Distinguished guests,

Ladies and gentlemen,

1.                 I am delighted to join you today.  This is an important occasion, because The Logistics Institute-Asia Pacific (TLI-Asia Pacific) is embarking on its next lap as the beacon of Singapore’s logistics industry.

 Singapore – a global logistics hub and Supply Chain Management Nerve Centre

 2.                 We know that supply chain strategies are of rising importance among successful and global companies.   Effective and innovative supply chain solutions reduce supply chain costs, and directly help companies achieve faster response time and gain larger market share.  Logistics thus deliver value to both the top and bottom lines. 

3.                 For Singapore, logistics has always been a key part of our economy. It is critical to us both as an industry and an enabler.  As an industry, logistics accounts for more than 8 % of our GDP.  As an enabler, it gives industries operating out of Singapore a significant competitive advantage.

4.                 It is thus clear why Singapore wants to be a leading global logistics hub and a Supply Chain Management (SCM) nerve centre in Asia.  The results have been very encouraging.  We have attracted many global logistics leaders to set up operations here.  In fact, more than half of the world’s top 25 third party logistics providers (3PLs) have set up significant operations in Singapore.  Many of these companies, including this morning’s industry sponsors, Exel, DHL and Bax Global, have made Singapore their Asia Pacific Headquarters.  

5.                 Manufacturers like IBM and Motorola have also built up strong SCM competence teams in Singapore to orchestrate and coordinate the flow of goods, information and funds for their global supply chains from here.  Just two weeks ago, France’s LVMH Fragrances and Cosmetics opened its Asia Pacific Regional Distribution Centre in Singapore.  In doing so, LVMH joins numerous other global industry leaders like Philips Medical, Volvo and Eurocopter in setting Singapore as their Asia Pacific distribution hub from this year.  I thank all these companies for their confidence in Singapore, and welcome even more companies to do so.

6.                 We are fully aware that Singapore is not alone in harbouring this ambition.  Many other countries in the region are investing billions to develop and enhance their logistics infrastructure to become more attractive hubs.  It is therefore crucial for Singapore to continue differentiating itself by strengthening its hard and soft infrastructure. 

TLI-Asia Pacific to lead the way for Singapore’s Logistics Industry

7.                 In this regard, I see TLI – Asia Pacific playing a key role.   Through intensive research and collaboration with the industry, the institute will help Singapore-based companies conceptualise ideas, develop new innovative supply chain models and exploit new business opportunities.  Both manufacturers and logistics companies are now able to capitalise on the high quality education programmes offered by the institute to upgrade their SCM capabilities. 

8.                 TLI-Asia Pacific has done well since its inception in 1999.  It has successfully launched and maintained strong programmes in key areas of research, industry collaboration and education, and is well-positioned to become a strategic think tank for logistics and SCM in the Asia Pacific.  Most of the institute’s Dual Masters Degree students were co-sponsored by companies such as Exel, SembLog, UPS, Hewlett Packard and General Motors.  This is testimony to the relevance of its curriculum, and the strong support it enjoys from industry.  Many of these graduates have joined the Singapore logistics industry, and are actively helping to develop new growth opportunities for logistics operations in Singapore.  In the light of its valuable contributions, TLI-Asia Pacific won the Asian Freight and Supply Chain Awards - Best Educational Course Provider Category in both 2003 and 2004.  

9.                 TLI-Asia Pacific should continue to strengthen its capabilities in its next lap and launch even more industry-supported initiatives.  This “Think Logistics: New Frontiers” logistics week will serve as a good starting point for these efforts.

Conclusion

10.             I congratulate the management and members of TLI-Asia Pacific on your achievements thus far, and am confident that you will achieve even more in the coming years.

11.             On this note, I wish all participants a very fruitful seminar. Thank you.