The power-packaged high-level leadership visits in the first 100 days of the Modi 3.0 unequivocally signalled India’s zest to energise the “Act East Policy”. Embarking on his fifth visit to Singapore, the key pillar of India’s ASEAN policy, PM Modi arrived in the city-state on September 4th for a two-day State visit. Notably, the initial four visits happened during PM Modi’s first term. The current visit comes after a brief pause of COVID disruption and turbulent geopolitical trajectories focused on strengthening bilateral ties and making them future-oriented.
In tune with
the realities of post-covid world, rendering the bilateral ties future-ready, India
and Singapore have reoriented the partnership. Instituting a new mechanism of
India-Singapore Ministerial Roundtable (ISMR) in 2022, countries have shifted
focus on emerging areas of cooperation. in 2023, India invited Singapore as the
guest country for the G20 Summit held during its presidency. Singapore Prime
Minister Lee Hsien Loong attended the G20 Leaders’ Summit meeting.
Giving a new
boost to the strategic partnership, ahead of PM Modi’s visit, at the second
ISMR in August held in Singapore, countries have identified six pillars of
bilateral cooperation. This included- Sustainability where countries agreed to
increase cooperation in green hydrogen and green ammonia; Digitalisation- after
the success of UPI- PayNow online payment mechanisms and the first TradeTrust
Framework for shipment between two countries, a paperless transaction in August
2023 countries are mulling cooperation in critical and emerging technologies.
Skill Development forms the third pillar of cooperation and the other pillars
are Health and Medicine, Advance Manufacturing and Connectivity. Under the
ambit of connectivity, countries plan to enhance cooperation in maritime and
aviation sectors including green shipping and Maintenance, Repair and
Operations (MRO).
Warmly received
by Law Minister K. Shanmugam at the airport, PM Modi held bilateral talks with
PM Lawrence Wong and called on President Tharman Shanmugaratnam. He also met
Senior Minister Lee Hsien Loong and Emeritus Senior Minister Goh Chok Tong1.
Commemorating the 60 years of the establishment of diplomatic ties between the
two countries in 2025, leaders have elevated the ties to a Comprehensive
Strategic Partnership2. India was among the first countries
to recognise Singapore. Within 15 days of Singapore’s independence, India
recognised Singapore and established diplomatic ties.
Leaders have
also reviewed cooperation in a multitude of areas-including trade and
investment, defence and security, FinTech and digital economy and green
corridors. In all, countries have exchanged four MoUs for cooperation in the semiconductor
ecosystem partnership, digital technologies, skill development & education
and healthcare. In his remarks, PM Modi appreciated the bilateral ISMR
mechanism as “path-breaking” for setting the course for identifying the arenas
of cooperation and setting the course for the bilateral partnership
Reliable
supply chains emerged as a major global challenge in the post-covid scenario.
Given the growing demand and criticality of semiconductors, India which was a
late entrant is now accelerating its efforts to develop a semiconductor
ecosystem. Singapore accounts for about 10% of the global chip market and 20%
of semiconductor equipment. With the latest funding boost of $10 billion
towards the India Semiconductor Mission (ISM), India is seeking to collaborate
with Singapore. Keen on transforming India into a tech superpower, PM Modi
accompanied by PM Lawrence Wong even visited AEM Holdings, a global
semiconductor giant and discussed ways for collaboration.
Determined
to make the semiconductor value chain more resilient, with plans of expansion
in the offing, Singapore is looking for new destinations. India is presenting
itself as a natural destination. Collaboration between the countries in this
critical industry can be a matter of great convergence.
PM Modi also
participated in a round table with the CEOs of leading Singaporean companies
and invited investments in aviation, energy, infrastructure, manufacturing,
logistics, sustainability and skill development. As the fastest-growing economy
contributing 17% to global economic growth India has immense opportunities. To boost
trade and investment, PM Modi announced the setting up of an Invest India
office in Singapore. His visit has yielded investment pledges of Rs 5 lakh
crores from Singapore companies3.
Singapore is
the largest trading partner of India in ASEAN and the sixth largest in the
World. Bilateral trade increased 18% over 2021-22 and is valued at $35.56
billion (3.2% of India’s overall trade) in favour of Singapore. To further
strengthen economic cooperation, countries called for an early conclusion of
the third review of CECA (Comprehensive Economic Cooperation Agreement) 2025
and a review of the ASEAN-India Trade in Goods Agreement (AITGA).
Sustained by
mutual respect the bilateral ties have a rich legacy of close collaboration and
economic integration. Singapore is among the leading sources of investment of
India with the cumulative FDI inflow making up for 24% of total FDI. As of
2024, FDI investments from Singapore are valued at approximately $160 billion
as opposed to the cumulative outflows of $ 91 billion from India4.
Besides the
longstanding historical ties, the modern-day trade connections between the
countries were firmed up by the establishment of a trading station by the
British along the Malacca Straits. The station set up by Britisher Stamford
Raffles in 1819 was managed from Kolkata till 1867. Indeed, the Malacca dilemma
one of the strategic challenges of the region is among the important dynamics
of the Indo-Pacific vision.
Given
Singapore’s strategic location at Malacca chokepoint and the inherent maritime
complexities associated with the region, maritime security and defence
cooperation have been the key aspects of the bilateral partnership. Defence
cooperation spans the joint tri-services exercises (Army Exercise Agni Warrior,
Navy Exercise SIMBEX and SIMTEX, and Air Exercise JMT), regular high-level
exchanges, defence dialogues, training and the Indian Navy’s use of Singapore’s
logistical facilities. Singapore has supported India’s role in regional
maritime security and helped India in hosting the inaugural 2023 India-ASEAN
maritime exercises.
Amid China’s
growing assertiveness underscoring the importance of peace and stability for
the growth and prosperity of the region, leaders affirmed maintaining peace,
security, safety, freedom of navigation and overflight in the South China Sea
and called for the peaceful resolution of disputes in accordance with
international laws and especially 1982 UN Convention on the Law of the Seas
(UNCLOS).
Wary of the
frequent altercations between China and the Philippines in the SCS, countries
welcomed Quad’s support for ASEAN centrality and inclusion of its agenda to
support the interests of Indo-Pacific nations. Both countries have also
acknowledged close cooperation and support for Quad’s Indo-Pacific Economic
Framework (IPEF). This probably marks the first time that both Quad and SCS
found a place in the Joint Statement. Interestingly, these remarks came at the
back of the Singapore-China five-day-long joint maritime exercises held at Port
Zhanjiang of Guangdong Province on September 1.
ASEAN
countries are no longer circumspect about Chinese adventurism and frequent
collision courses with SCS claimant countries in the region. This marks a
significant departure from Singapore’s policy and also underlines its trust in
India’s abilities as a responsible stakeholder in the Indo-Pacific region.
Singapore welcomed India’s active participation in the regional security
architecture through the ASEAN Defence Ministers Meeting ADMM-Plus Mechanism.
Along with a
futuristic approach to the partnership, bolstering the traditional connections,
PM Modi announced the first Thiruvalluvar Centre in the World in Singapore.
India and Singapore have a shared history. Indian-origin people are the third
largest ethnic group in Singapore and comprise 10% of the resident population. The
diaspora serves as a bridge of friendship between both countries.
India has
always looked up to Singapore for innovation and investment. Indeed,
acknowledging Singapore as a source of inspiration for every developing
country, PM Modi remarked, “India aims to create multiple “Singapore” within
India”.
Both
countries have several commonalities and convergences, especially in terms of vision
for a multipolar world, regional security framework, aspirations for growth and
development, and commitment to peace and stability in the Indo-Pacific region. Hence
a sustained strengthening of partnership will augur well for both countries and
the entire region as well.
Singapore is
a vital cog in India’s Act East Policy and central to ASEAN outreach. By
diversifying the arenas of cooperation, countries are endeavouring to explore
synergies for mutually beneficial development and progress.
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