New Agreement Aims to Boost Data Connectivity and Economic Integration
Advancing as a Digital Hub
SINGAPORE: Singapore is accelerating its efforts to solidify its position as a leading digital and business hub globally and regionally, said Minister-in-charge of Trade Relations S. Iswaran during a virtual media briefing on Tuesday (Feb 1). Speaking from Brussels and London, Mr Iswaran highlighted Singapore’s focus on fostering technology- and data-intensive industries to build a robust pillar of the digital economy.
EU-Singapore Digital Partnership
On the same day, Singapore and the European Union marked a significant milestone by signing the EU-Singapore Digital Partnership. The agreement, signed by Mr Iswaran and European Commissioner Thierry Breton, establishes a framework for bilateral digital cooperation.
The partnership encompasses key areas, including digital trade facilitation, trusted data flows, electronic payments, and standards. Emerging technologies such as artificial intelligence, digital identities, and next-generation networks like 5G and 6G are also integral to the agreement.
“This partnership enhances our data connectivity, establishing confidence and trust in how data flows, enabling Singapore to become a critical node for digital trade, similar to our role in capital, goods, and services flows,” said Mr Iswaran.
Economic Benefits and Regional Impact
The EU is Singapore’s second-largest digital trading partner for services and fourth-largest for goods, with over 12,000 EU businesses operating in the city-state. Singapore, in turn, is the EU’s largest trading partner within ASEAN.
Trade between the two regions has seen significant growth, with overall trade in goods rising by approximately 10% in value, underscoring the mutually beneficial relationship.
The digital partnership is expected to provide particular advantages for small and medium enterprises (SMEs), enabling cost-efficient cross-border transactions and streamlined trade documentation.
“When trade documentation and data flows are simplified, businesses benefit from lower costs and greater certainty, improving their competitiveness,” noted Mr Iswaran.
Privacy and Consumer Trust
In addition to facilitating economic gains, the partnership ensures that data flows are governed by protocols safeguarding privacy and security. This dual focus on trust and innovation not only reassures consumers but also promotes the development of higher-quality products and services driven by advanced data analytics.
“Agreements like this ensure privacy concerns are addressed while enabling companies to harness data for better solutions,” Mr Iswaran explained.
Moving Forward
With strong momentum in trade and digital integration, Singapore and the EU aim to commence detailed negotiations on the partnership this year. As Mr Iswaran stated, “The sooner, the better,” reflecting the shared commitment to advancing digital cooperation and economic connectivity.
