In a fresh wave of economic cooperation, Malaysia and Singapore have set the wheels in motion for an innovative platform to stimulate bilateral trade and investment. The Annual Ministerial Dialogue (AMD) paves the way for these neighboring nations to strengthen their rapport through the ministries of Investment, Trade and Industry, aiming to further synergize their digital and green economies.
At the inaugural AMD, significant strides were made as Malaysian Minister Zafrul Tengku Abdul Aziz and his Singaporean counterpart, Gan Yim Kong, assessed the progress of their shared initiatives. These initiatives comprise two frameworks signed earlier this year to bolster cooperation in digital and green economies during Malaysian PM Anwar Ibrahim’s visit to Singapore.
Among the highlighted outcomes of the dialogue, a novel taskforce has been announced under the digital economy framework. This group will facilitate cross-border business trade, integrating resources from Malaysia External Trade Development Corporation (MATRADE) and Singapore’s Business sans Borders initiative. This step aims to optimize digital trade by roping in key players like MITI, MARTRADE, MTI, Singapore’s Infocomm Media Development Authority, and the Monetary Authority of Singapore.
Further propelling green initiatives, MATRADE and Enterprise Singapore have joined forces for a Capacity Development Programme. This venture supports exporters’ transition to sustainability. The collaborative series will provide a platform for Singaporean and Malaysian enterprises to exchange knowledge and solutions concerning sustainability. Its first session, focusing on sustainability reporting frameworks and green financing, is set to kickstart in July 2023.
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These close-knit economies, enriched by substantial people-to-people connections, form each other’s primary trading partners. This bond is evident from the substantial bilateral trade revenue. As per MITI, the trade between the two nations hit US$83.53 billion in 2022, marking a significant 37.6% increase from the previous year.
Furthermore, Singapore emerges as a key foreign direct investment source for Malaysia, contributing 8.3% to its total FDI in 2022. Earlier this year, MITI secured a staggering RM24 billion investment from the Republic of Korea through the Trade and Investment Mission, headlined by Minister Zafrul. A standout feature of the mission was the Venture Capital (VC) Investors Roundtable, attracting over 20 Korean VC investors interested in situating their robotics and AI-based businesses in Malaysia. This mission manifested in four memorandums of understanding (MOUs) where a few Korean VCs pledged to invest up to US$400 million in Malaysia.
This article is based on information provided by marketing interactive.
