Singapore has inked an Investment Guarantee Agreement with Colombia, aiming to promote greater investment flows between the two countries, the city-state 's Ministry of Trade and Industry said on Wednesday.
The agreement was signed between Singapore's Minister for Trade and Industry Lim Hng Kiang and Colombia's Minister of Trade, Industry and Tourism Sergio Diaz-Granados Guida in Bogota, capital of the Latin American country.
Colombia is Singapore's sixth largest trade partner in Latin America and the Caribbean. Bilateral trade between the two countries increased 40.1 percent to 1.06 billion Singapore dollars (839.3 million U.S. dollars) in 2012 on year.
According to official data, Singapore's exports to Colombia amounted to 138.7 million Singapore dollars (109.8 million U.S. dollars) in 2012, a 15.4 percent increase over 2011. Top exported goods include civil engineering equipment parts and medical apparatus.
The ministry said the newly inked agreement "serves to protect investors' interests from Colombia and Singapore and opens up more business and investment opportunities for Colombian and Singapore companies."
Some Singaporean companies, including Olam International and Hyflux, already have built presence in Colombia. The city-state said the agreement will further provide a legal framework for Singaporean firms to "explore new business and investment opportunities in Colombia, especially in sectors such as oil and gas, infocomms technology, water and master-planning."
Currently, Singapore has 41 investment guarantee agreements in force.