below supply, is price. Which is why we changed the fuel tax regime in Australia as well.

PRIME MINISTER WONG: From our point of view, we import all of the natural gas we need for power generation. And when we procure the natural gas contracts or when we negotiate these natural gas contracts, they are done on commercial terms. As I mentioned just now, we now have a single entity negotiating these gas contracts. We will look at diversifying from different sources. We will look at different durations of contracts, some spots, some medium term, some longer term, but all to be negotiated on a commercial basis. And certainly, we will respect the laws and changes in terms, or changes in laws and taxes that any export country would like to impose. But we will look at it also at the same time from an overall portfolio, find ways to keep the portfolio price-competitive and continue to diversify our different sources. But within that context, I would say all this while we have found Australia to be a very reliable provider of gas, natural gas. And that's why I mentioned just now, certainly from Singapore's perspective, we hope to have more sources from Australia.