Distinguished guests. Ladies and gentlemen.

Good morning.

1.              The latest Ministry of Trade & Industry’s statistics showed that the Singapore economy turned in a strong performance in the second quarter, rising 12.5 per cent from 7.5 per cent in the first quarter. For the first half of the year, the economy grew by 10 per cent, compared with the same period in 2003. This is indicative of the economy’s recovery from the severe impact of SARS a year ago as well as the continuing pickup in global economic activity. This strong growth momentum is expected to continue into the second half, and the economy is expected to grow by between 8 and 9 per cent, barring unforeseen circumstances.

2.              Given this brighter economic outlook, it is very opportune for JTC to organize this morning’s conference and exhibition on “Industrial Space 2004 – Opportunities and Challenges in Singapore and Asia”.

3.              Earlier in his welcome address, JTC’s CEO Lit Cheong has already outlined the Corporation’s intention to outsource more its industrial property development projects to private sector participation. What this means is that there will be more and more opportunities for real estate developers to partner with JTC to undertake industrial property projects in Singapore. In the past, the industrial property sector was dominated by only a few players, namely JTC, HDB and a few private developers.

4.              However, the government feels that it is increasingly important to increase private sector participation in the delivery of public services. We hope to bring together the public and private sectors’ expertise, resources and innovation to meet the needs of the public more effectively and efficiently.

5.              In the area of industrial property development, we hope that through private sector participation we can tap their flexibility to introduce innovation, and achieve optimal whole lifecycle costing by outsourcing design, build, maintain and operate to private sector developers. At the same time, we can help build up the private sector’s expertise and experience in the area of industrial property developments. This will create more business opportunities for our property developers as they expand and undertake more overseas industrial park projects. 

6.              The future of Singapore lies in our ability to adapt to the fast changing global environment. As a small city-state, we cannot afford to be inward-looking. Our companies and entrepreneurs have to be outward-oriented and open in our attitudes to embrace change and innovation. We will have to continue to grow our external wing in the coming years so as to give a boost to economic growth in Singapore itself.

7.              Singapore is well-positioned to take advantage of the growth potential and opportunities in overseas countries especially in China, India and the Middle East. The government has been making efforts to build links to these countries. Our core strengths are well-known: i.e. good public administration, excellent business infrastructure, strong legal system and protection of intellectual property rights, our tripartite cooperation and a cosmopolitan outlook. All these will stand us in good stead as our Singapore companies expand and internationalise their businesses.

China

8.              China is an important growing market for our companies. It has become a big account for us with non-oil exports growing by 40 per cent in 2002 and 34 per cent last year. China is also the most important recipient of our foreign direct investment with cumulative contractual investments reaching US$45 billion last year.

9.              Ten years ago, Singapore and China joined hands to develop the Suzhou Industrial Park (SIP). SIP remains the largest G-to-G collaboration project between our two countries. Since then, we have developed very close ties with our Chinese partners and we would like to continue to build on this strong foundation of friendship. Looking ahead, we believe that we can cement our ties with China further by exploring new areas of bilateral cooperation, e.g. in industrial property developments and other infrastructure projects. 

India

10.          India has been the second fastest growing economy after China in the last ten years. Its own MNCs are confidently expanding and investing overseas, starting with their IT majors and followed soon after by their pharmaceutical players. And the large foreign MNCs are now investing seriously in India, in services as well as manufacturing.

11.          We have about 1,500 Indian companies in Singapore, more than 40% of which are technology enterprises. We will continue to reach out to Indian companies and position Singapore as a natural conduit between India and the world.

12.          Singapore is now in the final stages of negotiating with India for a Comprehensive Economic Cooperation Agreement. The CECA will be a major leap forward in our bilateral relationship. India will benefit from its extension into Singapore. And Singapore will be buoyed by its Indian wing. We have good links with the new Indian government and Singapore investments in India have grown in areas like telecommunications, ports, industrial parks, logistics, the healthcare industry, the financial industry and township development.

Middle East

13.          Singapore has also stepped up its ties with the Middle East which represents a sizeable market of 400 million people, with a combined GDP of more than US$1 trillion. We have successfully concluded an FTA with Jordan and will soon launch negotiations with Bahrain. We are also discussing with Egypt, Qatar and Oman about the possibility of launching negotiations. We are strengthening our links to the UAE and Kuwait as well.

14.          Our local companies must take advantage of these new opportunities and maximize the benefits of these FTAs and the goodwill that Singapore enjoys. They must be prepared to take on overseas projects and venture beyond the comforts of home. We believe that the future is bright for the rapidly growing Asian region and many opportunities are out there waiting for us to explore.   

15.          Today’s conference and exhibition is just another platform for you to network and explore new areas of partnership with our overseas speakers from India and Abu Dhabi. They have come here to share with you the challenges and the opportunities in Mumbia and Abu Dhabi. At the same time, JTC can also provide you with some insights into the new areas of developments that Singapore is embarking on, especially in the industrial real estate market.  

16.          On this note, let me wish you all a fruitful and successful conference and exhibition. Thank you.