Kazakhstan and Singapore strengthen ties to boost economic cooperation

On May 23, Kazakhstan’s President Kassym-Jomart Tokayev made his first official visit to Singapore as head of state, marking the first presidential-level visit between the two nations in two decades. This visit highlighted the growing alignment of interests between these two countries, aiming to foster a more balanced and cooperative global environment.

Strengthening Economic Cooperation

President Tokayev and Singapore’s Prime Minister Lawrence Wong discussed enhancing economic cooperation. The meeting addressed the mutual benefits that the upcoming expansion of cooperation will bring and emphasized the strategic importance of both countries. As Kazakhstan diversifies and reforms its economy, new trade opportunities are emerging, particularly through the Trans-Caspian International Transport Route connecting China to Western Asia via the Caspian Sea.

Singaporean President Tharman Shanmugaratnam welcomed plans by Kazakhstan’s national carrier, Air Astana, to launch direct flights to Singapore. This initiative is expected to facilitate business and travel exchanges, allowing more Singaporeans and their businesses to explore opportunities in Kazakhstan and vice versa.

Signed Agreements

Both countries signed memorandums of understanding (MOUs) covering six key areas: economic integration, security, enterprise standards, intellectual property (IP) rights protection, higher education and legal dispute resolution. The aim of these agreements is to deepen and diversify economic cooperation, fostering closer relations in trade, technology, urban development, tourism and people-to-people exchanges.

According to The Ministry of Trade and Industry (MTI) of Singapore, this cooperation complements existing trade frameworks like the Bilateral Investment Treaty and the Services and Investment Agreement, which are set to enhance market access and investment protection once approved.

Rising Investment and Strategic Projects

Kazakhstan and Singapore have seen a significant increase in bilateral trade and investment. In 2023, bilateral trade in goods grew by 46.3% to $603.1 million, while trade in services surged by 172.9% to $67.4 million in 2022. Singapore’s direct investments in Kazakhstan reached $960 million in 2022, with Kazakhstan’s investments in Singapore surpassing $1.3 billion.

Over 140 Singaporean entities and joint ventures operate in Kazakhstan, with total investments exceeding $1.7 billion. Key projects include Singapore’s Surbana Jurong’s involvement in master planning for the Alatau Special Economic Zone and PSA International’s development of a container hub at Kazakhstan’s Aktau port on the Caspian Sea. With the announcement from Singapore Post (SingPost) about a strategic cooperation agreement with Qazpost, Kazakhstan’s national postal operator, it is expected that there will be enhanced logistics and e-commerce growth between the two nations.

The visit of President Tokayev marks a new chapter in the bilateral relations between Kazakhstan and Singapore. With a focus on economic cooperation, security and strategic investments, both nations are ready to benefit from their strengthened partnership, paving the way for increased trade, investment and entrepreneurial opportunities.