"There are huge opportunities available for Indian business community there. Indians can collaborate with Singaporean player to set up research and development centres in areas of solar energy and pharmaceuticals," Singapore Economic Development Board (SEDB) International Director Engkeat Lee said.
Mumbai-based SEDB is a leading agency of Singapore government for planning and executing strategies to attract investments globally.
Elaborating, Lee said Singapore is facing problems in manufacturing medicines for diseases like cancer, diabetes, and heart problems.
"An Indian pharma company can set up a wholly-owned manufacturing or R&D facilities there or can explore collaborations with Singapore companies," he said.
He also said that chemicals is another important area for exploring business opportunities.
Currently, Indian companies are investing mainly in services sectors. The presence of Indian companies has increased substantially in Singapore in the recent years. The number has increased to 4,090 from 2,579 four years ago.
"This clearly reflects the friendly investment environment in Singapore," Lee added.
Indian firms in Singapore, include Tata Consultancy Services, Mahindra Satyam, NIIT Technologies, Godrej and Usha Martin.
Lee also said that Singapore business community is looking to invest in the infrastructure sector in India.
"The Indian government is investing billions (of rupees) in this sector, so Singaporean firms can explore business opportunities here," he added.
After Mauritius, Singapore is second largest investor in India. While, India-bound investments from Singapore amounted to about USD 9.5 billion in 2009, Indian investments there have crossed USD 11 billion.
The two-way trade between the nations stood at USD 14 billion in 2009-10.
The two countries have reduced or eliminated duties on several products under a comprehensive free trade pact operationalised since 2005.