Singapore and Italy boost business ties by opening a new trade office

On May 9, Italy opened an office of its export credit agency Sace in Singapore to expand business ties and provide trade and investment opportunities in Southeast Asia.

The goal of the new office is to be able to manage more than $8 billion of new projects in Southeast Asia and open up more ways for sellers of Italian goods and technologies, as well as firms in the region. Additionally, Sace provides insurance and other financial solutions to Italian exporters, with a particular focus on small and medium-sized enterprises (SMEs).

“Singapore, with its promising economy, offers enormous opportunities for Italian businesses targeting markets such as Indonesia, Malaysia, Vietnam and the Philippines,” said Sace’s director of international business during the office opening ceremony at the Italian Embassy in Singapore. Future projects that are already in development span a variety of sectors including green technology, sustainable infrastructure, food and beverage, agribusiness and chemicals.

Italy, a European country with a large US$2 trillion (S$2.7 trillion) economy known for its culinary delights, luxury fashion brands and high-performance cars, also boasts significant industrial enterprises. Companies such as Enel, ENI and UniCredit Bank have established themselves in Singapore, while French-Italian semiconductor firm STMicroelectronics maintains a significant presence in the city-state.

However, Italy does not boast extensive bilateral trade and large investments in Singapore and other Southeast Asian countries. It is significantly less than in other G7 countries such as the US, UK, France and Germany. In 2022, total trade between ASEAN and Italy was $28.32 billion, significantly less than trade with the UK ($57 billion). However, Italy ranks as Singapore’s sixth largest trading partner in the EU.

Success in rapidly improving bilateral trade with Singapore can come from the current EU-Singapore Free Trade Agreement (FTA) and the EU-Singapore Investment Protection Agreement, which is in the process of ratification. 

The Italian Ambassador to Singapore highlighted Italy’s active role in promoting the FTA, noting its potential to expand trade and investment between countries. He expressed optimism that the agreements would encourage more Italian companies to expand their operations in Singapore and throughout the region. Although many large Italian corporations already use Singapore as their regional base, Italian SMEs face challenges due to limited access to information and resources.

He also stressed the need to strengthen diplomatic ties, noting that Singapore does not have an embassy in Italy, making business cooperation difficult. He suggested that opening a Singapore embassy in Rome and offices for agencies such as the Economic Development Board could help improve bilateral relations.

Through initiatives such as the Push Strategy Programme that was launched in 2017, Sace offers medium- and long-term financial solutions backed by guarantees for international corporations supplying “Made in Italy” products. A notable success under this program is the collaboration with Singapore’s Olam Group, which resulted in US$500 million in Sace funding for Olam Food Ingredients in March 2024.

This collaboration between the two nations marks a significant step towards expanding trade and investment, positioning Singapore as a major gateway for Italian businesses seeking to enter Southeast Asian markets.