Listening to Corporate Concerns Including the COMPASS System
Korea-Singapore Manufacturing AI Cooperation MOU Signed
Expanding Collaboration in Consumer Goods and Advanced Manufacturing
Kim Jeong-Kag, Minister of Trade, Industry and Energy (far right), is delivering a greeting at a meeting with local companies operating in Singapore held on the 2nd at the Shangri-La Hotel in Singapore. Ministry of Trade, Industry and Energy.
On March 2, Kim Jeong-Kag, Minister of Trade, Industry and Energy, held a meeting with companies operating in Singapore in conjunction with President Lee Jaemyung's state visit to Singapore, where they discussed measures to diversify trade and expand cooperation in manufacturing artificial intelligence (AI).
The meeting was attended by representatives from nine companies in the food, distribution, automotive, bio, and advanced manufacturing sectors, including CJ, Hyundai Motor Company, POSCO International, LG Electronics, Lotte Duty Free, and Celltrion. The participants shared the difficulties they face in their local operations and discussed key issues.
Trade between Korea and Singapore is showing an expansionary trend, surpassing USD 30 billion again since 2022, with a projected value of USD 30.9 billion in 2025. However, there is a concentration in a few items, with semiconductors (USD 7.673 billion), petroleum products (USD 5.854 billion), and manufacturing equipment (USD 2.314 billion) accounting for about 51% of total trade.
In response, the Ministry of Trade, Industry and Energy plans to broaden the base for consumer goods exports based on the K-lifestyle, while also designating the 'M.AX (Manufacturing AX)' manufacturing AI transformation strategy as a key pillar of bilateral cooperation to further expand the horizons of trade and industrial collaboration.
The participating companies assessed that, despite its small domestic market size, Singapore has served as a 'test market' where ASEAN consumer trends and market changes can be proactively monitored. They especially emphasized that, as an economic and commercial hub that leads consumer trends with high national income, Singapore can serve as a strategic base for diversifying ASEAN cooperation.
The companies expressed difficulties in hiring and dispatching expatriates due to the COMPASS (Complementarity Assessment Framework) system applied to local employment permit issuance. They also suggested expanding the scope of Korean universities included in the list of recognized institutions for academic qualifications. The Hyundai Motor Group Innovation Center Singapore (HMGICS) requested continued support, noting that its ongoing projects are currently receiving incentives from the Singaporean government and that stable support is necessary.
Minister Kim stated that, after listening to the companies' concerns, he directly explained these issues to Tan See Leng, Singapore's Minister for Trade and Industry, during a breakfast meeting on the same day, and asked for cooperation to improve the relevant systems. He further emphasized that, based on the feedback raised at the meeting, the ministry would strengthen support systems that companies can tangibly feel.
Meanwhile, the Korea Institute for the Advancement of Technology and the Singapore Manufacturing Federation signed the 'Korea-Singapore M.AX Cooperation MOU,' agreeing to pursue information exchange, talent development, and joint research and development (R&D) initiatives in the field of manufacturing AI. Singapore is home to the Asia-Pacific headquarters of global big tech companies such as Google and Microsoft, as well as many companies utilizing manufacturing AI, including ST Engineering. This presents the potential for significant synergy when combined with Korea's advanced manufacturing technologies.
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