SINGAPORE - The deep and multifaceted relationship between Singapore and Indonesia is rooted in the belief that cooperation is beneficial to both sides, said Foreign Minister Vivian Balakrishnan on Monday (March 2).

"However, there are issues that arise from time to time," he said in Parliament during the debate on his ministry's budget.

Dr Balakrishnan, replying to Mr Vikram Nair (Sembawang GRC) and Mr Seah Kian Peng (Marine Parade GRC), said Singapore remains the largest investor in Indonesia, with strong economic cooperation, while both countries' security agencies maintain close and regular contact.

"We convene an annual Leaders' Retreat between our Prime Minister and the Indonesian President, and this retreat involves many Cabinet members on both sides," Dr Balakrishnan added.

At last year's retreat, which took place in Singapore in October, Prime Minister Lee Hsien Loong and President Joko Widodo announced "a framework which provides a sound and comprehensive basis for discussions" on the sensitive issues of airspace management and military training.

It sets out the core principles and considerations in these issues.

While discussions are currently ongoing, Dr Balakrishnan noted that no deadline has been set for their conclusion.

The framework includes addressing the issues according to international law, including the United Nations Convention on the Law of the Sea (Unclos) and International Civil Aviation Organisation's rules and provisions, and respecting Indonesia's sovereignty over its territory.

It also includes respecting "Singapore's longstanding rights to conduct military training in accordance with Unclos" and the "long-term needs of Changi Airport", the minister said.

Dr Balakrishnan also responded to Mr Chong Kee Hiong (Bishan-Toa Payoh GRC), who asked about Singapore's relationship with Brunei.

"Our longstanding and special relationship is built on strong strategic trust at the leaders' level, and the pillars of strong defence cooperation and the Currency Interchangeability Agreement," he said.

Under the 1967 Currency Interchangeability Agreement, Brunei dollar notes can be used in Singapore and vice versa, at an at-par exchange rate.

Dr Balakrishnan also said the two sides are exploring new areas of cooperation, such as agri-food cooperation and financial technology (fintech), while deepening the ties between their younger generation of leaders through platforms like the annual Young Leaders' Programme.

On Asean, Senior Minister of State for Foreign Affairs Maliki Osman said the regional grouping is "a cornerstone of Singapore's foreign policy", allowing the country to foster regional peace and security, and pursue its strategic, economic and socio-cultural priorities.

Collectively, it is an attractive platform for major powers to engage the region, he added in his reply to Mr Charles Chong (Punggol East), Mr Henry Kwek (Nee Soon GRC) and Dr Teo Ho Pin (Bukit Panjang).

"Asean also serves as a channel to coordinate collective responses to regional crises. For example, through Asean's humanitarian assistance and disaster relief efforts, we are able to alleviate the situation in the Rakhine state."

He also said preparations are under way for a video conference meeting between Asean and the European Union to exchange information and best practices on the Covid-19 outbreak.

He added that Singapore has "substantive and growing economic, defence and people-to-people ties" with other South-east Asian countries, and are exploring new areas as well.

Replying to Mr Gan Thiam Poh (Ang Mo Kio GRC), Dr Maliki cited examples such as Singapore's and Philippines' agreements to cooperate in emerging areas such as data protection and smart city infrastructure, Singapore's fintech cooperation with Thailand, and the good progress of the seven Vietnam-Singapore industrial parks.

"We are confident that cooperation in these areas would promote economic growth, social development and long-term stability in our region," he said.

Dr Maliki added that engaging with the other regional countries serves as an avenue for cooperation to tackle transboundary threats such as cyber security, climate change and terrorism.