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Relations between Singapore and New Zealand are close and friendly, with a focus on defence and economic ties. The first major agreement between New Zealand and Singapore was the Agreement on a Closer Economic Partnership (ANZSCEP). This entered into force on 1 January 2001.
This agreement was recently built on by the announcement of the completion of the Trans-Pacific Strategic Economic Partnership (TPSEP/P4). This is a four-way agreement liberalising trade between Brunei, Chile, New Zealand and Singapore. In parallel, the four countries have also negotiated a binding Environment Cooperation Agreement and binding Labour Cooperation Memorandum of Understanding.
Then known as the Pacific Three Closer Economic Partnership (P3-CEP), the TPSEP negotiations were first launched by the Chile President and Prime Ministers of Singapore and New Zealand at the APEC Leaders Summit in 2002. Brunei then joined the agreement at a later stage as an observer then a participant. The negotiations were concluded in June 2005.
A Work Exchange Programme for tertiary students and recent graduates exists between Singapore and New Zealand. The programme, which started on 1 July 1999 in Singapore, and on 1 November 1999 in New Zealand, enables New Zealand and Singaporean participants to work in each other’s country for up to six months.
New Zealand has concluded Defence and Double Taxation agreements and a liberal ‘Open Skies’ Air Services Agreement with Singapore. An Audio-visual Co-production Agreement was signed in July 2004 and it is expected that this will enhance co-operation between the film industries of both countries.
In summary Singapore and New Zealand have the following formal linkages:
Total trade between Singapore and New Zealand increased for the fifth consecutive year in 2005. Total bilateral trade in 2005 stood at NZ$1.66 billion. The balance of trade stood strongly in Singapore’s favour with imports from Singapore to New Zealand amounting to NZ$1.232 billion. New Zealand’s exports to Singapore increased by 18 per cent to NZ$428.4 million.
In December 2005, the top five New Zealand exports to Singapore and the corresponding change from the previous year (given in parenthesis) are Milk powder (41%), Butter (55%), Tanned or dressed furskins (115%), Crustaceans (-2%) and Electrical machines and apparatus (9%).
In the same period, the top five imports into New Zealand from Singapore and the corresponding change over the previous year (given in parenthesis) are Petroleum oils not crude (33%), Computers (39%), Transmission apparatus (81%), Machinery parts (-7%), and Oils (51%).
Defence links, which date back to 1955, form a prominent part of the New Zealand-Singapore relationship. Arrangements for training assistance and other cooperation were formalised in a bilateral agreement concluded between the two Governments in 1971 in parallel with the establishment of the Five Power Defence Arrangements (FPDA)[1]. New Zealand undertakes an extensive range of naval, air and army exercises with Singapore, conducted both bilaterally and multilaterally, to the point where, in overall activity terms, Singapore is New Zealand’s second largest defence partner in the Asia-Pacific after Australia.
The maturity of the Singapore-New Zealand defence relationship and a history of defence cooperation are now yielding significant benefits for both countries. The most obvious example of this was the smooth integration of Singaporean troops into the New Zealand Area of Operations in Timor-Leste. The attachment of a Singaporean platoon to the New Zealand battalion in Timor-Leste in 2001 was Singapore’s first experience in contributing ground troops to a peacekeeping operation. When the New Zealand battalion withdrew from Timor-Leste in November 2002, Singapore increased its deployment to company size and took over helicopter operations in Sector-West (Suai) from the New Zealand Air Force.
[1] The Five Power Defence Arrangements (FPDA) is a joint defence arrangement between Malaysia, Singapore, Australia, New Zealand and the United Kingdom.
There were about 300 Singaporean students studying in New Zealand at secondary and tertiary levels in the 2003/2004 financial year, earning an estimated NZ$9 million, according to NZ Trade & Enterprise.
A small number of New Zealand students are being attracted to tertiary study in Singapore universities, encouraged partly by expanding exchange agreements and the availability of scholarships for post-graduate international students in Singapore. The Asia 2000 Foundation, for example, oversees a programme of scholarships for New Zealand undergraduates to study at the National University of Singapore (NUS). So far 12 New Zealand students have received an Asia 2000 Singapore scholarship and are studying, or have recently completed, degrees at NUS.
A number of New Zealand universities have shown considerable interest in pursuing closer linkages with Singaporean educational institutions. Lincoln and Massey universities, for example, provide a total of four offshore programmes in Singapore. In August 2004, Singapore’s Sports School signed a Memorandum of Understanding with Auckland University of Technology (AUT). Under the MOU, students in the Sports School could earn an AUT diploma and have the option of furthering their studies in Auckland. The AUT and the Sports School will also have regular exchanges of sports science staff, while AUT students will get work attachment opportunities at the Sports School.
There is a small New Zealand alumni association in Singapore.
Singapore is an important source of investment for New Zealand, with stock Foreign Direct Investment from Singapore as at March 2005, totalling NZ$1.259 billion. New Zealand’s stock direct investment in Singapore as at March 2004 was NZ$198 million.[2]
The CEP has had a significant effect in raising the level of interest in bilateral investment opportunities. The Singapore Economic Development Board (EDB), the investment arm of the Singapore government, has made a number of visits to New Zealand since early 2001 to investigate opportunities for investing in innovative New Zealand firms across a range of sectors.
In 2003 a New Zealand beachhead at the PhaseZ.Ro (pronounced “Phasezero”) technology park in Singapore was opened by Trade Minister Jim Sutton to encourage New Zealand businesses to use the location as a launch pad into the rest of Asia. This has been relocated to serviced office facilities in Suntec City and Battery Road. Investment New Zealand also opened a regional investment office in Singapore in 2003.
[2] The 2005 figure is classified ‘confidential’ by Statistics New Zealand.
According to New Zealand Immigration Services statistics, in the year ended 2005, 29,735 Singaporeans visited New Zealand.
Official Name - The Republic of Singapore - Land Area - 685.4 sq km Population - 4.2 million - Capital City - Singapore - Religion - Buddhist, Taoist, Muslim, Christian, Hindu - Language - Malay, Chinese (Mandarin) Tamil and English are the official languages. Malay is the national language and English the administrative language.
Political system - Republic with a parliamentary system of government - National government - People’s Action Party (holds 82 seats out of 84 possible seats in parliament - May 2006) - National legislature - Comprises the President and a unicameral Parliament - Last election - 6 May 2006 - Next election due - 2011 - Head of State - President S R Nathan - Head of Government - Prime Minister Lee Hsien Loong (also Finance Minister)
GDP - S$193,453m ~ US$122.4billion [2](2005) - GDP Breakdown - Manufacturing; 26.1%, Business Services; 12.6%, Transport and Communications; 11.8%, Financial Services; 10.7% - Real GDP growth - 6.4% (actual 2005) - Exports(2005) - S$382,532m ~ US$242,109m - Imports(2005) - S$333,190m ~ US$210,880m - Main exports - Machinery and Equipment S$224,980m , Petroleum Products S$45,881m, Chemicals S$43,611m , Manufactured Goods S$17,498m, Food S$3,865m - Balance of Payments(2005) - Current Account Balance S$55,373m, Capital & Financial Account Balance -S$33,718m, Net Errors and Omissions -S$1,258m, Overall Balance S$20,397m - Inflation 0.5 % (2005) - GDP Forecast(2006) - 5-7 per cent [3]
[1]Exchange rate used for all conversions: US$1=S$1.70
[2]2003 figure is a revised estimate released by Singapore's Ministry of Trade and Industry as at February 2004.
[3]This is a revised figure from the Singapore Government’s earlier forecast of 4-6 per cent.
New Zealand Trade - NZ Exports - NZ$428,411,000 (to December 2005)[4] - Main Exports(2005) - Milk powder NZ$86m, Butter NZ$23.4m, Tanned or dressed furskins NZ$20.3m, Crustaceans NZ$18.25m, Electrical machines NZ$14.8m - NZ Imports (2005) - NZ$1,231,525,000 - Main Imports(2005) - Petroleum oils NZ$638m, Computers NZ$86m, Transmission apparatus NZ$56m, Machinery; parts NZ$46m , Oils NZ$29.9m
[4] New Zealand external trade statistics are taken from data supplied by Statistics New Zealand. Due to differing collection methodologies between the respective statistics agencies in New Zealand and Singapore, Singaporean statistics for the same period differ.
The Safetravel website provides a travel advisory for travellers to Singapore [external link].
