NZ, Singapore prime ministers speak of importance of trade in increasingly volatile world

A powerhouse business delegation attending the inaugural NZ-Singapore leaders' forum has been sent a clear message from their prime ministers: get creative about how to trade more and do deals in an increasingly volatile world.

It's the first event in the whistlestop 48-hour tour of Singapore, which began with prime ministers Christopher Luxon and Lawrence Wong having a private dinner at the Fullerton Hotel on Sunday evening.

The forum is a similar format to that of New Zealand and Australia's and speaks to the closeness of the relationship with Singapore that the southeast Asian nation was keen to follow suit.

Of all the countries New Zealand has treaties and trade agreements with, it is Singapore that the most have been signed with in the 60 years of formal ties between the two nations.

While the forum is very much business lead, the two prime ministers attended the opening session on Monday afternoon NZT ahead of their own bilateral and signing of the essential supplies' treaty.

That first-of-its-kind deal was born last October when the two leaders met in New Zealand to update the relationship to a comprehensive strategic partnership.

Four months later when the United States and Israel struck Iran and fuel prices soared, the deal that ensures the safe and secure passage of goods during a crisis sprung to life.

While it's being officially signed on Monday, it has already verbally been in place as the fuel crisis has worsened since February, ensuring New Zealand would continue to have access to fuel stocks and in return Singapore had a safety net for food supplies.

Speaking to industry leaders on Monday, Luxon painted a picture of the world business is now done in.

"If economics was the primary language of international relations, we're now in a world where security dominates many of our leader conversations interdependence.

"The source of so much of our economic growth is being weaponised, whether when countries exploit supply chains through economic coercion or when they interfere with the cables and pipelines that stitch our economics together, that same interdependence allows far away conflicts to ricochet into our societies, and we've just seen that in the past few weeks," Luxon said.

"Military strikes in Iran translate very quickly into back pocket pain for Kiwis and Singaporeans."

Luxon spoke of the "unique powers" countries like Singapore and New Zealand have, and the ability to come together and build, defend, adapt, and reform the world-based order.

The essential supplies agreement being signed is a rare example of countries looking to each other for help, rather than turning inward.

It's caught the attention of other like-minded countries who are now discussing the possibilities for signing similar deals to give some confidence and security during times of crisis.

"It's a deal that demonstrates that New Zealand and Singapore have each other's backs. We don't just talk about the problems of the day, we work together, and we come up with the practical and creative solutions to solve them," Luxon said.

Both Luxon and Wong, when addressing the room of business leaders, encouraged them to be creative and innovative and bring ideas back to government so the leaders can find ways to break down barriers to allow business to do more between the two countries.

"We look forward to hearing some bold and practical and actionable recommendations. And once you come up with those nuggets, I promise you both our governments will take those ideas incredibly seriously," Luxon said.

Likewise, Wong in his remarks encouraged the business leaders to spend the day getting to know each other to the point they "have one another's phone numbers on speed dial" at the end of it so when an issue pops up, they can solve it together.

He said there's no guarantee in this new world that markets will "function as before" and that means diversifying and trading more, especially with close partners like New Zealand.

"We are now dealing with disruption from the Middle East crisis, and these episodes remind us that perhaps such shocks are no longer one-off. They are becoming part of the new normal in our business environment."

Wong said the business forum was an opportunity to deliver "concrete practical solutions that will strengthen our partnership further".

"I hope you use it well to build relationships, exchange ideas, and start partnerships that will take our cooperation further in this changed world, we cannot afford to stand still," he said.

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