S'pore to push for trade pacts with Egypt, Oman, Qatar
S'pore to push for trade pacts with Egypt, Oman, Qatar
Associated Press, Singapore
Singapore wants to start trade talks with Egypt, Oman and Qatar and develop its Islamic financial services capabilities to attract more Middle East investment, its trade minister said on Monday.
"We are talking to Egypt, Qatar and Oman about the possibility of launching negotiations," said George Yeo, Minister for Trade and Industry. "We are strengthening our links to the United Arab Emirates and Kuwait as well."
The tiny, wealthy island nation has made free trade agreements a cornerstone of its economic policy. It has already inked a pact with Jordan and is about to begin negotiations with Bahrain.
"We enjoy a reservoir of goodwill in the Middle East which we have hardly tapped. This will change in the coming years," Yeo said.
He said the government would also look into developing an Islamic financial services market in Singapore - a system of investment and lending compliant with Islamic, or Shariah, law.
Shariah bans investment in certain sectors including those involved in the production or distribution of alcohol, pork products and tobacco. It also restricts the payment and receipt of interest, meaning conventional lending operations are out of bounds.
"The Middle East represents a sizable market of 400 million people, with a combined GDP of more than US$1 trillion," said Yeo, the spearhead of the city-state's free trade moves.
Singapore has signed deals with the United States, Australia, Japan, New Zealand, Switzerland, Norway, Iceland and Liechtenstein. It is also in talks with Canada, South Korea, India and Pakistan.
Yeo said his country would start negotiations with China in November and at an unspecified date with Sri Lanka.
Speaking at a dinner hosted by the Economics Society of Singapore, Yeo said the government would also like to hammer out an agreement with the European Union.
"Good positioning is critical. If we sail where the current is flowing strongest, we will be carried along even if we don't do everything right," Yeo said. -- AP