Singapore, Australia ink landmark deal to deepen economic, defense ties

It will also promote innovation, facilitate tourism.

Singapore and Australia have inked a landmark agreement to deepen their ties in a number of areas, including economic integration, defence cooperation, innovation and entrepreneurship, and people-to-people ties, the Ministry of Foreign Affairs (MFA) said in a release.

A key aspect of the agreement is the third review of the Singapore-Australia Free Trade Agreement (SAFTA). Under the updated SAFTA, both countries will adopt a package of measures to increase trade and investment flows. It will reinforce Singapore’s position as a trading and investment partner for Australia and nhance Singapore’s position as a hub for Australian businesses and service providers to access expanding opportunities in Asia.

The deal will also promote innovation and entrepreneurship. It will bring together national research and scientific bodies, in particular the National Research Foundation, the Agency for Science, Technology and Research (A*STAR) and Australia’s Commonwealth Scientific and Industrial Research Organisation (CSIRO), and support their collaboration through matching funding provided by both countries. About S$50 million in funding will be provided over five years.

The deal will also expand Singapore’s long-standing defence cooperation with Australia. Both countries have agreed to a signature joint bilateral military exercise, and jointly develop more military training areas and facilities in Australia. This will provide Singapore with greater access to military training areas in Australia over a period of 25 years.

"The CSP will draw our two countries closer, economically, politically and at the people-to-people level. Our economies will become more integrated and intertwined. Defence cooperation will be stepped up. The Singapore Armed Forces will be able to do more military training in Australia," Prime Minister Lee Hsien Loong said,