RI could get stake in S'pore-Japan trade pact

RI could get stake in S'pore-Japan trade pact

SINGAPORE (Dow Jones): Singapore Prime Minister Goh Chok Tong
Thursday raised the possibility of including Indonesia's
industrial Batam island in a proposed bilateral trade agreement
between Singapore and Japan.

Goh broached the idea during a meeting with Japan's trade
minister, and said he would gauge Indonesia's reaction before
making a formal proposal to Japan.

Japan's International Trade and Industry Minister Takashi
Fukaya was in Singapore for two days of meetings on the proposed
bilateral trade agreement. Fukaya met Wednesday with George Yeo,
Singapore's Minister for Trade and Industry.

Batam island, 12 miles south of Singapore, is home to an
industrial center in which Singapore has large investments.

The proposed free trade agreement is still in the very early
stages. Discussions are focusing on the scope of topics that
should be included in negotiations, a Japanese official said at a
background briefing.

Goh told Fukaya that he would like to begin formal
negotiations on the agreement in November. Fukaya wouldn't commit
the date, saying he wanted to work on widening the scope of the
framework first, according to the official.

Goh also proposed setting up a center to provide assistance
for small and medium-sized Japanese businesses that want to
invest in Singapore. Fukaya said he would support such a
proposal.

In Wednesday's meeting, Fukaya and Yeo unveiled three key
initiatives to be included in negotiations on the free trade
agreement.

The initiatives include a system to endorse digital signatures
used in electronic transactions, a mutual endorsement of safety
standards for pharmaceuticals and communications equipment, and
an expansion of the system whereby Japan reinsures trade
insurance coverage extended by Singapore.