Your Excellencies,

Mr Teo Siong Seng, Chairman, Singapore Business Federation (SBF), 

Distinguished Guests,

Friends and Colleagues,

 

1. Good morning. Good to join all of you at this year’s LATAM Conference. Thank you to SBF for inviting.

 

2. Much has happened since we last gathered for our inaugural LATAM Conference in May 2024. This time last year, few could have anticipated the extent of changes we are now seeing in the geo-political and geo-economic landscape.

 

3. Today, we are facing a volatile and unpredictable operating environment.

 

a. Geopolitical tensions, tariffs, and the resultant supply chain disruptions have prompted governments and businesses to rethink how we engage the world.

 

b. The tariff situation is still unfolding. Over the past few weeks, in the lead-up to tomorrow’s 1 August deadline, US has announced new framework agreements with countries including Indonesia, the Philippines, Japan and, most recently, the EU.

 

c. While these agreements are helpful in injecting more predictability in the trade environment, we must carefully study the details.

 

d. We also cannot rule out further tariffs, particularly sectoral tariffs, and their second or third order effects on global trade and investment flows.

 

4. As a small economy dependent on free trade and open markets, Singapore is inevitably affected. We are also naturally concerned about the future of the rules-based global order as we know it. 

 

a. But in the face of the current turmoil in the global trading environment, we also see countries turn to each other, to support open and free trade, and to seize new opportunities together.

 

b. Singapore is also working with like-minded partners to deepen our trade linkages, advance economic integration, and support rules-based trade.

 

c. Against the backdrop of all this uncertainty, we must continue to build connections with the world, with existing and new partners alike, and strengthen Singapore’s value proposition as a partner of choice in this region.

Strengthening Singapore-Latin America Ties

 

5. Our ongoing efforts to bring Singapore and Latin America closer together have become even more important and urgent. Despite the vast geographical distance, our regions share many common characteristics: 

 

a. a young and sophisticated workforce;

b. widespread tech adoption;

c. areas of mutual interest such as innovation and sustainable development.

 

6. As we gather for this second edition of our LATAM Conference, it is timely for us to reflect on the progress we have made together over the past year. 

 

7. First, on trade. Overall trade in goods between Singapore and Latin America grew by >20% over the past year, from S$28.5B to S$35.3B. 

 

a. There has been an uptick in the trade of machinery, electronics, petroleum and agricultural goods.

 

b. Trade in services between Singapore and LATAM is also growing, in engineering services, telecommunications, computer and information services and transport services.

 

8. Our strengthening trade architecture at the institution-level will continue to promote and support these flows.

 

a. Many of you know that PASFTA recently entered into force among Chile, Singapore, and Peru in May 2025. This is Singapore’s 28th FTA and a major milestone in Singapore-PA economic relations. We hope remaining PA member states, Mexico and Colombia, will complete their ratification processes soon. PASFTA will be the first FTA between Singapore and Colombia, once Colombia ratifies the agreement.

 

b. We are also looking forward to the entry-into-force of MCSFTA. It will be the first FTA between MERCOSUR and a Southeast Asian country, and will open new market opportunities for our businesses with this large South American bloc.

 

9. At the institutional level, we have also seen our cooperation with Latin America expand over the past year in the areas of sustainability and digital trade.

 

a. In the first half of this year, Singapore signed Implementation Agreements on carbon credit collaboration under Article 6 of the Paris Agreement with three Latin American partners – Peru, Chile and Paraguay.

 

b. These collaborations will facilitate increased investment, create jobs in the green economy, promote sustainable development and facilitate tech transfer, while enabling us to meet our respective climate targets.

 

c. Several Latin American countries have also taken formal steps to accede to Digital Economy Partnership Agreement (DEPA). First established by founding parties Singapore, Chile, and New Zealand, DEPA provides a framework to support digital trade by harmonising rules and standards. In January, Costa Rica substantively concluded its accession to DEPA, and Peru’s accession is currently underway.

 

10. On the commercial front, we continue to see regular exchanges between Singapore and LATAM businesses.

 

a. In July 2024, SBF, supported by Enterprise Singapore, led a delegation of Singapore companies to explore manufacturing opportunities in Mexico.

 

b. I also had the opportunity to lead a delegation of Singapore fintech companies to São Paulo last September, where we identified potential partners and new opportunities in areas such as financial services, digital payments and fintech regulation.

 

Unlocking Key Sectoral Opportunities

 

11. As we mark the progress achieved over the past year, we can look forward to new opportunities for partnership that our companies can explore together. Allow me to highlight four areas of opportunity in Latin America – manufacturing, innovation, green economy, and agri-trade. 

 

12. First, manufacturing. Latin America is rapidly emerging as a competitive industrial base, offering strong potential for partnerships through technology transfers, joint ventures, or value chain integration.

 

a. Mexico's smart manufacturing market is projected to double by 2033, driven by automation and Industry 4.0 adoption across the automotive and electronics sectors. Factories in Querétaro and Monterrey are integrating AI and robotics, boosting productivity and attracting high-tech foreign investment.

 

i. While many international companies have established manufacturing facilities in Mexico to service their US customers, there is growing recognition of the value of a “Mexico for Mexico” strategy, given Mexico’s large domestic market (130 million) and sound economic fundamentals. Mexico’s logistical connectivity also makes it an attractive base to access the 50 million-strong Central American market. 

 

ii. Major infrastructural projects and upgrades, including port expansions, rail corridors, border crossings and industrial parks, are transforming Mexico into a key multimodal trade hub connecting the Pacific and the Atlantic.

 

b. Costa Rica is also distinguishing itself as a high-value manufacturing hub, especially in advanced medical devices and semiconductors. 

 

i. Costa Rica is the second-largest medical device exporter in LATAM after Mexico, and the largest on a per capita basis. There are >70 multinational companies in this space, including Boston Scientific and Abbott, producing high-complexity products such as surgical instruments and diagnostic systems.

 

ii. The country has also been a part of the global semiconductor value chain for >30yrs, focusing on advanced testing, design, and engineering.

 

13. Second, technology there is fertile ground for collaboration between Latin America’s and Singapore’s thriving tech ecosystems.

 

a. Tech and innovation are fast becoming key drivers of growth in Latin America.

 

i. Venture capital investments surged by 26% in 2024, particularly in Brazil, Mexico and Argentina. São Paulo is currently among the 30 largest innovation ecosystems in the world, with a value of US$113B and 11 unicorns.

 

ii. Fintech leads the region, driving financial inclusion and representing almost half of venture investment. Other fast-growing sectors include e-commerce and logistics, agtech, climate tech, and AI applications for healthcare.

 

iii. Latin America today combines scale, talent and capital, particularly in sectors that address the region’s real socioeconomic needs, and it is emerging as a global innovation frontier and alternative to traditional tech hubs.

 

14. Third, green economy.

 

a. Latin America is one of the world’s most biodiverse regions and one of the lowest greenhouse-gas emitters.

 

i. 65% of the energy generated in Latin America are from renewable sources. In fact, Paraguay, Uruguay and Costa Rica produce ~100% of their electricity needs from renewables.

 

ii. There is immense potential for collaboration particularly with Brazil, with its extensive rainforest coverage, vast renewable energy potential, and active role in global climate discussions. In 2023, Brazil recorded the world’s second largest annual increase in wind and solar generation. Brazil is also well positioned to be a major generator of sustainable aviation fuel.

 

iii. Brazil’s unique environmental assets and commitment to carbon neutrality have enabled it to be a regional hub for voluntary and compliance carbon markets. Brazil’s carbon credits market is projected to surge to US$24.8B by 2033, >11 times its current value.

 

15. Lastly, agritrade.

 

a. Known as the world’s “next global breadbasket”, Latin America is the largest net food exporting region in the world.

 

b. Singapore Food Agency (SFA) has approved import of meat from more Latin American countries over the past few years. We can now import pork from Colombia, Mexico and both pork and poultry from Chile, Brazil and Paraguay.

 

c. As a small, land-scarce country which imports > 90% of the food we consume, we can work with LATAM partners to strengthen Singapore’s food security and open new, mutually beneficial commercial opportunities for our agri-food players.

 

Conclusion

 

16. My colleagues and I at the MTI, together with our agencies and industry partners, will continue to support our businesses in exploring these new opportunities. 

 

17. In a world of shifting trade patterns and economic headwinds, Latin America stands out as a region of great potential, one that Singapore and Singapore companies cannot afford to overlook.

 

18. This is a critical moment for Singapore to build new bridges with a region that offers strategic depth and complementary strengths – for resilience, innovation, and long-term opportunity. 

 

19. I thank SBF for organising this year’s LATAM Conference which offers all businesses here today a platform to explore, connect, and collaborate. Muchas gracias, muito obrigado, thank you, and I wish all of you a productive session ahead.