Wong Kwok Pun delivers a speech on behalf of Singapore’s Senior Minister of State for Trade & Industry and National Development, Lee Yi Shyan. PICTURE: Jayan Orma
By Peter Alagos/Business Reporter
Qatar businessmen have been urged to take advantage of the Gulf Cooperation Council-Singapore Free Trade Agreement (GSFTA) and the Asean Economic Community, a single market that would facilitate “freer flowing trade, investments, and connectivity.”
“The Association of Southeast Asian Nations (Asean), comprising 10 countries, forecasts a 5.1% growth in 2015. By the end of this year, Asean will also formally establish the Asean Economic Community… hence this is an opportune time for Qatari businesses to ‘Look East’,” said Ambassador Wong Kwok Pun in behalf of Singapore’s Senior Minister of State for Trade & Industry and National Development, Lee Yi Shyan.
Wong delivered the minister’s speech during the GSFTA Outreach Seminar held at the Four Seasons Hotel in Doha yesterday. According to Lee’s speech, Singapore can be an ideal base for Qatari companies and investors, who want to tap into the fast-growing Asia-Pacific region.
“We have the necessary ecosystem, such as financial linkages, air and maritime connectivity, as well as a good FTA and DTA (Domestic Tariff Area) networks with many countries,” Lee said.
According to Lee, the GSFTA was the GCC’s first FTA with a non-Middle East country, and Singapore’s second FTA with the Middle East after Jordan. Collectively, the GCC is Singapore’s sixth largest trading partner in the world with close to QR174bn in bilateral trade.
“The GSFTA, which came into force on September 1, 2013, is a comprehensive free trade agreement covering essential areas such as trade in goods, services, investments, customs procedures, and government procurement.
“It is more than a political statement between countries as the GSFTA brings actual economic benefits to businesses. As such, I encourage all of you to fully-utilise the GSFTA,” Lee stressed.
Lee noted that Qatar has been prompt in implementing the GSFTA, specifically preferential tariffs for Singapore imports.
“I am happy that the implementation of the GSFTA has been going well… For Qatari importers of Singapore products, this means cost savings and, while for Qatari manufacturers using intermediate products from Singapore, this means cheaper materials.
“Also, Qatar has committed itself to recognising Singapore’s halal standards, which will lead to greater food choices for consumers in Qatar,” the minister also said.
Lee said bilateral trade volume between the two countries reached QR28bn in 2014, making Qatar Singapore’s third largest trading partner in the Middle East.
“Indeed, many Qatar businesses such as Qatar Petroleum International, Katara Hospitality, QNB, Ooredoo, Tasweeq, and Doha Bank have a presence in Singapore and vice versa. As of 2013, there were about QR1bn worth of Qatari investments in Singapore. Qatar Airways will also be operating three daily flights to Singapore from June 1,” Lee stressed.
He also emphasised that Qatar “holds many opportunities and can also be a good springboard into the Gulf region for Singapore businesses.”
The minister stated that Singapore companies have already invested about QR907mn in Qatar: “The Nakilat-Keppel Offshore Marine shipyard joint venture is a successful example. Keppel Seghers Engineering, another arm of Keppel Corporation, has also invested in Qatar.”
He added, “Today, they built a water treatment plant, the Doha North Sewage Treatment Plant, and operate a waste-to-energy plant, the Integrated Domestic Waste Management Centre in Mesaieed.”
