This is what the Trans-Pacific Partnership means for Singapore SMEs

TPP countries account for 30% of total goods trade.

Small and medium enterprises (SMEs) in Singapore will benefit from improved trade linkages between member countries, according to the Ministry of Trade and Industry (MTI).

The MTI noted that the TPP countries--Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, the United States and Vietnam--account for 30% of Singapore’s total goods trade, worth $300 billion.

These countries also account for 30% of foreign direct investment in Singapore, amounting to $240 billion.

“[TPP] will transform the region by reducing tariff and non-tariff barriers substantially for both goods and services, encouraging greater investment, and addressing new trade challenges in the modern economy. The TPP has also been deliberately designed to be more inclusive, so that small and medium-sized enterprises can take full advantage of its benefits,” said Minister for Trade and Industry (Trade) Lim Hng Kiang.

In a statement, the Singapore Business Federation (SBF) hailed the agreement, saying that it will provide a confidence boost to companies and present more opportunities for doing business in Asia Pacific.

SBF highlighted that the agreement has special provisions for SMEs, which aim to help them integrate into the global supply chain and facilitate their business expansion. 

Addressing these issues will allow SMEs to invest, expand and also create jobs, SBF said.

“The TPP will serve as the catalyst for advancement and provide an important framework and opportunities to enable businesses to achieve new growth. It is excellent that the TPP is not an exclusive agreement. It has provisions to allow other trading nations in Asia to join later,” said Ho Meng Kit, CEO of SBF.