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MEXICO: Singapore's trade with Latin America has been growing in recent years, hitting a record high of S$11.8 billion in 2006.
The region is seeing strong economic growth, and presents opportunities for Singapore firms seeking to tap into the boom.
The Latin American economy expanded by a better-than-expected 5.3 percent in 2006.
The growth is partly fuelled by strong demand from China, India and the United States.
Foreign direct investment has been pouring in, including funds from Singapore - whose firms have poured in more than S$40 billion.
Singapore is now the second largest source of foreign direct investment in Brazil and Mexico from the Asia Pacific.
Chong Lit Cheong, CEO, International Enterprise Singapore, said, "Although it is far, the margins are good, unlike China where the margins (are) very competitive now. So if you look in terms of spreading out their risks, some companies do see the opportunities.
"A lot of governments (are) going through a lot of economic reforms now and we see that kind of effort by governments as very serious. So it is not a one shot happening. It is a very systematic way of doing things. So we see a lot of potential out there."
Mexico, for example, plans to spend US$250 billion over the next five years on a national infrastructure plan. And there are opportunities for Singapore companies in areas such as logistics, port development and telecommunications.
The Mexican trade and investment office - Promexico - has set up an office in Singapore to pitch to interested companies.
Jorge Lopez Perez, Director, Promexico, said, "We have an office in Singapore where we can work with the investors in your country, in house, on site, and we want to go hand-in-hand with investors through all the bureaucratic trends."
Panama, whose economy is growing at over 8 percent, is also looking for Singapore's expertise to develop their logistic, energy, tourism, and infocomm technology sectors.
Already, local companies like ST Aerospace, CrimsonLogic and PSA have established a presence there.
Carmen Vergara, Vice-Minister, Ministry of Commerce & Industry, Panama, said, "Because of the similarities in our economic structure, I think that there are a lot of opportunities for companies from Singapore to invest in Panama and use Panama as a hub to then invest, or go into other Latin American markets from Panama."
Panama is Singapore's top trading partner in Latin America, followed by Brazil, then Mexico.
Two of the main challenges which Singapore companies face when wanting to come to Latin American are language and distance.
However, more and more people in Latin America are learning how to speak English.
Furthermore, as trade between Latin America and Asia grows, the governments in Latin America are also looking into establishing more direct air routes between Asia and Latin America without having to transit in the United States. - CNA/ms
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