JAKARTA, Indonesia 

Singapore and the US on Wednesday signed a memorandum of understanding (MoU) to strengthen economic cooperation and expand trade finance.

The MoU also aims to provide investment support for companies in the two countries.

The renewable two-year MoU will be overseen by the Department of Commerce of the US and the Ministry of Trade and Industry (MTI) of Singapore.

“Due to significant global tightening of credit following the economic slowdown caused by the COVID-19 pandemic, the MOU aims to enhance the availability of and access to trade financing options for both US and Singapore companies,” said MIT on Wednesday.

The deal will also facilitate bilateral trade in goods and services to increase growth opportunities for each region.

The MoU was signed by US Commerce Minister Wilbur Ross and Singaporean Trade and Industry Minister Chan Chun Sing.

"As like-minded and longtime partners, Singapore and the US are committed to support our business in responding to the global economic disruption caused by COVID-19," Chan said.

Meanwhile, Ross said the MoU will help Singaporean importers finance US export purchases and support Singaporean investors to see opportunities in the US.

MIT added that the two countries were committed to working together toward a stronger post-COVID-19 economic recovery.

"Our continued partnership will help to facilitate bilateral trade and investments and ensure that our companies are well-positioned to tap into growth opportunities in our respective markets and regions,” said the ministry.

*Writing by Maria Elisa Hospita