Singapore and Thailand have forged closer economic relationship with representatives of both sides inking a memorandum of understanding (MOU) on bilateral investment promotion and protection.

Thai Foreign Minister Kantathi Suphamongkhon and Singaporean Trade and Industry Minister Lim Hng Kiang on Wednesday signed the MOU at the second forum on Singapore-Thailand Enhanced Economic Relationship (STEER), witnessed by Deputy Prime Minister and Commerce Minister Somkid Jatusripitak, who is co-chairman of the meeting, the Thai News Agency reported Thursday.

The two-day STEER meeting, hosted by Thailand during Nov. 22-23, was organized with the common intention by premiers of both countries to strengthen bilateral economic cooperation and partnership.

An informed source said the signing of the MOU took place under the framework of an agreement reached by the governments of Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- all the founding members of the Association of Southeast Asian Nations (ASEAN) -- in 1987 to promote and protect investment.

The MOU was prepared in response to the Thai government's policy to attract foreign investors and promote Thailand as a regional investment hub.

It stated a procedure on investment protection for individuals and corporate entities in Thailand and Singapore.

The two ministers also signed a strategic roadmap for the economic partnership between the two neighboring countries in fields of food and farm products, as well as tourism, small- and medium-sized enterprises (SMEs), education, and capital market.

Simultaneously, around 280 leading business persons of both countries joined a seminar to match trade and investment partners in seven fields, including software, electronics, vehicle parts, transport and logistics, property and finance.

In the past five years, the Board of Investment of Thailand ( BOI) has granted investment promotion privileges to 339 Singapore- run investment projects with total value of 78.36 billion baht.

Singapore is ranked the second biggest investor in Thailand, the agency said.

Source: Xinhua