[BANGKOK] While 60 years of bilateral relations between Singapore and Thailand have brought tangible growth and investment to both economies, the countries will continue to focus on key digital and technological industries as avenues for future regional growth.
In his keynote address at the Singapore Regional Business Forum in Bangkok on Tuesday (Aug 19), Singapore’s Minister for Manpower Tan See Leng noted that there remained significant scope for companies in both countries to forge closer partnerships in mutual areas of interest, such as advanced manufacturing, fintech, agritech and electric vehicles.
The minister added that regional partners must continue to collaborate on bilateral and regional levels to remain resilient through global uncertainty.
“Think ahead to how we can shape the next 60 years of our partnership,” urged Dr Tan. “Asean remains a critical anchor of stability and growth.”
This was highlighted as business representatives from both countries – Thailand’s Board of Investment (BOI) and the Singapore Business Federation (SBF) – signed a memorandum of understanding (MOU) to continue strengthening investment collaborations between the two economies.
Notably, both countries would emphasise priority sectors – including biotechnology, electronics, food processing and tourism – through bilateral trade and investments, SBF noted in a statement.
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SBF chief executive officer Kok Ping Soon said the MOU reflected a commitment by both parties to promote mutual understanding and economic partnership.
This would be done through the exchange of information, support for enterprise investment activities and participation in joint initiatives, he added.
Such an MOU could also support and provide a platform for the organisation of key events such as the Asean conference, said SBF.
Dr Tan said in his speech that Asean is projected to become the world’s fourth-largest economy by 2030, underpinned by a population of 680 million people and a growing middle class that is becoming increasingly tech-savvy.
“This will be a very powerful driver of innovation and consumption,” Dr Tan said. Digital payments alone are expected to surpass US$1 trillion in gross transaction values by 2025, the minister noted.
Structural changes such as the rise of digital finance and artificial intelligence (AI), alongside the region’s green transition, are expected to dramatically reshape business opportunities, the minister told an audience of more than 400 business leaders, investors and policymakers at the forum.
The forum is the flagship event of the SBF and has been held annually since 2015.
Singapore and Thailand’s economic relationship is already deep. Bilateral trade reached over S$44 billion in 2024, up 6.4 per cent year on year, making the kingdom Singapore’s ninth-largest trading partner globally and its third-largest in South-east Asia.
Singapore was also Thailand’s largest source of foreign direct investment in 2024, Dr Tan noted.
This relationship has been fostered for 60 years through inclusive and rules-based trade, noted Thailand’s Deputy Prime Minister Pichai Chunhavajira in his keynote address.
He added that the trajectory of foreign investment in Thailand would continue to be shaped by Singapore.
“Singapore serves as a regional hub where many international firms register holding companies to oversee their investment across the region, including in Thailand,” he said.
In the previous decade, Thailand’s BOI recorded foreign investment applications of more than US$33 billion, largely driven by voluntary investments from Singapore, China and Hong Kong, the deputy prime minister noted.
Much of these projects have involved the emerging sectors of data centres, semiconductors, advanced electronics and automotives, he added.
Pichai noted that there remains much potential for Singaporean investment in the digital economy. For instance, given the geographical proximity between both countries, Singapore data centre service providers can set up facilities that tap Thailand’s growing clean energy resources, he said.
Such investments “serve as the backbone of digital transformation”, he noted, and would support the kingdom’s ambitions to become a regional hub for digital innovation and sustainable technologies.
Thailand’s role in strengthening South-east Asia’s regional digital economy has grown increasingly critical, with the kingdom chairing the Asean Digital Economy Framework Agreement, which is likely to conclude this year.
Five MOUs between Thailand and Singapore were signed in March, reaffirming their longstanding bilateral economic cooperation, while strengthening partnerships across a range of traditional and emerging industries.
