Population (2017): 47.7 million GDP (2017): US$1.15 trillion World Bank “Ease of Doing Business” Rank (2018): 59th Bilateral Trade with Singapore: S$698 million Trading Partner Rank (2017): Singapore's 6th largest trading partner in Latin America, and Singapore’s 64th largest trading partner worldwide
Mexico is revitalised by reforms and a capable but low cost workforce. Now the world’s 12th largest economy, it is expected to become the 7th largest by 20501.
More than 40 Singapore companies are already in the country and many others are doing business with Mexican companies, in sectors such as automotive and electronics manufacturing (Sunningdale and Fagerdala), logistics (PIL Logistics), tourism (Banyan Tree), agribusiness (Olam), furniture (Koda), textiles (Grupo Kaybee), oil and gas (Keppel, Sembcorp), urban and industrial planning (Surbana Jurong), environmental solutions (Hyflux), and consumer products (Strontium).
Bilateral trade between Singapore and Mexico more than doubled in the last decade to S$4.29 billion in 2016. This makes Mexico the second-largest trading partner for Singapore in Latin America and the Caribbean, only behind Panama.
Mexico is an open economy that embraces trade, with an extensive FTA network covering 45 countries. The North American Free Trade Agreement (NAFTA), signed in 1994, provides businesses in Mexico with direct access to the neighbouring major markets of the United States and Canada.
Mexico is also part of the Pacific Alliance, an important engine of regional growth and trade. The Pacific Alliance aims to reduce and eventually eliminate trade barriers between Mexico, Colombia, Peru and Chile - four countries with a clear orientation to the Asian market.
Mexico has emerged as one of the most promising economies in Latin America. President Enrique Peña Nieto has made sweeping reforms since being elected in 2012, including energy reforms which opened up the oil and gas industry to foreign participation, ending state monopolies in oil and gas and electricity generation.
As of end-2016, Singapore was Mexico’s third largest investor from the Asia-Pacific region, with stock of foreign direct investments amounting to S$1.077 billion.
Growth of the Mexican economy in 2017 has exceeded expectations despite the sluggish performance of extractive industries (oil and gas and mining) and the potential risks of NAFTA renegotiation. In fact, the government’s latest forecast (August 2017) is for the economy to grow by 3% in 2018. As Mexico rapidly develops, the country recognises the need to modernise and improve its existing infrastructure, which will have a significant impact on trade and industrial activities.
This is an opportune time for Singapore companies to seriously consider Mexico as a place to do business. There are ample opportunities to invest in areas such as infrastructure and support the country’s growth.