Expanding Into Singapore, ASEAN and Beyond

Germany and Singapore have long held a mutually beneficial and productive trade relationship. German companies export a diverse crop of material goods to Singapore, including soap, office furniture, electronic components and PVC components¹.

Due to its state-of-the-art infrastructure and facilities, Singapore represents a solid launching point for small and medium-sized enterprises seeking to enter the ASEAN market. And now, thanks to the EU’s new free-trade agreement with Singapore, it has become easier and more cost-effective for German companies to do business in the country. Not only does the agreement make it easier for German and EU firms to increase exports to Singapore, but it opens Singapore’s markets for government contracts².

The new EU-Singapore trade agreement also:

• Removes all remaining tariffs on EU products entering Singapore⁴
• Opens opportunities for EU service providers, including those in computing and telecommunications⁴
• Removes key regulatory obstacles, especially for car makers⁴

A Gateway to a Region

Since beginning trade talks with Singapore in March 2010, the EU has also begun negotiating with other ASEAN nations, including Malaysia, Vietnam and Thailand. This bodes well for German companies looking to Singapore as a base of operations to expand into the larger ASEAN market.

Strides toward individual trade deals—as well as regional integration—have been made, but the ASEAN organization consists of 10 disparate nations, all in various states of economic maturity. The result is a daunting patchwork of national regulations and currency controls, as well as foreign exchange risks. The transaction costs and regulatory requirements of an integrated banking structure can prove intimidating for companies looking to do business across the region.

J.P. Morgan in Asia

J.P. Morgan has operated in Asia Pacific since 1872, and today is present across 17 markets in the region. Clients rely on our global strength, local expertise and leadership across our lines of business. We serve clients from middle market companies to large multinationals, scaling our solutions to support every stage of business growth. Established in 1964, the firm’s Singapore office is a full-service, fully integrated provider of Corporate and Investment Banking, Commercial Banking, Asset Management and Private Banking.

Whether you’re looking to establish local production facilities or add a vendor to your global supply chain, J.P. Morgan can help you explore potential opportunities in Singapore.

To learn more about J.P. Morgan’s international banking services, contact a banker today: