S'pore trade with Latin America rising steadily

TOTAL trade between Singapore and Latin America has risen at an average of 30 per cent a year over the last three years, notching US$7.8 billion in 2006.

The growth rate tops the 16.3 per cent average growth rate of Singapore's total trade with the world over the same period.

Speaking at the Latin Asia Business Forum 2007 yesterday, Mr Lim Hng Kiang, Minister for Trade and Industry, said: 'Latin America's steady economic growth in recent years has given rise to an expanding middle class and a consumer base keen on goods and services which Asia can provide. Similarly, Asia's demand for energy and resources continues to grow. Resource-rich Latin American countries are well-placed to fulfil this.'

Sembcorp Marine, CrimsonLogic, Banyan Tree Holdings and Asia BioBusiness were singled out as Singapore companies with substantial success in their Latin American ventures.

Singapore is also seeing a growing Latin American presence. For instance, Brazilian jet manufacturer Embraer picked Singapore as its hub for customer support, simulator training and distribution activities for the Asia-Pacific market.

Total trade between Singapore and Latin America has risen 30 per cent a year on average in the last three years. It was US$7.8 billion in 2006.

The growth rate is nearly double the 16.3 per cent average growth rate of Singapore's total trade with the world over the same period.

While total trade with Latin America only makes up 1.46 per cent of Singapore's total trade, there is much opportunity for growth, said Mr Lim.

According to the United Nations Economic Commission for Latin America and the Caribbean (UNECLAC), Latin America is expected to see a 5 per cent growth in 2007, up from 4.6 per cent the previous year, signifying the region's rising stability, thanks to economic growth, improved macroeconomic performance and the continued strength of commodity prices.

Additionally, overall inflows of Foreign Direct Investment (FDI) for Latin America has been on an upward trend for the third consecutive year, reaching US$72.44 billion in 2006. With Latin American companies investing in other countries, overseas FDI flow was over US$40 billion in 2006.

Chief executive officer of IE Singapore, Mr Chong Lit Cheong, said that IE Singapore is hoping to facilitate a minimum of 20 projects in Latin America, generating overseas sales of around $150 million for Singapore-based companies.

To enable companies to develop a stronger understanding of Latin American markets, IE Singapore will also be extending the International Business Fellowship (IBF) Programme - which currently covers other markets such as Russia, China, India, the Middle East and Vietnam - to include Latin America.

The programme will make it possible for Singapore-based companies to send employees to Latin America for executive management training and market immersion programmes. IE Singapore will also be working together with the three local universities to fund student attachment programmes with institutes of higher learning in Latin America. Some US$6.5 million has been set aside over the next four years for the IBF.