Kazakhstan-Singapore Investment Agreement to Take Effect in March 2025

The Kazakhstan-Singapore S&I Agreement, set to take effect in March 2025, will enhance market access and investment opportunities for businesses in both countries

The Kazakhstan-Singapore Services and Investment (S&I) Agreement is set to enter into force on 1 March 2025, offering businesses in both countries enhanced market access and investment protection.

Signed in May 2023 by Singapore’s Second Minister for Trade and Industry Tan See Leng and Kazakhstan’s then-Deputy Prime Minister Serik Zhumangarin during former President Halimah Yacob’s State Visit to Kazakhstan, the agreement has now completed the necessary internal procedures for implementation.

Singapore businesses will gain improved access to 15 services sectors in Kazakhstan, with more liberal investment rules fostering a conducive business environment. The agreement is expected to enhance economic cooperation, allowing companies to expand operations and establish stronger ties with third countries through the revitalised Trans-Caspian International Trade Route, also known as the Middle Corridor.

Kazakhstan, the largest economy in Central Asia, holds strategic importance for Singapore, particularly in sectors such as critical minerals, energy commodities, and agriculture. With its GDP projected to grow by 4.7% in 2025, the country presents opportunities for Singapore businesses seeking expansion. Minister-in-Charge of Trade Relations Grace Fu highlighted the significance of the agreement in deepening bilateral economic relations and unlocking new business opportunities.

Companies such as Food Empire Holdings Ltd, which has been operating in Kazakhstan since the early 1990s, have expressed optimism about the agreement. Executive Chairman Tan Wang Cheow emphasised the benefits of tax incentives, investment protection, and improved trade infrastructure, particularly as the company invests US$30 million in a new production facility in the Khorgos Special Economic Zone.