Singapore – The gateway to ASEAN
In 2016, both Singapore and the United States celebrated 50 years of official diplomatic ties between one another and also reaffirmed and reestablished this relationship with the renewal of the US – Singapore trade agreement.
A trade agreement designed to bilaterally boost the economies of both nations, and with an estimated value of some $75 billion dollars in 2016, literally hundreds of thousands of companies, workers, and consumers in the United States as well as Singapore have been able to take advantage of this agreement and will be to continue to take advantage of this agreement moving forward.
For more than 50 years now, the United States and Singapore have been interested in working with one another to do their level best to support each other, to improve one another’s economy, and to make sure that commerce flows between both nations as effortlessly and in as rewarding a fashion as humanly possible.
Both nations have long understood the important role that the other shares in stabilizing the global economy. This is especially true now more than ever, what with so many nations still struggling to recover from the economic crunch that occurred in the middle 2000s. Economic trade is the backbone of stability, and nobody does it better than Singapore and the US and they have been doing it for five decades now.
A gateway to the ASEAN Economic Community
The partnership between the US and Singapore also opens up new doors and new opportunities for both countries to make the most of the recently established ASEAN Economic Community (AEC). This organization has been established to facilitate a single market and production base that really frees the flow of goods, services, and finances as well as skilled labor and talent all over Southeast Asia – supporting more than 625 million inhabitants across 10 different nations.
This new economic community has already helped to dramatically stabilize the Southeast Asian region, and with Singapore leading the charge it’s assumed that this group is going to be very favorable the United States because of the unique relationship that Singapore shares with the US.
Today, more than 3500 US companies are operating in Singapore and as of 2016 close to 500 more are committing to moving to Singapore (or at least moving some of their operations to Singapore) before the end of 2020.
These kinds of moves are no doubt being implemented to take advantage of everything that the newly formed AEC has to offer, but also to really help affirm and reiterate the commitment that the United States has to Singapore, its economy, and the unique 50 year relationship that these two countries share together.
Singapore, in turn, allows the US to leverage zero trade tariffs, fewer restrictions on foreign direct investment, and a very business friendly government by moving significant operations to this country in Southeast Asia. Singapore is very much becoming the hub of business in this region, and it isn’t going to be long now until they are major players in the global economy for decades and decades to come.
About Morris Edwards
Morris Edwards is a content writer at companyregistrationinsingapore.com.sg, he writes different topics like Singapore Seeks Stronger Economic Ties with US and The Most Innovative Economy In Asia and all topics related to Business, Economy and Company Registration in Singapore.