SINGAPORE: Singapore and Thailand reaffirmed their commitment to fostering bilateral cooperation during the official visit of Thai Prime Minister Srettha Thavisin to Singapore on Thursday (Oct 12). The discussions primarily revolved around bolstering their partnership in the domains of the digital economy and renewable energy.
Digital economy takes centre stage
One significant area of focus was the digital economy. Both Prime Ministers acknowledged the strides made in this sector, presented by the innovative cross-border fast payment system that links Singapore’s PayNow with Thailand’s PromptPay.
Launched in April 2021, this system allows users on both sides to seamlessly transfer money using their mobile numbers, marking a pioneering achievement in digital payments.
Thailand’s expressed interest in joining the Digital Economy Partnership Agreement, initiated by Singapore, Chile, and New Zealand in 2020, is a promising step forward. The agreement is to facilitate trade by addressing issues related to the digital economy, including data flows, data protection, and artificial intelligence.
Green economy and energy collaboration
Both nations also highlighted the potential of the green economy. Singapore and Thailand are part of the Laos-Thailand-Malaysia-Singapore Power Integration Project, which saw Singapore begin the import of renewable energy from Laos through Thailand and Malaysia in June 2022.
This venture not only sets the stage for sustainable cross-border energy trade within ASEAN but also positions both countries as active contributors to the global climate agenda.
Singapore’s Prime Minister Lee Hsien Loong expressed his optimism, stating, “I look forward to building on this momentum to strengthen energy collaboration with Thailand, which will unlock ASEAN’s potential for cross-border renewable energy trade. Our two countries should also cooperate further in carbon trading, to benefit from green growth opportunities while contributing to the global climate agenda.”
Thailand’s Prime Minister Srettha emphasized that the relationship between the two nations should be forward-thinking, embracing the full potential of new economic opportunities, such as those presented by the digital and green economies.
Economic relations
Singapore and Thailand enjoy robust economic relations, with both nations ranking among each other’s top 10 largest trading partners in 2022. Bilateral trade in the same year surged by nearly a quarter year-on-year to reach S$42.1 billion.
In addition, Singapore emerged as the second-highest source of foreign direct investment in Thailand during the first half of 2023.
These strong economic ties serve as a solid foundation for future cooperation in various promising areas, including the digital and green economies. Prime Minister Lee emphasized that there are numerous opportunities for further economic collaboration between the two countries.
During an official luncheon hosted by Prime Minister Lee at the Istana, both leaders celebrated the historical friendship between their nations, symbolized by a bronze elephant statue gifted by Thailand’s King Chulalongkorn, which stands outside Singapore’s Old Parliament House. Prime Minister Lee highlighted the multifaceted relations between the two countries, spanning the economy, defence, and people-to-people connections.
President Tharman Shanmugaratnam also expressed his desire to grow ties in new areas, particularly in trade in renewable energy and high-integrity carbon credits, as well as in the digital economy. As he said in his Facebook post: “Singapore and Thailand each have our strengths, and we complement each other well.”
Both leaders recognized the need for close cooperation within ASEAN, particularly on initiatives such as the power integration project. This initiative serves as a crucial step towards realizing an ASEAN power grid, fostering greater energy interconnectivity among ASEAN member states.
Prime Minister Srettha Thavisin’s visit to Singapore is a reflection of the enduring ties between the two nations, characterized by deep-rooted historical connections and a commitment to advancing their relationship in the digital and green economy sectors.
Mr Srettha’s visit to Singapore marked the conclusion of his five-day regional tour, which also included visits to Hong Kong, Brunei, and Malaysia./TISG
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