A new investment agreement between Colombia and Singapore will open more opportunities for firms in both countries.

Colombia is Singapore's 6th largest trading partner in Latin America and the Caribbean. Singapore exported $138.7 million worth of goods to Colombia last year, including civil engineering equipment parts and medical apparatus.

Colombia offers access to larger markets under the Pacific Alliance, which was set up last year with Mexico, Chile and Peru.

Singapore firms Olam International, Pacific International Lines (PIL) and Hyflux already have a presence in Colombia.

Minister for Trade and Industry Lim Hng Kiang and Colombia's Minister of Trade, Industry and Tourism Sergio Diaz-Granados Guida signed the agreement in Bogota on July 16.