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Subject

Singapore diplomacy outlook.

Significance

Singapore's defence ministry announced on January 30 that nine Terrex infantry carrier vehicles seized by Hong Kong customs on November 23 had been returned. The vehicles were detained in Hong Kong en route back from military exercises in Taiwan. Despite the resolution of this incident, Singapore's diplomatic relations will be tested further in 2017 as the city state is facing a regionally ascendant China and a new Asian foreign policy vacuum in Washington, following US President Donald Trump's inauguration.

Impacts

Despite the Terrex episode, Singapore's ties with Taiwan are unlikely to weaken.

Singapore will likely pursue alternatives to the Trans-Pacific Partnership, such as a non-US arrangement, in the short term.

The city state will also embrace the Regional Comprehensive Economic Partnership, currently being negotiated.

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