Strengthening Bilateral Relations with Australia

24 Mr Kwek Hian Chuan Henry asked the Minister for Trade and Industry (Industry) (a) what are some of our recent commercial investments with Australia; and (b) whether the Government intends to strengthen engagements with key Australian state governments with the objective of promoting bilateral business, trade and investment.

Mr S Iswaran: Australia and Singapore enjoy strong bilateral trade and investment ties. In 2015, Singapore’s stock of direct investments into Australia was S$34.9 billion, making Australia one of Singapore’s top 10 overseas investment destinations. Singapore companies have invested into diverse sectors, including telecommunications, tourism, utilities and real estate. Our companies are also keen to explore opportunities in sectors, such as agri-business.

Australia continues to remain an attractive investment destination, given its strong fundamentals. For example, last year, Surbana Jurong invested nearly S$400 million in Australian-based SMEC Holdings to form a global consultancy group specialising in urban and infrastructure development across countries in Asia, Australia, the Middle East, Africa and the Americas. Ascendas Reit also acquired properties in Sydney and Melbourne last year for A$168 million.

Likewise, Singapore continues to attract Australian companies. One of the world’s largest integrated mining companies, BHP Billiton, has established its global headquarters in Singapore. Australia’s largest telecommunications company, Telstra, has its regional headquarters in Singapore from which it also funds startup initiatives.

We are continuing to strengthen bilateral ties with Australia at multiple levels. First, Singapore and Australia have elevated our bilateral ties to a Comprehensive Strategic Partnership (CSP). The Singapore-Australia Free Trade Agreement (SAFTA) was upgraded last year as part of the CSP negotiations. The upgraded SAFTA will help deepen commercial links and provide greater opportunities for bilateral exports and investments. We are working towards the ratification and implementation of the upgraded SAFTA this year.

Second, we are working with the Australian government to launch an Australian "landing pad" in Singapore to facilitate access to investment, mentorship and strategic partnership for Australian high-tech startups. Singapore will be the fifth and final international location for the Australian government-promoted innovation "landing pads". The initiative will create opportunities for Australian entrepreneurs and Singapore companies to collaborate and do business in Asia, using Singapore as a base.

Third, we have stepped up our engagement with Australia at the state level through International Enterprise (IE) Singapore and the Economic Development Board. Our companies are regarded as credible partners to collaborate with the agri-business sector to grow the export of quality Australian products to Asia. For example, IE Singapore's work with the Queensland State to introduce their growers to Singapore-based traders and cold-chain logistics companies has yielded a partnership between Australia's Story Fresh and Singapore’s Indoguna for the export of leafy vegetables to Asia, including Singapore and Hong Kong. IE Singapore has also been working with the South Australian government and private enterprises to explore collaborations with Singapore's food traders and logistics players.

Singapore has also hosted visits to Singapore by many Australian state delegations. All six Australian states have established trade offices in Singapore which have helped to further strengthen bilateral ties at the national and state levels.