Turkmenistan Turns To Singapore For Economic Development

In a region where hydrocarbon exports dominate national economies, the central government of Turkmenistan is making a concerted effort to develop the Caspian country’s non-oil sector and partnering with Singapore to make it happen.

“Singapore could be a stepping stone for Turkmenistan on its way to the Southeast Asian market, which offers great opportunities for business communities,” Koh Poh Koon, Singapore’s senior minister of state at the Ministry of Trade and Industry said during a meeting in Singapore on Monday with Turkmenistan’s President Gurbanguly Berdimuhamedow, according to reports by state-run Turkmenistan Today.

“Turkmen companies willing to join this market can open their representative offices in Singapore,” Koon added.

The two-day forum reportedly resulted in trade deals, after participants inked 10 documents covering multiple fields, such as finance, transport, logistics, as well as petrochemical industry. Agreements were struck between the State Bank for Foreign Economic Affairs of Turkmenistan, the Association of Banks in Singapore, and DBS Bank Ltd. In addition, documents were signed by the Turkmenhimiya State Concern and Indorama Corporation; the Chamber of Commerce and Industry of Turkmenistan and Singapore Business Federation; as well as the Turkmen State Institute of Economics and Management and Singapore’s Institute for Management Development.

In addition, Turkmenistan Ministry of Industry and Communications has agreed on cooperation in the fields of transportation and logistics with the Singapore-based Pacific International Lines.

Before his trip to Singapore, President Berdimuhamedow approved an agreement signed with Singapore’s GP Global Equipment Pte. Ltd to design and construct a gas compressor station in Turkmenistan. The facility is scheduled to be commissioned by 2022, and will be located at the gas cleaning facility Zäkli-Derweze at the Merkezi Garagum gas condensate field complex. Its annual capacity is said to reach two billion cubic meters.

Singapore is renowned for being an open economy with prudent monetary and fiscal policies, and a transparent legal framework. According to the 2019 Index of Economic Freedom released by the Washington-based think tank The Heritage Foundation, Singapore’s economic freedom score is 89.4 out of 100, making its economy the second freest in the world, just behind Hong Kong.

The economy is dominated by services, but the country is also a major manufacturer of electronics and chemicals, and it operates the world’s second-busiest port. The list of goods exported by Singapore includes integrated circuits, refined petroleum, and computers.

The small island country’s government has been pursuing an active industrial policy that promotes fiscal incentives, increases public investment, and promotes the development of skill sets attractive to foreign investors.