US-Singapore Economic Cooperation and Trade in Past Five Years and Possible Growth Areas under New Trump Administration
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the state of US-Singapore economic cooperation and future growth areas, as raised by MP Neil Parekh Nimil Rajnikant. Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong highlighted that bilateral trade grew to $287 billion in 2022, supported by the 2004 Free Trade Agreement. He noted that US investment in Singapore reached $574 billion while Singapore is the third-largest Asian investor in the US, with expansion into digital and emerging technologies. The Government has also deepened ties through the Indo-Pacific Economic Framework for Prosperity, covering supply chains, the clean economy, and civil nuclear cooperation. The Minister affirmed that Singapore will work with President-elect Donald Trump’s incoming administration to further strengthen these mutually beneficial economic and trade relations.
Transcript
9 Mr Neil Parekh Nimil Rajnikant asked the Deputy Prime Minister and Minister for Trade and Industry (a) what is the Ministry's assessment of the state of economic cooperation and bilateral trade relations between Singapore and the United States in the past five years; and (b) what are the particular areas in which the Government would like to grow economic and trade ties further under the new Trump administration.
Mr Gan Kim Yong: Singapore and the United States (US) share long-standing and robust economic cooperation and bilateral trade relations, underpinned by the US-Singapore Free Trade Agreement that came into effect in 2004. We have expanded and deepened these links over the past five years. Bilateral trade increased from $175 billion in 2018 to $287 billion in 20221. The US has also had a consistent trade surplus with Singapore over the past two decades and this stood at US$28 billion (approximately $38 billion) in 20232.
The US is Singapore's largest foreign investor with around 6,000 American companies based here. US investment stock into Singapore has almost doubled from $292 billion in 2018 to $574 billion in 20223.
Singapore's direct investment stock into the US increased from $36 billion in 2018 to $47 billion in 20224 and we were the third largest Asian investor in the US that year5. There are currently over 200 Singapore companies operating in around 40 US states.
Over the past five years, Singapore has worked closely with the US to deepen our economic cooperation in new areas, such as the digital economy, critical and emerging technologies, and civil nuclear cooperation. We are part of the Indo-Pacific Economic Framework for Prosperity, which has brought into effect agreements on supply chains, the clean economy and fair economy.
Singapore has worked well with past US governments and will continue to work with the incoming administration of President-elect Donald Trump to strengthen our mutually beneficial economic ties.