EU and S’pore forge closer business ties; EU firms invited to use Republic as springboard into Asean

Singapore: Businesses in the European Union (EU) are ramping up efforts to collaborate with firms here in areas such as digital technology and sustainability.

The EU-Asean Business Council led its first business mission to Singapore on April 23, enabling 50 or so leaders and industry experts from 22 companies to hear from key government ministries on Singapore’s plans for economic advancement and enhancing EU ties.

These included the ministries of Health, Trade and Industry, Sustainability and the Environment, as well as Communications and Information.

Founded in 2014, the EU-Asean Business Council represents European businesses across the Asean region and aims to increase understanding between businesses and governments, create a more conducive environment for trade and investment, and help with economic development.

Its Singapore mission comes at a time when trade and investment flows between the EU and Singapore are at an all-time high.

The Asean Statistical Database notes that about 91.5 per cent of European foreign direct investment into Asean in 2022 was funnelled through Singapore.

Deputy Prime Minister Heng Swee Keat spoke at the EU-Asean Business Council’s 10th anniversary dinner on April 24 and invited the EU to continue tapping Singapore as “a test bed and pathfinder to achieve new breakthroughs in the region”.

For example, the EU and Singapore are negotiating a digital trade agreement (DTA) aimed at giving citizens and businesses legal certainty and clarity to transact in the digital economy, and further enhance digital connectivity between Singapore and the EU.

“The DTA could allow us to exercise thought leadership in shaping global rules and standards on digital trade, and serve as a pathfinder for a legally binding arrangement between the EU and Asean in future,” Mr Heng said.

Business sentiment among EU businesses in the region is at a high, with more than 60 per cent of the firms surveyed in a 2023 poll seeing Asean as the zone of best economic opportunity over the next five years.

It also found that around 80 per cent expect to increase trade and investments in Asean and that markets here will become more important in terms of their worldwide revenue over the next two years.

Mr Heng also voiced optimism in his speech that officials from both sides can “form the building blocks for an eventual Asean-EU free trade agreement”.

EU-Asean Business Council executive director Chris Humphrey noted: “Asean is a bright spot in the global economy, with significant economic growth rates, an increasing middle class, high rates of urbanisation and a relatively young, technology-savvy population.

“These, together with an excellent geographical position, make the region one that European businesses naturally want to do more business in.”