GuideMeSingapore

The global economy is quickly recovering from the financial turbulence and Asia is leading the world in the recovery. Asian economies keen on seizing the momentum are taking every effort to establish market synergies. The lesson learnt during the crisis has underpinned the significance of building a strong intra regional market through economic cooperation and promote free trade and investment across the borders. Singapore policy makers and executives at helm have constantly advocated closer economic relation among the regional economies. Post-crisis the mostly export oriented countries of the region have realized the significance and their sentiments towards such unified markets or rather barrier free markets is improving. The mutual efforts to improve economic relationship are gaining grounds, the recent development being the high level engagements of Singapore with Taiwan and Malaysia.

Taiwan, following the signing of the Economic Cooperation Framework Agreement (ECFA) with China, had begun negotiations on signing a Taiwan-Singapore economic agreement. In a recent joint statement by Taiwan and Singapore it was stated that agreements have been reached to explore the feasibility of an economic cooperation agreement between the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei) and Singapore, which is Taiwan s sixth largest trading partner. Both countries are members of WTO and the agreement ought to be framed within the guidelines of WTO.

The political relationship between Singapore and Malaysia has been taking a positive turn following the recent land swap agreements between the two governments. The neighbors are also keen on taking the relationship further by forging stronger economic cooperation. A Malaysian trade and investment delegation led by Malaysia s Minister of International Trade and Industry, Mr. Mustapa Mohamed, visited Singapore on a two day mission recently. The mission was promoting high value and high growth areas under Malaysia’s New Economic Model, such as oil and gas, electrical and electronics, information and communications technology (ICT), etc. One important outcome of the mission was the decision to revive the business council to bring companies from both sides together. It was also said that Malaysia will also set up a special unit for small and medium firms to deal with the influx of Singapore firms wanting to do business across the border. Singapore was the largest investor in Malaysia for the first four months of the year with 1.79 billion ringgit worth of manufacturing-related investments. Bilateral trade in the first half of the year also grew 36 per cent from a year ago to hit $52 billion.

Welcoming the development, Mr. Samir Gosh – a senior team member at Janus Corporate Solutions said Regional economic integration is the need of the hour and its fast becoming a reality. Singapore is a forerunner in this regard as the policy makers had the foresight to realize the significance of trade and investment agreement. Singapore has entered into various economic cooperation agreements with countries like India, Japan and many member of the ASEAN and also undertakes mutual review of the same periodically. This is the reason why the trading and investment activities of Singapore based companies have been accelerating in the recent years. In fact, such FTA s which are instrumental in spawning a seamless integrated market in the region, is a point of attraction for many enterprises and investors targeting the Asian markets, and they invariably choose Singapore to incorporate a company to manage their regional operation and to leverage on such trade and investment pacts.

For more information on incorporating in Singapore, refer to Singapore company registration guide.