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SINGAPORE: It was a triumphant moment for supporters of Barack Obama when he was voted into the White House on November 4.
And Singapore companies are also cheering for what they hope will be America's pro-business policies in the future.
They say this may even attract more businesses to set up operations in the United States.
Chief executive of Singapore International Chamber of Commerce, Phillip Overmyer, said: "One of the things Obama has talked about is reducing taxes for people and companies that earn I think less than a quarter of million US dollars.
"That would apply equally to a group of Singaporeans who open up a company in the US. So the start up capabilities of SMEs in the US will be enhanced by that."
In contrast, Singapore's business district could see fewer American companies if some new tax policies are passed in the US.
During his campaign, Obama suggested taxing American firms that move jobs overseas. This could hurt investment and job prospects in Singapore.
The American Chamber of Commerce in Singapore said there are currently about 3,000 US firms operating here.
The total US foreign direct investment in Singapore amounted to US$82.6 billion in 2007, up from US$78.4 billion a year earlier. This also represented a large chunk of US FDIs in ASEAN which stood at US$130 billion in 2007.
The business community is also hoping that the US will keep its doors open to free trade.
CEO of Singapore Business Federation, Teng Theng Dar, said: "The main concern we have is... the US policy towards international trade, (and the) US policies in terms of engaging the business opportunities in Asia."
The federation is looking to send a team to Washington next year to present ideas to government officials and business leaders there.
Observers say it is also important to ensure the current free trade agreement between Singapore and the US remains mutually beneficial. The agreement was last reviewed in October this year.
Singapore's Trade and Industry Ministry said that during the last review, officials from both sides welcomed the progress in boosting flows of investment, goods and services, as well as issues relating to environmental cooperation and intellectual property.
Bilateral trade totalled S$88.1 billion in 2007, a rise of almost 40 per cent since the agreement came into force in 2004.
Despite the uncertainties ahead, industry players say there are lots of opportunities for companies. And these are in areas that Singapore and the US are trying to grow, such as technology, electronics, medical and environmental sectors.
- CNA/yt
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