Singapore And India Strengthen Economic Ties
At the conclusion of the Second Meeting of the India-Singapore Joint Ministerial Committee for Bilateral Cooperation on May 8th, the two nations pledged further flow of investments and closer collaboration in the fields of education and science and technology. The meeting was between Indian Prime Minister Manmohan Singh and Singapore’s Minister of Foreign Affairs, K Shanmugam, and was held in New Delhi, India.
The official statement from the External Affairs Minister said that Singapore and India are both enjoying strong bilateral ties and are geared towards forging further cooperation particularly in areas of skills development, training, and cultural exchange.
Company registration expert Richmond Corporate Advisory expects the newly affirmed bilateral ties to benefit firms and organisations in the education and S&T sectors, particular in terms of employment for Singaporeans and foreign professionals belonging to these sectors.
As an impact of both countries signing the Free Trade Agreement (FTA) known as the Comprehensive Economic Cooperation Agreement (CECA) in 2005, trade between Singapore and India registered US$35 billion in 2011.
Singapore also accounts for 10% of India’s foreign direct investment (FDI) which reached US$15.67 billion between April 2010 and November 2011, making the Republic one of the biggest FDI sources for India. India’s investment in Singapore has reached US$23.42 billion at the end of January 2012. India is in fact Singapore’s 8th biggest foreign investor, according to Reserve Bank Of India.
Currently, around 4,000 Indian businesses are set up in Singapore, and it is estimated that this number will rise to about 6,000 businesses in three years. Indian businesses express their preference for company registration being done in Singapore due to attractive corporate tax and income tax rates, Singapore’s pro-business environment, the non-implementation of capital gains tax, and access to low-interest borrowings from leading banks and reputable loans firms.
Richmond Corporate Advisory is looking forward to more synergistic relations between the two nations which will bolster economic growth in both countries and also within the region.