Singapore and EU deepen collaboration in digital and green economy

[SINGAPORE] Singapore is poised to deepen its collaboration with the European Union in key sectors such as digital trade and the green economy, Minister for Manpower Tan See Leng said at the European Chamber of Commerce Singapore’s (EuroCham) annual general meeting.

Speaking at the event on April 22, Dr Tan—who also serves as Second Minister for Trade and Industry—highlighted the shared ambitions of Singapore and the EU in advancing digital infrastructure and achieving carbon neutrality by 2050. He noted that both economies possess robust digital ecosystems and are aligned in their sustainability goals.

The EU’s Green Deal and Singapore’s Green Plan 2030 reflect parallel commitments to decarbonization, renewable energy, and sustainable urban development. Dr Tan suggested these shared frameworks could lay the groundwork for joint ventures in clean technology and infrastructure across Southeast Asia and Europe.

A significant milestone in the bilateral relationship is the EU-Singapore Digital Trade Agreement, signed in 2024. As the first of its kind between the EU and an ASEAN country, the agreement enhances certainty and transparency for businesses engaging in cross-border digital trade. Dr Tan emphasized that it also supports secure data flows and interoperable electronic payment systems, easing digital trade for SMEs.

Digital trade between Singapore and the EU has surged more than 30% annually since 2022, underlining the growing economic interdependence. Dr Tan also pointed to emerging areas of cooperation in green finance, technological standards, and innovation.

The EuroCham meeting, held at Jen Singapore Tanglin, gathered over 100 members, including EU Ambassador to Singapore Ms Iwona Piorko and EuroCham President Mr Jens Rubbert.

In a fireside chat with Mr Rubbert, Dr Tan addressed questions about Singapore’s appeal to European investors, attributing it to political stability and a reputation as a reliable, neutral hub in a volatile global landscape. Singapore's consistent legal framework and strong dispute resolution mechanisms were highlighted as key strengths for companies navigating complex global supply chains.

Amid rising trade tensions worldwide, Dr Tan reaffirmed Singapore’s unwavering support for open trade and deeper engagement with European businesses, which contribute significantly to local employment.

More than 14,000 European firms operate in Singapore, many using it as a regional base for logistics and distribution. Sectors such as advanced manufacturing, fintech, and biomedical sciences have drawn increased European investment, with companies like Siemens and BASF expanding their R&D presence locally.

Foreign enterprises, which make up 20% of businesses in Singapore, account for nearly a third of all jobs, many of them high-paying. These companies also bolster the local SME ecosystem, Dr Tan noted.

He pointed out that six in 10 residents earning above $12,500 monthly are employed by foreign firms, underlining their substantial role in Singapore’s economy. To support workforce development, the government continues to invest in talent through initiatives such as Workforce Singapore’s Career Conversion Programmes and the Overseas Markets Immersion Programme, developed in partnership with EuroCham.

SkillsFuture, along with collaborations with European institutions, ensures continued upskilling of the local workforce. Notably, joint programmes with German and French technical academies have trained over 5,000 Singaporeans in areas like precision engineering and digital manufacturing since 2023.

Singapore also attracts international talent through schemes like the Overseas Networks and Expertise Pass, with around 3,000 passes issued in 2024 alone. Dr Tan concluded by reaffirming Singapore’s role as a dependable partner with transparent, consistent policies. “What you see is what you get,” he said. “Your intellectual property is protected in a safe, stable, and secure environment. And we will always be open to global talent.”