Singapore has decided to set up a model special economic zone in India, based on which will be set up two other SEZs. They will be known as Singapore India economic zones.
A formal announcement on Singapore's SEZ plans is expected in January 2007. While the SEZs will be developed by Singapore companies, Singapore and the Indian government will playing a facilitating role.
For this purpose, a high-level coordinating committee led by T K A Nair, principal secretary to the prime minister, and Peter Ong, permanent secretary, ministry of trade and industry in Singapore, has been formed.
The model SEZ will have world-class infrastructure, developed by a consortium of Singapore companies.
The lead agency for the model SEZ project from Singapore will be Ascendas, one of Asia's leading providers of business space solutions.
The SEZs will be targetted at attracting Japanese investors to India. Singapore has already tested waters in this connection by bringing a Japanese business delegation to India, for exploring investments in SEZs.
Teams from Singapore have also gone to Japan to speak to its business chambers, small and medium enterprises, and the Japanese trade ministry. Singapore is also trying to attract investments from companies in Europe, especially Italy.
The idea of Singapore developing SEZs was mooted by a Confederation of Indian Industry CEO core group to the Singapore prime minister in January this year.
The matter also featured in talks between Singapore's senior minister Goh Chok Tong and Indian Prime Minister Manmohan Singh. "The core group is part of a well-thought strategy for Singapore. Singapore has vast experience in setting up SEZs in countries like China, Taiwan, and Vietnam," Tarun Das, chief mentor of CII, said.
According to Neerja Bhatia, head of CII's office in Singapore, development of SEZs by Singapore companies will boost trade between the two countries.