PM's Tour of Singapore and Brunei

Strategic Gains and Key Milestones

Dr. MP Roy

India and Singapore have resolved to elevate their bilateral Strategic Partnership to a Comprehensive Strategic Partnership, marking a significant enhancement of the existing Comprehensive Economic Cooperation Agreement (CECA) established in 2005.

Prime Minister Shri Narendra Modi's visit to Singapore on 4th September 2024 underscored India's resolute intention to deepen and expand its strategic engagement with Singapore, a key diplomatically in Southeast Asia. The visit highlighted the multifaceted ties between the two nations, characterised by deep-rooted historical connections, robust economic collaboration and a mutual commitment to regional stability. Singapore's pivotal role in India's Act East policy underscores its strategic importance in advancing New Delhi's broader geopolitical objectives in the region.

Strategic MoUs Strengthening Bilateral Ties

This was Prime Minister Shri Modi’s fifth visit to Singapore. He met with newly appointed President Mr. Tharman Shanmugaratnam and Prime Minister Mr. Lawrence Wong. Discussions focused on deepening bilateral cooperation in a multitude of forward-looking areas, including technology, sustainability, digitalisation and advanced manufacturing. The two sides witnessed the signing of four significant Memoranda of Understanding (MoUs) to elevate the relationship further:

MoU on Digitalisation and Technology Cooperation

The MoU on digital technologies focusses on cutting-edge areas such as Artificial Intelligence (AI), data security and cybersecurity. These are critical fields, especially as the world becomes more interconnected and vulnerable to digital threats. The cooperation in these areas ensures that both countries can bolster their digital infrastructure, fortify cybersecurity frameworks and improve data protection standards, which are essential for secure digital transactions and communication.

The two countries have already successfully collaborated facilitating interoperability between India's Unified Payments Interface (UPI) and Singapore's PayNow system, which has made cross-border financial transactions faster, easier and more secure. This integration exemplifies how fintech collaboration can reduce barriers to trade and business, enabling smoother financial exchanges between countries. Building on this foundation, both nations are looking to expand their cooperation in fintech, blockchain technologies and digital banking, which will strengthen their positions as leaders in the global digital economy. These advancements not only fuel economic growth but also create jobs, boost innovation and promote inclusivity in financial systems.

MoU on Skills Development

With Singapore's reputation as an educational hub known for its advanced vocational and professional training programmes, this partnership offers India a valuable opportunity for knowledge transfer. Indian students and professionals stand to benefit from access to world-class educational programmes and skill development platforms in Singapore, enhancing their global employability. This collaboration will help bridge the skills gap, particularly in high-demand areas like AI, data analytics and fintech, making the Indian workforce more competitive in the global market. Moreover, by aligning skill certification standards between the two countries, workers can gain recognition in both jurisdictions, facilitating easier mobility for employment.

MoU on Expanding Collaboration in Health and Medical Education

The third MoU focuses on strengthening cooperation in the critical areas of healthcare, medical education and research. Singapore has expressed a keen interest in working closely with India's healthcare professionals, who are globally recognised for their skills, expertise and dedication. Indian medical professionals, especially nurses, have a stellar reputation for their commitment and competence in patient care. With India producing a large pool of qualified healthcare workers every year, this partnership offers Singapore access to a skilled workforce that can meet its growing healthcare demands.

Nursing, in particular, is poised to become a central pillar of this partnership. Indian nurses are well-known for their rigorous training, compassion and adaptability in diverse healthcare environments. Given the high demand for skilled nurses globally, this collaboration will help Singapore address its nursing shortages while offering Indian nurses opportunities for career advancement and exposure to advanced medical practices.

The two nations also aim to improve cooperation in key areas like healthcare training, medical education and capacity building. Joint research projects, exchange programmes for medical students and professionals and training in advanced medical techniques will help both nations strengthen their healthcare systems. Furthermore, with India's growing pharmaceutical industry and Singapore's focus on healthcare innovation, this partnership could lead to advancements in drug development, clinical trials and healthcare technology.

In the long run, this MoU sets the stage for creating a more resilient and efficient healthcare ecosystem in both countries, one that can not only meet domestic needs but also contribute to global health challenges.

MoU on Strengthening Partnership in Semiconductor Ecosystem

The fourth and the most crucial MoU signed during Prime Minister Shri Narendra Modi's visit to Singapore focuses on strengthening cooperation in the semiconductor industry, a sector that is of strategic importance to both nations. As the global demand for semiconductors continues to rise, driven by advancements in industries like automotive, electronics and telecommunications, India and Singapore are poised to play pivotal roles in addressing global supply chain needs.

Singapore boasts an established semiconductor manufacturing ecosystem, recognised as one of the major hubs in the global value chain for semiconductor production. With leading semiconductor companies, advanced manufacturing infrastructure and a skilled workforce, Singapore's expertise in this sector is well acknowledged. On the other hand, India, an emerging player in the global semiconductor arena, has recently placed significant emphasis on building its semiconductor design and manufacturing capabilities. India's ambitious "Semicon India" initiative aims to establish the country as a major semiconductor manufacturing hub, capitalising on the increasing need for diversified supply chains and self-reliance in critical technologies.

The visiting Indian Prime Minister's tour of the semiconductor facility of AEM Holdings Ltd., a leading provider of semiconductor and electronics test solutions, highlighted the shared ambitions of both nations in this field. The visit symbolised India's eagerness to collaborate with Singapore to tap into its expertise and expand its nascent semiconductor sector. In a bid to bolster this partnership, PM Modi extended an invitation to Singaporean semiconductor companies to participate in the SEMICON INDIA exhibition, which was held in Greater Noida from 11th to 13th September, 2024.

SEMICON INDIA is a global platform aimed at bringing together key players from the semiconductor industry, including manufacturers, researchers, policymakers and industry leaders, to foster collaboration, discuss emerging trends and explore investment opportunities. The three-day event, which drew over 250 global leaders, focussed on the theme "Shaping the Semiconductor Future" and provided a unique opportunity for Singaporean companies to network, showcase their expertise and explore avenues for investment in India's growing semiconductor market.

By fostering this collaboration, both nations aim to create a synergistic relationship where Singapore's advanced manufacturing capabilities complement India's emerging potential in semiconductor design and production. For India, this partnership is a critical step in building a resilient semiconductor supply chain, reducing dependence on imports and positioning itself as a global hub for semiconductor manufacturing. For Singapore, this cooperation presents an opportunity to expand its footprint in the growing Indian market while contributing to the development of the region's semiconductor ecosystem.

The MoU also focuses on developing talent and capacity building in semiconductor technology. Both countries are expected to collaborate on training programmes, research and development and knowledge sharing, allowing India to leverage Singapore's expertise to develop a skilled workforce capable of supporting its semiconductor ambitions. As India gears up to scale its manufacturing capabilities, these efforts will help ensure that both nations remain competitive and at the forefront of the global semiconductor industry.

The Brunei Chapter: Key Takeaways

Before his visit to Singapore, Prime Minister Shri Narendra Modi made an official visit to Brunei from 3rd to 4th September 2024. During this visit, he held "wide-ranging" talks with Sultan Haji Hassanal Bolkiah at the Istana Nurul Iman in Bandar Seri Begawan. Their discussions covered key areas such as defence, trade and energy, alongside exchanging views on regional and global issues of mutual interest. Both leaders explored ways to further strengthen bilateral ties.

This marked the first time an Indian head of government visited Brunei with the intent of solidifying bilateral relations. The Indian ethnic community residing in Brunei displayed visible enthusiasm and joy during the visit. Sultan Haji Hassanal Bolkiah, the 29th ruler in his line of succession, extended a warm red-carpet welcome to Prime Minister Shri Modi, despite the potential risk of backlash from India’s adversaries.

Brunei, owing to its strategic geographical location, holds significant importance in the region. India has been keen to engage Brunei in space collaboration. The Asia-Pacific Regional Space Agency Forum (APRSAF), a multilateral platform established in 1993, aims to promote space cooperation in the Asia-Pacific. During PM Modi's recent visit, an important Memorandum of Understanding (MoU) on cooperation for the operation of a Telemetry, Tracking and Telecommand Station for Satellites was signed, although Brunei currently lacks an active space programme.

Under the framework of India's Act East Policy, efforts are being made to upgrade its relationship with Brunei. To commemorate the 40th anniversary of diplomatic relations between the two nations, a new chancery was inaugurated at the Indian High Commission, situated near the US Embassy.

PM Modi's visit to Brunei underscores a deeper strategic alignment between the two countries, particularly in the Indo-Pacific context. India's outreach to Brunei is part of a larger effort to enhance ties in the region.

Additionally, a direct flight between Bandar Seri Begawan, the capital of Brunei and Chennai was announced during the visit. Brunei is also a key supplier of crude oil and natural gas to India.

Why Singapore Matters to India?

India and Singapore have long traditions of diplomatic relationship. India was one of the first countries to extend formal recognition just 15 days after Singapore's independence in August 1965. Initially influenced by non-aligned principles, the relationship has since grown into a strong partnership, marked by extensive economic integration, defence collaboration and cultural exchange. Central to this bond is the diplomatic approach both nations take, fostering balanced relationships with multiple countries to ensure stability in the region.

Maritime security and defence cooperation are vital aspects of the partnership, especially given Singapore's strategic location at the Malacca Strait. Joint naval exercises, like the Singapore-India Maritime Bilateral Exercise (SIMBEX), have expanded in scope over the years, evolving from anti-submarine operations to broader naval coordination. In 2023, Singapore and India co-hosted the ASEAN-India Maritime Exercise, further emphasising their joint commitment to regional security. This cooperation extends to agreements allowing India's Navy access to Singapore's facilities, enhancing India's strategic presence in the South China Sea and Indian Ocean.

Singapore's central role in multilateral forums like the ASEAN-India Summit, East Asia Summit (EAS) and ASEAN Regional Forum (ARF) further underscores its importance in India's South-East Asia outreach. Acting as a diplomatic bridge, Singapore helps India engage with ASEAN nations on key issues such as trade, connectivity, maritime security and counter-terrorism. Both countries are also strong advocates of the Indo-Pacific Oceans Initiative (IPOI), upholding international law in sensitive areas like the South China Sea.

Singapore's strategic location along the East-West shipping corridor makes it an ideal partner for India in expanding its economic and trade relations with Southeast Asia. Since signing the Comprehensive Economic Cooperation Agreement (CECA) in 2005, Singapore has become one of India's largest sources of foreign direct investment. Indian startups and tech firms have leveraged Singapore as a base for regional expansion, particularly in the fintech and digital technology sectors. This digital collaboration deepened in 2021 with the linking of India's Unified Payments Interface (UPI) and Singapore's PayNow, facilitating instant cross-border remittances.

In recent years, both nations have prioritised digitalisation and technology as areas of cooperation, aligning Singapore's focus on innovation with India's ambition to become a leading digital economy. Their joint initiatives in blockchain, digital banking and cybersecurity reflect this shared vision.

The COVID-19 pandemic further highlighted the resilience of India-Singapore ties. During India's second wave in 2021, Singapore provided crucial medical supplies, while India contributed vaccines through its Vaccine Maitri initiative. This mutual support laid the foundation for future collaboration in securing resilient supply chains, particularly in critical areas like pharmaceuticals and technology.

Singapore's diplomatic strength and neutral position in South-East Asia have allowed it to maintain balanced relations with global powers, such as the U.S. and China, a strategy that aligns closely with India's global diplomatic approach. This partnership enhances India's ability to navigate regional geopolitics while contributing to regional peace and stability. Strengthening these ties will be essential for advancing India's Act East policy and securing its long-term strategic interests in the Indo-Pacific region.

 (The author is a former IIS Officer and keenly follows international affairs. Feedback on this article can be sent to feedback.employment news@gmail.com.

Views expressed are personal)