What started as the devaluation of one currency, the Thai Baht, has spread into a contagion which has affected the other countries in the region with ripple effects that have affected adversely other emerging markets like Russia and Latin America.

It is difficult to say how long the present economic recession will last or predict when the regional countries will arrest the decline in their economies and get back on the path of steady growth.

As a country located in the region, Singapore is also affected, although to a lesser extent than our neighbours, by the regional slowdown.

Our strong fundamentals, good infrastructure and diversified economy will help us to weather the storm although we must be prepared for difficult times in the next few years.

The present economic crisis makes it all the more urgent for us to develop new economic activities and new markets which can supplement Singapore’s present role as a manufacturing base for MNCs and as a services hub for the region.

With the region unlikely for some time to provide the same boost for Singapore’s economic growth as in past years, the development of entrepreneurial hi-tech businesses will be a vital component of Singapore’s economic strategy in the 21^st century.

The Government will ensure that we have a proper regulatory environment which will reward entrepreneurship adequately.

In the United States, NASDAQ with its group of sophisticated analysts and investors are able to give fair value to intellectual properties.

They are able to motivate technopreneurs with generous stock options.

Successful ideas can launch a person to live comfortably for generations, and spawn many more new start ups.

Such a capital market is lacking in Singapore.

While our successful emerging companies can ride on NASDAQ, in time, we should consider building up our equivalent of NASDAQ.

Only then can we be like Silicon Valley, a hotbed for talents, not only from Singapore but from all over the world, bringing in large treasure troves of ideas to test and experiment.

When successful, the talents will become the role models who in turn will attract many others trying to follow in their footsteps.

As regards funding of start-ups, the first professionally managed venture capital fund in Singapore started operations in the early 1980s.There are now about 70 such venture capital funds in Singapore including NSTB’s $150 million Technology Development Fund.

Our businessmen with financial resources can also help to nurture young technopreneurs not only with money but with their business contacts and valuable business experience in the same way as "financial angels" have played an important part in the development of the venture capital fraternity in Silicon Valley.

To provide a suitable physical environment for start-ups, Singapore will develop the Buona Vista area into a Science Hub.

The Science Hub will have three benefits:

a) Position Singapore for High-Tech Industrial Activities

b) Create a focal point for R&D and high-tech activities

1. Develop an Innovation Milieu

The Science Hub, which will include Holland village and the present two Science Parks, will have an attractive, thriving working and living environment.

Covering 176 ha, three times the size of the present two Science Parks, three-quarters of the land in the Science Hub will be zoned for industrial, R&D and commercial purposes, while the remaining land will be for residential purpose.

In addition to NUS, world-class institutions like INSEAD and Johns Hopkins University will establish a presence in the Science Hub.

The co-existence of the research and business communities will foster greater interaction and synergies among the research community and industry.

An efficient transportation network will be developed to create links within the Science Hub, and with the rest of Singapore.

To co-ordinate all the efforts, an inter-agency steering committee led by Mr Teo Ming Kian, Chairman of NSTB, will be set up to spearhead the overall development of the Science Hub.

The above initiatives will assist the development of hi-tech entrepreneurial business in Singapore but the most important is for Singapore to develop our own people and attract talent to our shores.

People are the source of ideas and innovation.

Our schools have prepared our students well in mathematics and science.

With this strong foundation, our schools’ curriculum are being revised to enable students to have more time and opportunities to explore and experiment, so they can exercise and develop their thinking and creative capabilities.

Our institutes of higher learning are being transformed not only to produce competent manpower to support our industries, but also to develop a culture of entrepreneurship and innovation.

With our liberal immigration policy, we can attract talented people to seek opportunities in Singapore and supplement our own talent pool.

Much needs to be done to build an environment where high-tech enterprises can flourish and grow and where technopreneurial activities can thrive.

Notwithstanding the difficulties, we must put in the effort.

An entrepreneurial hi-tech business environment will add a new dimension to the next phase of our economic development and assist our transition to a knowledge economy.

With your support and active participation, I am confident that we will succeed in this effort.

I wish everyone a fruitful participation in Techventure 98.

---------------------