SINGAPORE – Singapore has signed a memorandum of understanding (MOU) with the USA to deepen financial cooperation and prolong commerce financing and funding help to their respective corporations.
The MOU goals to enhance the provision of and entry to commerce financing choices for corporations from each nations, mentioned the Ministry of Commerce and Trade (MTI) in a press launch on Wednesday morning (Dec 16).
This may assist treatment the worldwide tightening of credit score following the financial slowdown attributable to the Covid-19 pandemic, mentioned MTI. It’s going to additionally facilitate bilateral commerce in items and companies to reinforce progress alternatives.
The US is Singapore’s largest overseas investor, whereas Singapore was the fourth largest Asian investor within the US in 2019.
The MOU additionally seeks to strengthen cooperation in funding promotion and supply alternatives for each nations to discover using know-how corresponding to fintech to deal with new commerce financing and funding challenges.
The settlement was signed by Minister for Commerce and Trade Chan Chun Sing and US Secretary of Commerce Wilbur Ross.
“As like-minded companions, Singapore and the US are dedicated to supporting our companies as they reply to the worldwide financial disruptions attributable to Covid-19,” mentioned Mr Chan.
He added: “By way of this MOU, we’ll facilitate firm investments into Singapore and the US, and assist companies entry extra commerce financing services. We additionally look ahead to catalysing higher commerce and funding flows between the US, Singapore, and South-east Asia, and enabling our corporations to proceed buying and selling and accessing alternatives in these difficult instances.”
Mr Ross mentioned the US and Singapore “have loved greater than 50 years of official partnership since we established diplomatic ties in 1966”.
The MOU, he added, will assist Singapore importers finance the acquisition of US exports and help Singapore traders taking a look at alternatives within the US.
The renewable, two-year MOU shall be overseen by MTI and the US Division of Commerce. Will probably be supported by implementing companies corresponding to Enterprise Singapore, the Export-Import Financial institution of the US and the US Business Service in Singapore.
“The MOU is the newest tangible results of the strong financial and funding partnership between the US and Singapore,” mentioned MTI within the assertion.
The settlement made within the last weeks of US President Donald Trump’s administration comes after Singapore last week signed a free trade agreement with the United Kingdom, the primary such deal between Britain and an Asean member state.