SINGAPORE — Prime Minister Lee Hsien Loong invited companies from Eurasia to use Singapore as a gateway to Asia, as both sides established a platform for regular and broad-based exchanges.

Witnessing the signing of a Memorandum of Understanding (MOU) between Singapore and the Eurasian Economic Commission (EEC) in Moscow on Wednesday (May 18), Mr Lee said that the MOU will allow officials and business communities to become more familiar with each other.

“I am sure this more intense interaction will enable us to identify new trade and investment opportunities in the Eurasian Union markets that Singapore companies can take advantage of, and conversely, we will also identify new opportunities for companies from the Eurasian Union to use Singapore to invest in and also to be a gateway to Asia,” he said, referring to the Eurasian Economic Union (EAEU). 

“Singapore is a major transport, logistics and financial hub, and it has one of the most extensive network of trade agreements in Asia. We hope to be a useful partner for the Eurasian Union for your companies’ and your entities to engage Asia.” 

The MOU was signed by Minister of State for Trade and Industry Dr Koh Poh Koon and the EEC Minister for Development of Integration and Macroeconomics, Ms Tatyana Valovaya. The signing took place in the presence of Mr Lee —  who is currently in Russia on a four-day official visit — and former Armenian Prime Minister and the EEC board chairman Tigran Sargsyan.

The MOU will promote greater cooperation and enhance economic ties between Singapore and the Member States of the EAEU comprising of Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. It also aims to provide a platform for regular interactions and facilitate closer collaboration between the EEC (the regulatory body of the union) and Singapore in areas such as customs administration, trade in services and investments and information technology.

Commenting on the MOU with EEC, Mr Lee said it was a “positive and concrete step” towards deepening and widening the engagement between Singapore and the EAEU.

Mr Sargsyan said the MOU will open a new page in Singapore-Eurasian relations.“Together with the Prime Minister of Singapore, we have noted the interest of the Eurasian Economic Union and Singapore in deepening and expanding our trade and economic relations.  To implement this interest, we will come up with a working group that will develop the proposals of two parties — for the main areas of deepening our relations,” he said.

Mr Lee said economic cooperation between Singapore and the EAEU would benefit greatly from a Free Trade Agreement (FTA), noting that the trade pact would reduce obstacles to trade and establish a conducive environment for business.

“So I hope both sides will work closely together to study the possibilities and opportunities and hopefully work towards launching  negotiations for the FTA. And I am confident our work will strengthen trade and investment ties between Singapore and the Eurasian Union,” he said.

A press release issued by the Ministry of Trade and Industry (MTI) said that the proposed FTA could give Singapore companies access to a combined market of 180 million people with a Gross Domestic Product (GDP) of S$6 trillion.

Commenting on business opportunities for Singapore companies, Dr Koh said the EAEU represents a large and dynamic market of about 180 million people, and Singapore is excited by the possibilities for economic cooperation. “The Singapore Government is committed to providing the necessary support for our companies to venture abroad, by expanding and deepening Singapore’s trade infrastructure with these (less explored) markets,” he said.

“The signing of the MOU between Singapore and the Eurasian Economic Commission is a start. I hope that we will be able to launch negotiations for a Free Trade Agreement with the EAEU soon, so as to open up more business opportunities for our companies,” he said in MTI’s press release on Wednesday.

On Thursday, PM Lee will meet Russian Premier Dmitry Medvedev in Moscow. He will then proceed to the Black Sea resort of Sochi for a summit commemorating the 20th anniversary of Asean-Russia relations, where he is also scheduled to meet President Vladimir Putin.