Smoother path towards digital business between the two countries.
Singapore and the United Kingdom (UK) have launched negotiations on a UK-Singapore Digital Economy Agreement (UKSDEA). Minister-in-charge of Trade Relations S Iswaran said the digital economy is a catalyst for economic growth and the transformation of enterprises.
“It is a bright spot that has remained resilient despite the challenges of the COVID-19 pandemic,” said Minister S Iswaran. “I am pleased that Singapore is enhancing our network of Digital Economy Agreements (DEAs) with a like-minded and digitally progressive partner like the UK.”
The UKSDEA will build on the momentum of the UK-Singapore Free Trade Agreement and promote trusted, robust and connected digital markets for the benefit of our people and businesses. As the first DEA between an Asian and a European country, the UKSDEA will also enhance region-to-region digital connectivity, enabling businesses to use Singapore and the UK as digital gateways to access new opportunities in Asia and Europe.
The UKSDEA seeks to facilitate digital trade and open up new opportunities in Singapore, the UK and our respective regions by making it easier to do business digitally between Singapore and the UK. This will include establishing forward-looking rules to enable trusted cross-border data flows, prohibit data localisation, and ensure high standards in data protection.
It will also facilitate seamless digital trade and business through interoperable digital systems, connect the thriving innovation ecosystems in the UK and Singapore, and explore the use of emerging and innovative technologies such as Artificial Intelligence (AI). Recognising that cybersecurity is a key enabler of the digital economy and the smart nation, these initiatives will be undergirded by cybersecurity cooperation to promote trust and confidence in a secure and resilient digital economy.
Businesses of all sizes stand to benefit from the increased clarity and reduced transaction costs associated with seamless digital transactions.
The UKSDEA also seeks to leverage Singapore’s and the UK’s strengths as innovation and financial hubs in our respective regions. Under the agreement, we aim to explore cooperation to connect technology ecosystems, and open up opportunities for startups.
Sally Jones trade strategy Leader at EY UK and Ireland said digital transformation can unlock human potential and accelerate new, better ways of working.
“For the UK’s service sector, it’s now impossible to distinguish between digital and non-digital trade. Digital is at the core of everything we do,” she said, “For too long, trade deals haven’t taken into account the realities of how businesses trade today.”
As leading international financial centres and data hubs, there are tremendous opportunities to be gained from the UK and Singapore working together on digital trade issues that support and supercharge innovation, said Miles Celic chief executive officer at TheCityUK.
“Working with like-minded countries like Singapore presents a real opportunity to develop a best-in-class digital agreement,” he said. “Digital restrictions are among the fastest-growing trade barriers. Over 50 per cent of trade in services is facilitated by digital exchange, but restrictions on digital trade doubled in the decade leading up to 2019.”
To ensure the future of open global services trade, it’s essential that new agreements support the flow of data across borders, noted Celic.
“The UK should strive to set clear ground rules for digital trade and build an open and robust framework for future digital trade and technological cooperation,” he said. “Such a framework can then become a template for other key markets, aiding the free flow of data and preventing unnecessary market fragmentation.”
