PM's Singapore Visit Secures Key Agreements in Semiconductors, Digital Cooperation

New Delhi, Sep 6 (KNN) India and Singapore have elevated their bilateral relationship to a ‘comprehensive strategic partnership,’ marked by the signing of several key agreements, including a significant pact in the semiconductor sector.

The announcement came during Indian Prime Minister Narendra Modi's two-day visit to Singapore, ahead of the 60th anniversary of diplomatic relations between the two nations next year.

During the visit, Prime Minister Modi and his Singaporean counterpart, Lawrence Wong, oversaw the exchange of memoranda of understanding (MoUs) in various fields, including semiconductors, digital cooperation, education, skill development, health, and medicine.

The tech partnership, with a focus on semiconductors, has been added as a new pillar for bilateral cooperation.

The two leaders visited AEM Holdings Ltd's semiconductor facility and were briefed by the Singapore Semiconductor Industry Association.

Singapore, known for its production of low-end chips crucial for electric vehicles and smartphones, sees its semiconductor industry contributing approximately 7-8 per cent to its GDP and about 10 per cent to global semiconductor output.

India, on the other hand, aims to establish itself as a global node for semiconductor manufacturing, leveraging its strong domestic demand in electronics, electric vehicles, and manufacturing sectors.

The partnership is expected to benefit both nations, with Singapore's established ecosystem players keen to enter emerging markets like India.

In addition to the semiconductor pact, the two countries signed an agreement on digital cooperation, which includes sharing principles and mechanisms for data protection governance frameworks and implementation rules.

The agreement also focuses on enhancing cooperation between the cyber security agencies of both nations.

The leaders outlined six pillars of cooperation: Sustainability, Digitalisation, Skill Development, Healthcare & Medicine, Advanced Manufacturing, and Connectivity.

They emphasised the potential for increased cooperation in areas such as Green Hydrogen and Green Ammonia, and agreed to explore collaboration in critical and emerging technologies.

Both prime ministers called for an early conclusion to the ongoing third review of the Comprehensive Economic Cooperation Agreement (CECA), originally signed in 2005.

Singapore currently stands as India's sixth-largest trading partner, with bilateral trade valued at USD 35.3 billion.

During his visit, Prime Minister Modi also met with top business leaders from Singapore, including CEOs from prominent companies such as Blackstone Singapore, Temasek Holdings, and Singapore Airways.

This visit and the resulting agreements underscore the strengthening ties between India and Singapore, particularly in high-tech sectors and strategic cooperation.

(KNN Bureau)