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Singapore and China have signed several pacts to increase cooperation in such areas as taxation and water management.
According to China Daily, the pact will lead the two countries to amend laws in order to avoid double-taxing investors' income. The two countries are also in talks for a free-trade agreement.
Some other areas covered in the pact were health quarantine, water management research and training of Chinese officials in urban planning, environmental protection, finance and taxation.
Wu Yi, China's Vice Premier, witnessed the signing during a four-day visit to Singapore.
Wu reported to China Daily that Singapore had invested $31 billion in China by the end of May this year, making the city-state China's sixth-largest source of foreign direct investment. Wu also reported that Singapore has trained more than 9,000 Chinese officials.
International Enterprise Singapore reported to China Daily that China was Singapore's fourth-largest trading partner in 2006, with total trade amounting to S$85 billion ($56 billion).