Singapore, Colombia businesses seek closer ties with signing of MOU

SINGAPORE – Companies in Singapore and Colombia should begin to find it easier to do business together with the signing of a deal to boost cooperation and interaction between the two nations.

The Singapore Business Federation (SBF), which signed the memorandum of understanding (MOU) early on Saturday morning Singapore time with its counterpart there, hopes businesses from both countries will boost partnerships in sectors such as technology and innovation, Industry 4.0, artificial intelligence, Internet of Things and blockchain.

Colombia’s innovation and technology sector is growing rapidly, and the city of Medellin is emerging as the Silicon Valley of Latin America. Singapore companies and start-ups could partner Colombian firms to co-create new products and services for the Latin American and South-east Asian markets.

While goods trade between the two countries was just $492.3 million in 2022, it was still a 50 per cent jump over the previous year and made Colombia Singapore’s eighth-largest trading partner in Latin America and the Caribbean.

Most of Singapore’s imports from Colombia are petroleum products and precious stones, while top exports include components for vehicle parts and accessories, malt extract and hydrocarbons.

Several Singapore companies, including Olam and PSA, already have a presence in Colombia and would like to see an increase in bilateral ties, including the ratification of a free trade agreement with the Pacific Alliance – a four-nation Latin American trade bloc that includes Colombia.

Singapore Minister of State for Trade and Industry Alvin Tan attended the MOU signing in the port city of Cartagena as part of a four-day official visit that includes the Colombian Business Congress.

Mr Tan noted at the congress on Thursday that Singapore offers a range of opportunities to Colombian businesses. He added that Singapore can learn from Latin America’s thriving innovation ecosystem, which has led to many global companies establishing new research and development and innovation arms there.

The region is also seeing developments in fintech, sustainable development, artificial intelligence and e-mobility.

Mr Tan held other meetings with government officials to discuss cooperation on carbon credits, for which the two countries signed an MOU in August 2022.

The talks were about the progress made by the technical teams and the timeline of an implementation agreement on carbon credit collaboration.

Mr Tan also discussed a proposal for a new MOU with Colombia in areas of land, air and sea transport. The last such agreement was signed in 2012. But the overarching issue under discussion was the Pacific Alliance-Singapore Free Trade Agreement.

Negotiations with the alliance, comprising Chile, Colombia, Mexico and Peru, were concluded in July 2021 and

the deal was signed in January 2022.

Singapore and Peru have ratified the trade deal, but at least one more member state is needed before it can take effect.

Mr Tan said in a social media post: “We look forward to the coming into force of the agreement in the near future, and to more opportunities to collaborate in areas... such as in the digital and green economies.”

The trade deal will establish an economic partnership that builds on existing agreements that Singapore has with the Pacific Alliance member states.