S-E Asia-C America partnership growing

A NASCENT economic corridor connecting Central America with South-east Asia has emerged on the back of recently forged economic linkages, with bilateral trade growing 350 per cent over the past 10 years to reach US$15.5 billion in 2014, according to United Nations Comtrade data.

Import and export growth has recently taken off in sectors including electrical machinery, seafood, textiles, and various commodities ranging from coffee to copper, in addition to an already well-established petroleum trade between Singapore and Panama. Thailand, Malaysia and Vietnam have benefited from access to new options for cheap commodities, while Singapore firms, such as Banyan Tree and GreenA Consultants, have begun contemplating investment and expansion possibilities in Central America as they search for double-digit growth possibilities.

Home to Costa Rica and Panama, as well as the frontier markets of Belize, El Salvador, Honduras, and Nicaragua, this sliver of land connecting North and South America has made a concerted effort to broaden global trade linkages in recent years. Partnerships being forged with Asean are visibly on the rise and with economic engines of growth running full steam ahead, trade is expected to continue onwards with a steep trajectory.