Singapore and Hong Kong leaders reaffirmed the "close relations" between both cities and explored potential collaboration on the Belt and Road Initiative.
Hong Kong chief executive Carrie Lam was on a two-day official visit to Singapore at PM Lee's invitation.
She called on and was hosted to dinner by Prime Minister Lee Hsien Loong on Thursday. Both leaders noted that the two cities share many similarities and challenges, Singapore's Ministry of Foreign Affairs(MFA) said in a media statement.
While Singapore and Hong Kong compete in some areas, they also cooperate with each other in many fields, it said.
Mr Lee and Mrs Lam discussed deepening Singapore-Hong Kong and ASEAN-Hong Kong cooperation in areas including trade and investment, finance and civil aviation. They also explored potential collaboration under the Belt and Road Initiative, MFA said.
"They welcomed the conclusion of the ASEAN-Hong Kong Free Trade Agreement negotiations on Jul 31, 2017 and looked forward to its signing and early implementation," MFA added.
Mrs Lam told Lianhe Zaobao in an interview last week that the free trade agreement could be signed before the end of the year.
Mr Lee also congratulated Mrs Lam on the 20th anniversary of Hong Kong's return to the mainland this year, and noted that both sides have an interest in the success of "One Country, Two Systems".