IE Singapore ties-up with the CAF Development Bank of Latin America

Singapore-Latin America economic ties continue to expand as bilateral trade increased by 38% in the first 8 months this year.

Singapore-based companies are stepping up engagement with a thriving Latin America, even as uncertainties weigh down the global economy. International Enterprise (IE) Singapore signed a Memorandum of Understanding (MOU) with CAF – Development Bank of Latin America at the eighth IE Singapore’s Latin Asia Business Forum (LAB) 2011, further facilitating collaborations between Singapore and Latin America. In addition, Argentina and Ecuador are establishing their presence in Singapore.

Growing Singapore-Latin America economic engagement
In the first eight months of 2011, Singapore’s bilateral trade with Latin America increased 38% over the same period in 2010 to reach S$25.9 billion. This followed a good year in 2010 where Singapore’s trade with Latin America rebounded strongly to S$27.7 billion, a 15.1% growth over 2009’s performance. These flows contributed to a compound annual growth rate (CAGR) of 18.3% between 2005 and 2010.

Singapore’s interests in the region span a range of sectors including oil & gas, infrastructure development, transportation, environmental engineering, e-government services and agri-commodities.

Recognising Singapore’s role as a business hub in Asia, Latin American governments have been establishing presence in Singapore to facilitate exchanges between both sides. Ecuador set up an Embassy in Singapore to drive its economic agenda in Asia, IE Media Release 5 October 11 while Argentina’s federal trade and investment promotion agency, CFI (Consejo Federal de Inversiones) appointed an advisor in Singapore to represent their interests in Singapore and Southeast Asia.

Said Mr Teo Eng Cheong, Chief Executive Officer of IE Singapore, “Despite the unfavourable global economic conditions, Latin America’s GDP grew 30% over the last three years, and is expected to grow a further 4.5% this year. Governments in the region are keen to further develop their economies, boost exports and attract more foreign investment. Singapore-based companies can contribute to and ride on Latin America’s growth. We encourage more companies to consider Latin America as part of their internationalisation strategy.”

IE Singapore deepens institutional relationship with Latin America
IE Singapore signed a MOU with CAF on Wednesday, reflecting the burgeoning institutional linkages between Singapore and Latin America. CAF is a multilateral development bank comprising 18 member countries in Latin America, the Caribbean and Europe. It represents one of the largest sources of public financing in Latin America.

The MOU provides a platform for Singapore-based companies to share their experiences in urban solutions, energy, trade facilitation and e-government services with CAF’s Latin American member countries. The MOU was signed by Mr Teo Eng Cheong, Chief Executive Officer of IE Singapore and Mr Enrique Garcia, President & Chief Executive Officer of CAF, according to an IE Singapore report.

Underlining the importance of the MOU, Mr Garcia, CAF’s President & CEO said, “Today is a very significant occasion for CAF. We are signing a strategic alliance with one of the leading institutions in Singapore and Asia that has a global perspective and intensive network, and shares our aim of building a more prosperous future for our people, entrepreneurs and governments. It is, in other words, a pathway to accomplish success.”

Latin Asia Business Forum 2011
IE Singapore’s LAB is an annual Forum that brings together government officials and business leaders from Latin America and Asia, to exchange views on major regional trends and promote economic linkages. Guest of Honour Mr Lim Hng Kiang, Minister for Trade and Industry, delivered an Opening Speech sharing insights on the Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Spain, Jamaica, Mexico, Panama, Paraguay, Peru, Portugal, Dominican Republic, Trinidad & Tobago, Uruguay, Venezuela strengthening relationship between Asia and Latin America, and Singapore as an ideal location for Latin American companies to access Asia’s opportunities.

LAB 2011 gathered over 300 delegates from more than ten different Latin American countries. The Forum has evolved into a flagship event with key stakeholders and opinion leaders from both regions. This year, ministers from Chile, Cuba and Panama; Mr Enrique Garcia, President & Chief Executive Officer of CAF; Mr Eric Farnsworth, Vice President of the Council of Americas, business leaders from multinationals - Mr Ricardo Arce, CEO of Perforadora Mexico; Mr Steven Bandel, Co-Chairman & President of Cisneros Group of Companies; Mr Sunny Verghese, Group Managing Director and CEO of Olam; and Mr Michael Reading, Executive Director of BW Power attended the Forum. 

During the week of LAB 2011, IE Singapore, together with Latin American trade agencies and partners, organised a series of market-related seminars and business matching sessions. Through these, Singapore-based companies will learn more about each market’s business environment and will meet potential business partners, government representatives and contacts. Over 100 Singapore-based companies are expected to attend the seminars on Argentina, Brazil, Colombia and Cuba.