UK-Singapore trade ties are a model of resilience in a volatile world

THE world is changing. Geopolitical, geoeconomic and technological shocks are reshaping the international order.

In today’s volatile world, few partnerships are as strategically vital, forward-looking and resilient as the one the UK shares with Singapore. Bilateral trade is worth about £23 billion (S$40 billion) – accounting for more than 40 per cent of the UK’s total trade in South-east Asia.

Our partnership is already underpinned by a powerful suite of modern agreements – from our Free Trade Agreement to the Green Economy Framework Agreement – which enable our businesses to thrive, our innovators to collaborate, and our economies to grow sustainably. 

As the UK celebrates 60 years of diplomatic relations with Singapore, we mark not just a historic moment, but also one of momentum. Amid increasing protectionism, supply-chain vulnerabilities and geopolitical tensions, our partnership continues to grow. 

The UK’s new Industrial Strategy and Trade Strategy puts international partnerships at the core of our economic growth agenda, deploying a wider set of trade tools beyond free trade agreements and working with our partners for mutual economic benefit. 

There is much the UK and Singapore can do together on digital trade, building on our Digital Economy Agreement signed in 2022. As part of the Trade Strategy, we are exploring if it is in our national interest to accede to the Digital Economy Partnership Agreement, of which Singapore is a member. 

On Thursday (Sep 25), the UK and Singapore will hold the Economic and Business Partnership (EBP) with Singapore’s Permanent Secretary for Trade and Industry Dr Beh Swan Gin. It is a crucial platform to discuss and deepen our trade, business and investment relationship. 

During the EBP, we will affirm the UK’s commitment to the rules-based trading system, including through multilateral organisations. 

We will explore areas for deeper collaboration on digital trade, decarbonisation and on our industrial strategies – there is much the UK can learn from Singapore’s industrial transformation. 

We will also meet UK businesses and Singaporean investors to progress our relationship for mutual prosperity. 

British companies are sharing our world-class expertise across advanced manufacturing, technology and infrastructure with Singapore and the wider South-east Asia region. 

Rolls-Royce has partnered SIA Engineering Company to provide maintenance, repair and overhaul services through Singapore Aero Engine Services – a testament to the UK’s engineering excellence – while Aurrigo’s autonomous baggage vehicles, on trial in Singapore with key aviation partners, showcase how UK innovation is helping drive the next generation of airport logistics.

This month, Mott MacDonald was appointed by the Singapore government to study the safety and feasibility of advanced nuclear technologies such as small modular reactors. Alongside Arup, both British companies have a strong track record of providing engineering expertise to various projects across Singapore, from the North-South Corridor to Changi Airport Terminals 4 and 5. It is a testament to both of these UK businesses that they will continue to play a part in building Singapore’s critical infrastructure.  

Our partnership is a two-way street – Singapore is the UK’s third-largest Asian investor, with over £19 billion in foreign direct investment stock at the end of 2023. Alongside ongoing portfolio investments, these support long-term commitments across clean energy, infrastructure, and science and technology. 

In April, OCBC signed a landmark agreement with the UK government, committing to finance £10 billion of investment into UK energy, infrastructure and real estate by 2030. The bank’s London branch has grown steadily in recent years and is now the biggest in its international network, an affirmation of the long-term strategic opportunities OCBC sees in the UK.

Sovereign wealth fund GIC and global investment firm Temasek maintain a strong UK presence – with Temasek’s largest Europe office in London, and GIC celebrating 35 years there. ComfortDelGro has also invested over S$1.2 billion in public transport and point-to-point mobility across the UK. 

Our Modern Industrial Strategy provides the stability businesses need to plan, and the reforms needed to remove barriers to growth. It is backed by concrete action and funding – creating opportunities for investors across our £1 trillion tech sector, world-leading offshore wind market, and more. 

Celebrating the 60th anniversary of diplomatic relations gives us an opportunity to look ahead – the UK is committed to working with Singapore for mutual prosperity and security.

In a world of global trade turbulence, the UK-Singapore trade relationship is a model of resilience. Here’s to the next 60 years and beyond.

Gareth Davies CB is Permanent Secretary of the Department for Business and Trade. Martin Kent is His Majesty’s Trade Commissioner for Asia-Pacific.