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Business Times
a day ago
- Business
- Business Times
Latin America offers opportunities in manufacturing, innovation, green economy and agri-trade: Alvin Tan
[SINGAPORE] Latin America presents exciting opportunities in four areas – manufacturing, innovation, green economy and agri-trade – for Singapore businesses, said Minister of State for Trade and Industry Alvin Tan on Thursday (Jul 31). Amid global uncertainty and trade turmoil, Singapore must continue to build connections with existing and new partners, he said at the second edition of Singapore Business Federation's (SBF) LatAm Conference. 'Our ongoing efforts to bring Singapore and Latin America closer together have become even more important and urgent.' He set out four areas of opportunity. First, in manufacturing, Latin America is a competitive industrial base, with strong potential for partnership through technology transfers, joint ventures and value chain integration. Mexico, for instance, has a large domestic market and can also be a base to access Central America. Meanwhile, Costa Rica is a high-value manufacturing hub, particularly in advanced medical devices and semiconductors. Second, there is room for collaboration between Latin America and Singapore's tech ecosystems. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In 2024, venture capital investment in Latin America surged 26 per cent, with fintech accounting for almost half of that, said Tan. Other fast-growing sectors include e-commerce and logistics, agritech, climate tech and artificial intelligence applications for healthcare. A third area is the green economy – particularly renewable energy, which accounts for 65 per cent of power generation in Latin America. Tan highlighted Brazil in particular, both for wind and solar power as well as carbon credits. Lastly, in agri-trade, Singapore can work with Latin America to strengthen food security and create new opportunities for local agri-food players. Growing ties Singapore's trade and business ties with Latin America have been growing, noted Tan. Trade in goods grew over 20 per cent in the past year to S$35.3 billion, from S$28.5 billion before, with an uptick in trade of machinery, electronics, petroleum and agricultural goods. Trade in services is also increasing in engineering, telecommunications, computer and information, as well as transport. 'Our strengthening trade architecture at the institution-level will continue to promote and support these flows,' said Tan. He highlighted the Pacific Alliance-Singapore Free Trade Agreement (FTA) – between Singapore, Chile and Peru – which entered into force this May, and is pending ratification by Colombia and Mexico. Singapore is also looking forward to the Mercosur-Singapore FTA entering into force, he added, noting that this is the first FTA that the bloc has with a South-east Asian country. '(This) will open new market opportunities for our businesses with this large South American bloc,' said Tan. SBF chairman Teo Siong Seng said the federation will continue helping Singapore businesses venture into the region through its Latin America Business Group and GlobalConnect@SBF initiative. In the past three years, SBF has facilitated over 140 advisory sessions for companies interested in entering the region, he noted. These ranged from matching buyers and sellers of Latin American products, to conducting market research for business development. Thursday's conference, with more than 180 participants from both sides, included an expert panel on how to operate in Latin America and in-depth sessions on sectoral opportunities and key regional markets.
Straits Times
07-05-2025
- Business
- Straits Times
FTA with Pacific Alliance opens doors to new opportunities for S'pore businesses: Alvin Tan
State Minister for Trade and Industry Alvin Tan (centre) said the pact 'fosters an environment of predictability and fairness'. ST PHOTO: ARIFFIN JAMAR FTA with Pacific Alliance opens doors to new opportunities for S'pore businesses: Alvin Tan SINGAPORE – The free trade agreement between Singapore and the Pacific Alliance will serve as a platform for Singapore's businesses to access new markets and new opportunities in Latin America, said Minister of State for Trade and Industry Alvin Tan on May 7. Speaking at a dinner at The Fullerton Hotel to commemorate the recent entry into force of the Pacific Alliance-Singapore Free Trade Agreement (PASFTA) for Singapore, Chile and Peru, Mr Tan said the pact 'fosters an environment of predictability and fairness, which is crucial for our investors and businesses to make decisions, operate with confidence and thrive'. The FTA will give Singapore companies greater access to the Pacific Alliance countries – Chile, Colombia, Mexico and Peru – that are collectively deemed the world's ninth-largest economy, with a total population of 235 million. The four countries of the Pacific Alliance have a combined gross domestic product (GDP) of more than US$2.7 trillion (S$3.5 trillion) in nominal terms, accounting for about 40 per cent of the total GDP of the Latin America and Caribbean region, according to the World Bank. The PASFTA was signed on Jan 26, 2022. Singapore ratified the agreement in July that year, and Peru in February 2023. Chile ratified the pact in March 2025, bringing the PASFTA into force for the three countries on May 3. Mr Tan said that beyond the PASFTA, Singapore and its partners in Latin America are engaging in the avoidance of double taxation agreements, as well as frameworks to facilitate digital trade and green economy collaboration. 'These are ongoing efforts to further expand the network of trade-enabling agreements between Singapore and Latin America,' he said. The PASFTA will scrap most tariffs on goods traded between partner countries, and improve the transparency and efficiency of Customs procedural processing. Singapore service suppliers and investors will be treated as favourably as those from the Pacific Alliance. Also, Singapore firms will not be required to appoint individuals of any particular nationality to senior management. Singapore is already an FTA partner with Chile and Mexico through the existing Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and with Peru through the CPTPP and the bilateral Peru-Singapore FTA. The Ministry of Trade and Industry said Singapore's bilateral trade with the Pacific Alliance in 2024 was $12.5 billion. Some top traded products include electric machinery, refined metal products, cocoa products, wine and seafood. About 100 Singapore companies are already operating across the Pacific Alliance markets, mostly in sectors such as technology and the digital economy, food trade, infrastructure, and port management and logistics. Experts believe increased access to relatively new markets will be critical for Singapore companies at a time when the world's largest economy – the US – has turned hostile towards the global trading order it helped establish after World War II. Amid the turmoil, Singapore has vowed to continue strengthening multilateralism and free trade, and seek new opportunities in less-explored markets for its businesses. Mr Tan said Singapore and its trade partners are 'sailing through stormy conditions and choppy waters', and that geopolitical tensions are rising, trade barriers are going up, supply chains are fracturing, and businesses are navigating a volatile and uncertain world. 'In today's environment, the PASFTA takes on added significance as a reminder to all of us of the importance of international engagement and cooperation, and of upholding rules-based trade,' he said. Mr Francisco Tenya Hasegawa, Peru's Ambassador to Singapore, said his country looks forward to not only deepening commercial ties but also cooperation in environmental and strategic spheres with the Republic. He said Peru offers traders and investors world-class infrastructure, such as the Chancay Megaport, ready to receive and dispatch large vessels en route to Asia. Peru also has vast resources in different areas such as agriculture, poultry, fishery foods and superfoods, as well as rare minerals, and precious and semi-precious metals. 'The table is set. Let us seize this moment to expand markets, share innovation and grow together,' the ambassador said. Chile's Ambassador Tamara Villanueva said her country already has a strong presence in Asean markets, with more than 275 products from fresh fruits to seafood, and with the possibility of expanding this list to over 3,000 products in the future. She said Chile is positioning itself as a key enabler of the global energy transition by advancing sustainable mining practices and using its rich reserves of essential minerals, not just copper and lithium, but also molybdenum and rare earths needed for green technologies. The PASFTA – Singapore's 28th FTA – is a comprehensive agreement containing 25 chapters, including trade in goods, services and investment, small and medium-sized enterprises, good regulatory practices for trade and investment, and electronic commerce. It is also Singapore's first FTA with a chapter on international maritime transport services. This chapter aims to enhance physical connectivity between partner countries and facilitate the exchange of best practices and training opportunities. Join ST's Telegram channel and get the latest breaking news delivered to you.
