S’pore, Australia sign landmark pact to boost ties

SINGAPORE — Singapore and Australia have concluded a landmark agreement to deepen ties and strengthen cooperation in multiple areas spanning trade, defence, innovation and the arts, building on a Comprehensive Strategic Partnership (CSP) agreed by both countries less than a year ago. 

“I am delighted that we have concluded this landmark agreement with Australia. It is a win-win deal that will cement relations and benefit Australians and Singaporeans for years to come,” said Prime Minister Lee Hsien Loong in a press statement issued by the Ministry of Foreign Affairs (MFA) on Friday (May 7).

“Our two countries are politically like-minded, strategically-aligned and economically complementary. We have much to gain by working closely together,” added Mr Lee.

Under the agreement announced on Friday, both sides will update the Singapore-Australia Free Trade Agreement (SAFTA) to increase trade and investment flows, expand long-standing defence cooperation, promote innovation and entrepreneurship and boost people-to-people links.  

Australian Prime Minister Malcolm Turnbull described the agreement as a “massive upgrading” of Australia’s relations with Singapore.

“Under our Comprehensive Strategic Partnership, our aim is to elevate our relationship to a level that is similar to the one enjoyed with New Zealand,” he told Australian media. 

“The upgrading of our agreement with Singapore will make it much easier for thousands of Australians to live and work in Singapore. It will see our two nations join forces in a new innovation drive, attracting investments and backing new technology.”

Since Australia and Singapore agreed to elevate ties to a CSP last June, officials from both sides have been ironing out the details that led to the agreement this week.

Minister for Foreign Affairs Vivian Balakrishnan, together with Minister for Trade and Industry Lim Hng Kiang and Minister for Defence Ng Eng Hen, had travelled to Australia in March to meet their respective counterparts for discussions on the CSP.

In his statement on Friday, Mr Lee noted that the CSP is an ambitious package covering many aspects of bilateral ties.

“The CSP will draw our two countries closer, economically, politically and at the people-to-people level,” he said. “We will move quickly to implement the various measures, although some will take time to bear fruit.”

Writing on Facebook on Friday, Dr Balakrishnan said the agreement is “built on a bedrock of shared history, close strategic alignment and economic complementarity” between the two countries.

“The complementary strengths of Australia and Singapore will enable us to transform our respective economies for the Fourth Industrial Revolution, to collectively pursue global opportunities, and to promote peace and stability through fostering a strong network of friends and partners in the region.”

Speaking to reporters on Thursday, he said the package of bilateral cooperation initiatives agreed by Singapore and Australia would put both countries “on a completely new trajectory for the next generation”.

“This (package of initiatives) sets out an unprecedented level of economic integration, unprecedented expansion of defence cooperation and collaboration, as well as joint pursuit of new areas involving innovation and enterprise,” said Dr Balakrishnan.

He noted that Singapore and Canberra are strategically aligned on many issues, including the way they viewed the world and common defence interests.

A key outcome of Friday’s agreement is the decision to update and modernise the SAFTA signed in 2003.

“The business environment has changed considerably since the free trade agreement was first signed over a decade ago so we’re updating trade rules in the SAFTA in goods, services and investment to reflect contemporary business needs, to reduce red tape and increase trade,” Mr Turnbull said. 

Both countries will adopt a package of measures to increase trade and investment flows. 

“These measures will reinforce Singapore’s position as a trading and investment partner for Australia. It will also enhance Singapore’s position as a hub for Australian businesses and service providers to access expanding opportunities in Asia,” said the MFA’s statement.

Singapore is Australia’s fifth largest trading partner, with bilateral trade last year amounting to S$20.2 billion. The Republic is the fifth largest foreign investor in Australia, with total investments amounting to A$80.2 billion (S$81.4 billion). Total stock of Australian investments in Singapore in 2014 was A$50.7 billion.

Dr Balakrishnan said that the Australian and Singaporean economies can complement each other. He noted that the Republic’s role as a global hub, logistics centre and a portal into South-east Asia is viewed as essential to Australia’s economic growth.

“For Singapore, (the partnership with Australia) gives access to a continental-size economy with natural resources. It is also a sophisticated economy that gives us many opportunities.”

Another key agreement reached this week between both countries is the joint development of more military training areas and facilities in Australia. This will provide Singapore troops with greater access to military training areas Down Under over a period of 25 years.

Exercise Trident — a component of the two-month-long Exercise Wallaby, will also be elevated to a signature joint bilateral military exercise.

Besides trade and defence, another pillar where both countries will deepen cooperation is in innovation and entrepreneurship.

“There is great alignment in our policies and synergy to be gained from closer cooperation,” said the MFA statement, adding that both sides have agreed to bring together their research and scientific bodies and support their collaboration through matching funding provided by both governments to the tune of about S$50 million over five years.

The details will be worked out by the respective agencies, MFA added.

To build stronger innovation linkages, Australia will establish a “landing pad” to facilitate high tech Australian start-ups in Singapore.

“This will assist start-ups to ‘think global’ by linking them into entrepreneur and capital networks and industry value chains, accelerating their business development and growth,” said a joint announcement by both countries.

Dr Balakrishnan said that greater cooperation in innovation would generate opportunities for the cross-fertilisation of ideas.

“We are a city and we are in pursuit of urban solutions to meet the challenges of a city constrained by (lack of) natural resources, energy and space. They (Australia) have people, resources, ideas, and the fact that we are different will also give our companies an opportunity to pick their brains and ideas.”

The fourth pillar of the agreement reached this week will see both countries strengthen people-to-people ties by facilitating tourism, cultural exchanges and educational opportunities. 

Notably, Singaporeans will soon enjoy improved terms of entry into Australia through the implementation of multi-year visa arrangements.

Currently, Singaporeans require visas, which are valid for up to one year, to enter Australia.

In addition to the impending change in visa arrangements, Singapore and Canberra have agreed to strengthen youth exchanges with the adoption of a 12-month arrangement that will allow youths from both countries to travel to and do short-term work in each other’s countries.

On the education front, new exchange programmes between the teachers from Australian and Singaporean schools will come into effect.

Also on the cards are improved recognition of law degrees from Australian and Singaporean universities. Postgraduate medical degrees from the University of Queensland and the Australian National University as well as 15 additional allied health qualifications in occupational therapy, physiotherapy and speech therapy will be recognised by Singapore.

On the arts front, collaboration between their artists, arts groups and cultural institutions will be enhanced with the setting up of an Australia-Singapore Arts Group. 

“This will give greater opportunities for Singapore artists, arts groups and cultural institutions to showcase their works on a larger stage (in Australia),” said Dr Balakrishnan.

The Singapore Government will set aside S$5 million over five years to support the performing groups going to Australia.

When asked if Canberra might change its mind about the deals reached given that federal elections are scheduled to be called in early July, Dr Balakrishnan expressed optimism that Australia would adhere to what has been agreed.

“We know that Australians are good for their word … There is also broad bipartisan support (in Australia) on the importance and relevance of the relationship with Singapore,” he pointed out. “I am confident that they will fully commit to this agreement and our relationship will grow regardless of political changes in Australia.”

Singapore is Australia’s fifth largest trading partner, with bilateral trade last year amounting to S$20.2 billion. The Republic is the fifth largest foreign investor in Australia, with total investments amounting to A$80.2 billion (S$81.4 billion). Total stock of Australian investments in Singapore in 2014 was A$50.7 billion.

Dr Balakrishnan said on Thursday that the Australian and Singaporean economies can complement each other. He noted that the Republic’s role as a global hub, logistics center and a portal into South-east Asia is viewed as essential to Australia’s economic growth.

“For Singapore, (the partnership with Australia) gives access to a continental size economy with natural resources. It is also a sophisticated economy that gives us many opportunities.”

Another key agreement reached this week between both countries is the joint development of more military training areas and facilities in Australia.  This will provide Singapore troops with greater access to military training areas down under over a period of 25 years.

Exercise Trident - a component of the two-month long Exercise Wallaby, will also be elevated to a signature joint bilateral military exercise, according to MFA’s statement, which added that military personnel exchanges will be enhanced while civilian personnel exchanges will be initiated. 

Both countries also pledged to enhance intelligence and information sharing, such as in counterterrorism.

When asked by reporters on how other countries in the region will perceive the growing defence ties between Singapore and Australia, Dr Balakrishnan said “it shows the level of strategic trust between us.”

“It also shows everyone that we take the SAF (Singapore Armed Forces) seriously… We live in an uncertain, troubled and sometimes difficult world but we have to do our best to stay strong individually, as well as to build a network of friends and good partners,” he added. 

Besides trade and defence, a third pillar where both countries will deepen cooperation is in innovation and entrepreneurship.

“ There is great alignment in our policies and synergy to be gained from closer cooperation,” said the MFA statement, adding that both sides have agreed to bring together their research and scientific bodies and support their collaboration through matching funding provided by both governments to the tune of about S$50 million over five years.

The details will be worked out by the respective agencies, MFA added.

To build stronger innovation linkages, Australia has also decided to establish a “landing pad” to facilitate high tech Australian start-ups in Singapore.

“This will assist start-ups to “think global” by linking them into entrepreneur and capital networks and industry value chains, accelerating their business development and growth,” said a joint announcement by both countries.

Dr Balakrishnan said that greater cooperation in innovation will generate opportunities for cross-fertilisation of ideas.

“We are a city and we are in pursuit of urban solutions to meet the challenges of a city constrained by (lack of) natural resources, energy and space. They (Australia) have people, resources, ideas and the fact that we are different will also give our companies an opportunity to pick their brains and ideas.”

The fourth pillar of the agreement reached this week will see both countries strengthen people-to-people ties by facilitating tourism, cultural exchanges and educational opportunities. 

Notably, Singaporeans will soon enjoy improved terms of entry into Australia through the implementation of multi-year visa arrangements. Youth exchanges will also be strengthened with the adoption of a 12-month arrangement for youths to travel and do short term work in both countries.

When asked if Canberra might change its mind about the deals reached given that federal elections are scheduled to be called in early July, Dr Balakrishnan expressed optimism that Australia would adhere to what has been agreed.

“We know that Australians are good for their word… There is also broad bipartisan support (in Australia) on the importance and relevance of the relationship with Singapore,” he pointed out.

“I am confident that they will fully commit to this agreement and our relationship will grow regardless of political changes in Australia.”

According to MFA’s statement, PM Lee and Australian Premier Malcolm Turnbull earlier this week re-affirmed the strength of bilateral relations based on strategic convergence and economic complementarities.

“They were pleased that the CSP and the successful negotiations for this agreement set out a long-term vision and roadmap for a major upgrade across all aspects of bilateral relations,” the statement added.