SINGAPORE – Singapore and the United Kingdom are making progress towards concluding a new agreement to protect investors and facilitate investment flows between the two countries.

Negotiations on the UK-Singapore Bilateral Investment Treaty, which will supersede the 1975 investment treaty, began in March.

Trade and Industry Minister Gan Kim Yong said on Thursday that the pact builds on the strong momentum of economic cooperation between Singapore and the UK in recent years, including the UK-Singapore Free Trade Agreement, the Digital Economy Agreement and the Green Economy Framework.

In September, Prime Minister Lee Hsien Loong and his British counterpart Rishi Sunak elevated bilateral relations to a strategic partnership.

Mr Gan said this move was “a significant milestone that reflects the breadth and depth of our relationship, as well as the commitment from both sides to strengthen our linkages on many fronts”.

The minister was speaking at the British Chamber of Commerce’s (Britcham) 24th Annual Business Awards ceremony at Shangri-La Hotel, which was attended by about 270 top managers of local and British companies.

Mr Gan also noted that progress is being made on the pacts the two countries had made in recent years.

Provisions in the free trade deal came into effect in August to enable certified companies on both sides to benefit from faster Customs clearance for goods.

He said the UK’s recent accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership will also complement the trade agreement by helping British businesses based here to better access regional markets and supply chains.

Singapore is already home to more than 6,000 British businesses and the country is the largest European investor here, with close to $130 billion worth of investment stock.

Singapore, in turn, is the UK’s third-largest Asian investor, with about $65 billion worth of investment stock there.

Singapore is also the UK’s largest trading partner in South-east Asia, with trade in goods and services amounting to around $35 billion, or 40 per cent of the UK’s total trade with the region.

Mr Gan said the various agreements between the two nations should help businesses here with their digital transformation.

“We welcome businesses to leverage the (Digital Economy Agreement) to develop pilot projects that can subsequently be scaled up in our respective regions,” he added.

He cited telecoms firm BT Singapore, which offers tech-based tools and digital transformation solutions and data analytics to help businesses modernise their operations and enhance efficiency.

And a recently conducted consultation to seek industry feedback on possible Green Economy Framework initiatives saw active participation by Singapore and British companies.

Mr Gan gave examples of some UK companies, such as engineering management firm Mott MacDonald, that have integrated sustainability in their design of Singapore’s built environment.

The firm’s notable projects include The Star Vista, Singapore’s first naturally cooled mall, and the environmentally friendly Mapletree Business City.

Ms Kara Owen, British High Commissioner to Singapore, in her speech at the ceremony, said that while Singapore is UK’s top trading partner in South-east Asia, the relations between the two countries are more than just trade.

“The sectors that we’re focusing on cover the economy, yes. But they also cover green economy and sustainability issues. They cover defence, security, foreign policy and intelligence. They look at what we can do together to blaze trails in the areas of science, research, innovation, technology.

“We’ve got agreements in the areas of artificial intelligence, engineering, biology, all of the things that are going to make the biggest difference to our two economies, our countries, our societies and our future going forward,” she added.

Britcham president Damian Adams said the chamber’s annual awards is the longest-running continuous awards event of any international chamber of commerce in Singapore.

“These awards continue to highlight and recognise not only business success, but they also champion and uphold the UK-Singapore relationship, through the recognition of special achievements,” he added.

Award winners in 2023 included Singapore Aero Engine Services (Business Transformation of the Year), Singapore Life (Customer Service Provider of the Year), Whisky Cask Club (Start Up of the Year), and Beazley (Employer of the Year).

Standard Chartered Bank won in the categories of Diversity and Inclusion Champion of the Year and Technological Impact of the Year.

Mott MacDonald won the Sustainability Champion of the Year, while Jaguar Land Rover Automotive was declared the Exporter of the Year.