Published on November 23, 2005

Both nations should get ball rolling on Asean single market: Lim. Thailand and Singapore will go ahead with bilateral single-market plans to get other Asean countries to work faster in developing a single market in the region by 2020, Singapore’s minister of trade and industry, Lim Hng Kiang, said in Bangkok yesterday.

Lim said under the target of building the Asean Economic Community (AEC), by Thailand and Singapore should move first to create an Asean single market. Some officials have described their bilateral effort as “tango dancing” to cajole the others to step onto the dance floor.

“Thailand and Singapore can go first to create an Asean single market, and then be followed by other members,” said Lim, adding that such an Asean community would boost foreign direct investment in the entire region.

Lim was in Bangkok attending the Singapore-Thailand Enhanced Economic Partnership meeting, at which nine memorandums of understanding (MOUs) were scheduled for signing to promote trade ties.

The MOUs are expected to translate into additional economic links worth Bt2 billion to Bt3 billion, according to Uttama Savanayana, vice minister of commerce.

Lim said he urged Singaporean enterprises to engage Thai partners to cooperate on both the trade and services sectors and two-way investments.

Accompanying Lim, 60 Singaporean entrepreneurs from a wide range of sectors participated in a business-matching session with more than 120 Thai entrepreneurs and executives. The Singaporean companies taking part were from the logistics, automotive, food and agricultural, maritime, and retail sectors.

Prime Minister Thaksin Shinawatra said at the gathering of Thai and Singaporean businessmen and officials yesterday that it is time for the countries to go further than other Asean members based on their strong economic relations.

“We can exchange synergies for each other’s development,” said Thaksin. “After that we will have wider opportunities in terms of both trade and investment.”

Thaksin added that cooperation between the Thai and Singaporean government and private companies would merge into a dynamic direction, including development of all sectors.

However, Thaksin said Thailand still needs to improve its educational system and create a “value chain”. Cooperation with Singapore will help Thailand improve in both of these areas, including human resources management.

The second meeting of Singapore-Thailand Enhanced Economic Relationship (Steer) is being held November 22 and 23 in Bangkok. Steer tries to create more collaboration between the two countries and integrate trade and investment in the two countries and in Asean in general.

Last year, Singapore was the second-largest investor in Thailand after Japan, with an investments worth US$600 million (Bt24.7 billion). Singapore was also Thailand’s top trading partner among Asean members.

Bilateral trade volume in the first six months of the year between Thailand and Singapore was $8 billion. Thailand enjoys a trade surplus with Singapore.

Dduring the meeting, Thailand and Singapore will sign nine MOUs for industrial cluster developments and joint government projects.

Deputy Prime Minister and Industry Minister Suriya Jungrungreangkit said that the MOUs would mark yet another step forward in forging a stronger economic relationship and signifies the unflagging commitment of both sides.

Five MOUs cover government cooperation and four, private companies.

One MOU calls for the Stock Exchange of Thailand and Singapore Exchange Securities Trading Limited to build up capital market cooperation and stock-trading linkages. Lim and Deputy Prime Minister Somkid Jatusripitak will today attend the MOU signing at the Grand Hyatt Erawan Hotel.

Another MOU aims to create a joint venture between the Thai Government Pension Fund and LC Hotel to build a hotel in Phuket.

Petchanet Pratruangkrai

The Nation

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