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London committed to smooth transition for Singaporean and British businesses amid Brexit negotiations

SINGAPORE — The uncertainty over the United Kingdom’s exit from the European Union has created volatility for British and Singaporean companies, noted British High Commissioner to Singapore Scott Wightman on Wednesday (Jan 18), while adding that London is committed to ensuring a smooth transition for businesses from both sides.

British High Commissioner to Singapore Scott Wightman. Photo: British High Commission

British High Commissioner to Singapore Scott Wightman. Photo: British High Commission

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SINGAPORE — The uncertainty over the United Kingdom’s exit from the European Union has created volatility for British and Singaporean companies, noted British High Commissioner to Singapore Scott Wightman on Wednesday (Jan 18), while adding that London is committed to ensuring a smooth transition for businesses from both sides.

The envoy was speaking to reporters on Wednesday following British prime minister Theresa May’s policy speech the night before charting Britain’s course toward a clean break with the EU. Her speech outlined a hugely complex, drawn-out negotiations and defined broad objectives of British withdrawal from the bloc.

The UK Supreme Court has said it will give a ruling on Article 50 of the Treaty of Lisbon — which will see Britain formal notifying the intention to withdraw from the EU — on Jan 24.

Acknowledging that there will be short term volatility during the course of the negotiations to leave the EU, Mr Wightman said this is inevitable and he expects Singaporean investors to be able will be able to overcome the challenges in the long run.

“It is inevitable that during the course of the (Brexit) negotiation, there will be volatility. The more certainty that we are able to offer business, the more confident they can be about taking long term investment decisions,” he said.

“One of the great advantages for Singaporean investors is that they tend to be long term (investors). So I think they are less anxious about the short term volatility.”

He noted that Singapore is an important trade and investment partner for Britain. Over 4,000 British companies now operate in the city-state.

“It is an important economic relationship and we want to ensure that it strengthens and grow in the years to come,” the High Commissioner said.

Mr Wightman pointed out that Singaporean companies have invested in the UK because of its friendly business environment as well as a conducive and supportive tax system, among other things. And these fundamentals will not change, he said.

The British people supported the withdrawal from the bloc after voting in a referendum in June last year.

Britain has two years to negotiate a break-up deal once Article 50 is triggered by Mrs May. She is expected to do so by end of March.

Britain’s Supreme Court is due to rule later this month on whether Mrs May must seek parliamentary approval before triggering Article 50, which could delay the start of Brexit negotiations.

Mr Wightman said London is keen for the Singapore-EU Free Trade Agreement to enter into force as soon as possible. even as negotiations for Brexit are taking place.

“For the moment, our immediate focus is on doing whatever we can to ensure that the existing (Singapore-EU) FTA enters force as soon as possible. We want to find an arrangement and agreement with the government of Singapore that ensures a smooth experience for both Singaporean and British businesses”.

“(This will ensure) our businesses are able to take advantage of the FTA here in Singapore and Singaporean businesses who are big investors in the UK can take advantage of its provisions. We will want to ensure that the moment we leave the EU, there is a very smooth transition.” Mr Wightman did not provide further details on the transition, citing the delicate nature of Brexit negotiations.

When asked if there may be a clause that will allow the UK to remain a party to the Singapore-EU FTA even after it leaves the bloc, Mr Wightman said the technical details of the agreement will need to be considered in the context of a broader negotiation between London and Brussels.

Singapore and the EU concluded an FTA in December 2012, after three years of talks. Under the FTA, the EU will eliminate tariffs on all imports from Singapore over five years, while Singapore will grant duty-free access for all imports from the EU. The FTA has yet to be ratified by all the EU.

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