“Two is better than one and three is better than two,” quips Deputy Prime Minister (DPM) Gan Kim Yong on a panel at the 9th Asean conference on July 3.
Gan refers to the possibility of roping in Indonesia’s Batam, Bintan and Karimun Islands (BBK) to form a special economic zone (SEZ) with Singapore in the future, one that would not be dissimilar from the city-state’s partnership with Malaysia in the Johor-Singapore special economic zone (JS-SEZ).
This, he adds, was the main discussion during his recent June 27 meeting in Jakarta with Malaysian Minister of Investment, Trade and Industry, Tengku Zafrul Aziz and Indonesian Coordinating Minister for Economic Affairs, Airlangga Hartarto.
The event was also made special by the celebration of Aziz’s 52nd birthday, to which the DPM commemorated with a LinkedIn post.
“It [the meeting] wasn't meant to be celebrating his birthday- it was meant to discuss how the three visions had further strengthened our collaboration, it [the meeting] was supposed to be a secret,” laughs Gan.
Beside him, seated at the discussion panel was Malaysia’s Deputy Minister of Investment, Trade and Industry, Liew Chin Tong and Indonesia’s Deputy Minister for Investment Cooperation, Tirta Mursitama.
See also: Only 6% of Singapore consumers want to live longer: Manulife
Liew notes: “In this multi-polar economy, at some point, we need to come together and say we want to have an Asean incubated market, we want to see a lot more Asean companies, we want to see a lot more Asean technology and we want to see a lot more strengthening of the Asean supply chain.”
“This is a very crucial moment for Asean leaders and this is the right time for us to discuss our visions for our countries and businesses,” adds Mursitama.
Facilitating flows
See also: MAS and ABS announce incorporation of new payments entity
The ministers’ comments for a warmer Asean business climate come ahead of US President Donald Trump’s looming July 9 tariff deadline.
Gan says that Singapore businesses must be prepared that the tariffs will be here to stay and therefore exports to the US will cost more for some time.
He warns: "We cannot bank on the possibility that the tariffs will go away after four years with a different US administration."
“To benefit from lower tariffs – especially in sectors such as steel, autos and in time to come, pharmaceuticals – companies must be prepared to meet the US’ conditions over their production and supply chains, even if these requirements come at a much higher cost,” adds the DPM.
He notes that while the Singapore government will assist the busines community, businesses have to stay "half a step ahead" and stay flexible, nimble and innovative.
"At the end of the day I always say this; the government can do what the government can do, but business must be done by businessmen," says Gan.
With this, in a move to bolster regional economic integration and facilitate foreign direct investment (FDI) flows into Singapore businesses, a tripartite memorandum of understanding (MOU) between United Overseas Bank (UOB), the Federation of Malaysian Manufacturing (FMM) and the Singapore Manufacturing Federation (SMF) has been signed to explore business opportunities and crossborder projects in Southeast Asia, Singapore and Malaysia while deepening collaboration with the crossborder manufacturing ecosystem as a priority.
To stay ahead of Singapore and the region’s corporate and economic trends, click here for Latest Section
Already, the bank has committed some MYR11.5 billion ($3.57 million) in financing since 2024 to support businesses in the state of Johor.
At the same time, UOB is actively facilitating MYR10 billion of FDI flows into the JS-SEZ.
“Asean remains an attractive destination for businesses despite global tensions. As opportunities arise from the rewiring of global supply chains, trade flows within Asean and between China and Asean are expected to increase,” says UOB deputy chairman and chief executive officer (CEO), Wee Ee Chong.
He adds: “Through UOB’s network of FDI advisory centres across key Asian cities and our strategic partnerships, we help businesses enter new markets and seize opportunities in the region.”
The bank will also sign MOUs with government agencies and leading industry players in Asean and greater China to unlock new cross-border investment opportunities in a bid to pave the way for more FDI flows into the region.
These include partnerships with Enterprise Singapore (EnterpriseSG) to nurture growth between Singapore enterprises and foreign companies seeking to expand in Asean, starting with markets that UOB has networks in, such as Germany, Japan, and China.
Other MOUs include signings with the Singapore-based fund management company, Hildrics Capital, tge Hong Kong Trade Development Council (HKTDC), Chinese innovation hub ZGC International and Japanese private equity firm J-Will Corporation.
