Singapore should deepen its economic links with ASEAN as higher labour, energy, and carbon costs influence where multinational companies locate jobs and investments, according to the Singapore Institute of International Affairs (SIIA). SIIA proposed a regional operating model under which headquarters, research and development, and parts of advanced manufacturing remain in Singapore, whilst broader manufacturing and other operations expand into neighbouring ASEAN markets. However, the institute cautioned that earlier cross-border initiatives encountered problems involving customs, immigration clearance and transport links. “There should be a careful balance between preserving functions in Singapore whilst enabling activities to expand across the border, particularly in new high-value sectors,” SIIA said in its Tested Through Turmoil report. SIIA said multinationals may continue to place mid- and senior-level roles in Singapore whilst locating more entry-level positions in lower-cost cities.