I'm Australian and am increasingly ok with this approach. I'm growing slowly out of a protectionist mindset, toward one of cautious, and considered collaboration. Singapore follows this approach and it has worked well for them so far.
Singapore is a city, Australia is a continent. Singapore is a poor analog for pretty much every other country. It was founded precisely because it sits near a busy sea route. It makes sense for Singapore to be very open to trade. That does not mean it works for Australia.
(I'm not arguing that the reverse is true, just that Singapore proves nothing.)
I've never really understood the protectionist mindset. It kinda only makes sense to me as a fading shadow of WWII paranoia. The invasion of Australia by a foreign adversary has never been something I've worried about (but, maybe, that's _because_ of the alignment with the US). I've also struggled with the practical logistics of it.