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Singapore ready to work with Indonesia to beef up investments: PM Lee
Indonesia has given notice that it will discontinue the agreement on promotion and protection of investments with Singapore when it expires next June, and Prime Minister Lee Hsien Loong says this issue needs to be resolved to maintain a favourable investment climate.
SINGAPORE: Prime Minister Lee Hsien Loong said Singapore is ready to work with Indonesia to enhance investment flow between the two countries, but there are issues that need to be dealt with, when it comes to economic cooperation. He made this point to visiting ASEAN journalists in Singapore in an interview conducted on Thursday (Jun 4).
Mr Lee was asked by an Indonesian journalist from KOMPASS about economic relations between the two countries. Recently, Indonesia revised investment treaties with a number of countries to ensure that they stay relevant to the current economic situation, and it has given notice that it will discontinue the agreement on promotion and protection of investments with Singapore when it expires on Jun 20, 2016. Such a pact gives assurance to foreign investors that their investments are adequately protected, and also helps in the settlement of investment disputes.
The Prime Minister said this issue will need to be resolved, to maintain a favourable investment climate. "While these are things which are the sovereign right of countries, but really, when investors go in to a country, they are looking for reassurance and confidence that the framework will be there and the better an Inter-Governmental Agreement you have, the easier it will be to persuade investors to come in," Mr Lee said.
"So I think these are factors which investors will look at when they decide whether they want to invest in Indonesia, when they want to decide where they want to focus their attention and we hope that we will be able to make progress and both sides will understand how to create the conditions for this,” he said.
- CNA/ly
http://www.channelnewsasia.com/news/business/singapore/singapore-ready-to-work/1895362.html
Indonesia has given notice that it will discontinue the agreement on promotion and protection of investments with Singapore when it expires next June, and Prime Minister Lee Hsien Loong says this issue needs to be resolved to maintain a favourable investment climate.
SINGAPORE: Prime Minister Lee Hsien Loong said Singapore is ready to work with Indonesia to enhance investment flow between the two countries, but there are issues that need to be dealt with, when it comes to economic cooperation. He made this point to visiting ASEAN journalists in Singapore in an interview conducted on Thursday (Jun 4).
Mr Lee was asked by an Indonesian journalist from KOMPASS about economic relations between the two countries. Recently, Indonesia revised investment treaties with a number of countries to ensure that they stay relevant to the current economic situation, and it has given notice that it will discontinue the agreement on promotion and protection of investments with Singapore when it expires on Jun 20, 2016. Such a pact gives assurance to foreign investors that their investments are adequately protected, and also helps in the settlement of investment disputes.
The Prime Minister said this issue will need to be resolved, to maintain a favourable investment climate. "While these are things which are the sovereign right of countries, but really, when investors go in to a country, they are looking for reassurance and confidence that the framework will be there and the better an Inter-Governmental Agreement you have, the easier it will be to persuade investors to come in," Mr Lee said.
"So I think these are factors which investors will look at when they decide whether they want to invest in Indonesia, when they want to decide where they want to focus their attention and we hope that we will be able to make progress and both sides will understand how to create the conditions for this,” he said.
- CNA/ly
http://www.channelnewsasia.com/news/business/singapore/singapore-ready-to-work/1895362.html
