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SINGAPORE – Singapore has signed a memorandum of understanding (MOU) with the United States to deepen economic cooperation and extend trade financing and investment support to their respective companies.
The memorandum of understanding aims to improve the availability and access to trade financing options for companies from both countries, the Ministry of Commerce and Industry (MTI) said in a press release on Wednesday morning (December 16). ).
This will help remedy the global tightening of credit following the economic slowdown caused by the Covid-19 pandemic, the MTI said. It will also facilitate bilateral trade in goods and services to improve growth opportunities.
The US is Singapore’s largest foreign investor, while Singapore was the fourth largest Asian investor in the US in 2019.
The memorandum of understanding also seeks to strengthen cooperation in investment promotion and provide opportunities for both countries to explore the use of technology such as fintech to address new investment and trade financing challenges.
The agreement was signed by the Minister of Commerce and Industry, Chan Chun Sing, and the Secretary of Commerce of the United States, Wilbur Ross.
“As like-minded partners, Singapore and the US are committed to supporting our businesses as they respond to the global economic disruptions caused by Covid-19,” said Mr. Chan.
He added: “Through this memorandum of understanding, we will facilitate company investments in Singapore and the US, and help companies access more trade finance facilities. We also hope to catalyze increased trade and investment flows between US, Singapore and Southeast Asia and enable our companies to continue to operate and access opportunities in these difficult times. “
Ross said the United States and Singapore “have enjoyed more than 50 years of official partnership since we established diplomatic relations in 1966.”
The memorandum of understanding, he added, will help Singaporean importers finance the purchase of US exports and support Singaporean investors seeking opportunities in the United States.
The MTI and the US Department of Commerce will oversee the two-year rolling MOU. It will be supported by implementing agencies such as Enterprise Singapore, the US Export-Import Bank and the US Commercial Service in Singapore.
“The memorandum of understanding is the latest tangible result of the strong economic and investment partnership between the United States and Singapore,” MTI said in the statement.
The agreement reached in the last weeks of the administration of US President Donald Trump comes after Singapore last week signed a free trade agreement with the United Kingdom, the first agreement of its kind between Britain and a member state of the Asean.
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