Taiwan Singapore trade surged last year, overtaking China and Malaysia to become Singapore’s top trading partner. The growth reflects strong demand for Taiwanese electronics, especially semiconductors used in advanced computing and artificial intelligence. The rise of Taiwan Singapore trade signals deeper economic integration between Taipei and Singapore.
Singapore’s Ministry of Trade and Industry reported that trade with Taiwan reached roughly NT$4.24 trillion. That figure exceeded Singapore’s trade with China, at about NT$3.73 trillion, and Malaysia, at around NT$3.32 trillion. Growth stemmed from strong electronics exports from Taiwan and sophisticated equipment imports from Singapore.
Taipei’s envoy to Singapore, Tung Chen‑yuan, highlighted Taiwan’s rapid ascent in Singapore’s trade rankings. In 2024, Taiwan ranked fourth among Singapore’s trading partners before rising to first last year. Semiconductor sales and high-tech equipment drove this increase.
Semiconductors accounted for roughly 80 percent of Taiwan’s exports to Singapore. Meanwhile, about 60 percent of Singapore’s exports to Taiwan consisted of semiconductor-related machinery and tools. These figures show how closely the two economies are linked in high-tech supply chains.
Investment flows further strengthened Taiwan Singapore trade. Taiwanese firms have invested heavily in Singapore’s semiconductor ecosystem. United Microelectronics invested NT$150 billion to expand foundry operations. Vanguard International Semiconductor and NXP Semiconductors jointly invested NT$234 billion for a new wafer fabrication plant.
Tung noted Singapore’s stable political environment and strong legal framework attract these investments. Singapore produces around 10 percent of global chips, offering Taiwanese companies a strategic base to reach global markets.
Singapore also remains a major investor in Taiwan. Last year, more than 168 projects, totaling over NT$14.07 billion, received Singaporean capital. Investments focused on financial services, manufacturing, and wholesale industries.
A major financial development was Singapore’s DBS Bank acquiring Citibank Taiwan in 2023. This transfer included 2.7 million credit card accounts, 500,000 deposit portfolios, and 45 branches. DBS now stands as Taiwan’s largest foreign bank.
Corporate investments also show confidence in Taiwan. Singaporean furniture brand Scanteak invested NT$600 million in a Tainan warehouse for local sales and distribution. Executives cited Taiwan’s investor-friendly regulations and legal stability as key reasons for expansion.
Economists say the strong Taiwan Singapore trade relationship may improve supply chains across the Asia-Pacific. Growing demand for AI and high-performance computing chips positions both economies to benefit. Continued cooperation could also create jobs and encourage technology transfers.
Looking ahead, Taipei and Singapore plan further talks to expand cooperation. Key initiatives include streamlining regulations, supporting joint research, and attracting more foreign investment. Strengthening trade and investment ties will help both economies maintain long-term resilience.
