'Tremendous prosperity' in Indo-Pacific, but middle powers must work together: New Zealand PM Luxon
New Zealand PM Christopher Luxon discussed the Indo-Pacific’s economic potential, geopolitical tensions, and efforts by countries like New Zealand and Singapore to strengthen trade and security ties in an interview with CNA’s Angela Lim.
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SINGAPORE: The Indo-Pacific is a “tremendous engine for global prosperity”, but rising geopolitical tensions mean economic growth cannot be separated from regional security, New Zealand Prime Minister Christopher Luxon said.
Speaking to CNA on Tuesday (May 5), Mr Luxon called on middle powers to work more closely together to safeguard trade and uphold international rules in an increasingly fragmented world.
“Across the whole of the Indo-Pacific region … is where huge amounts of growth sit. This will be a huge driver of the middle-class economy. It's a tremendous engine for global prosperity,” he said.
“But also today, in 2026, you don't get prosperity without having security. Those conversations are inextricably linked,” he added, pointing to conflicts in Ukraine and the Middle East that have triggered wider economic pain.
SHIFTING WORLD ORDER
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Mr Luxon said countries are navigating a shift from a multilateral system towards a more multipolar world “where power increasingly dominates”.
Still, he argued that middle powers have “huge agency” when they act together, even if they lack the scale of major powers.
“We have values and interests, but not necessarily power as small countries. But the way we can achieve agency and influence is through working together,” he said.
He added that smaller advanced economies can “model it out to the world” by building new forms of cooperation and partnerships.
“The new world order isn't yet fully determined. There's a chance for countries like New Zealand and Singapore that believe in the rules-based system to remake multilateralism,” he said.
Part of that approach involves what he described as “latticework” agreements across trade and security with like-minded countries. The strategy is often referred to as smaller networks of bilateral and minilateral partnerships that are more agile than traditional alliances.
PIONEERING NEW TRADE ARCHITECTURE
Mr Luxon pointed to a newly signed supply chain resilience pact between New Zealand and Singapore as an example of how such cooperation can take shape.
The agreement – the world’s first legally binding bilateral deal to ensure the flow of essential supplies during crises – was inked in Singapore on Monday.
“In the event of a crisis, New Zealand will provide Singapore with food, and Singapore will provide New Zealand with fuel,” said Mr Luxon, who witnessed the signing alongside Singapore Prime Minister Lawrence Wong.
New Zealand currently receives about 30 per cent of its fuel through Singapore’s refineries, while Singapore relies heavily on food imports.
“This is a good way in which two complementary economies can support each other and have each other's back in times of crises,” Mr Luxon noted.
“This is an example of where Singapore and New Zealand pioneer and develop new trade architecture together. We could model out and remake the case for multilateralism.”
He added that such arrangements could be expanded further, as both countries look to make trade “more frictionless” and bring in other like-minded partners.
FREE TRADE AND REGIONAL STABILITY
At the same time, Wellington remains a strong advocate for freedom of navigation and international law, said Mr Luxon, cautioning against any precedent that could disrupt global shipping routes.
“We don't want to see a precedent where there is tolling or taxing of the Strait of Hormuz, that could impact other waterways that (we) utilise to move goods and services around the world,” he said.
He added that countries must avoid retaliatory measures, including reciprocal tariffs, that could undermine the global trading system.
“Trade ministers need to uphold our international trading laws. We don't want to see a tit-for-tat and a breakdown of our trading architecture around the world,” he said.
Looking ahead, Mr Luxon said New Zealand plans to deepen its engagement with Southeast Asia.
He also highlighted efforts to reinforce the Pacific Islands Forum, a grouping of 18 Oceania members, drawing parallels with the Association of Southeast Asian Nations’ (ASEAN) principle of centrality in maintaining its security and stability.
“We need to make sure that the Pacific family solves challenges with its own solutions, rather than being interfered with by major powers,” he said.
“We are working hard … to build what we call the ‘Pacific centrality’, based off a lot of what we've observed through ASEAN.”
Mr Luxon on Tuesday wrapped up a three-day official visit to Singapore, where he met his Singaporean counterpart PM Wong and President Tharman Shanmugaratnam, and attended the inaugural Singapore-New Zealand Leadership Forum.
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