Singapore-Kazakhstan investment agreement to enhance business sector from March 1

A new trade and investment agreement between Singapore and Kazakhstan, effective March 1st, 2025, is expected to create more business opportunities for companies in both countries. The Kazakhstan-Singapore Services and Investment (S&I) Agreement will improve market access, streamline regulations, and strengthen economic ties between the two nations. It is also expected to provide Singapore companies new ways to expand while offering investment protection and regulatory clarity.

The agreement, signed in May 2023 by Singapore’s Second Minister for Trade and Industry Tan See Leng and Kazakhstan’s then-Deputy Prime Minister Serik Zhumangarin, grants Singaporean businesses improved access to 15 key service sectors in Kazakhstan. These include specialized medical services, management consulting, entertainment, research and development and translation services. Additionally, professionals in 17 sectors including legal, architectural, engineering and IT services, will benefit from a more efficient and streamlined visa application process, allowing them to operate in Kazakhstan with fewer bureaucratic obstacles.

Beyond market access, the agreement enhances investment protection for Singaporean firms through legally binding provisions that ensure fair and equitable treatment, protection from illegal expropriation and non-discriminatory policies. This will allow businesses greater certainty and security when entering or expanding within Kazakhstan.

This agreement becomes even more valuable because Kazakhstan is a vital trade center in Central Asia. Singapore-based firms looking to establish regional operations can benefit from Kazakhstan’s connectivity through the revitalized Trans-Caspian International Trade Route, also known as the Middle Corridor. This corridor provides direct access to European and Middle Eastern markets, offering an alternative to traditional trade routes and reducing logistical costs.

Another attractive attribute of Kazakhstan as an investment destination is its rich reserves of critical minerals, energy commodities and agricultural products. Local companies in Singapore involved in energy, agritech and logistics will benefit from improved supply chain resilience and increased trade opportunities.

Bilateral trade between Singapore and Kazakhstan has surged in recent years, reaching S$527.2 million in 2024 – an increase of nearly 200% over the past five years. Service trade has also grown significantly, with a year-on-year increase of over 60% to S$670.7 million in 2022. Investments between the two countries remain strong, with Kazakhstan investing S$1.3 billion in Singapore and Singaporean businesses investing S$960 million in Kazakhstan.

Singapore-based Food Empire Holdings Ltd, which has been operating in Kazakhstan since the early 1990s, is one of the famous examples set to benefit from the agreement. The company is investing US$30 million in a new Khorgos Special Economic Zone production facility, capitalizing on the agreement’s investment protections, tax incentives and improved trade infrastructure.

Minister-in-Charge of Trade Relations Grace Fu emphasized that the agreement “deepens the two countries’ economic ties and unlocks new business opportunities.” With Kazakhstan’s economy projected to grow by 4.7% in 2025, the agreement is crucial for businesses looking to enter the market or expand their existing presence.