Shortly after announcing its wish for a more robust review of the JSEPA due to a growing presence of Japanese companies in Singapore, the Singapore government, through SPRING Singapore has signed an MOU with two major Japanese banks i.e. Japan Bank for International Cooperation (JBIC) and Mizuho Corporate Bank (MCB). MCB said that approximately 200 of its new Japanese clients had plans to expand and opt for Singapore company formation.
According to the official statement by SPRING Singapore, the MOU seeks to promote business collaboration between Japanese and Singaporean SMEs in ASEAN. Collaboration includes the co-development of innovative technologies and products, setting up joint ventures to launch new businesses into other ASEAN markets, or tapping into one another’s knowledge and networks to facilitate expansion.
The MOU also seeks to provide a platform for exchanging information on financial tools such as fund investments and loans.
On its part, Singapore has agreed to promote Japan’s SMEs in the region by working together with Singaporean SMEs. Industries that show high potential for collaboration include medical technology, engineering, food and fashion.
In 2011, there were 722 Japanese companies in Singapore. In 2012, Japan emerged as Singapore’s eighth largest trade partner, with total trade amounting to S$52.1 billion.
In 2011, there were 722 Japanese companies in Singapore. In 2012, Japan emerged as Singapore’s eighth largest trade partner, with total trade amounting to S$52.1 billion.
Both countries are keen on tapping on each of their respective advantages – for example, Japan’s technological innovation capabilities with Singapore’s infrastructure, workforce and intellectual property regulations.
Rikvin recognizes that Japan has improved in its GDP growth and foreign exchange rates following Prime Minister Shinzo Abe’s expansionary economic policies. The IMD 2013 World Competitiveness Yearbook has seen Japan climb 3 notches to position 24, due to great strides in efficiency and productivity.
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