Jul 11, 2012

Singapore - Singapore-India ties should go beyond economics: PM Lee

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NEW DELHI: It is important that Singapore and India go beyond economics and strengthen ties across a broad range of activities, Singapore Prime Minister Lee Hsien Loong said on Wednesday.

Speaking at a business summit organised by the captains of industry in New Delhi, Mr Lee said he welcomed new bilateral initiatives during his visit and talks with Indian leaders.

First, Singaporean and Indian leaders will witness the signing of an MOU on cooperation in vocational education and skills development.

Next, Singapore's Institute of Technical Education (ITE) and the Delhi State Government's Department of Training and Technical Education will establish a World Class Skills Centre in New Delhi.

Mr Lee said the aim was to train up to 15,000 students in electronics, hospitality, finance and other fields.

He also noted that Singapore offers many opportunities for Indian companies, being a global economy with an international workforce.

This makes the country a good base for Indian companies to expand internationally, Mr Lee said.

Singapore is also a safe test-bed for innovative technologies.

Mr Lee added that Singapore is also an attractive partner for Indian companies, and one project in which he sees synergy is the Delhi-Mumbai Industrial Corridor, which aims to create a global manufacturing and trading hub.

Some Singaporean companies are participating: Jurong Consultants completed a feasibility study for the Manesar-Bawal Investment Region in Haryana and Hyflux is co-developing a seawater desalination plant in the Dahej Special Economic Zone in Gujarat.

But there is one issue, Mr Lee said.

Investors rely on good governance, predictable regulatory regimes, and a hassle-free, rules-based business environment before making major long-term commitments.

Mr Lee therefore welcomed the ongoing dialogue between Singapore's economic agencies and India's Department of Industrial Policy and Promotion to discuss common challenges faced by Singapore companies in India.

He looked forward to a mutually beneficial outcome which would improve India's investment climate for all investors, not only Singapore.

In this regard, the Mr Lee noted that a second review of the Comprehensive Economic Cooperation Agreement (CECA) was being conducted to maintain its relevance to businesses.

He said it was taking longer than expected, but hopes to conclude it quickly with improvements for everyone.

One quick win is better air connectivity between India and Singapore.

But while passenger movements between Singapore and India have continued to grow despite the economic downturn, Singapore's connectivity to India is significantly more limited under the air services agreement, compared to China.

Mr Lee feels liberalising aviation will promote exchange of businessmen, talent, ideas and knowledge, which are the preconditions for growth and prosperity.

- CNA/wm


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