The United Kingdom will need to negotiate new trade agreements with its trading partners including Singapore, said the Ministry of Trade and Industry (MTI) on Friday after UK's referendum to leave the EU, Xinhua reported.
MTI said the full impact of Brexit on the UK, the EU and the global economy will be heavily dependent on the UK's subsequent trade arrangements with the EU and other markets, including Singapore, as it is no longer covered by existing trade agreements.
"The nature and precise timing will depend on when Brexit takes effect, following the UK's deliberations with the EU," said the ministry in response to media queries.
While immediate aftermath of Brexit has led to substantial uncertainty and volatility in the financial markets, MTI noted that it is too early to assess the full consequences of Brexit.
Based on analysts' current estimates of the impact of Brexit on the UK and the Eurozone economies, MTI thought that the medium- to long-term direct impact of Brexit on Singapore economy is likely to be modest.