Brazil and Singapore are experiencing a rapid increase in bilateral economic relations, in trade and investment flows alike. The trade turnover has soared threefold from 2003 to 2006. At the same time, bilateral investment flows are enjoying a steady growth.

In 2006, the exchanges between Brazil and Singapore amounted to US$2.13 billion, over two times the figure recorded in 2004. With exports of US$ 943 million and imports of US$ 1.19 billion there was a deficit of US$ 247 million. Although this has been the largest negative balance ever recorded in absolute figures, it is not possible to establish a trend in relation to the result in bilateral trade, since deficits and surpluses have alternated with high frequency in the last ten years. What is certain is that total trade is in full expansion.

The Brazilian exports to Singapore, in 2006, grew 115% in relation to 2005, coming to represent 0.69% of the total (0.71% in 2005), while the Brazilian imports from Singapore grew 11%, reaching 1.30% of the total (1.11% in 2005). This was the largest historical figure ever achieved by the bilateral trade, which places Singapore as the 32 Brazilian trade partner and the primordial trade partner of Brazil in Southeast Asia. It is to be noted, moreover, that the percentage of exports to Singapore on the total Brazilian exports is slightly superior to the one India (0.68%) and slightly inferior to the one to Hong Kong (0.75%).

Singapore is the second largest Asian investor in Brazil, after Japan. In recent years, these investments have expanded, notadbly with the acquisition of national shipyards by Singaporean enterprises (Keppel Offshore acquired the former Verolme shipyard, while Jurong Shipyard acquired the Mauá shipyard, employing today, jointly, more than 6,000 workers). Additionally, there are significant investments in the area of paper and pulp (Sateri International, subsidiary of the RGM corporation, acquired control over Bahia Pulp, which is its leading supplier of pulp and paste), and Petra Foods bought a cocoa factory from Nestlé in Itabuna.

In the electric-electronic sector, of note is the presence in Brazil of Creative Technology and of Flextronics, the latter the world leader in manufacture of equipment in telecommunications for the major brands, with global turnover of US$ 14.5 billion in 32 countries. There are, also, companies in the sector of transportation and storage of commodities, such as APL, Olam and Noble. Finally, the Raffles Design Institute also established a branch in São Paulo. In total, there are more than 17 enterprises.  

Conversely, there is an increment in the number of Brazilian companies that have their regional office based in Singapore, covering the operations in Southeast Asia or in the entire Asia-Pacific region. This is the case of Petrobras and of Embraer, which recently upgraded their representative offices to the category of subsidiaries. Other enterprises installed here are Weg, Votorantim, Perdigão, Queiroz Galvão and Agrenco, in addition to engeneering services providers, such as Forship Asia. Of note, finally, is the boost that may be conferred to the image of Brazil in Singapore by the partnership of Clube dos Treze with ST Teleport and the Singapore Sports Council.

Brazilian businesspersons are beginning to seek Singapore more regularly, the country having been visited frequently by representatives of banks and meat-plants. The commercial trade fairs, with an international calendar among the most important in the world, also receive a growing participation of Brazilian exporters, for example at the aerospace, furniture, dental and foodstuff fairs, culminating in the opening of an office  in Singapore by ABIMO, the Brazilian association of medical-hospital industries. On 12 March, there took place a wine-tasting from Miolo, wine mission that shall return to town for the fair Wine for Asia, in the second semester of 2007. Also, in the first semester of 2007, a mission of the Brazilian port sector visited Singapore and established prospective contacts with Singaporean companies.