Cambodia, Singapore reaffirm economic ties

Cambodia, Singapore reaffirm economic ties

Both sides confirm their commitment to accelerating cooperation in trade, investment, financial technology, green energy, and digital infrastructure.

Cambodia and Singapore Wednesday reiterated their commitment to strengthening economic cooperation, with a renewed emphasis on trade, energy, and digital transformation.

The pledge came during the first official visit by Singaporean Prime Minister Lawrence Wong on July 2, following an invitation from Cambodian Prime Minister Hun Manet.

According to a statement released by the Ministry of Foreign Affairs and International Cooperation (MFAIC), the visit marked a key milestone in bilateral relations as both countries celebrate the 60th anniversary of diplomatic ties this year.

“The visit reaffirmed the shared commitment of both countries to further strengthen and deepen bilateral ties, while exploring new avenues of cooperation,” the ministry said.

In light of global market uncertainties, both governments agreed that boosting trade and investment must remain a priority. Both leaders expressed satisfaction with the continued growth of trade between the two countries and called on relevant stakeholders to expand collaboration in sectors of mutual interest.

“Amid ongoing global market volatility and uncertainty, both sides concurred that it was imperative to intensify bilateral and intra-regional trade,” the statement noted.

Singapore is currently one of the leading investors in Cambodia among ASEAN member states and ranks third overall in foreign direct investment, as of 2024. Both sides agreed to build on this momentum and tasked relevant institutions with identifying new areas of economic complementarity.

Energy cooperation also featured during the high-level talks. Both leaders encouraged their respective ministries to accelerate the implementation of outcomes from the Cambodia-Laos-Singapore Energy Ministers’ Meeting held on May 29 this year. The aim is to promote cross-border electricity trade and contribute to greater regional energy security.

On the digital front, progress in public sector innovation was acknowledged. “They welcomed the progress of the implementation of the MoU on Digital Government Cooperation signed last June and urged relevant agencies to promote digital tools for public service delivery,” the ministry added.

In the financial sector, both governments highlighted the Financial Transparency Corridor initiative launched by the National Bank of Cambodia and the Monetary Authority of Singapore in June 2024 as a practical step toward strengthening financial connectivity and easing cross-border trade.

Tourism and people-to-people exchange were also discussed. Singapore remains a preferred destination for Cambodians seeking medical treatment and educational opportunities. The two sides noted a steady increase in travel flows and agreed to encourage further cooperation in these areas.

Experts say that the official visit by Singapore Prime Minister Wong has energised the already strong ties between the two countries. Taking place during the 60th anniversary of diplomatic relations, the visit opened new doors for expanding economic cooperation, investment, and human capital development.

Speaking with Khmer Times, economist Darin Duch called the visit historic, saying it offers a timely opportunity to build on decades of partnership and foster sustainable, inclusive growth.

“This visit elevates the bilateral relationship to a new level,” Darin said, adding, “As Cambodia and Singapore celebrate six decades of diplomatic ties, it is the perfect moment to chart fresh paths toward deeper economic collaboration and investment in people.”

Following high-level discussions between Prime Minister Hun Manet and Prime Minister Wong, both sides confirmed their commitment to accelerating cooperation in trade, investment, financial technology, green energy, and digital infrastructure.

“Cambodia’s youthful workforce and strategic location in the heart of ASEAN, combined with its free-market economy and ongoing reforms, create an attractive environment for Singaporean businesses,” Darin noted. “We have one of the fastest-growing industrial bases in the region, and I see great potential for collaboration in sectors like fintech, logistics, manufacturing, and renewable energy.”

Singapore remains one of Cambodia’s largest foreign investors, and trade between the two nations continues to grow steadily.

“This visit should encourage more Singaporean companies to explore Cambodia’s emerging market,” Darin said. “The focus on financial transparency, cross-border trade facilitation, and digital government collaboration demonstrates growing confidence in Cambodia’s private sector. Initiatives such as the Financial Transparency Corridor and improved digital public services through cooperation with Singapore will help make Cambodia a more attractive, connected, and business-friendly destination.”

A significant area of agreement was human capital development. Both leaders stressed that equipping Cambodia’s workforce with relevant skills through Technical and Vocational Education and Training (TVET) is crucial to long-term economic stability and competitiveness.

“I expect expanded training exchanges and stronger institutional ties through programs like the Singapore Cooperation Programme in the coming years,” Darin said. “Such cooperation will help transfer knowledge and best practices, better preparing Cambodian youth for future job market demands.”

The visit also laid the groundwork for collaboration in agriculture and food security. Singapore’s expertise in high-tech food safety and supply chains can help Cambodia modernise farming methods and increase productivity.

Both sides further expressed a shared commitment to sustainability and green growth, emphasising joint projects in renewable energy, digital connectivity, and innovation as key areas of focus moving forward.

Darin described Prime Minister Wong’s visit as a clear reaffirmation of the strong friendship and mutual respect between Cambodia and Singapore.

khmertimeskh