Diplomacy

Singapore and Germany Expand Industrial AI Cooperation as Merz Calls for Open Trade

At talks in Singapore on October 27, the two governments agreed to broaden their five-part partnership, including industrial AI and energy, while urging stronger international trade links.

Updated: 2 min read

Singapore and Germany agreed on October 27 to expand cooperation in industrial artificial intelligence, research, energy and security, updating a five-part framework during German Chancellor Friedrich Merz's first official visit to Singapore.

Prime Minister Lawrence Wong announced the updated work plan alongside Merz at a joint news conference in Singapore's Parliament House. The leaders identified industrial AI as a priority, seeking to apply digital technologies to factories, supply chains and other physical operations. The announcement sets out areas for cooperation rather than a completed investment or a quantified new spending commitment.

The plan covers political and defence ties; trade, investment and transport; digitalisation and AI; scientific research and innovation; and energy transition and climate policy. It also envisages supporting the development of the ASEAN Power Grid through renewable-energy projects and cross-border grid connections. The governments plan to pursue additional joint work in semiconductors, advanced manufacturing, quantum technology and other research fields.

Merz used the visit to argue for broader access to international markets as trade restrictions increase. He said the European Union should build closer commercial relationships with Southeast Asian economies and members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a 12-member trade grouping. The comments outlined a policy direction, not a newly concluded EU-wide trade agreement.

Wong said Singapore intends to use its 2027 chairmanship of the Association of Southeast Asian Nations to pursue progress toward a future ASEAN-EU free trade agreement. Such an accord would require further negotiations; the leaders did not announce its completion.

The countries elevated their relationship to a strategic partnership in 2024. Their latest work plan broadens the agenda while leaving implementation details, project financing and delivery schedules to subsequent steps.

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