Singapore, Egypt agree ‘timely’ to explore feasibility of a free trade agreement

CAIRO – Singapore and Egypt plan to explore the feasibility of a free trade agreement to take advantage of their complementary strengths and strategic locations.

President Tharman Shanmugaratnam and Egyptian President Abdel Fattah al-Sisi agreed that this move was timely, said Singapore’s Foreign Ministry in a statement on Sept 21.

Singapore currently has 28 implemented free trade agreements, which make trade and investment easier between the economies through benefits such as tariff concessions and faster entry into markets.

MFA’s statement came after the two leaders met on Sept 20 on the second day of Mr Tharman’s state visit to Cairo.

After the meeting, both leaders witnessed the signing and exchange of seven memorandums of understanding. The two countries will collaborate in a wide range of areas, including healthcare, food security and social services, as they seek to strengthen and broaden their relationship.

These collaborations reflect the two countries’ joint commitment to a deeper and more multifaceted partnership, said Mr Tharman, who is

in Cairo till Sept 22

.

Speaking to the media after a meeting with Mr Sisi, he said Singapore believes in Egypt’s economic potential and the two leaders had discussed how the countries could take their economic cooperation further.

He noted that Singapore has been among the largest Asian investors in Egypt over the last decade.

“Such cooperation is particularly important when we see protectionist currents rising, and body blows being delivered to an open and fair global economic order,” he said.

Singapore’s direct investment in Egypt is currently valued at about $530 million, while Egypt is Singapore’s eighth-largest trading partner in Africa, with bilateral trade in services valued at over $1.3 billion as at 2023.

Another four memorandums and two agreements are expected to be signed during the remainder of Mr Tharman’s visit.

The documents that will be exchanged during the visit cover a wide range of fields, including cooperation in healthcare, such as combating non-communicable diseases and developing effective hospital information systems.

They also cover food security, capacity building, social services, and efforts to support small and medium-sized enterprises and start-ups.

Mr Tharman noted that Singapore’s friendship with Egypt is longstanding – it was the first Arab country to recognise Singapore’s independence in 1965. Mr Sisi’s visit to Singapore in 2015 was also the first by an Egyptian president.

“For these reasons, we have always regarded Egypt as an old and dear friend. And we have both agreed it is now timely to strengthen this relationship, to broaden it, and to make it forward-looking,” said Mr Tharman.

“We are, of course, very different nations in appearance – in scale of land, resources and population. It cannot escape mention that you also have vastly superior footballing talent,” he added.

“But we are team-mates in a range of fields. And what we are building together will bring benefit for both our peoples – not just today, but for many years to come.”

The two countries will mark 60 years of diplomatic ties in 2026, and Mr Tharman extended an invitation to Mr Sisi and his spouse to visit Singapore then.

Mr Tharman said Singapore and Egypt’s business communities are keen to explore and develop market opportunities together, building on a number of Singapore companies that already have a significant presence in Egypt.

More Singapore firms are keen to tap Egypt’s competitive advantages, such as its young and aspiring population, large domestic market, and strategic location at the crossroads of Europe, Africa and the Middle East, he said.

Noting that Singapore companies are exploring opportunities in the Suez Canal Economic Zone, Mr Tharman said he hopes more Egyptian companies will use Singapore as a springboard into South-east Asia and the broader Asia-Pacific.

In his speech, Mr Sisi said he spoke with Mr Tharman about areas of cooperation that include maritime, agriculture and health. He also called for private and public entities from Singapore to invest in Egypt.

Mr Sisi also noted Egypt’s recognition of Singapore’s independence in 1965, that laid the foundation for the present-day friendship and understanding between the two countries.

Apart from business, both countries are also committed to strengthening cooperation in inter-faith dialogue and in fostering social cohesion, and nurturing trust across communities, noted Mr Tharman.

He said he looks forward to meeting Sheikh Ahmed Al-Tayeb, the grand imam of Cairo’s Al-Azhar Mosque, and Pope Tawadros II, the head of Egypt’s Coptic Church, during his visit.

Mr Tharman also said he exchanged views on regional developments with Mr Sisi, “including the horrific human toll in Gaza and Israel’s growing settlements in the West Bank”.

“Singapore is greatly concerned about the dire humanitarian situation in Gaza, as well as the prospects for peace in the region,” he added.

The Singapore Government has consistently supported the rights of the Palestinian people to a homeland of their own, said Mr Tharman.

“We firmly believe that a negotiated two-state solution, consistent with the relevant UN Security Council resolutions, is the only viable path to achieve a comprehensive, just and durable solution to this longstanding Israeli-Palestinian conflict. Singapore will thus continue to support all efforts to achieve the two-state solution,” he said.

He said that it was in this context that he commended Mr Sisi for Egypt’s leadership – both in providing humanitarian relief and in helping to facilitate ceasefire talks and build a pathway to peace.

He also thanked Mr Sisi for Egypt’s support in facilitating Singapore’s humanitarian efforts, including assisting the Republic of Singapore Air Force

in delivering essential supplies

to El Arish, located in the north of Egypt’s Sinai Peninsula, in November 2023.

Mr Tharman is slated to visit the Egyptian Red Crescent on Sept 21 to witness the handover of a further package of support for Gaza’s residents from the Singapore Red Cross.