Agreements Signed to Foster Entrepreneurial Growth and Digital Transformation
SINGAPORE: On May 26, Singapore and Japan signed two significant agreements aimed at boosting entrepreneurship between the two nations and accelerating the digital transformation of their governments. The agreements were signed during Singapore Prime Minister Lee Hsien Loong’s four-day working visit to Tokyo, in the presence of Japanese Prime Minister Kishida Fumio.
The first Memorandum of Cooperation (MOC) focuses on enhancing the flow of entrepreneurs and enterprises between the two countries, with an emphasis on improving access to start-up and innovation ecosystems. Building on a previous agreement from 2018, this new MOC will target emerging sectors such as digital transformation and green innovation. Enterprise Singapore and the Japan External Trade Organization, which signed the agreement, highlighted the potential of business matching sessions to help connect companies with accelerators, partners, and investors. This initiative aims to provide businesses with better market insights, access to new opportunities, and strengthened partnerships within start-up networks.
Advancing Digital Government Collaboration
The second MOC addresses digital government transformation, signed by Singapore’s Senior Minister of State for Communications and Information, Janil Puthucheary, and Japan’s Minister for Digital, Karen Makishima. This agreement will facilitate the exchange of knowledge regarding digital government frameworks, focusing on digital identities, artificial intelligence (AI), and cloud services. According to GovTech, these exchanges will assist in the design and delivery of digital services for citizens and businesses in both countries.
One key area of collaboration will be the mutual recognition of verified digital credentials, which will streamline digital trade and improve the ease of movement for people between Singapore and Japan. This agreement also builds on previous cooperation in digital economy areas such as AI, cybersecurity, and information communication technology.
Strengthening Bilateral Economic Ties
In addition to the two memoranda, Singapore and Japan will establish a Japan-Singapore Economic Dialogue (JSED) to further enhance economic collaboration. The dialogue, set to be chaired at the Vice-Ministerial or Permanent Secretary level, will explore opportunities for closer economic cooperation, including Japan’s Asia-Japan Investing for the Future Initiative, which Singapore has welcomed. The dialogue will also discuss international and regional issues. Further details regarding the JSED will be provided by Singapore’s Trade and Industry Ministry.
In 2021, Japan was Singapore’s eighth-largest trading partner, with total merchandise trade between the two nations increasing by 8.6% to S$53.9 billion.
