Singapore eyes investment avenues

Singapore is seeking out opportunities to invest in the south-east Asia, particularly India, to ride on its robust growth. In this regard a South Asian Institute is proposed to be set up in Singapore to help firms from the island-state better appreciate economic/ political developments as also investment opportunities available in India.

Further to attract inward investment into the island-state the Singapore Economic Development Board will be setting up an office in Mumbai.

"Besides restructuring our domestic economy we also need to expand outwards to invest in the region and ride on its growth. Together, these institutes will provide us with a more comprehensive assessment of the region within a seven-hour flight radius and encourage more of our compaines to venture abroad," Singapore deputy prime minister Lee Hsien Loong said in a keynote address at a conference jointly organised by the Standard Chartered Bank and the Confederation of Indian Industry.

While pointing out that to-date investments by Singapore companies in India amounted to $2 billion, Loong said, "I expect this figure to rise strongly as the Indian economy, which could become the third largest economy in the world within 30 years, continues to open up and the business environment becomes more conducive."

The deputy prime minister averred that the sub-continent is on the move and the current thaw in relations with Pakistan was a positive sign.

Loong made a sales pitch by stating that Singapore was a viable location for Indian companies, which require capital for expansion, to raise funds.

Close to 200 international fund management firms and 150 venture capitalists operate out of Singapore, managing over $ 200 billion in assets.

"Singapore is a major transportation, logistics and financial centre in Asia and a natural gateway connecting India to the Asean and East Asia. Already over 1,000 Indian companies are in Singapore. Several large companies that are globalising are using Singapore as a marketing and operations centre for their regional businesses,"

India and Singapore are already negotiating a Comprehensive Economic Co-operation Agreement (CECA), which could be an ideal platform for both countries to broaden and deepen bilateral co-operation.

"A CECA that opens up more opportunities to investors from Singapore, improves the business environment and strengthens the protection that their investment enjoy will encourage more high-value investments to flow from the island-state into India. Strategically, a CECA will anchor India's position in south-east Asia. It will also spur other ASEAN countries to expand their ties with India," Loong said.

According to the deputy prime minister, a strong relationship with India will complement Singapore's rapidly growing links with China.