HSBC Malaysia Welcomes EU-Singapore FTA, To Benefit ASEAN Supply Chain

KUALA LUMPUR, Oct 19 (Bernama) -- HSBC Malaysia Sdn Bhd has welcomed the signing of the European Union (EU)-Singapore Free Trade Agreement (EUSFTA), as it will benefits ASEAN’s supply chain. In a statement Friday, it said the agreement enabled businesses to unlock new opportunities to further sell their goods and services, through eliminating virtually all tariffs and lowering non-tariff barriers between Singapore and Europe. Tariffs on qualifying Singapore goods exports into the EU will be steadily abolished over the course of five years, with electronics, pharmaceuticals, petrochemicals and processed food products (among the main beneficiaries) becoming more competitive in the EU as a result. HSBC Malaysia Bhd Chief Executive Officer Stuart Milne said the agreement presents enhanced opportunities and benefits for Malaysian companies. “Malaysia is a key trading partner of Singapore and is well integrated into its supply chain,” he said. The bank said the EUSFTA would allow for some manufactured goods to have ASEAN cumulation. HSBC APAC Regional Head of Global Trade Receivables Finance Ajay Sharma said a high proportion of Singapore products have parts produced in other ASEAN countries. “With the rule of ‘ASEAN cumulation’, more Singapore exports produced along intra-ASEAN value chains can benefit under the EUSFTA. “This will have a significant impact for Singapore and for the ASEAN region - again in areas like electronics and pharmaceuticals,” he added. ASEAN as an aggregate was the largest exporter to Singapore, with the republic importing US$71.06 billion of goods from it in 2017. Singapore was also a major export destination for Malaysia, accounting for 14.5 per cent of the country’s total exports in 2017. -- BERNAMA