On 30 January 2023, Singapore and Malaysia signed two Frameworks on Cooperation ("FoCs") in Digital Economy and Green Economy. The FoCs, which were substantially concluded in August 2022, will lay the foundation for future bilateral initiatives relating to the digital and green economies.
Digital Economy
The FoC in digital economy seeks to promote greater inter-operability and collaboration on digital economy issues and improve coordination between Singapore and Malaysia beyond what the E-Commerce Chapters of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP) Agreement provide.
The FoC covers various areas, including the following:
- Trade Facilitation: To speed up the entire trade process, allowing seamless transactions online and across borders;
- Cross-border Data Flows: To support the movement or transfer of information between the two countries;
- Electronic Payments: To intensify cooperation in developing safe and secure cross-border E-payment systems;
- Digital Identities: To encourage knowledge sharing for the development of the country's respective identity regimes, including the development of the ASEAN Unique Business Identification Number (UBIN); and
- Business/Consumer Trust: To explore partnership in new and emerging areas to build trust in the digital systems.
Green Economy
Under the FoC on green economy, both countries agreed to cooperate in the following areas:
- Next generation mobility: To explore collaboration on EV and AV standards and the adoption of technical references;
- Environments, social and governance; capacity development programme for exporters: To promote knowledge sharing and business networking on sustainable business practices;
- Low carbon solutions: To explore joint studies and projects on low-carbon solutions such as hydrogen and carbon capture, utilisation and storage;
- Carbon credits industry collaboration: To explore collaboration voluntary carbon credits projects; and
- Development of new and renewable energy related technology standards to support domestic and regional decarbonisation: This includes developing common policies and standards for new and renewable energy technologies.
