Opportunities for Singapore firms to work with Kazakhstan businesses in technology, innovation

SINGAPORE – Firms from Singapore and Kazakhstan have been urged to work together in areas like technology and innovation, renewable energy and biotech.

The message was relayed by both countries at a joint business forum here on May 23 at which Deputy Prime Minister Heng Swee Keat noted: “Over the decades, we have established wide-ranging collaborations in areas such as connectivity, education and governance, trade and investment, and human resource development.

“Both countries recognise that an open and rules-based international economic system is an important driver of growth and development to uplift our peoples and enhance their lives and livelihoods.”

Kazakhstan is Singapore’s biggest trading partner among Central Asian states, with goods trade between the two nations growing by nearly 50 per cent to more than $600 million in 2023.

“We should build on this strong base and grow these linkages further,” DPM Heng said.

“Our businesses have an important role to play in this. By fostering deeper collaborations, businesses can help to grow the economic pie on both sides and strengthen people-to-people connections.”

Kazakhstan President Kassym-Jomart Tokayev added that both countries have been natural partners politically and economically, which presents substantial opportunities for expanding cooperation.

He also highlighted some promising areas of cooperation, such as the urban development sector. He noted that there are plans for a new integrated economic hub in the country’s special economic zone, with the masterplan developed by Singapore company Surbana Jurong.

Another area where businesses from both countries can work together is in renewable energy, he added.

“We look forward to more partnerships with Singaporean companies in clean energy production, and the transfer of technology or expertise. For instance, Singapore is well known for its advanced waste-to-energy incineration plants, and innovative waste management technologies,” President Tokayev said.

He also noted that Kazakhstan’s agricultural lands and resources can offer opportunities to Singaporean companies to create collaborative agri-innovation farms. There is also room for cooperation in developing precision farming.

When it comes to technology, both countries can work together in areas such as biotech and pharmaceuticals, as well as in research and development projects.

DPM Heng noted that both countries are part of a vibrant, dynamic Asia with strong economic potential, adding: “At the same time, countries across Asia must also address common challenges – such as climate change, the digital revolution, and ageing demographics – to fully realise this growth potential.

“These are important issues which businesses from Singapore and Kazakhstan should work together to tackle in the years ahead.”

Investing in research and development is critical in meeting these challenges, he noted, adding that Singapore is keen to collaborate with like-minded partners, including Kazakhstan, to advance science and technology and develop solutions.

Both governments have signed agreements to outline areas of cooperation, such as the Services and Investment Agreement inked in May 2023 that will give greater certainty for investors on both sides.

“Ultimately, while governments lay out conducive frameworks through cross-border agreements, the private sector must harness these to work together and generate business and growth for our economies,” DPM Heng said.

Three agreements were also signed between businesses from Singapore and Kazakhstan at the forum.

One agreement, between SingPost and Qazpost, the Kazakhstan national postal operator, is aimed at boosting e-commerce and logistics, through knowledge exchange and training programmes.

SingPost international chief executive Li Yu said: “Through our collaboration, we hope to enhance our e-commerce network and unlock new opportunities for both countries.”

Other Singapore companies also discussed the opportunities they found in Kazakhstan. Food Empire holdings, a food and beverage manufacturing and distributing firm, announced that it has been awarded a 10-hectare plot of land in the Khorgos Special Economic Zone in Kazakhstan to develop a new coffee-mix production facility.

It expects to start construction by June 2024 and to complete the new facility so it starts contributing to revenue by the end of 2025. It is also expected to create 300 new jobs for the local Kazakh community, Food Empire said.

Meanwhile, tech company CrimsonLogic sees opportunities to digitally transform the trade ecosystem and foster innovative trade solutions.

Mr Ng Chee Keong, its vice president for the region and general manager for greater China, said: “There are significant opportunities for collaboration between Singapore and Kazakhstan in the area of cross-border trade compliance and trade facilitation, driven by the surge in trade flows between Asean, China and Europe, passing through Kazakhstan as a critical node in Central Asia.

“Singapore’s robust supply chain infrastructure and regulatory expertise, combined with Kazakhstan’s strategic location and growing digital economy, create a synergistic environment for businesses to thrive.”