I am happy to be here today for the launch of Smart Radio, Asia's first fully digital radio service by the Radio Corporation of Singapore (RCS).

This is a significant milestone for radio in Singapore. RCS has come a long way since the first regular radio service in 1936 broadcast from Caldecott Hill. From 4 channels under Radio-Television Singapore, there are now 18 radio stations broadcasting in Singapore. RCS runs 12 of these stations, which together enjoy 90% of the radio audience share.

But there is no room for complacency. New mass media such as cable TV and Internet have intensified competition in the broadcasting industry. Cable TV offers consumers a wide selection of programmes from all over the world, delivered in the comfort of their homes. Wireless Internet will give people easy access to thousands of overseas Net radio stations. It will become much harder for local broadcasters to hold audiences in this multi-channel and multi-media environment.

Faced with these developments, RCS cannot simply stand back as an onlooker and allow its role to be eroded. It must maintain its position as the premier radio station among Singaporeans, and continue to make its voice heard amidst the cacophony of the global media. For radio continues to play an important role in Singapore’s nation building. In the 1960s, during the debate over merdeka and merger, it was through radio that the government reached out to the people. In those days, television sets were not common, and many could not read. Most Singaporeans depended on the radio for information.

Today circumstances have changed, but radio continues to touch its diverse audience in a uniquely personal way. Each listener feels that he or she is the only person being addressed by the radio presenter. That is why radio remains a valuable link between the Government and Singaporeans, helping people to understand national issues and developments that affect their lives. In moments of crisis, the radio can provide constant information and reassurance, and give strength to the people. Even in our present peaceful times, radio can go beyond entertaining Singaporeans, to educate, motivate, and help us form the national consensus.

RCS must therefore keep up with the changes in the broadcasting industry and improve itself, in particular by upgrading to technology that will help to vastly improve its services.

RCS has responded to the challenges by embracing digital technology. With the introduction of Smart Radio, RCS is bringing the digital revolution into Singapore, raising radio broadcasting to new heights. Consumers will not only experience CD-quality sound, but can also view news headlines, traffic information, and even see pictures. DAB will increase the number of radio channels available, and make possible many new multimedia services, benefiting the consumer.

Making Smart Radio a success and unleashing all this promise of digital radio, however, will require much effort on our part and co-operation with other industry players. Canada and some European countries that began introducing digital radio since 1995 have encountered various problems ranging from high prices of digital receivers and weak demand, to problems in the regulatory framework arising from federal, regional and municipal concerns.

Being a small country, Singapore does not face such regulatory problems. However, we do have to address the economics of high prices and weak demand. This is why the commitment and support of all key players – the broadcasters, the regulators and receiver manufacturers – are vital to the success of DAB.

To help reduce cost, SBA has facilitated the partnership between IGF and Remerco to produce basic, low-cost digital receivers. It is also working with other agencies to encourage more companies to enter the digital broadcasting market, and widen the range of services available to the public. One advantage we have is that Singapore is the regional base for R&D in high-end audio and video products. This will provide an important source of inputs to feed the development of the market for DAB services.

RCS will be committing $21 million over the next five years to develop more digital audio broadcast services. It is also collaborating with other bodies to use the digital broadcasting technology to deliver real-time multimedia information to people on the move. For example, it is working with LTA to use Singapore’s IT infrastructure and advanced traffic information systems, to provide motorists information gathered by Traffic Scan on DAB. In addition, RCS will mount an aggressive programme to educate the public on the potential of this new technology and promote the use of digital radio.

Technological advances are changing the environment in which Singapore operates. We feel the impact in every aspect of our economy, be it in manufacturing, retail or the financial sector. To stay competitive, Singapore must adapt to these changes promptly and creatively.

Radio broadcasting is no exception. Amidst the promise and hype of the Internet and new technologies, many may think that radio is "old" technology and on the way out. But this was the view when television developed to become a key component of mass media. Yet radio has kept its niche by adapting itself and capitalising on its unique characteristics and strengths.

RCS’ initiative to tap digital audio broadcast technology is a positive move in the face of rapid technological change. It will help to keep RCS relevant and able to play its national role. I congratulate RCS on the launch of Smart radio and its pioneering work in DAB technology.

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