Malaysia, Paraguay join new trade grouping as ministers of member nations meet for first time

SINGAPORE – Malaysia and Paraguay are the latest members of the Future of Investment and Trade (FIT) Partnership, now a coalition of 16 small and medium-sized countries that aims to advance open and fair trade practices amid growing challenges to the global trading system.

The first in-person ministerial meeting of the group, held at Shangri-La hotel in Singapore on Nov 18, issued a declaration on supply chain resilience, to enhance cooperation and coordination in identifying or mitigating ongoing or imminent major supply chain risks and disruptions.

The signatories to the non-binding supply-chain agreement are Brunei, Chile, Costa Rica, Iceland, Liechtenstein, Malaysia, New Zealand, Norway, Panama, Singapore, Switzerland, the United Arab Emirates (UAE) and Uruguay.

Three members – Morocco, Rwanda and Paraguay – opted not to join the declaration for now.

The group maintains the principle of flexible geometry – the opposite of the rigid structures of most trade agreements – allowing members who are ready and willing to advance on specific initiatives first, while keeping the door open for other members to join as and when they are ready to do so.

The meeting also welcomed representatives from six non-member countries – Australia, Canada, Indonesia, Peru, the Philippines and Thailand – that participated as observers to better understand the FIT Partnership and its initiatives.

World Trade Organisation (WTO) director-general Ngozi Okonjo-Iweala also participated virtually in the meeting.

At a press conference after the ministerial meeting, Mr Gan Kim Yong, Singapore’s Deputy Prime Minister and Minister for Trade and Industry, said the supply chain declaration will allow swifter and more meaningful responses to major supply chain risks and disruptions such as those faced during the Covid-19 pandemic.

“Members will build on this declaration to further strengthen cooperation and coordination on issues relating to supply chain resilience,” he said.

In the declaration, the ministers committed to maintaining open, diversified, transparent, competitive and resilient supply chains, especially during periods of supply chain disruption. They will also refrain from adopting trade-restrictive measures, including export restrictions, tariffs and non-tariff barriers.

At the meeting, the ministers also discussed the FIT Partnership’s next steps, including launching three new work streams – on advancing digital and paperless trade, strengthening the rules-based trading system, and leveraging technology.

DPM Gan said the partnership does not intend to replace the WTO, and in fact complements WTO efforts. He added that the grouping is also not just a free trade agreement.

“Our work here shows that small and medium-sized countries can have agency to advance a positive agenda for trade and investment,” he said.

The FIT Partnership was launched on Sept 16, 2025, to serve small and medium trade-dependent countries as an informal platform that fosters cooperation between private and public partners, and addresses emerging challenges and opportunities such as supply chain resilience, investment and trade facilitation, and non-tariff barriers.

DPM Gan said the coalition will welcome more new members who stand for the rules-based trading system and a predictable and open trading environment globally.

The partnership also aims to be an enabler of trade technology, which refers to the digital solutions that monetise and streamline global trade by applying innovations like artificial intelligence, blockchain and the internet of things to improve efficiency, transparency and security.

“The FIT Partnership will champion open and fair trade so that all countries can benefit from increased economic security and job opportunities,” said the members.

The partnership plans to invite other countries that are interested in its objectives and willing to uphold its principles to join, ensuring that it remains inclusive, agile and adaptable amid a rapidly changing global landscape.

The FIT initiative is in line with Singapore’s plans to boost trading relations with other like-minded countries to mitigate the negative impact of US tariffs on global trade.

Malaysia’s Deputy Minister of Investment, Trade and Industry Liew Chin Tong in his remarks at the press conference said his country supports efforts by Singapore and co-convenors New Zealand, Switzerland and the UAE in bringing small and medium-sized nations together to build a more resilient trading system.

“It is important for us to deal with vulnerabilities and to be prepared for future crises through the multilateral trading system, as well as joint effort and collective investment into mitigation,” he said.

To a question about the perception that the FIT Partnership is a coalition against US tariffs, DPM Gan said it is not.

“It’s not about consolidating our efforts to go against any particular country.”

He noted that discussions on the FIT Partnership started two years ago, long before Mr Trump took office in 2025 for his second term.

DPM Gan said: “Singapore is a strong advocate for the FIT Partnership because it provides countries like us with a vital platform to connect with like-minded partners committed to strengthening the rules-based trading system and contribute towards positive trade developments.

“It was with this intent that we started discussing the FIT Partnership with fellow co-convenors New Zealand, Switzerland and the UAE,” he said.