Dr Cai Dailu, a senior lecturer at NUS Business School’s Department of Strategy and Policy, said the delay could impact how SMEs approach the agreement.
He explained that uncertainty over the signing might lead businesses to adopt a cautious, “wait-and-see” approach, which could limit the agreement’s full potential. The delay also comes at a time of global economic instability. Dr Cai pointed out that right now, the “world is really unpredictable.” He added that the uncertainty is not limited to this region, noting, “We don’t really know how global trade would be affected under the new administration in America, for instance.”Dr Cai explained that the SEZ agreement could play a key role in reducing these risks by encouraging collaboration and building a stronger investment framework. He said it could help businesses withstand potential economic shocks.
Despite this, Dr Cai emphasised the importance of agreements like the JS-SEZ, saying they are vital for fostering regional cooperation and helping companies navigate an “unpredictable macroeconomic framework.