Singapore Government Press Release

Media Division, Ministry of Information & The Arts, #36-00, PSA Building, 460 Alexandra Road, Singapore 119963, Tel: 3757794/5

PR No. 105/96

18 November 1996

TDB'S FOUR-PRONGED APPROACH TO INTERNATIONAL TRADE DEVELOPMENT - ANNUAL REPORT 95/96 -

The Singapore Trade Development Board (TDB) released its Annual Report 95/96 today.

In the year under review, the TDB adopted a four-pronged approach to expand external trade and enhance Singapore's international competitiveness:

• Providing timely business information and market intelligence to companies.
• Achieving even greater efficiency in administering and regulating Singapore's trading system through enhancing the nation-wide computerised trade documentation system.
• Facilitating regional investments and third country collaborations with mega international trading and logistics companies.
• Stepping up market development efforts through regionalisation programmes, pioneering new markets and promoting exports from new growth industries.

BUSINESS INFORMATION

Recognising the need for timely and reliable information for international commerce, TDB has built up its capability to better service the business community at two levels:

i) Developing documented information databases. The TDB's Trade and Investment Information Centre (TIIC) has been significantly expanded. The TIIC is today Singapore's largest business library providing a wide range of industry and market information. With the TIIC electronically integrated with TDB's world-wide network of 30 overseas offices, current as well as market-specific information is readily available.

To enhance the role and reach of the TIIC, TDB launched an on-line information service, GlobaLink, on the Internet. GlobaLink is TDB's response to meeting the information needs of Singapore companies in cyberspace. One of the main features of GlobaLink is a database of more than 5,000 exporting companies which are retrievable by company names, address, product and industry categories. TDB intends to enhance GlobaLink to provide highly interactive business applications which will enable companies to obtain information on demand.

ii. Personalised market advice and contacts. Beyond documented information, companies need market intelligence and contacts at a more personalised level. Recognising this, TDB organised its first-ever International Day in February 96 where the local business community had the opportunity to meet TDB's overseas centre directors and market specialists in a series of seminars and consultation sessions. The event was well-received by more than 350 participants. Because of the added value the event brought to the business community, TDB will organise International Day on an annual basis.

TDB also continued to organise business opportunities conferences and consultancy seminars on a regular basis. More than 100 seminars on trade and investment in countries such as China, the Philippines, India and Turkey, as well as on various industries have been conducted, with more than 6,000 participants.

To facilitate more personalised interaction and networking among Singapore businessmen and their overseas counterparts, TDB has initiated the establishment of several market-specific business groups. The membership in these groups has been very encouraging. (See Table 1).

China Business Group                         600 members         

India Business Group                         202 members         

Myanmar Business Group                       130 members         

Shandong Business Club                       80 members          

Singapore-Shandong Business Council          12 members*         

Singapore-Hubei Trade and Investment         7 members*          
Committee                                                        

Singapore-Sichuan Trade and Investment       9 members*          
Committee                                                        

Thailand-Singapore Business Council          30 members          

Table 1

* Figures for main committee members only

TOTAL ELECTRONIC TRADE DOCUMENTATION SYSTEM

In 1989, TDB launched TradeNet, a computerised trade documentation system which is the first nation-wide Electronic Data Interchange (EDI) system in the world. Companies in Singapore derived significant productivity gains as the time taken for the processing of trade documents was reduced from an average of three days to 15 minutes.

TDB is now enhancing TradeNet to achieve even greater efficiencies. TradeNet Plus, launched late last year, is an integrated system covering all aspects of the trade process from trade documentation, transportation, finance, insurance and cargo movement to billings and payments. The project is to be implemented in three phases. Under Phase I, an Interactive TradeNet service will be offered to further cut the processing time for permit applications to just two minutes.

                 Before   1989        1995 (to be implemented by 2001)     

                 --       TradeNet    TradeNet Plus (Interactive           
                                      TradeNet)                            

Processing Time  3 days   15 minutes  2 - 5 minutes                        

REGIONALISATION THROUGH INTERNATIONAL TRADING

Through TDB's active promotion of Approved International Trade (AIT), Approved Oil Trader (AOT), Approved International Shipping Enterprise (AIS) and Aircraft Leasing Incentive (ALS) schemes, over 150 international companies have been attracted to base themselves in Singapore. Their contribution to the Singapore economy has been substantial. In 1995, AIT and AOT companies chalked up a physical turnover of more than US$70 billion, six times the figure in 1989 when the schemes were first launched.

The schemes have not only strengthened Singapore's position as an international trading and distribution hub, they have also provided a strong base of international companies in Singapore that could be potential partners for Singapore companies that are regionalising. Another significant development is that these companies are increasingly engaged in a wide range of activities including finance and investment, co-operative ventures and project co-ordination, spinning off benefits not only for Singapore but the region as well.

Among the joint ventures formed last year between AIT and Singapore companies in 1995 include a partnership between Sumitomo Corporation, a local AIT/AOT company and Singapore Technologies Automotive to form Southern Airports Transports and Engineering Services Co. in Vietnam. The co-operative venture is for the provision of a taxi service and a workshop to maintain airport ground support equipment and vehicles. Another example is the joint venture between AIT/AOT company, Itochu Corporation, and publically-listed Showa Plastics to establish and operate a factory producing plastic components for electronics in China.

MARKET DEVELOPMENT

The focus of TDB's market development in the year under review continued to be the Asia Pacific region.

• Missions and exhibitions. Some 650 companies participated in the overseas missions and exhibitions organised by the Board. These include 60 overseas trade missions to countries such as China, Germany, Hungary, India, Indonesia, Japan, Myanmar, the United States and Vietnam.

• New offices. TDB also strengthened its international presence by opening new offices in Hanoi, Kuala Lumpur, Yangon and Pretoria. In the last six months, TDB has further expanded its network to include Shandong, Manila and Khabarovsk. With its current 30 overseas offices, TDB boasts the largest network of overseas offices among statutory boards in Singapore. Of the overseas offices, 20 are based in Asia.

In line with industry trends, TDB spearheaded several initiatives focusing on new growth areas.

• Printing and publishing. Singapore, as the third largest print export centre in Asia, is positioning itself to become a "print communications centre" by venturing and diversifying into new media such as electronic publishing and multi-media production. In line with this development, TDB led the first electronic publishing mission to the United States to study developments in multimedia and marketing opportunities there. TDB also organised Singapore's participation in the Electronic Publishing Media hall in the Frankfurt Book Fair in Germany.

• Food and beverages. In the year under review, TDB spearheaded the establishment of a food consortium as a means for local companies to leverage on size and complementary strengths to compete internationally. One of the main tasks of the consortium is to focus on developing a single brand for Singapore food and beverages that which would be recognised world-wide.

• Furniture. The regionalisation efforts of Singapore's furniture manufacturers has been successful. Some 70 Singapore furniture manufacturers have set up plants in the region, including the first Singapore private sector-led specialised industry park in Kunshan, China. Following the successful development of the furniture park, TDB announced plans to study the possibility of locating a furniture distribution park in the United States, the No. 2 export market for Singapore furniture. A mission to identify possible sites for the park was recently organised.

• Multimedia. With the convergence of high speed technology and the telecommunications network, there has been growing demand multimedia products and applications. To help Singapore capture this market and develop the country as a global multimedia hub, TDB and the National Computer Board established a Multimedia Interactive Group in May 1995. This is an informal group comprising private companies from different segments of the multimedia industry. Currently, there are about 70 members in the group.

Recognising the growth potential of the Japanese IT market, TDB organised the participation of Singapore companies in two shows in Japan. Multimedia companies were also led to exhibitions in the US and India.

FINANCIAL HIGHLIGHTS

In the financial year 1995/96, TDB's group operating income grew from $72.2 million to $74 million. Expenditure for the year was $90 million, representing an increase of 11 percent over the previous year. This was due predominantly to the relocation of TDB's head office from World Trade Centre to Bugis Junction.

The Group incurred a deficit of $16 million from operations during the year. This was mainly a result of an increase in expenditure and a decline in the ad hoc sources of revenue.

Issued by the Singapore Trade Development Board

For more information, please contact:

Andrienne Tho (Ms)

Public Relations Officer

DID: 433 4949

Fax: 337 8136

E-mail: thomc@tdbpo1.tdb.gov.s