Published on November 30, 2005

Businesses in Singapore and Thai-land took another step to further bilateral trade and investment last week at the second meeting of the Singapore-Thailand Enhanced Economic Relationship (Steer).

Steer is part of a strategy by both governments to progress towards an Asean Economic Community before 2020, and to maintain competitiveness in markets around the world.

It ended with the signing of 12 memoranda of understanding between the two governments and private companies.

The meeting also tackled recurring questions about the relationship between the two countries. Because Singapore is one of Thailand’s most important competitors within the Asean grouping, many executives doubt Singapore’s capacity to engage more closely with Thailand.

In particular, the meeting confronted doubts that Singapore can be a meaningful force in helping Thailand develop various areas with high potential, such as human resources and logistics.

But, Prime Minister Thaksin Shinawatra took talk of cooperation a step further, when he told the meeting the two countries could move closer to achieving “one economy, two countries”, by working closely to develop the Asean region and create linkages between each other’s private sectors.

Thaksin said that Thailand and Singapore should forge closer partnerships in all areas and further bolster trade and economic cooperation.

The two countries can build upon each other’s strengths and competencies, cooperate to create value, and harness the synergies between them, he said. This will raise the international competitiveness of both countries and expand opportunities for economic growth.

Deputy Prime Minister and Commerce Minister Somkid Jatusripitak told that meeting that collaboration between Thailand and Singapore would prove that Asean countries are ready to become a gateway to Asia.

The meeting decided that, of the 10 countries in the Asean grouping, Thailand and Singapore would start to “tango” together first, and persuade others to join later.

“Because Thailand and Singapore have agreed to together develop both learning and researching technology, we see a doubling of trade and investment figures before 2010,” Somkid said.

The two countries agreed to cooperate on tourism in order to mutually benefit from attracting travellers from around the world.

Somkid said such joint initiatives would be a showcase for other members of Asean and inspire them to join together for deeper economic integration.

The two governments also agreed to set up a special team to bring to reality the idea of a single visa for Asean countries.

Thailand and Singapore will establish a single visa first to promote tourism between the two countries, Somkid said.

One accord signed will lead to cooperation on logistics development, with the aim of creating a freer flow for cargo and improved maritime operations within a year.

To boost investment in Thailand, Singaporean companies were invited to participate in the government’s mega-projects, which require total spending of about Bt1.7 trillion. The mega-projects concern transportation, mass transit, property development, public utilities and logistics.

Alphonsus Chia, deputy chief executive of International Enterprises Singapore, said the mega-projects were a great opportunity for cooperation with Thailand. Singaporean logistics players are internationally accredited to provide reliable transport and related services.

“As Thai conglomerates have reached a critical mass, there are synergies in which both countries can explore collaboration in third-party logistics outsourcing and supply chain management projects,” Chia said.

According to the Board of Investment, Singapore is Thailand’s third-largest foreign investor with 74 projects worth US$453.5 million (Bt18.68 billion).

Since 1999, Singaporean investors have poured $1.7 billion into Thailand, with 40 per cent of the projects being expansions of existing investments and 60 per cent new ventures.

In 2004, Thailand was Singapore’s eighth-largest trading partner, with trade valued at $24.4 billion, up 20 per cent from 2003.

Petchanet Pratruangkrai

The Nation

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