GOODS traded between Singapore and Malaysia will now enjoy significant advantages such as decreased transit times and improved overall supply chain performance.
This follows the signing of the Mutual Recognition Arrangement (MRA) of Authorised Economic Operator (AEO) programmes last Thursday (Jan 18).
The MRA allows Singapore’s certified AEO exporters’ shipments to Malaysia to “enjoy fewer customs documentation checks and cargo inspections, and vice versa”, said Singapore Customs on Tuesday.
Singapore’s programme, known as secure trade partnership (STP), is based on the World Customs Organization (WCO) framework of standards to secure and facilitate global trade.
Singapore Customs said this framework highlights the need for all stakeholders to take measures to ensure the security of the supply chain, and for customs administrations to establish AEO programmes to certify companies which adopt robust security practices.
Companies with higher security measures in place are eligible for STP-plus, added Singapore Customs. These companies will get additional facilitation through the MRAs with Singapore’s trade partners.
The agency said MRAs help to elevate trade facilitation and trade security to the international level.
“In addition, such arrangements also help to facilitate continuous secure trade flows in situations of high alert or when international trade is disrupted,” it added.
“This new Singapore-Malaysia AEO-MRA will further strengthen our bilateral customs cooperation, as we commit to a smooth and secure supply chain,” said Singapore Customs’ director-general Tan Hung Hooi.
Total trade between Singapore and Malaysia averaged S$135.1 billion annually between 2021 and 2023, said Singapore Customs.
Source:Business Times
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
