The young South-east Asian nation of Timor Leste is hoping that Singapore will play a bigger role in its development as it strives to become an upper-middle income country by 2030.
Its Foreign Affairs and Cooperation Minister Dionisio da Costa Babo Soares said yesterday in his first official visit to the Republic that Timor Leste needs to attract more investments in key potential industries such as tourism, energy and agriculture.
He said at the Timor-Leste-Singapore Business Forum held at the Shangri-La Hotel that the country is already laying the groundwork to allow investments to flow into Timor Leste, which gained independence in 2002 and has a young population of 1.3 million.
Timor Leste is currently listed as a lower middle-income country, with a gross national income per capita of between US$1,006 and US$3,995 (S$1,369 to S$5,427), by the World Bank. It wants to move up a tier to become an upper middle-income economy.
The country's former president Jose Ramos-Horta is attending the forum as well. Dr Ramos-Horta was a co-recipient of the 1996 Nobel Peace Prize for his work in helping to resolve the conflict in Timor Leste, which was annexed by Indonesia in 1975.
The country is currently reliant on government spending in the short-term and revenues from natural resources, the World Bank states on its website.
But political and economic uncertainties have pushed Timor Leste's gross domestic product (GDP) down for a second consecutive year, the country's economic report in May showed.
Still, the World Bank noted that GDP is expected to grow 3.9 per cent this year, with the state budget approved in February. It will see the country increase public spending, which includes US$366.4 million on infrastructure.
Singapore's non-resident ambassador to Timor Leste Roland Ng said the two countries share similarities. "We are both small island-states that recognise the importance of remaining open and plugged into the global network," he said. Mr Ng added that Dr Soares' two-day visit to Singapore underscores the close relationship between the two states.
Dr Soares will call on Prime Minister Lee Hsien Loong and Foreign Minister Vivian Balakrishnan today.
