13-10-2023 (SINGAPORE) During an official visit by Thai Prime Minister Srettha Thavisin to Singapore, leaders from both nations engaged in discussions on strengthening bilateral cooperation in the digital economy and renewable energy.
Prime Minister Lee Hsien Loong and Mr. Srettha also emphasized the importance of close collaboration within the Association of Southeast Asian Nations (ASEAN), with a particular focus on a power integration project that serves as a pathfinder toward an ASEAN power grid, as stated by Singapore’s Ministry of Foreign Affairs (MFA).
Mr. Srettha, who assumed office in August, embarked on his first visit to Singapore, as part of a regional tour. During an official luncheon hosted by PM Lee at the Istana, both leaders acknowledged the long-standing friendship between the two nations, symbolized by a bronze elephant statue gifted by Thailand’s King Chulalongkorn, which still stands outside Singapore’s Old Parliament House.
PM Lee highlighted the strong ties between the two countries across various sectors, including the economy, defense, and people-to-people relations.
Economic relations between Singapore and Thailand are substantial, with both countries ranking among each other’s top 10 largest trading partners in 2022. Bilateral trade that year increased by nearly a quarter year-on-year to $42.1 billion. Additionally, Singapore was the second-largest source of foreign direct investment in Thailand during the first half of 2023.
PM Lee mentioned numerous promising areas for further economic cooperation. Notably, he pointed to the digital economy, highlighting the cross-border fast payment system between Singapore’s PayNow and Thailand’s PromptPay, allowing users on both sides to transfer money using their mobile numbers. Launched in April 2021, this payment system linkage is the first of its kind globally.
Singapore also welcomed Thailand’s interest in joining the Digital Economy Partnership Agreement, facilitating Thai businesses’ participation in the digital economy and offering growth opportunities. This agreement, initiated by Singapore, Chile, and New Zealand in 2020, aims to foster trade by addressing digital economy-related issues, including data flows, data protection, and artificial intelligence.
Another promising area of future cooperation is the green economy. Both countries are part of the Laos-Thailand-Malaysia-Singapore Power Integration Project, with Singapore importing renewable energy from Laos through Thailand and Malaysia since June 2022. PM Lee expressed eagerness to enhance energy collaboration with Thailand and explore cross-border renewable energy trade within ASEAN, as well as greater cooperation in carbon trading to promote green growth and contribute to the global climate agenda.
The Thai leader emphasized that bilateral relations should be forward-looking and take full advantage of new economic opportunities in the digital and green economy, emphasizing sustainability. Mr. Srettha also expressed a commitment to working closely to deepen ASEAN economic integration and enhance the effectiveness of ASEAN.
Both Singapore and Thailand are founding members of ASEAN.
During his visit, Mr. Srettha also received a ceremonial welcome at the Istana and met with President Tharman Shanmugaratnam. The discussions centered on opportunities for growth in new areas, particularly in trade related to renewable energy and high-integrity carbon credits, as well as cooperation in the digital economy. They also explored possibilities for financial cooperation and enhanced collaboration in combating cybercrimes.
Mr. Srettha’s visit to Singapore marked the conclusion of his five-day regional tour, which included stops in Hong Kong, Brunei, Malaysia, and Singapore.
