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.