New Delhi: India and Singapore upgraded bilateral ties to a comprehensive strategic partnership.
Even as the two countries unveiled a semiconductor ecosystem partnership and measures for greater interoperability between their digital economies, Prime Minister Narendra Modi said the two sides will work together for regional peace, stability and prosperity.
Singapore is currently India’s largest trade partner within the Association of Southeast Asian Nations (Asean) and the sixth largest trade partner globally. Besides, Singapore was the largest source of foreign direct investment (FDI) into India in 2023, and its cumulative investments since 2000 are worth $160 billion.
A joint statement said the two sides are working for the early conclusion of the third review of the Comprehensive Economic Cooperation Agreement (CECA) of 2005. They also sought the conclusion of the review of the Asean-India Trade in Goods Agreement by 2025 to make it more user-friendly and trade-facilitative.
The joint statement emphasised the link between prosperity and security, and said the two sides reaffirmed the importance of maintaining peace, security, stability, safety and freedom of navigation and overflight in the South China Sea. In an apparent reference to China’s recent aggressive actions in the South China Sea, both sides “called on all parties to resolve disputes through peaceful means without threat or use of force” and self-restraint in “actions that could escalate tensions”.
India and Singapore who have forged strong strategic and economic ties over the past two decades, elevated their relations to a comprehensive strategic partnership. Modi and his Singaporean counterpart Lawrence Wong backed an open, inclusive and rules-based Indo-Pacific region that fosters free trade and peaceful resolution of differences in line with international law.
Modi arrived in Singapore on Wednesday on the second leg of a two-nation Southeast Asian tour, after making the first bilateral visit to Brunei by an Indian premier. At talks with Wong, he described Singapore as an “important anchor” for India’s decade-old Act East policy.
“Singapore is not just a partner country. It serves as an inspiration for every developing nation. We aim to create multiple Singapores within India,” Modi said, speaking in Hindi.
Referring to achievements by the two sides in the past decade, including investments increasing nearly threefold to $160 billion and the launch of real-time digital payments, Modi said: “I am happy that today we are together giving our relations the shape of a comprehensive strategic partnership.”
Wong said in a post on X the two sides had “set out a forward-looking agenda for the next phase of our bilateral relations”. This includes closer cooperation in advanced manufacturing, digital technologies, connectivity and sustainability, he said.
Following talks between the two premiers, India and Singapore announced four agreements on semiconductors, digital cooperation, health care and medical research, and education and skill development.
The memorandum of understanding (MoU) on a semiconductor ecosystem partnership envisages cooperation to support India’s growing semiconductor industry while facilitating Singapore’s companies and supply chains to enter India’s market. The MoU will create a platform to connect and strengthen the complementary semiconductor ecosystems of the two sides.
Under the pact, the two sides will tap opportunities to advance resilient semiconductor supply chains, and this will include government-led policy exchanges on ecosystem and workforce development.
They will establish a parallel business-to-business Cooperation Forum, led by India’s Semiconductor Mission and Enterprise Singapore, to catalyse private sector partnerships. As a first step, more than 20 Singaporean firms will exhibit solutions and seek cross-border solutions at the Semicon India event in New Delhi during September 11-13.
The MoU on cooperation in digital technology will encourage greater interoperability between the digital economies of the two countries and build on earlier work, such as the linking of India’s Unified Payments Interface (UPI) and Singapore’s PayNow in 2023.
The main areas of cooperation under this MoU are governance frameworks for data flows, rules for data protection, digital utilities and digital public infrastructure, business-to-business links, and enhancing cybersecurity through cooperation between CERT-In and the Singapore Cyber Emergency Response Team. A new joint working group will be set up to implement this MoU.
Under the MoU on education and skill development, the two sides will cooperate on technical and vocational education and training and promote collaboration between higher education institutions. The MoU on health care and medical research envisages cooperation in disease surveillance, pandemic preparedness and prevention of communicable diseases.
Modi’s visit followed a meeting last month of the India-Singapore Ministerial Roundtable, which identified advanced manufacturing, semiconductors and connectivity as new areas for cooperation, in addition to skilling, digitalisation, health care and sustainability.
Modi pointed to other areas where the two sides have made progress, saying 17 satellites of Singapore were launched from India in the past 10 years, while cooperation in defence has gained momentum. An agreement between Singapore Airlines and Air India has strengthened connectivity, he said.
The 350,000 people of Indian origin living in Singapore act as the “strong foundation” of bilateral relations, and India is “forever grateful to the whole of Singapore for the place and respect that Subhash Chandra Bose, Azad Hind Fauj and Little India have received”, he said.
He suggested the two sides should frame an action plan to mark 60 years of diplomatic ties in 2025. “I am very happy to inform you that India’s first Thiruvalluvar Cultural Centre will soon be opened in Singapore. The great saint Thiruvalluvar has given guiding thoughts to the world in the most ancient language, Tamil,” he added.
Modi and Wong visited AEM, a leading Singaporean company in the semiconductor and electronics sector, and were briefed about its role in the global semiconductor value chain and plans for India. The Singapore Semiconductor Industry Association made a presentation on the development of Singapore’s semiconductor ecosystem and opportunities for collaboration with India.
When Jaideep Mazumdar, secretary (east) in the external affairs ministry, was asked at a media briefing if China had figured in this discussions, he replied that “peace is very important” for the growth of India and Singapore. Issues that could hinder free and open commerce and free sea lines of communication were discussed, he said without giving details.
