Toast Speech by President Tharman Shanmugaratnam at the State Banquet in honour of President of the Republic of Paraguay Santiago Pena on 23 May at Marriott Tang Plaza Hotel

Your Excellency President Santiago Peña of Paraguay
First Lady Leticia Ocampos de Peña
Distinguished guests
Ladies and Gentlemen

1. Let me begin by extending a very warm welcome to Their Excellencies, President Peña and the First Lady, and to all our friends from Paraguay. 

2. Your presence marks a milestone in our relations. This is the first State Visit by a President of Paraguay since diplomatic ties were established more than 30 years ago.

3. We occupy different corners of the world – Singapore, a city-state at the heart of Southeast Asia; Paraguay, a land of vast rivers and open plains in South America. Yet we share a commitment to building a more inclusive and sustainable world, and to a rules-based global order.

4. Over the past three decades, we have deepened our bilateral ties, finding common ground in our mutual commitment to peace, sustainable development, and international cooperation. 5. There is much more that we can do together.

Shared values and aspirations

6. As small States, we understand that our peace and prosperity cannot be taken for granted. They depend on remaining open to the world, adaptable in the face of global shifts, and committed to upholding international law and multilateralism.

a. Paraguay has been tenacious in transforming its economy and plugging into global trade and investment flows, even with the natural constraints of being landlocked. It has sought to build on its strengths in agriculture, harnessed renewable energy, and fostered an environment conducive to growth.

b. These efforts reflect a broader truth: that a nation’s potential is ultimately defined not by its size or geography, but by its ambition and determination to seize opportunities in a connected world. It is perhaps fitting that the name Paraguay is said to be derived from Guarani roots, meaning “the river that gives birth to the sea” – a reminder that even the most inland of nations can be within the flow of, and contribute to, the great currents of global progress.

c. The name Singapore is a little more straightforward – it comes from the Sanskrit words Singa and Pura, for “Lion City.” But our story too, is about transformation against the odds, and joining in the currents of global progress. From our beginnings as a trading post, we have grown into a financial, technological, and logistics hub within Asia.

7. Our shared experiences as small states underscore a vital lesson: we gain strength through collaboration. This is reflected in our active pursuit of regional and international tie-ups.

a. Paraguay’s active role in MERCOSUR has promoted regional integration in South America, just as Singapore’s role as a founding member of ASEAN and ever since has contributed to deeper cooperation and inter-linkages within our region.

b. During Paraguay’s Pro Tempore Presidency of MERCOSUR in the first half of 2022, Paraguay was instrumental in pushing for the substantive conclusion of negotiations of the MERCOSUR-Singapore Free Trade Agreement (MCSFTA). The MCSFTA was eventually signed in December 2023. It is MERCOSUR’s first FTA with a Southeast Asian country, and Singapore’s first trade deal with MERCOSUR Member States.

c. Just two months ago in March, Paraguay ratified the Singapore Convention on Mediation (SCM), making it the SCM’s 17th State Party.

Economic collaboration

8. While trade between Singapore and Paraguay has thus far been modest, the potential for growth is significant. Leveraging on the MCSFTA, we can make more of the complementarities between our economies.

a. Paraguay is already among the global leaders in agriculture – a top exporter of soybeans and beef, with a reputation for quality and sustainability. There are natural synergies with Singapore’s ambition to be Asia’s hub for agri-food innovation and technology. With our Singapore Food Agency’s recent certification, Singaporeans will soon also be able to consume beef, pork, and poultry among several processed products from Paraguay. 

b. Beyond trade in goods, the MCSFTA will serve as a catalyst for broader economic partnership – including in the digital economy and sustainable development.

9. We also see growing scope for collaboration in climate action and sustainability.

a. Paraguay’s achievement in generating nearly 100 per cent of its electricity from clean hydroelectric power is remarkable. It is not only self-sufficient in clean energy but also a significant exporter – a role few countries can claim.

b. Singapore is keen to learn from Paraguay’s experience here. While we do not have the natural resources Paraguay enjoys, we are investing in innovation to move towards more sustainable energy, food, and urban systems.

c. On this note, I am very happy that our two countries have concluded an Implementation Agreement on Carbon Credit Collaboration. In practical terms, this will mean investments in high-quality climate projects in Paraguay – be they in forest conservation, renewable energy, or sustainable agriculture – while contributing to Singapore’s decarbonisation goals. It is a model of how international cooperation in climate action can deliver mutual benefit.

Technical Cooperation

10. Looking ahead, I see tremendous potential for deeper cooperation. Paraguay’s strategic location at the heart of South America, combined with Singapore’s position as a
gateway to Asia, creates natural opportunities for us to serve as bridges between our respective regions.

11. But even as policies and deals make the news, the bedrock of any bilateral relationship is ultimately its people.

12. Over the years, Paraguay has been an active participant in the Singapore Cooperation Programme (SCP). We have welcomed Paraguayan officials to Singapore for training programmes in areas such as public administration, civil aviation, healthcare and economic development. The lasting professional networks and friendships forged continue to strengthen the fabric of our bilateral ties. We look forward to welcoming more friends from Paraguay to participate in the SCP.

13. Your Excellency, your visit today represents more than just a diplomatic exchange – it symbolises the potential for greater collaboration between two nations that, despite their geographical distance and differences in culture and language, share common aspirations.

Distinguished guests
Ladies and gentlemen

14. May I now invite you to join me in a toast:

a. To the good health and success of His Excellency President Santiago Peña and First Lady Leticia Ocampos de Peña;
b. To the continued peace and prosperity of Paraguay; and
c. To the enduring friendship between Singapore and Paraguay.

Salud!