Singapore, Thailand to strengthen bilateral ties

Singapore, Thailand to strengthen bilateral ties

Agence France-Presse, Singapore

Singapore and Thailand on Wednesday pledged to step up efforts
to strengthen bilateral economic ties and boost Southeast Asia's
attractiveness to foreign investors.

They concluded an inaugural three-day meeting on the
Singapore-Thailand Enhanced Economic Relationship (STEER) project
and signed agreements to improve trade ties in areas such as
tourism and automotive industries.

An agreement was also signed on further co-operation between
the stock exchanges of both countries.

Singapore's Trade and Industry Minister George Yeo and
Thailand's Deputy Prime Minister Somkid Jatusripitak expressed
hope the initiatives would benefit fellow members in the 10-
nation Association of Southeast Asian Nations (ASEAN).

"If we can have a good working model under STEER, then I
believe it will inspire other such initiatives in ASEAN," Yeo
told reporters after the signing ceremony.

"We have our own initiatives with Indonesia... between
Thailand and other countries, they also have their initiatives,"
Yeo said.

Somkid said Thailand "cannot do it alone" to revitalize ASEAN
and would "need a good strategic partner" to help achieve this.

"If we get together led by Thailand and Singapore starting
from now... I strongly believe that we can revitalize and
strengthen ASEAN once again," Somkid said.

Since the 1997-1998 financial crisis, ASEAN has struggled to
regain the confidence of international investors who have flocked
to China, lured by its huge pool of cheap labor and vast market
potential.

Most recently, the 10-member grouping was dealt a fresh blow
with the discovery of an expansive regional terror network, the
Jemaah Islamiyah, which is alleged to have ties with Osama bin
Laden's al-Qaeda group.

The October bombings in the Indonesian resort island of Bali
and most recently, the car bomb blast in Jakarta, further jolted
confidence among foreign investors.

STEER was first mooted last year by the prime ministers of
Singapore and Thailand under a "one economy, two countries"
vision whereby the two nations will work together in areas of
mutual benefit.

"The key is there is now a strong common political will to
develop this relationship... the next step for STEER will be to
ensure closer networking among the business leaders of both
sides," Yeo said.

He said the leaders of the two countries "envisage a level of
economic co-operation which will in effect make us one economic
system."

He said this would involve "a free flow of trade or
investments or people at a high level which will make possible a
complex economic division of labor so that investors looking at
Southeast Asia can see Thailand and Singapore as almost one
continuum."

Yeo said Thailand was keen to tap Singapore's expertise in the
logistics, transportation and finance sectors.

"Deputy Prime Minister Somkid envisions a future for Thailand
as a center for services, manufacturing, tourism, food
production, agricultural exports," Yeo said.

"He sees Singapore as being strong in management, in the
ability to raise funds, in our strengths in logistics and
transportation," he said.

"Indeed, if you look at it objectively, there is a great
complimentarily which we can exploit to our mutual benefit to
create projects for businesses and to create employment for both
sides," Yeo said.

Trade between the two countries in 2002 amounted to S$19.9
billion (US$11.44 billion).

Singapore was the second biggest investor in Thailand and its
fourth largest trading partner.