Singapore Government Press Release

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

SPEECH BY MR SIDEK SANIFF,

SENIOR MINISTER OF STATE FOR EDUCATION,

AT MUSIAD 2ND INTERNATIONAL FORUM AND

4TH INTERNATIONAL GRAND FAIR,

19-24 NOV 96 HELD IN ISTANBUL, TURKEY

Introduction

In his book Tribes: How Race, Religion and Identity Determine Success in the New Global Economy, American author, Joel Kotkin, brought out how overseas Chinese, Jews, Indians, Japanese and British have been forming ethnic networks over the years to commercial advantage. In pages 4 and 5 of his book, Kotkin has this to say :

"In defining global tribalism, I have set out to examine five principal groups - the Jews, British, Japanese, Chinese and Indians - all of whom powerfully illustrate this phenomenon. Although each of these five tribes possesses a vastly different history, they all share the following three critical characteristics :

A strong ethnic identity and sense of mutual dependence that helps the group adjust to changes in the global economic and political order without losing its essential unity.

A global network based on mutual trust that allows the tribe to function collectively beyond the confines of national or regional borders.

A passion for technical and other knowledge from all possible sources, combined with an essential open-mindedness that fosters rapid cultural and scientific development critical for success in the late-twentieth-century world economy.

And he continues :

Of course, these five groups are not alone in displaying some or all of the above traits. Dispersed ethnic groups, in one form or another, have existed since the beginnings of history. Often originating as small, highly distinct tribes, some ultimately extended their influence over wide swaths of territory. Their unmistakable imprint on distant lands at times lingered for centuries following their departure or even their own society's ultimate collapse. In Western antiquity, Babylonians, Egyptians, Phoenicians, Greeks and Romans, for example, played such critical formative roles. Similarly the ancient Native Americans - the Incas, Mayans and Aztecs of meso-America - and the great Chinese and Islamic empires left profound marks upon the language, religion, custom, architecture, agriculture and science of cultures well beyond their formal borders". Based on the criteria, don't you think that the Turkish people could be one of new diasporas?

Singapore's Economic Development

All the 5 modern groups or diasporas made South East Asia as one of their destinations, including Singapore. The numbers became greater especially after the Second World War. Our open market policy has attracted big compaines to our shore. Talent from abroad are also encouraged. This, I think, will be the said test to our modern world as we move towards the new millenium.

Over the past three decades, Singapore has progressed from being an under-developed economy in the 1960s to a "more advanced developing country" as defined by the Organisation for Economic Co-operation and Development (OECD) today.

The cornerstone of Singapore's success lies in its political stability, excellent business infrastructure, strategic location in the midst of the booming Asian economies, sound legal framework, world-class financial services and a pro-business approach. This has attracted many international companies to do business with Singapore and use it as a base for their regional expansion.

Singapore's position as an important business hub has been recognised by Fortune Magazine, whose readers ranked Singapore as the world's No. 1 business city.

Economy

Singapore success in measuring up to world standards can also be seen in its ranking as the world's most competitive economy according to a recent global competitive index by the Swiss-based World Economic Forum.

In 1995, the Singapore economy grew by 8.9 per cent, while our GDP increased by 12 per cent to reach S$121 billion. External trade was three times this figure, amounting to S$344 billion.

Trade

In 1995, the World Trade Organisation ranked Singapore as the world's 13th largest trading nation, reflecting the extent to which the country's role in global trade has grown.

Singapore's role as a trading hub is set to expand even further. As trade liberalisation takes root in the region, intra-APEC trade will increase significantly. With Singapore's location at the heart of the Asia-Pacific, the likelihood is that trade flowing through Singapore will increase concomitantly.

Investing in the Future

While Singapore has done well so far, it has continued to sharpen all its current capabilities. For example, Singapore intends to spend about US$2.5 billion on improving the telecommunications system alone. Also planned are a mega-logistics, air cargo and freight-forwarding centre; and, a major port expansion programme.

International Linkages

Singapore continues to build up its global business network and international linkages through active participation in both government and private sector international fora, and attachments to international organisations such as the World Trade Organisation, APEC, and ASEAN.

Regionalisation Drive and the External Wing

Regionalisation has been the buzzword in Singapore since its political leadership called on Singapore businessmen to build a strong external wing to the economy. Over the years, Singapore has been adopting this strategy of a "second wing" to the economy - in part to compensate for its small size and limited resources - where local entrepreneurs are encouraged to penetrate key overseas markets.

For trade, Singapore's regionalisation targets have been ASEAN, China, India, Vietnam and Myanmar. But we are also looking at targeting new markets in Russia, Cambodia, South Africa, Latin America, and the Middle East.

Singapore businessmen have responded positively to this by regionalising their operations and tapping on the burgeoning opportunities available. The ASEAN region for example, have seen the active presence of Singapore business for a long time. Today, Singapore's total trade with ASEAN amounts to S$88 billion. Malaysia and Indonesia are now Singapore's top two investment destinations.

Meanwhile, Asia's share of total world GNP will outstrip other regions by year 2000 and dominate by year 2030 (Annex A).

Naturally, the regional markets are familiar grounds for doing business based on our historical ties and geographical proximity.

Singapore is also a melting pot of many cultures - Chinese, Malay, Indian and others. This provides a useful channel for better communication and interaction between Singapore and the countries around us, resulting in mutual trust and respect, both of which are essential factors for lasting political and economic ties.

Muslims : Developing a Global Business Network

Muslims for that matter, could also build up such ties to ease the way to business linkages through their similar backgrounds.

Based on the latest available data by the Muslim World League, there are currently more than 1.4 billion Muslims in the world, that is, 25 per cent of the total world population. This number is projected to grow even further to reach 1.6 billion in the year 2000.

Given the vast Muslim population, it makes sense to develop a global business network to our mutual advantage.

Singapore as an Economic Matchmaker

Singapore can act as a springboard for companies which wish to tap into the region. With its strong linkages with the Asian economies, the Republic can link Muslim businessmen with Singapore companies or others to invest in the region. It can also act as an economic matchmaker for Muslim businessmen who need some point of entry, some connection with people who know you, speak your language, and understand your fundamental beliefs, to penetrate into other countries.

Strategic Alliances and Pooling of Resources

To further strengthen these linkages, Muslims in the region could tie up with other Muslim businessmen through joint ventures or partnerships. They could also pool their resources together in terms of finance, manufacturing and marketing.

In Singapore for example, Malay/Muslim businessmen have launched a Malay Entrepreneurs Club of Singapore to regionalise and globalise Malay/Muslim business ventures.

The Singapore Malay Chamber of Commerce and Industry, in turn, is developing an information databank of halal food suppliers in China, New Zealand, Egypt, Saudi Arabia and Singapore, for dissemination to its members.

In May this year, there was also the launch of an Internet site called the World Malay Business Directory, by Ampro, the business arm of the Association of Muslim Professionals.

Trade Promotion Events

An important avenue for Muslim businessmen to network is through trade promotional events such as trade fairs and trade fora.

Participation in these fairs, for example, the International Muslim Food Exhibition in Singapore and the MUSIAD International Grand Fair, would provide businessmen with a collective platform to showcase and promote their products. Participation in relevant trade shows is not just one of the more cost-effective ways for Muslim businessmen to meet with prospective buyers and trade contacts, it is also an opportunity for you to build up strong ties based on our similar background.

Finally, The Economist, under the caption "A Survey of Islam" on 6 Aug 94 pleaded to the international community :

- Not to currently assume Islam as 'the late 20th century's oddman out'.

- On the contrary Islam may adopt a concept that encourages the West to rediscover a similar concept of its own past.

- Islam has its own Free Market that can or should operate without any sort of constraint.

- It has to live with certain non-economic rules.

It further adds :

Islam all along believe in taking care of the environment as stated in the Al-Quran.

- God's intuition and Muslim's own conscience.

- Reasonable wages.

- Fair Price.

- Decently spends his profits.

- Less ruthless than end up people in bankruptcy.

There are already several "secular" banks like the Bank of England which opened it's "Islamic Window". This is indeed a healthy development since the Muslims organised its first International Conference on Islamic Economics in February 1976 at Makkah. "It was the first time in contemporary history that these two streams of expertise, represented by professional economists and the traditional Islamic scholar had the chance to jointly reflect on problems of common interest".

Let our approach be more global and holistic as observed by others now. The scope should be both horizontal as well as verticle or inter-temporal. This represents a new approach to the study of the economic problem of man. Thus the need to change the paradigm under which economic problems are not studied in isolation but in the context of an active social system as rightly observed by The Economist.

Besides the Economist, we should also study the casual mention of Ibnu Khaldun who has been hailed as the greatest economist of Islam in J.A. Schumpeters Compendium.

Ibnu Khaldun has a wide range of discussions on economics including the subject of value, division of labour, the price system, the law of supply and demand, consumption and production, money, capital formation, population growth, public finance, trade cycles, and also noticed, in the Keynesian sense, the importance of the demand side particularly government expenditure in avoiding business slumps and maintaining economic development.

Ladies and gentlemen, it is now up to us to give that new paradigm and share it globally as enshrined in the Al-Quran and the Hadiths of Prophet Muhammad Sallallahu Alaihi Wassalam.

Thank you.

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