Singapore and Lithuania to strengthen ties in the digital economy, advanced manufacturing and tech

According to the Minister for Manpower and Second Minister for Trade and Industry, Singapore and Lithuania have significant opportunities to enhance their trade and investment relationships, particularly in the digital economy, advanced manufacturing and technology sectors.

During the Lithuania-Singapore Business Forum on May 31, the Minister emphasized the shared values between the two nations, including resilience, creativity, and a commitment to open, rules-based trade. The EU-Singapore Free Trade Agreement, which has been in effect since 2019, bolsters these shared values.

Since the implementation of this agreement, the bilateral services trade between Singapore and Lithuania has surged by nearly two-thirds, reaching almost US$150 million (S$202 million) in 2022. This growth was highlighted as indicative of the substantial commercial opportunities in both markets.

It was noted that Lithuanian businesses could leverage Singapore’s strong trade and transport connectivity to access broader economic opportunities across Southeast Asia and the Asia-Pacific region. On the other hand, Singaporean businesses are encouraged to invest in Lithuania, which has an $80 billion economy and a population of around 2.8 million. Lithuania’s robust IT and biotechnology sectors, along with its dynamic start-up ecosystem in Vilnius, make it an attractive destination for investment.

According to the Minister, Lithuania’s commitment to education and research has cultivated a highly skilled workforce and attracted investments from global multinational corporations such as Thermo Fisher, Continental and Western Union.

“Singapore and Lithuania can act as gateways into our respective regions, facilitating stronger economic linkages between Southeast Asia and the Baltics,” he stated.

He also expressed optimism about the ongoing EU-Singapore Digital Trade Agreement, which is in advanced stages of negotiation. This agreement aims to establish rules for key aspects of the digital economy, including cross-border data flows, electronic invoicing and e-authentication. A unified regulatory framework is expected to spur innovation, enhance efficiency and boost competitiveness in digital economies, thereby creating more opportunities for all stakeholders.

He pointed out Singaporean life sciences tools manufacturer Esco Lifesciences’ recent venture into Lithuania and encouraged more Singaporean companies to explore similar opportunities.

Lithuanian Prime Minister Ingrida Šimonytė stated that her government prioritizes investment in research, development and innovation, aiming to build a vibrant start-up ecosystem. She noted that Lithuania hosts nearly 1,000 start-ups, mainly in technology, software, fintech and life sciences, which are also areas of significant interest for Singaporean businesses.

Ms. Šimonytė encouraged Singaporean enterprises to explore opportunities in Lithuania and use the country as a gateway to the EU market of 500 million consumers.