Malaysia, Singapore to boost bilateral trade in digital and green economy - Tengku Zafrul

Minister of Investment, Trade and Industry (MITI) Tengku Datuk Seri Zafrul Abdul Aziz said two frameworks on Cooperation in the Digital Economy and Green Economy have been reviewed during the AMD by both MITI and Minister for Trade and Industry, Singapore (MTI) Gan Kim Yong.

"Under the Framework on Cooperation in the Digital Economy, the ministers announced a new task force to explore the promotion of cross-border business trade, leveraging the MATRADE Digital Trade Platform which was launched yesterday and Singapore's Business sans Borders initiative," he said at the press conference after the First Annual Ministerial Dialogue between Malaysia and Singapore today.

He said the task force will involve MITI and Malaysia External Trade Development Corporation (MATRADE), along with MTI, Infocomm Media Development Authority of Singapore and the Monetary Authority of Singapore.

Tengku Zafrul also said the task force will be established as soon as possible to look into improving the digital trade.

"This digital collaboration will reduce costs and time for small and medium enterprises to reach the global export market in addition to agreeing to explore joint venture projects on corporate digital identity for the Asean unique business identification number network system and also improving the cross-border e-payment system," he said.

Under the Framework on Cooperation in the Green Economy, he said the ministers welcomed the collaborative effort between MATRADE and Enterprise Singapore in a Capacity Development Programme for Exporters, aimed at supporting exporters' sustainability transition.

"As part of the programme, there will be a series of engagements between Singapore and Malaysia enterprises to share experiences and solutions in sustainability, with the first session focusing on sustainability reporting frameworks and green financing, scheduled to be launched in July 2023," he said.

In the discussion going forward, he said both ministers would include ways to better cooperate to ensure the supply chain's resilience and security are strong in both countries.

"We hope that with this task force and the plan we have agreed on today, we will consider whether to increase the trade target between the two countries but it depends on the world trade situation," he said.

Malaysia and Singapore were each other's second-largest trading partners, with bilateral trade reaching a significant US$83.53 billion in 2022, reflecting a notable growth of 37.6 per cent compared to US$64.55 billion in 2021.

Moreover, Singapore stands out as one of Malaysia's primary sources of foreign direct investment, contributing 8.3 per cent to Malaysia's total foreign direct investment last year.