Canadian companies seeking a gateway to Asia should take a close look at Singapore. Home to 6 million people, this small-but-mighty island nation is the wealthiest in Southeast Asia, with an advanced economy specialized in finance, services, electronics and high-tech exports. 

Singapore is an ideal choice for a regional base or branch in Asia because of its: 

• Safe environment with world-class urban amenities and infrastructure
• Business-friendly government policies and openness to trade
• Strong rule of law

Singapore is also a leading transportation and logistics hub, with a seaport that links to 600 ports in 120 countries, and Changi Airport, consistently ranked as one of the world’s best—and busiest. 

Canadian companies operating in Singapore can leverage the country’s free trade agreements, including the Regional Comprehensive Economic Partnership (RCEP), to access additional markets in Southeast Asia and the broader Indo-Pacific region.

Many Canadian companies are capitalizing on opportunities in Singapore. In the past five years, Canadian merchandise exports to Singapore have averaged about $1.3 billion, placing it in our Top 30 export destinations by value. 

According to the Trade Commissioner Service (TCS), there’s still significant untapped potential for Canadian companies, including small- to medium-sized enterprises (SMEs), in agri-food and seafood, cleantech, fintech, and life sciences, among other sectors. 

• International trade agreement with Canada: Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) 
• Top Canadian exports: Machinery, transportation equipment, chemical products
• Canadian merchandise exports total value (2023): $1.73 billion
• Growth rate of Canadian merchandise exports, last 5-year (2019-2022) average: 9%
• Population: 6 million
• GDP (2023 nominal): US$501 billion
• GDP per capita, PPP, real (2023): US$102,292

Source: Haver Analytics, EDC Economics

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As a stable, open and mature economy with strong political and cultural ties to Canada, Australia is a great choice for companies seeking a comfortable entry point to the Indo-Pacific region.    

Canada and Australia share a diversified commercial relationship, with significant two-way investment and trade in services. Canada exports about $2 billion worth of goods to Australia every year.  

Our free trade agreement with Australia, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), has further opened the Australian market for Canadian companies by:

• eliminating tariffs on key exports
• improving access for service providers
• making temporary entry easier for certain categories of workers
• providing access to new government procurement opportunities in Australia 

This strong foundation can support significant growth for Canadian businesses seeking to diversify. Currently, sectors of opportunity in Australia include infrastructure, power and renewables, digital industries and advanced technologies, along with agri-food, seafood and value-added wood products.  

• International trade agreement with Canada: Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) 
• Top Canadian exports: Machinery, commercial services, agricultural goods
• Canadian merchandise exports total value (2023): $3.16 billion
• Growth rate of Canadian merchandise exports, last 5-year (2019-2022) average: 9.9%
• Population: 27 million
• GDP (2023 nominal): US$1.7 trillion
• GDP per capita, PPP, real (2023): US$50,141

Source: Haver Analytics, EDC Economics

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India is a priority market for Canada due to the scale of export opportunity it presents. One of the world’s largest emerging markets, India is home to more than one billion people, including a growing middle class ready to flex its purchasing power. 

Canada has a longstanding and positive commercial relationship with India, and rich interpersonal connections woven by the large community of Canadians with Indian heritage. In 2023, India was Canada’s 8th-largest export market. Despite this, Canadian goods exports to India are still below where they could be—underlining the market’s untapped potential for Canadian businesses. 

Canadian companies interested in India should be prepared to take on its challenges. With its enormous population and large land mass, India isn’t one market, but many. Personal relationships are key, so working with Indian partners can often help Canadian companies navigate the culture and develop strategies that will work in India to reduce the time needed to establish yourself in the market.

The business environment is competitive and price-sensitive, so careful market research is a must. Additional challenges include bureaucracy, underdeveloped infrastructure, lingering ESG issues and tariff barriers. 

But the country is actively transforming its business environment to make investment and trade more attractive. While Canada doesn’t have an FTA with India, the two governments are working toward a Comprehensive Economic Partnership Agreement and a Foreign Investment Promotion and Protection Agreement (FIPA). 

Sectors where Canada has a comparative advantage for exports include renewable energy and cleantech, infrastructure, agri-food and fertilizers. 

• Top Canadian exports: Machinery, commercial services, agricultural goods
• Canadian merchandise exports total value (2023): $5.14 billion 
• Growth rate of Canadian merchandise exports, last 5-year (2019-2022) average: 9%
• Population: 1.44 billion
• GDP (2023 nominal): US$3.57 trillion
• GDP per capita, PPP, real (2023): US$7,657

Source: Haver Analytics, EDC Economics

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A powerhouse within the Association of Southeast Asian Nations (ASEAN) and president of the G20 for 2022, Indonesia has cemented its status as a top emerging market for exporters and investors. 

An improved business climate and favourable demographic trends are driving opportunities in Indonesia, which is already Canada’s largest export market in ASEAN. Indonesia’s population is the fourth largest in the world, and almost 25% percent of its 280 million people are middle class, creating demand for a wide range of goods and services. 

After decades of underperformance, the Indonesian economy is beginning to reach its full potential, with a compounded annual growth rate of nearly 8% forecast for the next few decades. The Indonesian government is investing heavily in infrastructure, including public transport, airports and utilities. This opens opportunities for Canadian manufacturing, infrastructure and cleantech companies that can devote the necessary time and resources to build local relationships and conduct strong due diligence prior to entering the market. 

• International trade agreement with Canada: On June 20, 2021, Canada and Indonesia launched negotiations towards a Comprehensive Economic Partnership Agreement (CEPA)
• Top Canadian exports: Agri-foods, manufactured goods, minerals and metals
• Canadian merchandise exports total value (2023): $2.3 billion
• Growth rate of Canadian merchandise exports, last 5-year (2019-2022) average: 4.7%
• Population: 280 million
• GDP (2023 nominal): US$1.37 trillion
• GDP per capita, PPP, real (2023): US$13,066

Source: Haver Analytics, EDC Economics

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With an annual gross domestic product (GDP) of US$1.8 trillion, South Korea is the fourth-largest economy in Asia, and one of the region’s most favourable business environments. Its combination of high growth and stability makes South Korea an appealing market for Canadian exporters and investors in many sectors.  

The Canada-Korea Free Trade Agreement (CKFTA), signed in 2015, cemented South Korea’s status as a strong trade partner for Canada. In 2023, Canada exported almost $7 billion of merchandise to Korea. As bilateral trade increases, new opportunities are opening for Canadian companies in agri-food, seafood,  cleantech and high-tech goods.

Recently, Korea has emerged as an entertainment powerhouse that’s producing shows, music, fashion and digital games popular across the globe. Thanks to the country’s robust information and communication infrastructure, network connectedness, and a culture that embraces early adoption, Korea is a leading market for virtual reality (VR) and emerging digital technologies. 

Along with our traditional exports, significant opportunities exist for wireless technologies and network services, game development and digital entertainment companies.

• International trade agreement with Canada: The Canada-Korea Free Trade Agreement (CKFTA)
• Top Canadian exports: Minerals, base metals, wood pulp, agri-food
• Canadian merchandise exports total value (2023): $6.95 billion
• Growth rate of Canadian merchandise exports, last 5-year (2019-2022) average: 6.2%
• Population: 51 million
• GDP (2023 nominal): US$1.72 trillion
• GDP per capita, PPP, real (2023): US$44,910

Source: Haver Analytics, EDC Economics

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