Singapore, Uzbekistan take first step towards free trade agreement
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Senior Minister Lee Hsien Loong (front row, centre), Minister of State for Foreign Affairs and Home Affairs Zhulkarnain Abdul Rahim (front row, second from left), and MP Foo Cexiang (front row, fourth from left) tour the Islamic Civilization Centre in Tashkent, Uzbekistan, on Aug 28.
ST PHOTO: GAVIN FOO
TASHKENT – Singapore and Uzbekistan have taken the first formal step towards negotiating a free trade agreement (FTA), as the two countries seek to deepen economic ties and expand the opportunities for businesses.
The two countries signed a joint statement on Aug 28 formalising their intention to begin negotiations on a bilateral FTA, during Senior Minister Lee Hsien Loong’s official visit to the Central Asian nation.
Lee and Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov witnessed the signing, along with two other agreements aimed at deepening economic cooperation between the two countries.
These were a memorandum of understanding (MOU) on cooperation in investment, industry and trade, and a supplemental MOU for a planned investment between an Indorama-Wilmar joint venture and the government of Uzbekistan.
“This milestone represents a commitment to start talks for a bilateral FTA,” a Ministry of Trade and Industry (MTI) spokesman said, adding that the framework for negotiations towards a “modern and business-facilitative FTA” was now being built.
FTAs are agreements between countries that seek to reduce or remove barriers to trade, such as tariffs, and make it easier for businesses to access each other’s markets.
The proposed agreement aims to improve market access and create more opportunities for businesses in both countries.
It comes as economic links between Singapore and Uzbekistan have grown in recent years. Uzbekistan was Singapore’s second-largest services trading partner in Central Asia in 2024 and its third-largest goods trading partner in the region in 2025.
Bilateral trade in goods amounted to $69 million in 2025, while trade in services stood at $109.6 million in 2024. Singapore’s direct investment in Uzbekistan amounted to $390 million in 2024.
The other agreements signed on Aug 28 also seek to build on the growing economic links.
Under one MOU, Singapore Cooperation Enterprise (SCE) and Uzbekistan’s Ministry of Investment, Industry and Trade will strengthen cooperation in investment, industry and trade.
A wholly owned subsidiary of Enterprise Singapore, SCE works with foreign governments on development projects by sharing Singapore’s public-sector expertise and experience.
The agreement provides a framework for the two sides to exchange knowledge and expertise, facilitate business links and explore opportunities in areas of mutual interest.
SCE chief executive Kong Wy Mun told Singapore reporters that a key focus would be Uzbekistan’s special economic zones (SEZs), of which there are more than 30 across the country.
Uzbekistan is looking to further develop these zones, including export-focused SEZs, and Singapore could share its experience in areas such as investment promotion, policies and planning, he said.
“This is an area that perhaps Singapore can come in to help,” said Kong.
This could include attracting companies to the SEZs and helping Uzbekistan with improving policies and the frameworks governing the zones, he said, citing Singapore’s experience in developing SEZs in countries such as China and Vietnam.
The MOU does not involve Singapore developing a new SEZ in Uzbekistan, though Kong noted that the cooperation could eventually benefit Singapore companies looking to establish a presence in Central Asia.
The third agreement involved a planned US$100 million (S$127 million) investment by a joint venture between Singapore-headquartered agribusiness companies Wilmar International and Indorama in Uzbekistan.
The planned joint venture will construct and operate a flour and vegetable oils production and processing plant in the Tashkent region, an MTI spokesman said.
An investment agreement with the Uzbek ministry is also being finalised to extend government support measures for the project, the spokesman added.
Senior Minister Lee Hsien Loong and the Singapore delegates visited the Islamic Civilization Centre in Tashkent, a new complex dedicated to showcasing Uzbekistan’s Islamic history, scholarship and cultural heritage.
ST PHOTO: GAVIN FOO
The economic agreements came during Lee’s first official visit to Uzbekistan. Home to more than 38 million people, Uzbekistan is Central Asia’s most populous country and borders all four other Central Asian states, as well as Afghanistan.
Earlier on Aug 28, he met Uzbekistan President Shavkat Mirziyoyev at the President’s Office in the capital, Tashkent.
Lee also visited the Islamic Civilization Centre in Tashkent, a new complex dedicated to showcasing Uzbekistan’s Islamic history, scholarship and cultural heritage.
