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Boosting S’pore-Indonesia trade ties an effective way to secure economies

Singapore and Indonesia are, to a large extent, benefiting from their relationship, as reported in “Singapore, Indonesia move to boost trade ties” (Nov 15).

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Shivani Ekkanath

Singapore and Indonesia are, to a large extent, benefiting from their relationship, as reported in “Singapore, Indonesia move to boost trade ties” (Nov 15).

Both countries must now reap more benefits from their joint ventures so that they can maintain investment capacity and attract foreign direct investment.

Such cooperation with Indonesia would help bolster many sectors in Singapore’s economy and combat the threat of sluggish growth; it could aid domestic firms in diversifying in the long run, and help Singapore to buffer economic uncertainty and volatility.

Such endeavours are also significant for both countries amid the fluctuations of many stock markets as the United States election result sinks into other economies, and with the US Federal Reserve potentially raising interest rates soon.

Indonesia’s currency and domestic bonds are coming under pressure from these events because it is an emerging market. The rupiah depreciated by about 2.5 per cent against the US dollar this month.

Maintaining steadfast ties would also help both countries lay the foundation for tackling more issues in future, including two mentioned in the report: The haze problem and terrorism.

Economic cooperation and better trade are the most effective ways for countries to secure their economies. Strong, efficient trade always comes from good international relations, which the moves by Singapore and Indonesia shall prove.

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