The meeting acknowledged the excellent state of bilateral relations and affirmed their commitment to co-operate under STEER. When the Prime Ministers of the two countries met in February 2002, they articulated the vision of "1 economy, 2 countries". STEER is an important platform to realise this vision. It provides a high level forum between the economic agencies of both governments to come together and interact. It also allows private sectors on both sides to meet and discuss issues of mutual interest. By working closely together, Thailand and Singapore can build on each other’s strengths and competencies, and harness the synergies between both nations. Furthermore, STEER can be a showcase of bilateral economic cooperation that could be an example for the rest of ASEAN.

The meeting noted that in 2002, bilateral trade between both countries grew 6.2 percent from the previous year, registering a total of S$19.9 billion. Thailand was ranked as the 7^th largest trading partner of Singapore, while Singapore was Thailand’s 4^th largest, after Japan, US and China. In terms of investments, Singapore was Thailand’s 2^nd largest investor. Both governments have also embarked actively on a strategy of forming Free Trade Agreements (FTAs), and the meeting exchanged views on how both sides can gain from making use of opportunities offered by these trade agreements.

The Joint Study Group – Automotive Electronics Parts and Components Industry Cluster (JSG-AEPCIC) was formed to identify potential opportunities for collaboration between the two countries in the automotive electronics parts and components industry cluster. The private sector grouping in charge of this study comprises representatives from the Thai automotive parts industry organizations and Singapore companies with the interests and capabilities to supply parts to the automotive sector. The Group has been supported by a government secretariat, led by International Enterprise Singapore (IE Singapore) and supported by Economic Development Board (EDB) on the Singapore side, and led by the Thailand Automotive Institute (TAI) with support from the Office of Industrial Economics (OIE) on the Thai side.

In order to have a sustained business relationship, the JSG-AEPCIC recommended the following: (1) ASEAN Auto parts web portal, (2) Enhanced partnership between Singapore Precision Engineering & Tooling Association (SPETA) and Thai Auto Parts Manufacturers Association (TAPMA), and (3) Ongoing efforts to deepen market integration and provide infrastructure and facilities to localize the production of automotive parts in the two countries.

One concrete deliverable was the signing of the MOU between TAPMA and SPETA on 27^th August 2003, to promote increased business opportunities between companies of the automotive sectors of both countries. A private sector-led Thai-Singapore Automotive Club will be established subsequently to assume the organizing of these activities that will facilitate knowledge sharing and industry networking. The TAI and SPETA websites now also provide hyperlink access to each others’ databases with profiles and updated business interests of Singapore and Thai companies supplying to the automotive sectors.

The JSG delegates met to iron out and agree on the details of the final report. Both countries agreed to maintain the Singapore-Thailand JSG-AFIC and all its 3 task forces - Sanitary and Phytosanitary, Standards and Test Methods and Trade & Investment, as bilateral co-operation vehicles, to resolve issues and to facilitate trade and investment between both countries.

As a result of better understanding between the Agri-Food & Veterinary Authority of Singapore (AVA) and the Thai Department of Livestock Development (DLD), the two agencies have agreed to a Memorandum of Understanding (MOU) between Singapore and Thailand regarding the imports and exports of heat-processed pork products. Singapore and Thailand also agreed to work towards achieving equivalency in standards and test methods. To promote trade and investment between Thailand and Singapore and to support the One Tambon (Village) One Product (OTOP), IE Singapore will organize Food and Beverage (F&B) missions to Thailand. Networking and 1-to-1 business matching sessions for Singapore and Thai businessmen to discuss business opportunities will increase Singapore-Thai F&B sector collaboration.

The meeting noted the paper submitted by Thailand. The Thai government undertook to enhance grass root employment and promote local producers and SMEs under the OTOP initiative. The meeting agreed that in order to achieve this objective, private sector participation was important, and suitable private sector partners of both countries should be sought. Singapore has its strength as a global logistics and distribution hub upon which Thailand can actively leverage on.

Thai Customs and the Singapore Customs officials noted the close relationship that has evolved over the past years. They agreed to work together to build up expertise in Customs skills and share ICT best practices, with a view to further facilitate trade flows between the two countries. The officials also agreed to work out procedures allowing for the mutual acceptance of the CEPT Back-to-Back Form D, continue to exchange information on best practices on trade facilitation, and work out guidelines to simplify customs procedures for the verification of origin of goods.

The meeting noted the proposals in the paper tabled by Thailand. Singapore agreed in-principle with the proposals for the training of healthcare personnel, research collaboration and cooperation in international seminars and lectures. Both sides agreed to continue dialogue on these issues and to flesh out details for further consideration.

The meeting also noted that the issues of Singapore investments in the healthcare industry in Thailand and bilateral referrals of patients fell outside the ambit of Singapore’s public health institutions.

Thailand noted Singapore’s interest in collaboration on public health, including surveillance for and dealing with outbreaks of infectious diseases.

The Private Hospital Association of Thailand and IE Singapore met to discuss about the possibility of the private hospitals of Singapore and Thailand exploring healthcare collaboration.

The meeting noted that the proposals in the Thai paper, and agreed that the private sectors of both countries would get together to explore collaboration and to flag out issues of common interest for further discussion. The meeting welcomed the signing of an MOU between the Spa Associations of Thailand and Singapore to nurture and develop the spa industry in both countries.

The meeting welcomed the signing of an MOU on tourism co-operation between the Singapore Tourism Board (STB) and the Tourism Authority of Thailand (TAT). The MOU highlights the need for greater collaboration between both National Tourist Organisations with the involvement of private sector for the development of long term co-operation. Both STB and TAT will co-operate in the areas of product development and combined destination promotion in selected countries.

The meeting noted the significant enhancement to the bilateral Air Services Agreement (ASA) which was concluded in July 2002. The enhancements included provisions for increased fifth freedom passenger and freighter capacities beyond Singapore and Thailand. The meeting hailed this landmark agreement as it provided for significant air linkages, and will promote greater tourism and trade between Singapore and Thailand.

The meeting agreed in principle to have full air cargo liberalisation with the view to strengthen the cooperation between designated airlines and to further cement the strong ties between the two countries. Officials will explore this matter in formal air services agreement consultations soon.

The meeting also noted that Singapore Airlines is currently studying the commercial viability of starting a budget carrier based in Chiang Mai and will follow up with a response shortly.

The officials discussed the possibility of greater collaboration between logistics communities from Thailand and Singapore. Both side agreed to explore the feasibility to jointly organize seminars in Thailand on areas of interest to both parties, and conduct joint-research on issues related to logistics systems in Southeast Asian to enhance the role of Thailand as a gateway for the Greater Mekong Sub-region (GMS) and Singapore as a regional logistics hub. The officials will also organize business delegations to both countries respectively for better mutual understanding and relationship building.

The meeting applauded the signing of the MOU between the Stock Exchange of Thailand (SET) and Singapore Exchange (SGX) which establishes a mechanism for information sharing and joint promotion and marketing efforts. Both Thailand and Singapore have agreed for the relevant agencies to explore further cooperation in areas of co-trading arrangements, cross-listing and joint product development of securities. Both sides will also cooperate in the field of bond market development and payment and settlement linkages.

Singapore and Thailand have agreed to pursue market access integration and infocomm partnership initiative to deepen bilateral trade in ICT and to show joint leadership at ASEAN. Areas discussed by the parties include common approaches to e-commerce, cross certification of IT skills, public-private sector collaboration in e-government, mutual recognition arrangements (MRA) for telecommunication equipment and joint exchanges on telecom regulatory issues.

The meeting recalled that the two Prime Ministers had, in January 2003, raised the idea of bilaterally moving ahead to liberalise the services market of both economies. The meeting noted the Singapore paper on Single Services Market, which proposed the fast-tracking of some services sectors for earlier liberalisation. The meeting also noted that work was already underway in the majority of sectors identified, covering both cooperation and liberation issues. Officials will further discuss the matter in subsequent meetings.

The meeting commended the MOU on SME collaboration that was signed between the SPRING Singapore, International Enterprise Singapore (IE Singapore) and Thailand’s Office of Small and Medium Enterprise Promotion (OSMEP). The MOU highlights the importance of information sharing and mutual cooperation in an effort to promote the growth of small businesses and medium-sized businesses in an increasingly competitive world. Officials also discussed ways to mutually assist their SMEs in finding suitable business partners and to create a framework for developing the capacity of SMEs who desire to enter each other’s markets. To facilitate the exploitation of international markets by Thai SMEs, the OSMEP shall consider setting up a Thai SME center in Singapore. IE Singapore would provide the necessary facilitation towards this end.

The meeting discussed the possibility of developing MRAs in the area of mutual interest, including ICT and electronic and electrical products. The relevant agencies will further explore this possibility subsequently.

To promote business and investment relations between Singapore and Thailand, the meeting welcomed the signing of an MOU between the Office of the Board of Investment of the Kingdom of Thailand and International Enterprise Singapore Board (IE Singapore).

The MOU highlights the desire of both organisations for greater collaboration on information exchange, strengthening of working relationships between officials of both organisations, promoting projects of common interest, facilitating fact-finding and business development missions as well as joint missions to third countries of mutual interest.

Thailand will host the next meeting of STEER.

***************